CARL ZEISS MEDITEC AG - BR (AFX.DE) Stock Fundamental Analysis
FRA:AFX - Deutsche Boerse Ag - DE0005313704 - Common Stock - Currency: EUR
AFX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 54 industry peers in the Health Care Equipment & Supplies industry. While AFX has a great health rating, its profitability is only average at the moment. AFX is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
AFX had positive earnings in the past year.
AFX had a positive operating cash flow in the past year.
AFX had positive earnings in each of the past 5 years.
AFX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of AFX (5.27%) is better than 79.63% of its industry peers.
AFX's Return On Equity of 8.75% is fine compared to the rest of the industry. AFX outperforms 75.93% of its industry peers.
AFX's Return On Invested Capital of 5.01% is fine compared to the rest of the industry. AFX outperforms 61.11% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AFX is in line with the industry average of 8.28%.
The 3 year average ROIC (9.30%) for AFX is well above the current ROIC(5.01%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.27% | ||
| ROE | 8.75% | ||
| ROIC | 5.01% |
ROA(3y)8.42%
ROA(5y)8.24%
ROE(3y)12.26%
ROE(5y)11.91%
ROIC(3y)9.3%
ROIC(5y)9.86%
1.3 Margins
AFX has a better Profit Margin (8.65%) than 64.81% of its industry peers.
AFX's Profit Margin has declined in the last couple of years.
AFX has a Operating Margin (9.41%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of AFX has declined.
AFX has a Gross Margin (52.69%) which is comparable to the rest of the industry.
AFX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.41% | ||
| PM (TTM) | 8.65% | ||
| GM | 52.69% |
OM growth 3Y-25.26%
OM growth 5Y-12.3%
PM growth 3Y-15.52%
PM growth 5Y-4.6%
GM growth 3Y-3.56%
GM growth 5Y-1.56%
2. Health
2.1 Basic Checks
AFX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for AFX has been reduced compared to 1 year ago.
The number of shares outstanding for AFX has been reduced compared to 5 years ago.
Compared to 1 year ago, AFX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.25 indicates that AFX is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.25, AFX belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
The Debt to FCF ratio of AFX is 6.42, which is on the high side as it means it would take AFX, 6.42 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 6.42, AFX is doing good in the industry, outperforming 62.96% of the companies in the same industry.
AFX has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
AFX's Debt to Equity ratio of 0.29 is fine compared to the rest of the industry. AFX outperforms 62.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 6.42 | ||
| Altman-Z | 4.25 |
ROIC/WACC0.74
WACC6.74%
2.3 Liquidity
A Current Ratio of 2.13 indicates that AFX has no problem at all paying its short term obligations.
AFX has a Current ratio of 2.13. This is in the better half of the industry: AFX outperforms 66.67% of its industry peers.
AFX has a Quick Ratio of 1.19. This is a normal value and indicates that AFX is financially healthy and should not expect problems in meeting its short term obligations.
AFX has a better Quick ratio (1.19) than 62.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
AFX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -42.90%.
The Earnings Per Share has been growing slightly by 2.40% on average over the past years.
The Revenue has decreased by -0.59% in the past year.
AFX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.20% yearly.
EPS 1Y (TTM)-42.9%
EPS 3Y-8.8%
EPS 5Y2.4%
EPS Q2Q%-57.14%
Revenue 1Y (TTM)-0.59%
Revenue growth 3Y7.85%
Revenue growth 5Y7.2%
Sales Q2Q%3.26%
3.2 Future
AFX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.86% yearly.
AFX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.03% yearly.
EPS Next Y-3.92%
EPS Next 2Y9.73%
EPS Next 3Y14.76%
EPS Next 5Y16.86%
Revenue Next Year5.55%
Revenue Next 2Y6.42%
Revenue Next 3Y7.19%
Revenue Next 5Y6.03%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 36.30, which means the current valuation is very expensive for AFX.
AFX's Price/Earnings ratio is a bit cheaper when compared to the industry. AFX is cheaper than 64.81% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.89. AFX is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 26.55 indicates a quite expensive valuation of AFX.
AFX's Price/Forward Earnings ratio is in line with the industry average.
AFX's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.3 | ||
| Fwd PE | 26.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AFX is valued a bit cheaper than 70.37% of the companies in the same industry.
AFX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.42 | ||
| EV/EBITDA | 19.63 |
4.3 Compensation for Growth
AFX has a very decent profitability rating, which may justify a higher PE ratio.
AFX's earnings are expected to grow with 14.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)15.1
EPS Next 2Y9.73%
EPS Next 3Y14.76%
5. Dividend
5.1 Amount
AFX has a yearly dividend return of 1.00%, which is pretty low.
Compared to an average industry Dividend Yield of 2.15, AFX pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.00, AFX pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
5.2 History
On average, the dividend of AFX grows each year by 15.07%, which is quite nice.
Dividend Growth(5Y)15.07%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
54.94% of the earnings are spent on dividend by AFX. This is a bit on the high side, but may be sustainable.
AFX's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP54.94%
EPS Next 2Y9.73%
EPS Next 3Y14.76%
FRA:AFX (3/27/2025, 10:50:08 AM)
64.25
-1.4 (-2.13%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners23.93%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.75B
Analysts70.91
Price Target61.59 (-4.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
Yearly Dividend1.11
Dividend Growth(5Y)15.07%
DP54.94%
Div Incr Years2
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.65%
Min EPS beat(2)-35.88%
Max EPS beat(2)37.18%
EPS beat(4)3
Avg EPS beat(4)9.35%
Min EPS beat(4)-35.88%
Max EPS beat(4)37.18%
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)1
Avg Revenue beat(2)-1.14%
Min Revenue beat(2)-2.4%
Max Revenue beat(2)0.12%
Revenue beat(4)2
Avg Revenue beat(4)-2.23%
Min Revenue beat(4)-7.35%
Max Revenue beat(4)0.71%
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)0%
PT rev (3m)-14.46%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-22.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.3 | ||
| Fwd PE | 26.55 | ||
| P/S | 2.78 | ||
| P/FCF | 60.42 | ||
| P/OCF | 23.24 | ||
| P/B | 2.81 | ||
| P/tB | 16.31 | ||
| EV/EBITDA | 19.63 |
EPS(TTM)1.77
EY2.75%
EPS(NY)2.42
Fwd EY3.77%
FCF(TTM)1.06
FCFY1.66%
OCF(TTM)2.77
OCFY4.3%
SpS23.1
BVpS22.83
TBVpS3.94
PEG (NY)N/A
PEG (5Y)15.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.27% | ||
| ROE | 8.75% | ||
| ROCE | 6.89% | ||
| ROIC | 5.01% | ||
| ROICexc | 5.08% | ||
| ROICexgc | 12.92% | ||
| OM | 9.41% | ||
| PM (TTM) | 8.65% | ||
| GM | 52.69% | ||
| FCFM | 4.6% |
ROA(3y)8.42%
ROA(5y)8.24%
ROE(3y)12.26%
ROE(5y)11.91%
ROIC(3y)9.3%
ROIC(5y)9.86%
ROICexc(3y)9.4%
ROICexc(5y)9.95%
ROICexgc(3y)15.11%
ROICexgc(5y)14.88%
ROCE(3y)12.78%
ROCE(5y)13.55%
ROICexcg growth 3Y-11.32%
ROICexcg growth 5Y-4.98%
ROICexc growth 3Y-28.53%
ROICexc growth 5Y-15.45%
OM growth 3Y-25.26%
OM growth 5Y-12.3%
PM growth 3Y-15.52%
PM growth 5Y-4.6%
GM growth 3Y-3.56%
GM growth 5Y-1.56%
F-Score4
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 6.42 | ||
| Debt/EBITDA | 1.79 | ||
| Cap/Depr | 114.64% | ||
| Cap/Sales | 7.37% | ||
| Interest Coverage | 15.83 | ||
| Cash Conversion | 75.58% | ||
| Profit Quality | 53.22% | ||
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 4.25 |
F-Score4
WACC6.74%
ROIC/WACC0.74
Cap/Depr(3y)128.62%
Cap/Depr(5y)113.53%
Cap/Sales(3y)5.71%
Cap/Sales(5y)4.9%
Profit Quality(3y)45.51%
Profit Quality(5y)74.23%
High Growth Momentum
Growth
EPS 1Y (TTM)-42.9%
EPS 3Y-8.8%
EPS 5Y2.4%
EPS Q2Q%-57.14%
EPS Next Y-3.92%
EPS Next 2Y9.73%
EPS Next 3Y14.76%
EPS Next 5Y16.86%
Revenue 1Y (TTM)-0.59%
Revenue growth 3Y7.85%
Revenue growth 5Y7.2%
Sales Q2Q%3.26%
Revenue Next Year5.55%
Revenue Next 2Y6.42%
Revenue Next 3Y7.19%
Revenue Next 5Y6.03%
EBIT growth 1Y-44.14%
EBIT growth 3Y-19.39%
EBIT growth 5Y-5.98%
EBIT Next Year80.83%
EBIT Next 3Y35.67%
EBIT Next 5Y21.85%
FCF growth 1Y-30.57%
FCF growth 3Y-31.55%
FCF growth 5Y-11.27%
OCF growth 1Y-1.41%
OCF growth 3Y-11.98%
OCF growth 5Y2.4%