ABC ARBITRAGE (ABCA.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:ABCA - FR0004040608 - Common Stock
5.37 EUR
+0.02 (+0.37%)
We assign a fundamental rating of 7 out of 10 to ABCA. ABCA was compared to 59 industry peers in the Financial Services industry. ABCA has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ABCA is not valued too expensively and it also shows a decent growth rate. These ratings would make ABCA suitable for quality investing!
1. Profitability
1.1 Basic Checks
- ABCA had positive earnings in the past year.
- In the past year ABCA had a positive cash flow from operations.
- ABCA had positive earnings in each of the past 5 years.
- ABCA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ABCA's Return On Assets of 18.73% is amongst the best of the industry. ABCA outperforms 91.80% of its industry peers.
- ABCA has a Return On Equity of 20.44%. This is in the better half of the industry: ABCA outperforms 78.69% of its industry peers.
- The Return On Invested Capital of ABCA (12.45%) is better than 80.33% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ABCA is in line with the industry average of 10.02%.
- The last Return On Invested Capital (12.45%) for ABCA is above the 3 year average (9.94%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.73% | ||
| ROE | 20.44% | ||
| ROIC | 12.45% |
ROA(3y)13.4%
ROA(5y)15.12%
ROE(3y)15%
ROE(5y)17.06%
ROIC(3y)9.94%
ROIC(5y)12.49%
1.3 Margins
- Looking at the Profit Margin, with a value of 54.75%, ABCA belongs to the top of the industry, outperforming 96.72% of the companies in the same industry.
- In the last couple of years the Profit Margin of ABCA has remained more or less at the same level.
- ABCA has a Operating Margin of 45.85%. This is amongst the best in the industry. ABCA outperforms 86.89% of its industry peers.
- ABCA's Operating Margin has declined in the last couple of years.
- The Gross Margin of ABCA (87.07%) is better than 88.52% of its industry peers.
- ABCA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 45.85% | ||
| PM (TTM) | 54.75% | ||
| GM | 87.07% |
OM growth 3Y-9.31%
OM growth 5Y-3.35%
PM growth 3Y6.16%
PM growth 5Y1.15%
GM growth 3Y-1.83%
GM growth 5Y0.02%
2. Health
2.1 Basic Checks
- ABCA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- ABCA has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, ABCA has more shares outstanding
- ABCA has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 14.97 indicates that ABCA is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 14.97, ABCA belongs to the top of the industry, outperforming 98.36% of the companies in the same industry.
- ABCA has a debt to FCF ratio of 0.13. This is a very positive value and a sign of high solvency as it would only need 0.13 years to pay back of all of its debts.
- ABCA's Debt to FCF ratio of 0.13 is amongst the best of the industry. ABCA outperforms 91.80% of its industry peers.
- A Debt/Equity ratio of 0.01 indicates that ABCA is not too dependend on debt financing.
- ABCA has a better Debt to Equity ratio (0.01) than 90.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.13 | ||
| Altman-Z | 14.97 |
ROIC/WACC1.53
WACC8.14%
2.3 Liquidity
- A Current Ratio of 13.24 indicates that ABCA has no problem at all paying its short term obligations.
- The Current ratio of ABCA (13.24) is better than 93.44% of its industry peers.
- ABCA has a Quick Ratio of 13.24. This indicates that ABCA is financially healthy and has no problem in meeting its short term obligations.
- ABCA's Quick ratio of 13.24 is amongst the best of the industry. ABCA outperforms 93.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 13.24 | ||
| Quick Ratio | 13.24 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 114.50% over the past year.
- ABCA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.62% yearly.
- Looking at the last year, ABCA shows a very strong growth in Revenue. The Revenue has grown by 53.67%.
- Measured over the past years, ABCA shows a small growth in Revenue. The Revenue has been growing by 6.69% on average per year.
EPS 1Y (TTM)114.5%
EPS 3Y-1.45%
EPS 5Y7.62%
EPS Q2Q%98.26%
Revenue 1Y (TTM)53.67%
Revenue growth 3Y-7.16%
Revenue growth 5Y6.69%
Sales Q2Q%59.5%
3.2 Future
- Based on estimates for the next years, ABCA will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.02% on average per year.
- The Revenue is expected to grow by 10.04% on average over the next years. This is quite good.
EPS Next Y29.58%
EPS Next 2Y11.33%
EPS Next 3Y9.02%
EPS Next 5YN/A
Revenue Next Year31.71%
Revenue Next 2Y12.81%
Revenue Next 3Y10.04%
Revenue Next 5YN/A
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
- ABCA is valuated reasonably with a Price/Earnings ratio of 8.95.
- Based on the Price/Earnings ratio, ABCA is valued a bit cheaper than the industry average as 75.41% of the companies are valued more expensively.
- ABCA is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 11.97, which indicates a very decent valuation of ABCA.
- ABCA's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. ABCA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.95 | ||
| Fwd PE | 11.97 |
4.2 Price Multiples
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABCA indicates a somewhat cheap valuation: ABCA is cheaper than 63.93% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.83 | ||
| EV/EBITDA | -0.26 |
4.3 Compensation for Growth
- ABCA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- ABCA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.3
PEG (5Y)1.17
EPS Next 2Y11.33%
EPS Next 3Y9.02%
5. Dividend
5.1 Amount
- ABCA has a Yearly Dividend Yield of 6.36%, which is a nice return.
- ABCA's Dividend Yield is rather good when compared to the industry average which is at 1.97. ABCA pays more dividend than 91.80% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, ABCA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.36% |
5.2 History
- The dividend of ABCA decreases each year by -7.03%.
Dividend Growth(5Y)-7.03%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 56.59% of the earnings are spent on dividend by ABCA. This is a bit on the high side, but may be sustainable.
DP56.59%
EPS Next 2Y11.33%
EPS Next 3Y9.02%
ABC ARBITRAGE / ABCA.PA FAQ
What is the fundamental rating for ABCA stock?
ChartMill assigns a fundamental rating of 7 / 10 to ABCA.PA.
What is the valuation status of ABC ARBITRAGE (ABCA.PA) stock?
ChartMill assigns a valuation rating of 6 / 10 to ABC ARBITRAGE (ABCA.PA). This can be considered as Fairly Valued.
Can you provide the profitability details for ABC ARBITRAGE?
ABC ARBITRAGE (ABCA.PA) has a profitability rating of 8 / 10.
Can you provide the financial health for ABCA stock?
The financial health rating of ABC ARBITRAGE (ABCA.PA) is 9 / 10.
What is the expected EPS growth for ABC ARBITRAGE (ABCA.PA) stock?
The Earnings per Share (EPS) of ABC ARBITRAGE (ABCA.PA) is expected to grow by 29.58% in the next year.