OTIS WORLDWIDE CORP (4PG.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:4PG - US68902V1070 - Common Stock
76.16 EUR
-0.18 (-0.24%)
We assign a fundamental rating of 4 out of 10 to 4PG. 4PG was compared to 111 industry peers in the Machinery industry. 4PG has an excellent profitability rating, but there are concerns on its financial health. 4PG is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year 4PG was profitable.
- 4PG had a positive operating cash flow in the past year.
- 4PG had positive earnings in each of the past 5 years.
- Each year in the past 5 years 4PG had a positive operating cash flow.
1.2 Ratios
- 4PG has a better Return On Assets (12.51%) than 94.59% of its industry peers.
- 4PG's Return On Invested Capital of 49.12% is amongst the best of the industry. 4PG outperforms 100.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for 4PG is significantly above the industry average of 9.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.51% | ||
| ROE | N/A | ||
| ROIC | 49.12% |
ROA(3y)13.73%
ROA(5y)11.96%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)50.77%
ROIC(5y)42.31%
1.3 Margins
- The Profit Margin of 4PG (9.41%) is better than 79.28% of its industry peers.
- 4PG's Profit Margin has improved in the last couple of years.
- 4PG's Operating Margin of 17.53% is amongst the best of the industry. 4PG outperforms 88.29% of its industry peers.
- 4PG's Operating Margin has improved in the last couple of years.
- 4PG's Gross Margin of 30.01% is on the low side compared to the rest of the industry. 4PG is outperformed by 71.17% of its industry peers.
- 4PG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.53% | ||
| PM (TTM) | 9.41% | ||
| GM | 30.01% |
OM growth 3Y1.53%
OM growth 5Y1.94%
PM growth 3Y9.8%
PM growth 5Y6.28%
GM growth 3Y0.59%
GM growth 5Y0.47%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 4PG is creating value.
- Compared to 1 year ago, 4PG has less shares outstanding
- Compared to 5 years ago, 4PG has less shares outstanding
- Compared to 1 year ago, 4PG has a worse debt to assets ratio.
2.2 Solvency
- 4PG has an Altman-Z score of 3.29. This indicates that 4PG is financially healthy and has little risk of bankruptcy at the moment.
- 4PG's Altman-Z score of 3.29 is fine compared to the rest of the industry. 4PG outperforms 73.87% of its industry peers.
- 4PG has a debt to FCF ratio of 6.11. This is a slightly negative value and a sign of low solvency as 4PG would need 6.11 years to pay back of all of its debts.
- 4PG's Debt to FCF ratio of 6.11 is in line compared to the rest of the industry. 4PG outperforms 48.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.11 | ||
| Altman-Z | 3.29 |
ROIC/WACC5.52
WACC8.9%
2.3 Liquidity
- A Current Ratio of 0.94 indicates that 4PG may have some problems paying its short term obligations.
- With a Current ratio value of 0.94, 4PG is not doing good in the industry: 90.09% of the companies in the same industry are doing better.
- A Quick Ratio of 0.85 indicates that 4PG may have some problems paying its short term obligations.
- The Quick ratio of 4PG (0.85) is worse than 62.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
- 4PG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.77%.
- 4PG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.53% yearly.
- Looking at the last year, 4PG shows a small growth in Revenue. The Revenue has grown by 0.73% in the last year.
- Measured over the past years, 4PG shows a small growth in Revenue. The Revenue has been growing by 1.68% on average per year.
EPS 1Y (TTM)4.77%
EPS 3Y8.48%
EPS 5Y9.53%
EPS Q2Q%9.38%
Revenue 1Y (TTM)0.73%
Revenue growth 3Y-0.09%
Revenue growth 5Y1.68%
Sales Q2Q%4%
3.2 Future
- Based on estimates for the next years, 4PG will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.10% on average per year.
- The Revenue is expected to grow by 4.26% on average over the next years.
EPS Next Y7.09%
EPS Next 2Y9%
EPS Next 3Y9.64%
EPS Next 5Y10.1%
Revenue Next Year1.9%
Revenue Next 2Y3.51%
Revenue Next 3Y3.97%
Revenue Next 5Y4.26%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- 4PG is valuated rather expensively with a Price/Earnings ratio of 22.80.
- 4PG's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, 4PG is valued at the same level.
- Based on the Price/Forward Earnings ratio of 19.81, the valuation of 4PG can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 4PG is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, 4PG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.8 | ||
| Fwd PE | 19.81 |
4.2 Price Multiples
- 63.96% of the companies in the same industry are cheaper than 4PG, based on the Enterprise Value to EBITDA ratio.
- 4PG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.55 | ||
| EV/EBITDA | 15.65 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 4PG does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of 4PG may justify a higher PE ratio.
PEG (NY)3.21
PEG (5Y)2.39
EPS Next 2Y9%
EPS Next 3Y9.64%
5. Dividend
5.1 Amount
- 4PG has a Yearly Dividend Yield of 1.86%. Purely for dividend investing, there may be better candidates out there.
- 4PG's Dividend Yield is a higher than the industry average which is at 1.48.
- Compared to an average S&P500 Dividend Yield of 1.82, 4PG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 47.44% of the earnings are spent on dividend by 4PG. This is a bit on the high side, but may be sustainable.
DP47.44%
EPS Next 2Y9%
EPS Next 3Y9.64%
OTIS WORLDWIDE CORP / 4PG.DE FAQ
What is the fundamental rating for 4PG stock?
ChartMill assigns a fundamental rating of 4 / 10 to 4PG.DE.
What is the valuation status of OTIS WORLDWIDE CORP (4PG.DE) stock?
ChartMill assigns a valuation rating of 2 / 10 to OTIS WORLDWIDE CORP (4PG.DE). This can be considered as Overvalued.
What is the profitability of 4PG stock?
OTIS WORLDWIDE CORP (4PG.DE) has a profitability rating of 7 / 10.
What is the valuation of OTIS WORLDWIDE CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for OTIS WORLDWIDE CORP (4PG.DE) is 22.8 and the Price/Book (PB) ratio is -6.48.
How sustainable is the dividend of OTIS WORLDWIDE CORP (4PG.DE) stock?
The dividend rating of OTIS WORLDWIDE CORP (4PG.DE) is 3 / 10 and the dividend payout ratio is 47.44%.