ERGOMED PLC (2EM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:2EM - GB00BN7ZCY67 - Common Stock
11 EUR
-0.42 (-3.68%)
We assign a fundamental rating of 6 out of 10 to 2EM. 2EM was compared to 22 industry peers in the Life Sciences Tools & Services industry. 2EM has an excellent financial health rating, but there are some minor concerns on its profitability. 2EM is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes 2EM very considerable for growth investing!
1. Profitability
1.1 Basic Checks
- 2EM had positive earnings in the past year.
- In the past year 2EM had a positive cash flow from operations.
1.2 Ratios
- 2EM has a Return On Assets of 11.58%. This is amongst the best in the industry. 2EM outperforms 87.50% of its industry peers.
- 2EM's Return On Equity of 17.68% is fine compared to the rest of the industry. 2EM outperforms 75.00% of its industry peers.
- 2EM has a Return On Invested Capital of 19.56%. This is amongst the best in the industry. 2EM outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.58% | ||
| ROE | 17.68% | ||
| ROIC | 19.56% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of 2EM (10.31%) is comparable to the rest of the industry.
- 2EM's Profit Margin has improved in the last couple of years.
- 2EM has a Operating Margin (14.14%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of 2EM has grown nicely.
- With a Gross Margin value of 40.72%, 2EM perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- In the last couple of years the Gross Margin of 2EM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.14% | ||
| PM (TTM) | 10.31% | ||
| GM | 40.72% |
OM growth 3Y6.85%
OM growth 5YN/A
PM growth 3Y8.12%
PM growth 5YN/A
GM growth 3Y-2%
GM growth 5Y1.94%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 2EM is creating value.
- 2EM has more shares outstanding than it did 1 year ago.
- 2EM has a better debt/assets ratio than last year.
2.2 Solvency
- 2EM has an Altman-Z score of 9.27. This indicates that 2EM is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 9.27, 2EM belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
- 2EM has a debt to FCF ratio of 0.22. This is a very positive value and a sign of high solvency as it would only need 0.22 years to pay back of all of its debts.
- 2EM has a better Debt to FCF ratio (0.22) than 100.00% of its industry peers.
- A Debt/Equity ratio of 0.02 indicates that 2EM is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.02, 2EM belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.22 | ||
| Altman-Z | 9.27 |
ROIC/WACC2.4
WACC8.16%
2.3 Liquidity
- A Current Ratio of 1.50 indicates that 2EM should not have too much problems paying its short term obligations.
- The Current ratio of 2EM (1.50) is better than 62.50% of its industry peers.
- 2EM has a Quick Ratio of 1.50. This is a normal value and indicates that 2EM is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.50, 2EM is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
- 2EM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.60%, which is quite good.
- 2EM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.63% yearly.
- Looking at the last year, 2EM shows a very strong growth in Revenue. The Revenue has grown by 22.50%.
- Measured over the past years, 2EM shows a very strong growth in Revenue. The Revenue has been growing by 24.99% on average per year.
EPS 1Y (TTM)16.6%
EPS 3Y36.63%
EPS 5YN/A
EPS Q2Q%23.7%
Revenue 1Y (TTM)22.5%
Revenue growth 3Y28.63%
Revenue growth 5Y24.99%
Sales Q2Q%20.48%
3.2 Future
- Based on estimates for the next years, 2EM will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.47% on average per year.
- 2EM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.07% yearly.
EPS Next Y15.11%
EPS Next 2Y14.68%
EPS Next 3Y14.17%
EPS Next 5Y11.47%
Revenue Next Year12.58%
Revenue Next 2Y11.87%
Revenue Next 3Y10.64%
Revenue Next 5Y9.07%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 33.33, the valuation of 2EM can be described as expensive.
- The rest of the industry has a similar Price/Earnings ratio as 2EM.
- Compared to an average S&P500 Price/Earnings ratio of 28.87, 2EM is valued at the same level.
- With a Price/Forward Earnings ratio of 20.66, 2EM is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, 2EM is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
- 2EM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.33 | ||
| Fwd PE | 20.66 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 2EM is valued a bit cheaper than 62.50% of the companies in the same industry.
- 2EM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 2EM is cheaper than 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.79 | ||
| EV/EBITDA | 17.91 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 2EM does not grow enough to justify the current Price/Earnings ratio.
- A more expensive valuation may be justified as 2EM's earnings are expected to grow with 14.17% in the coming years.
PEG (NY)2.21
PEG (5Y)N/A
EPS Next 2Y14.68%
EPS Next 3Y14.17%
5. Dividend
5.1 Amount
- 2EM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ERGOMED PLC / 2EM.DE FAQ
Can you provide the ChartMill fundamental rating for ERGOMED PLC?
ChartMill assigns a fundamental rating of 5 / 10 to 2EM.DE.
What is the valuation status for 2EM stock?
ChartMill assigns a valuation rating of 1 / 10 to ERGOMED PLC (2EM.DE). This can be considered as Overvalued.
Can you provide the profitability details for ERGOMED PLC?
ERGOMED PLC (2EM.DE) has a profitability rating of 4 / 10.
What is the financial health of ERGOMED PLC (2EM.DE) stock?
The financial health rating of ERGOMED PLC (2EM.DE) is 7 / 10.
Can you provide the expected EPS growth for 2EM stock?
The Earnings per Share (EPS) of ERGOMED PLC (2EM.DE) is expected to grow by 15.11% in the next year.