ALPHABET INC-CL C (ABEC.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ABEC - US02079K1079 - Common Stock
281.3 EUR
+0.45 (+0.16%)
Overall ABEC gets a fundamental rating of 7 out of 10. We evaluated ABEC against 19 industry peers in the Interactive Media & Services industry. ABEC scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ABEC is not overvalued while it is showing excellent growth. This is an interesting combination. This makes ABEC very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
- In the past year ABEC was profitable.
- ABEC had a positive operating cash flow in the past year.
- In the past 5 years ABEC has always been profitable.
- ABEC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of ABEC (23.16%) is better than 84.21% of its industry peers.
- The Return On Equity of ABEC (32.12%) is better than 84.21% of its industry peers.
- The Return On Invested Capital of ABEC (24.90%) is better than 68.42% of its industry peers.
- ABEC had an Average Return On Invested Capital over the past 3 years of 24.19%. This is significantly below the industry average of 108.93%.
- The last Return On Invested Capital (24.90%) for ABEC is above the 3 year average (24.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.16% | ||
| ROE | 32.12% | ||
| ROIC | 24.9% |
ROA(3y)19%
ROA(5y)18.15%
ROE(3y)26.75%
ROE(5y)25.71%
ROIC(3y)24.19%
ROIC(5y)21.8%
1.3 Margins
- Looking at the Profit Margin, with a value of 32.23%, ABEC belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
- In the last couple of years the Profit Margin of ABEC has grown nicely.
- The Operating Margin of ABEC (32.83%) is better than 68.42% of its industry peers.
- In the last couple of years the Operating Margin of ABEC has grown nicely.
- ABEC has a Gross Margin (59.17%) which is in line with its industry peers.
- In the last couple of years the Gross Margin of ABEC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.83% | ||
| PM (TTM) | 32.23% | ||
| GM | 59.17% |
OM growth 3Y2.22%
OM growth 5Y8.01%
PM growth 3Y-1.04%
PM growth 5Y6.16%
GM growth 3Y0.73%
GM growth 5Y0.93%
2. Health
2.1 Basic Checks
- ABEC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, ABEC has less shares outstanding
- Compared to 5 years ago, ABEC has less shares outstanding
- Compared to 1 year ago, ABEC has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 18.40 indicates that ABEC is not in any danger for bankruptcy at the moment.
- ABEC's Altman-Z score of 18.40 is amongst the best of the industry. ABEC outperforms 94.74% of its industry peers.
- ABEC has a debt to FCF ratio of 0.29. This is a very positive value and a sign of high solvency as it would only need 0.29 years to pay back of all of its debts.
- ABEC has a better Debt to FCF ratio (0.29) than 78.95% of its industry peers.
- A Debt/Equity ratio of 0.06 indicates that ABEC is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.06, ABEC is doing good in the industry, outperforming 68.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 18.4 |
ROIC/WACC2.81
WACC8.86%
2.3 Liquidity
- A Current Ratio of 1.75 indicates that ABEC should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.75, ABEC is in the better half of the industry, outperforming 63.16% of the companies in the same industry.
- A Quick Ratio of 1.75 indicates that ABEC should not have too much problems paying its short term obligations.
- ABEC has a better Quick ratio (1.75) than 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
- ABEC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.37%, which is quite impressive.
- The Earnings Per Share has been growing by 25.25% on average over the past years. This is a very strong growth
- The Revenue has grown by 13.42% in the past year. This is quite good.
- Measured over the past years, ABEC shows a quite strong growth in Revenue. The Revenue has been growing by 16.68% on average per year.
EPS 1Y (TTM)30.37%
EPS 3Y12.78%
EPS 5Y25.25%
EPS Q2Q%46.23%
Revenue 1Y (TTM)13.42%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%15.95%
3.2 Future
- The Earnings Per Share is expected to grow by 16.87% on average over the next years. This is quite good.
- The Revenue is expected to grow by 12.67% on average over the next years. This is quite good.
EPS Next Y35.48%
EPS Next 2Y19.79%
EPS Next 3Y18.39%
EPS Next 5Y16.87%
Revenue Next Year13.94%
Revenue Next 2Y13.85%
Revenue Next 3Y13.55%
Revenue Next 5Y12.67%
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.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- ABEC is valuated quite expensively with a Price/Earnings ratio of 33.61.
- The rest of the industry has a similar Price/Earnings ratio as ABEC.
- ABEC's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.25.
- ABEC is valuated quite expensively with a Price/Forward Earnings ratio of 28.59.
- ABEC's Price/Forward Earnings is on the same level as the industry average.
- ABEC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.61 | ||
| Fwd PE | 28.59 |
4.2 Price Multiples
- ABEC's Enterprise Value to EBITDA is on the same level as the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as ABEC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.19 | ||
| EV/EBITDA | 26.24 |
4.3 Compensation for Growth
- ABEC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- ABEC has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as ABEC's earnings are expected to grow with 18.39% in the coming years.
PEG (NY)0.95
PEG (5Y)1.33
EPS Next 2Y19.79%
EPS Next 3Y18.39%
5. Dividend
5.1 Amount
- ABEC has a yearly dividend return of 0.25%, which is pretty low.
- ABEC's Dividend Yield is a higher than the industry average which is at 1.20.
- With a Dividend Yield of 0.25, ABEC pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- ABEC pays out 8.01% of its income as dividend. This is a sustainable payout ratio.
DP8.01%
EPS Next 2Y19.79%
EPS Next 3Y18.39%
ALPHABET INC-CL C / ABEC.DE FAQ
What is the fundamental rating for ABEC stock?
ChartMill assigns a fundamental rating of 7 / 10 to ABEC.DE.
What is the valuation status of ALPHABET INC-CL C (ABEC.DE) stock?
ChartMill assigns a valuation rating of 4 / 10 to ALPHABET INC-CL C (ABEC.DE). This can be considered as Fairly Valued.
What is the profitability of ABEC stock?
ALPHABET INC-CL C (ABEC.DE) has a profitability rating of 8 / 10.
What are the PE and PB ratios of ALPHABET INC-CL C (ABEC.DE) stock?
The Price/Earnings (PE) ratio for ALPHABET INC-CL C (ABEC.DE) is 33.61 and the Price/Book (PB) ratio is 10.3.
What is the financial health of ALPHABET INC-CL C (ABEC.DE) stock?
The financial health rating of ALPHABET INC-CL C (ABEC.DE) is 8 / 10.