AEDIFICA (AED.BR) Stock Fundamental Analysis
Europe - Euronext Brussels - EBR:AED - BE0003851681 - REIT
73.7 EUR
-0.45 (-0.61%)
We assign a fundamental rating of 4 out of 10 to AED. AED was compared to 41 industry peers in the Diversified REITs industry. While AED is still in line with the averages on profitability rating, there are concerns on its financial health. AED is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year AED was profitable.
- AED had a positive operating cash flow in the past year.
- Each year in the past 5 years AED has been profitable.
- AED had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- AED has a Return On Assets (2.73%) which is in line with its industry peers.
- AED has a Return On Equity (4.96%) which is in line with its industry peers.
- The Return On Invested Capital of AED (3.52%) is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for AED is in line with the industry average of 3.37%.
- The last Return On Invested Capital (3.52%) for AED is above the 3 year average (3.33%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.73% | ||
| ROE | 4.96% | ||
| ROIC | 3.52% |
ROA(3y)3.01%
ROA(5y)3.48%
ROE(3y)5.47%
ROE(5y)6.57%
ROIC(3y)3.33%
ROIC(5y)3.26%
1.3 Margins
- Looking at the Profit Margin, with a value of 49.82%, AED is in the better half of the industry, outperforming 65.85% of the companies in the same industry.
- AED's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 77.70%, AED is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
- AED's Operating Margin has been stable in the last couple of years.
- AED has a Gross Margin of 97.93%. This is amongst the best in the industry. AED outperforms 97.56% of its industry peers.
- AED's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 77.7% | ||
| PM (TTM) | 49.82% | ||
| GM | 97.93% |
OM growth 3Y1.55%
OM growth 5Y0.91%
PM growth 3Y-20.75%
PM growth 5Y-10.29%
GM growth 3Y0.24%
GM growth 5Y0.4%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AED is destroying value.
- Compared to 1 year ago, AED has about the same amount of shares outstanding.
- AED has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for AED is higher compared to a year ago.
2.2 Solvency
- AED has an Altman-Z score of 0.89. This is a bad value and indicates that AED is not financially healthy and even has some risk of bankruptcy.
- AED has a Altman-Z score (0.89) which is comparable to the rest of the industry.
- AED has a debt to FCF ratio of 24.91. This is a negative value and a sign of low solvency as AED would need 24.91 years to pay back of all of its debts.
- AED's Debt to FCF ratio of 24.91 is on the low side compared to the rest of the industry. AED is outperformed by 68.29% of its industry peers.
- AED has a Debt/Equity ratio of 0.58. This is a neutral value indicating AED is somewhat dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.58, AED is doing good in the industry, outperforming 68.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 24.91 | ||
| Altman-Z | 0.89 |
ROIC/WACC0.57
WACC6.22%
2.3 Liquidity
- AED has a Current Ratio of 0.35. This is a bad value and indicates that AED is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.35, AED is in line with its industry, outperforming 43.90% of the companies in the same industry.
- A Quick Ratio of 0.35 indicates that AED may have some problems paying its short term obligations.
- AED has a Quick ratio (0.35) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 114.94% over the past year.
- AED shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.20% yearly.
- Looking at the last year, AED shows a quite strong growth in Revenue. The Revenue has grown by 8.06% in the last year.
- Measured over the past years, AED shows a very strong growth in Revenue. The Revenue has been growing by 23.35% on average per year.
EPS 1Y (TTM)114.94%
EPS 3Y-18.35%
EPS 5Y-7.2%
EPS Q2Q%180.79%
Revenue 1Y (TTM)8.06%
Revenue growth 3Y13.45%
Revenue growth 5Y23.35%
Sales Q2Q%6.32%
3.2 Future
- Based on estimates for the next years, AED will show a small growth in Earnings Per Share. The EPS will grow by 3.19% on average per year.
- AED is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.12% yearly.
EPS Next Y4.17%
EPS Next 2Y3.32%
EPS Next 3Y3.19%
EPS Next 5YN/A
Revenue Next Year6.54%
Revenue Next 2Y5.49%
Revenue Next 3Y5.12%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 15.39, which indicates a correct valuation of AED.
- AED's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, AED is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 14.02, the valuation of AED can be described as correct.
- Based on the Price/Forward Earnings ratio, AED is valued a bit more expensive than 65.85% of the companies in the same industry.
- AED's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.39 | ||
| Fwd PE | 14.02 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AED indicates a slightly more expensive valuation: AED is more expensive than 63.41% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, AED is valued more expensive than 80.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.81 | ||
| EV/EBITDA | 21.8 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AED does not grow enough to justify the current Price/Earnings ratio.
- AED has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.69
PEG (5Y)N/A
EPS Next 2Y3.32%
EPS Next 3Y3.19%
5. Dividend
5.1 Amount
- AED has a Yearly Dividend Yield of 3.78%.
- Compared to an average industry Dividend Yield of 5.41, AED is paying slightly less dividend.
- AED's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
5.2 History
- On average, the dividend of AED grows each year by 22.82%, which is quite nice.
Dividend Growth(5Y)22.82%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- AED pays out 105.58% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of AED is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP105.58%
EPS Next 2Y3.32%
EPS Next 3Y3.19%
AEDIFICA / AED.BR FAQ
What is the fundamental rating for AED stock?
ChartMill assigns a fundamental rating of 4 / 10 to AED.BR.
What is the valuation status of AEDIFICA (AED.BR) stock?
ChartMill assigns a valuation rating of 2 / 10 to AEDIFICA (AED.BR). This can be considered as Overvalued.
How profitable is AEDIFICA (AED.BR) stock?
AEDIFICA (AED.BR) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for AED stock?
The Price/Earnings (PE) ratio for AEDIFICA (AED.BR) is 15.39 and the Price/Book (PB) ratio is 0.99.
Can you provide the financial health for AED stock?
The financial health rating of AEDIFICA (AED.BR) is 2 / 10.