ABC ARBITRAGE (ABCA.PA) Stock Fundamental Analysis
EPA:ABCA - Euronext Paris - Matif - FR0004040608 - Common Stock - Currency: EUR
ABCA gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 47 industry peers in the Financial Services industry. Both the health and profitability get an excellent rating, making ABCA a very profitable company, without any liquidiy or solvency issues. ABCA is not valued too expensively and it also shows a decent growth rate. These ratings could make ABCA a good candidate 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.
Each year in the past 5 years ABCA had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ABCA (15.05%) is better than 91.49% of its industry peers.
The Return On Equity of ABCA (16.36%) is better than 70.21% of its industry peers.
ABCA has a Return On Invested Capital of 9.31%. This is in the better half of the industry: ABCA outperforms 72.34% 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 10.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.05% | ||
| ROE | 16.36% | ||
| ROIC | 9.31% |
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
ABCA has a better Profit Margin (52.14%) than 89.36% of its industry peers.
In the last couple of years the Profit Margin of ABCA has remained more or less at the same level.
Looking at the Operating Margin, with a value of 41.00%, ABCA belongs to the top of the industry, outperforming 80.85% of the companies in the same industry.
ABCA's Operating Margin has declined in the last couple of years.
ABCA has a Gross Margin of 85.42%. This is in the better half of the industry: ABCA outperforms 76.60% of its industry peers.
ABCA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41% | ||
| PM (TTM) | 52.14% | ||
| GM | 85.42% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ABCA is creating some value.
The number of shares outstanding for ABCA has been reduced compared to 1 year ago.
The number of shares outstanding for ABCA has been increased compared to 5 years ago.
The debt/assets ratio for ABCA has been reduced compared to a year ago.
2.2 Solvency
ABCA has an Altman-Z score of 18.62. This indicates that ABCA is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ABCA (18.62) is better than 97.87% of its industry peers.
ABCA has a debt to FCF ratio of 0.19. This is a very positive value and a sign of high solvency as it would only need 0.19 years to pay back of all of its debts.
The Debt to FCF ratio of ABCA (0.19) is better than 93.62% of its industry peers.
A Debt/Equity ratio of 0.02 indicates that ABCA is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.02, ABCA belongs to the top of the industry, outperforming 95.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.19 | ||
| Altman-Z | 18.62 |
ROIC/WACC1.19
WACC7.85%
2.3 Liquidity
A Current Ratio of 14.74 indicates that ABCA has no problem at all paying its short term obligations.
ABCA's Current ratio of 14.74 is amongst the best of the industry. ABCA outperforms 95.74% of its industry peers.
ABCA has a Quick Ratio of 14.74. This indicates that ABCA is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 14.74, ABCA belongs to the top of the industry, outperforming 95.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 14.74 | ||
| Quick Ratio | 14.74 |
3. Growth
3.1 Past
ABCA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 63.26%, which is quite impressive.
Measured over the past 5 years, ABCA shows a small growth in Earnings Per Share. The EPS has been growing by 7.62% on average per year.
The Revenue has grown by 29.31% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 6.69% on average over the past years.
EPS 1Y (TTM)63.26%
EPS 3Y-1.45%
EPS 5Y7.62%
EPS Q2Q%136.24%
Revenue 1Y (TTM)29.31%
Revenue growth 3Y-7.16%
Revenue growth 5Y6.69%
Sales Q2Q%46.8%
3.2 Future
The Earnings Per Share is expected to grow by 9.02% on average over the next years. This is quite good.
ABCA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.05% yearly.
EPS Next Y7.04%
EPS Next 2Y6.81%
EPS Next 3Y9.02%
EPS Next 5YN/A
Revenue Next Year12.06%
Revenue Next 2Y9.8%
Revenue Next 3Y9.05%
Revenue Next 5YN/A
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.
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
With a Price/Earnings ratio of 14.02, ABCA is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of ABCA is on the same level as its industry peers.
ABCA is valuated rather cheaply when we compare the Price/Earnings ratio to 26.98, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.28, which indicates a correct valuation of ABCA.
ABCA's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.49. ABCA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.02 | ||
| Fwd PE | 16.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABCA is valued cheaply inside the industry as 82.98% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABCA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.81 | ||
| EV/EBITDA | 2.95 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ABCA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.99
PEG (5Y)1.84
EPS Next 2Y6.81%
EPS Next 3Y9.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.48%, ABCA is a good candidate for dividend investing.
ABCA's Dividend Yield is rather good when compared to the industry average which is at 3.85. ABCA pays more dividend than 87.23% of the companies in the same industry.
ABCA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.48% |
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
ABCA pays out 66.25% of its income as dividend. This is not a sustainable payout ratio.
DP66.25%
EPS Next 2Y6.81%
EPS Next 3Y9.02%
EPA:ABCA (6/30/2025, 4:13:35 PM)
6.31
-0.02 (-0.32%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners4.78%
Inst Owner ChangeN/A
Ins Owners29.3%
Ins Owner ChangeN/A
Market Cap376.14M
Analysts85
Price Target7.4 (17.27%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.48% |
Yearly Dividend0.3
Dividend Growth(5Y)-7.03%
DP66.25%
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
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)13.28%
PT rev (3m)26.09%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)5.56%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)7.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.02 | ||
| Fwd PE | 16.28 | ||
| P/S | 7.31 | ||
| P/FCF | 17.81 | ||
| P/OCF | 17.81 | ||
| P/B | 2.29 | ||
| P/tB | 2.29 | ||
| EV/EBITDA | 2.95 |
EPS(TTM)0.45
EY7.13%
EPS(NY)0.39
Fwd EY6.14%
FCF(TTM)0.35
FCFY5.61%
OCF(TTM)0.35
OCFY5.61%
SpS0.86
BVpS2.75
TBVpS2.75
PEG (NY)1.99
PEG (5Y)1.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.05% | ||
| ROE | 16.36% | ||
| ROCE | 12.67% | ||
| ROIC | 9.31% | ||
| ROICexc | 295.96% | ||
| ROICexgc | 302.78% | ||
| OM | 41% | ||
| PM (TTM) | 52.14% | ||
| GM | 85.42% | ||
| FCFM | 41.01% |
ROA(3y)13.4%
ROA(5y)15.12%
ROE(3y)15%
ROE(5y)17.06%
ROIC(3y)9.94%
ROIC(5y)12.49%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)13.53%
ROCE(5y)16.99%
ROICexcg growth 3Y11.62%
ROICexcg growth 5Y9.34%
ROICexc growth 3Y11.08%
ROICexc growth 5Y9.39%
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%
F-Score7
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.19 | ||
| Debt/EBITDA | 0.11 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.2% | ||
| Profit Quality | 78.65% | ||
| Current Ratio | 14.74 | ||
| Quick Ratio | 14.74 | ||
| Altman-Z | 18.62 |
F-Score7
WACC7.85%
ROIC/WACC1.19
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)94.53%
Profit Quality(5y)94.88%
High Growth Momentum
Growth
EPS 1Y (TTM)63.26%
EPS 3Y-1.45%
EPS 5Y7.62%
EPS Q2Q%136.24%
EPS Next Y7.04%
EPS Next 2Y6.81%
EPS Next 3Y9.02%
EPS Next 5YN/A
Revenue 1Y (TTM)29.31%
Revenue growth 3Y-7.16%
Revenue growth 5Y6.69%
Sales Q2Q%46.8%
Revenue Next Year12.06%
Revenue Next 2Y9.8%
Revenue Next 3Y9.05%
Revenue Next 5YN/A
EBIT growth 1Y28.15%
EBIT growth 3Y-15.81%
EBIT growth 5Y3.12%
EBIT Next Year36.44%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y5.67%
FCF growth 3Y-14.73%
FCF growth 5Y-4.72%
OCF growth 1Y5.67%
OCF growth 3Y-14.73%
OCF growth 5Y-4.72%