ERGOMED PLC (2EM.DE) Stock Fundamental Analysis
FRA:2EM - Deutsche Boerse Ag - GB00BN7ZCY67 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to 2EM. 2EM was compared to 17 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 growing strongly while it is still valued neutral. This is a good combination! These ratings could make 2EM a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
2EM had positive earnings in the past year.
2EM had a positive operating cash flow in the past year.
2EM had positive earnings in 4 of the past 5 years.
Each year in the past 5 years 2EM had a positive operating cash flow.
1.2 Ratios
2EM's Return On Assets of 11.58% is amongst the best of the industry. 2EM outperforms 87.50% of its industry peers.
2EM has a Return On Equity of 17.68%. This is in the better half 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
2EM has a Profit Margin (10.31%) which is comparable to the rest of the industry.
2EM's Profit Margin has improved in the last couple of years.
2EM's Operating Margin of 14.14% is in line compared to the rest of the industry. 2EM outperforms 43.75% of its industry peers.
2EM's Operating Margin has improved in the last couple of years.
2EM's Gross Margin of 40.72% is in line compared to the rest of the industry. 2EM outperforms 50.00% of its industry peers.
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.
Compared to 1 year ago, 2EM has more shares outstanding
Compared to 1 year ago, 2EM has an improved debt to assets ratio.
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.
2EM's Altman-Z score of 9.27 is amongst the best of the industry. 2EM outperforms 93.75% of its industry peers.
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.
2EM has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.02, 2EM belongs to the best 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
2EM has a Current 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.
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.
2EM has a better Quick ratio (1.50) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.60% over the past year.
The Earnings Per Share has been growing by 36.63% on average over the past years. This is a very strong growth
The Revenue has grown by 22.50% in the past year. This is a very strong growth!
The Revenue has been growing by 24.99% on average over the past years. This is a very strong growth!
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
2EM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.47% yearly.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
2EM is valuated quite expensively with a Price/Earnings ratio of 33.33.
2EM's Price/Earnings ratio is in line with the industry average.
2EM is valuated rather expensively when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 20.66, 2EM is valued on the expensive side.
2EM's Price/Forward Earnings ratio is rather cheap when compared to the industry. 2EM is cheaper than 81.25% of the companies in the same industry.
2EM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.33 | ||
| Fwd PE | 20.66 |
4.2 Price Multiples
2EM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 2EM is 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 an expensive valuation of the company.
The decent profitability rating of 2EM may justify a higher PE ratio.
2EM's earnings are expected to grow with 14.17% in the coming years. This may justify a more expensive valuation.
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 |
FRA:2EM (3/31/2023, 7:00:00 PM)
11
-0.42 (-3.68%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap558.54M
Analysts85
Price Target16.93 (53.91%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-27.08%
Min Revenue beat(2)-27.08%
Max Revenue beat(2)-27.08%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)1.96%
PT rev (3m)4.14%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.73%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.33 | ||
| Fwd PE | 20.66 | ||
| P/S | 3.36 | ||
| P/FCF | 37.79 | ||
| P/OCF | 32.91 | ||
| P/B | 5.77 | ||
| P/tB | 17.77 | ||
| EV/EBITDA | 17.91 |
EPS(TTM)0.33
EY3%
EPS(NY)0.53
Fwd EY4.84%
FCF(TTM)0.29
FCFY2.65%
OCF(TTM)0.33
OCFY3.04%
SpS3.27
BVpS1.91
TBVpS0.62
PEG (NY)2.21
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.58% | ||
| ROE | 17.68% | ||
| ROCE | N/A | ||
| ROIC | 19.56% | ||
| ROICexc | 24.8% | ||
| ROICexgc | 125.41% | ||
| OM | 14.14% | ||
| PM (TTM) | 10.31% | ||
| GM | 40.72% | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)96.55%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-22.79%
ROICexc growth 5YN/A
OM growth 3Y6.85%
OM growth 5YN/A
PM growth 3Y8.12%
PM growth 5YN/A
GM growth 3Y-2%
GM growth 5Y1.94%
F-Score4
Asset Turnover1.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.22 | ||
| Debt/EBITDA | 0.11 | ||
| Cap/Depr | 32.82% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 86.32% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 9.27 |
F-Score4
WACC8.16%
ROIC/WACC2.4
Cap/Depr(3y)24.14%
Cap/Depr(5y)32.37%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)134.11%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.6%
EPS 3Y36.63%
EPS 5YN/A
EPS Q2Q%23.7%
EPS Next Y15.11%
EPS Next 2Y14.68%
EPS Next 3Y14.17%
EPS Next 5Y11.47%
Revenue 1Y (TTM)22.5%
Revenue growth 3Y28.63%
Revenue growth 5Y24.99%
Sales Q2Q%20.48%
Revenue Next Year12.58%
Revenue Next 2Y11.87%
Revenue Next 3Y10.64%
Revenue Next 5Y9.07%
EBIT growth 1Y6.17%
EBIT growth 3Y37.44%
EBIT growth 5YN/A
EBIT Next Year38.65%
EBIT Next 3Y20.29%
EBIT Next 5Y17.22%
FCF growth 1Y-26.93%
FCF growth 3Y6.22%
FCF growth 5YN/A
OCF growth 1Y-20.52%
OCF growth 3Y8%
OCF growth 5Y255.91%