RACING FORCE SPA (ALRFG.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:ALRFG - IT0005466963 - Common Stock
5.1 EUR
-0.06 (-1.16%)
Taking everything into account, ALRFG scores 5 out of 10 in our fundamental rating. ALRFG was compared to 14 industry peers in the Leisure Products industry. ALRFG has an average financial health and profitability rating. While showing a medium growth rate, ALRFG is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year ALRFG was profitable.
- ALRFG had a positive operating cash flow in the past year.
- ALRFG had positive earnings in each of the past 5 years.
- ALRFG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ALRFG has a Return On Assets (5.11%) which is comparable to the rest of the industry.
- ALRFG's Return On Equity of 7.75% is in line compared to the rest of the industry. ALRFG outperforms 50.00% of its industry peers.
- With a Return On Invested Capital value of 7.66%, ALRFG perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ALRFG is in line with the industry average of 11.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.11% | ||
| ROE | 7.75% | ||
| ROIC | 7.66% |
ROA(3y)7.77%
ROA(5y)6.56%
ROE(3y)13.39%
ROE(5y)14.13%
ROIC(3y)10.5%
ROIC(5y)9.82%
1.3 Margins
- The Profit Margin of ALRFG (6.94%) is better than 64.29% of its industry peers.
- ALRFG's Profit Margin has been stable in the last couple of years.
- The Operating Margin of ALRFG (9.37%) is better than 64.29% of its industry peers.
- ALRFG's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 61.19%, ALRFG belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
- ALRFG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.37% | ||
| PM (TTM) | 6.94% | ||
| GM | 61.19% |
OM growth 3Y-5.92%
OM growth 5YN/A
PM growth 3Y-0.53%
PM growth 5YN/A
GM growth 3Y1.31%
GM growth 5YN/A
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ALRFG is creating some value.
- The number of shares outstanding for ALRFG has been increased compared to 1 year ago.
- The debt/assets ratio for ALRFG has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 4.30 indicates that ALRFG is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.30, ALRFG belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
- ALRFG has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.15, ALRFG belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.3 |
ROIC/WACC0.98
WACC7.83%
2.3 Liquidity
- A Current Ratio of 2.27 indicates that ALRFG has no problem at all paying its short term obligations.
- With an excellent Current ratio value of 2.27, ALRFG belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
- ALRFG has a Quick Ratio of 1.09. This is a normal value and indicates that ALRFG is financially healthy and should not expect problems in meeting its short term obligations.
- ALRFG has a Quick ratio of 1.09. This is amongst the best in the industry. ALRFG outperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
- The earnings per share for ALRFG have decreased strongly by -15.00% in the last year.
- ALRFG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.19% yearly.
- ALRFG shows a small growth in Revenue. In the last year, the Revenue has grown by 6.35%.
- ALRFG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.24% yearly.
EPS 1Y (TTM)-15%
EPS 3Y6.19%
EPS 5YN/A
EPS Q2Q%-20%
Revenue 1Y (TTM)6.35%
Revenue growth 3Y12.24%
Revenue growth 5YN/A
Sales Q2Q%2.63%
3.2 Future
- ALRFG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.86% yearly.
- ALRFG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.00% yearly.
EPS Next Y18.18%
EPS Next 2Y15.47%
EPS Next 3Y14.86%
EPS Next 5YN/A
Revenue Next Year8.54%
Revenue Next 2Y8.21%
Revenue Next 3Y7.68%
Revenue Next 5Y6%
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 accelerating.
- 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
- ALRFG is valuated quite expensively with a Price/Earnings ratio of 30.00.
- Compared to the rest of the industry, the Price/Earnings ratio of ALRFG is on the same level as its industry peers.
- When comparing the Price/Earnings ratio of ALRFG to the average of the S&P500 Index (27.25), we can say ALRFG is valued inline with the index average.
- A Price/Forward Earnings ratio of 22.95 indicates a rather expensive valuation of ALRFG.
- ALRFG's Price/Forward Earnings is on the same level as the industry average.
- ALRFG 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 | 30 | ||
| Fwd PE | 22.95 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALRFG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.95 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- ALRFG has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as ALRFG's earnings are expected to grow with 14.86% in the coming years.
PEG (NY)1.65
PEG (5Y)N/A
EPS Next 2Y15.47%
EPS Next 3Y14.86%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.81%, ALRFG has a reasonable but not impressive dividend return.
- ALRFG's Dividend Yield is comparable with the industry average which is at 2.37.
- Compared to an average S&P500 Dividend Yield of 1.82, ALRFG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
- ALRFG pays out 53.12% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP53.12%
EPS Next 2Y15.47%
EPS Next 3Y14.86%
RACING FORCE SPA / ALRFG.PA FAQ
What is the ChartMill fundamental rating of RACING FORCE SPA (ALRFG.PA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to ALRFG.PA.
What is the valuation status for ALRFG stock?
ChartMill assigns a valuation rating of 2 / 10 to RACING FORCE SPA (ALRFG.PA). This can be considered as Overvalued.
How profitable is RACING FORCE SPA (ALRFG.PA) stock?
RACING FORCE SPA (ALRFG.PA) has a profitability rating of 6 / 10.
What is the valuation of RACING FORCE SPA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for RACING FORCE SPA (ALRFG.PA) is 30 and the Price/Book (PB) ratio is 2.33.
What is the expected EPS growth for RACING FORCE SPA (ALRFG.PA) stock?
The Earnings per Share (EPS) of RACING FORCE SPA (ALRFG.PA) is expected to grow by 18.18% in the next year.