2G ENERGY AG (2GB.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:2GB - DE000A0HL8N9 - Common Stock
35 EUR
-0.1 (-0.28%)
2GB gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 73 industry peers in the Electrical Equipment industry. Both the health and profitability get an excellent rating, making 2GB a very profitable company, without any liquidiy or solvency issues. 2GB is growing strongly while it is still valued neutral. This is a good combination! These ratings could make 2GB a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
- 2GB had positive earnings in the past year.
- In the past year 2GB had a positive cash flow from operations.
- 2GB had positive earnings in each of the past 5 years.
- 2GB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- 2GB's Return On Assets of 9.29% is amongst the best of the industry. 2GB outperforms 90.41% of its industry peers.
- 2GB has a better Return On Equity (17.11%) than 78.08% of its industry peers.
- 2GB has a Return On Invested Capital of 9.03%. This is in the better half of the industry: 2GB outperforms 73.97% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for 2GB is in line with the industry average of 9.58%.
- The last Return On Invested Capital (9.03%) for 2GB is above the 3 year average (8.52%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.29% | ||
| ROE | 17.11% | ||
| ROIC | 9.03% |
ROA(3y)8.04%
ROA(5y)7.95%
ROE(3y)15.25%
ROE(5y)14.87%
ROIC(3y)8.52%
ROIC(5y)9.85%
1.3 Margins
- 2GB has a Profit Margin of 5.91%. This is in the better half of the industry: 2GB outperforms 76.71% of its industry peers.
- In the last couple of years the Profit Margin of 2GB has grown nicely.
- The Operating Margin of 2GB (8.34%) is better than 68.49% of its industry peers.
- 2GB's Operating Margin has improved in the last couple of years.
- 2GB's Gross Margin of 38.78% is fine compared to the rest of the industry. 2GB outperforms 60.27% of its industry peers.
- In the last couple of years the Gross Margin of 2GB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.34% | ||
| PM (TTM) | 5.91% | ||
| GM | 38.78% |
OM growth 3Y6.41%
OM growth 5Y5.64%
PM growth 3Y10.01%
PM growth 5Y7.63%
GM growth 3Y2.27%
GM growth 5Y3.16%
2. Health
2.1 Basic Checks
- 2GB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- 2GB has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, 2GB has more shares outstanding
- The debt/assets ratio for 2GB has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 6.71 indicates that 2GB is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 6.71, 2GB belongs to the best of the industry, outperforming 89.04% of the companies in the same industry.
- 2GB has a debt to FCF ratio of 0.74. This is a very positive value and a sign of high solvency as it would only need 0.74 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.74, 2GB belongs to the top of the industry, outperforming 95.89% of the companies in the same industry.
- A Debt/Equity ratio of 0.05 indicates that 2GB is not too dependend on debt financing.
- 2GB's Debt to Equity ratio of 0.05 is amongst the best of the industry. 2GB outperforms 87.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.74 | ||
| Altman-Z | 6.71 |
ROIC/WACC1.15
WACC7.85%
2.3 Liquidity
- 2GB has a Current Ratio of 24565.26. This indicates that 2GB is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 24565.26, 2GB belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- 2GB has a Quick Ratio of 10495.20. This indicates that 2GB is financially healthy and has no problem in meeting its short term obligations.
- With an excellent Quick ratio value of 10495.20, 2GB belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 24565.26 | ||
| Quick Ratio | 10495.2 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 35.90% over the past year.
- Measured over the past years, 2GB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.79% on average per year.
- The Revenue has grown by 14.87% in the past year. This is quite good.
- The Revenue has been growing by 9.70% on average over the past years. This is quite good.
EPS 1Y (TTM)35.9%
EPS 3Y23.36%
EPS 5Y17.79%
EPS Q2Q%30.67%
Revenue 1Y (TTM)14.87%
Revenue growth 3Y12.14%
Revenue growth 5Y9.7%
Sales Q2Q%29.51%
3.2 Future
- Based on estimates for the next years, 2GB will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.80% on average per year.
- The Revenue is expected to grow by 12.25% on average over the next years. This is quite good.
EPS Next Y-1%
EPS Next 2Y20.04%
EPS Next 3Y19.38%
EPS Next 5Y18.8%
Revenue Next Year5.98%
Revenue Next 2Y12.05%
Revenue Next 3Y11.74%
Revenue Next 5Y12.25%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 25.55 indicates a quite expensive valuation of 2GB.
- Based on the Price/Earnings ratio, 2GB is valued a bit cheaper than 72.60% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.30, 2GB is valued at the same level.
- With a Price/Forward Earnings ratio of 19.58, 2GB is valued on the expensive side.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 2GB indicates a somewhat cheap valuation: 2GB is cheaper than 72.60% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of 2GB to the average of the S&P500 Index (24.32), we can say 2GB is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.55 | ||
| Fwd PE | 19.58 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 2GB indicates a somewhat cheap valuation: 2GB is cheaper than 67.12% of the companies listed in the same industry.
- 2GB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 64.14 | ||
| EV/EBITDA | 14.38 |
4.3 Compensation for Growth
- The excellent profitability rating of 2GB may justify a higher PE ratio.
- 2GB's earnings are expected to grow with 19.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.44
EPS Next 2Y20.04%
EPS Next 3Y19.38%
5. Dividend
5.1 Amount
- 2GB has a yearly dividend return of 0.60%, which is pretty low.
- 2GB's Dividend Yield is a higher than the industry average which is at 0.82.
- With a Dividend Yield of 0.60, 2GB pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
5.2 History
- On average, the dividend of 2GB grows each year by 8.61%, which is quite nice.
Dividend Growth(5Y)8.61%
Div Incr Years4
Div Non Decr Years6
5.3 Sustainability
- 2GB pays out 14.65% of its income as dividend. This is a sustainable payout ratio.
- 2GB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP14.65%
EPS Next 2Y20.04%
EPS Next 3Y19.38%
2G ENERGY AG / 2GB.DE FAQ
What is the fundamental rating for 2GB stock?
ChartMill assigns a fundamental rating of 7 / 10 to 2GB.DE.
Can you provide the valuation status for 2G ENERGY AG?
ChartMill assigns a valuation rating of 4 / 10 to 2G ENERGY AG (2GB.DE). This can be considered as Fairly Valued.
How profitable is 2G ENERGY AG (2GB.DE) stock?
2G ENERGY AG (2GB.DE) has a profitability rating of 8 / 10.
What is the valuation of 2G ENERGY AG based on its PE and PB ratios?
The Price/Earnings (PE) ratio for 2G ENERGY AG (2GB.DE) is 25.55 and the Price/Book (PB) ratio is 4.39.
How financially healthy is 2G ENERGY AG?
The financial health rating of 2G ENERGY AG (2GB.DE) is 9 / 10.