CECONOMY AG (CEC.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:CEC - DE0007257503 - Common Stock
4.4 EUR
-0.01 (-0.23%)
We assign a fundamental rating of 4 out of 10 to CEC. CEC was compared to 56 industry peers in the Specialty Retail industry. CEC has a medium profitability rating, but doesn't score so well on its financial health evaluation. CEC is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- CEC had positive earnings in the past year.
- In the past year CEC had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: CEC reported negative net income in multiple years.
- Each year in the past 5 years CEC had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of -0.34%, CEC perfoms like the industry average, outperforming 41.07% of the companies in the same industry.
- CEC has a worse Return On Equity (-7.20%) than 67.86% of its industry peers.
- The Return On Invested Capital of CEC (7.70%) is better than 66.07% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for CEC is significantly below the industry average of 10.20%.
- The last Return On Invested Capital (7.70%) for CEC is above the 3 year average (4.66%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.34% | ||
| ROE | -7.2% | ||
| ROIC | 7.7% |
ROA(3y)0%
ROA(5y)0.69%
ROE(3y)-0.3%
ROE(5y)10.6%
ROIC(3y)4.66%
ROIC(5y)N/A
1.3 Margins
- With a Operating Margin value of 1.31%, CEC perfoms like the industry average, outperforming 41.07% of the companies in the same industry.
- CEC's Operating Margin has been stable in the last couple of years.
- With a Gross Margin value of 18.00%, CEC is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of CEC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.31% | ||
| PM (TTM) | N/A | ||
| GM | 18% |
OM growth 3YN/A
OM growth 5Y-0.56%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.97%
GM growth 5Y-0.15%
2. Health
2.1 Basic Checks
- CEC 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 CEC remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, CEC has more shares outstanding
- The debt/assets ratio for CEC has been reduced compared to a year ago.
2.2 Solvency
- CEC has an Altman-Z score of 2.35. This is not the best score and indicates that CEC is in the grey zone with still only limited risk for bankruptcy at the moment.
- With a decent Altman-Z score value of 2.35, CEC is doing good in the industry, outperforming 66.07% of the companies in the same industry.
- The Debt to FCF ratio of CEC is 2.98, which is a good value as it means it would take CEC, 2.98 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 2.98, CEC is doing good in the industry, outperforming 76.79% of the companies in the same industry.
- A Debt/Equity ratio of 3.86 is on the high side and indicates that CEC has dependencies on debt financing.
- CEC's Debt to Equity ratio of 3.86 is on the low side compared to the rest of the industry. CEC is outperformed by 82.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.86 | ||
| Debt/FCF | 2.98 | ||
| Altman-Z | 2.35 |
ROIC/WACC1.02
WACC7.57%
2.3 Liquidity
- A Current Ratio of 0.90 indicates that CEC may have some problems paying its short term obligations.
- CEC has a Current ratio of 0.90. This is in the lower half of the industry: CEC underperforms 73.21% of its industry peers.
- A Quick Ratio of 0.46 indicates that CEC may have some problems paying its short term obligations.
- CEC's Quick ratio of 0.46 is in line compared to the rest of the industry. CEC outperforms 41.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
- The earnings per share for CEC have decreased strongly by -161.80% in the last year.
- Measured over the past years, CEC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -15.59% on average per year.
- CEC shows a small growth in Revenue. In the last year, the Revenue has grown by 2.81%.
- CEC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.90% yearly.
EPS 1Y (TTM)-161.8%
EPS 3Y-37.45%
EPS 5Y-15.59%
EPS Q2Q%-14.88%
Revenue 1Y (TTM)2.81%
Revenue growth 3Y1.66%
Revenue growth 5Y0.9%
Sales Q2Q%4.22%
3.2 Future
- Based on estimates for the next years, CEC will show a very strong growth in Earnings Per Share. The EPS will grow by 47.87% on average per year.
- Based on estimates for the next years, CEC will show a decrease in Revenue. The Revenue will decrease by -0.30% on average per year.
EPS Next Y84.49%
EPS Next 2Y84.4%
EPS Next 3Y57.02%
EPS Next 5Y47.87%
Revenue Next Year2.61%
Revenue Next 2Y2.56%
Revenue Next 3Y2.44%
Revenue Next 5Y-0.3%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 29.33, CEC can be considered very expensive at the moment.
- CEC's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 28.82. CEC is around the same levels.
- Based on the Price/Forward Earnings ratio of 8.63, the valuation of CEC can be described as reasonable.
- 85.71% of the companies in the same industry are more expensive than CEC, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. CEC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.33 | ||
| Fwd PE | 8.63 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CEC is valued cheaper than 92.86% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, CEC is valued cheaply inside the industry as 89.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.51 | ||
| EV/EBITDA | 3.22 |
4.3 Compensation for Growth
- CEC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- CEC's earnings are expected to grow with 57.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.35
PEG (5Y)N/A
EPS Next 2Y84.4%
EPS Next 3Y57.02%
5. Dividend
5.1 Amount
- CEC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CECONOMY AG / CEC.DE FAQ
What is the fundamental rating for CEC stock?
ChartMill assigns a fundamental rating of 4 / 10 to CEC.DE.
Can you provide the valuation status for CECONOMY AG?
ChartMill assigns a valuation rating of 7 / 10 to CECONOMY AG (CEC.DE). This can be considered as Undervalued.
Can you provide the profitability details for CECONOMY AG?
CECONOMY AG (CEC.DE) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for CEC stock?
The Price/Earnings (PE) ratio for CECONOMY AG (CEC.DE) is 29.33 and the Price/Book (PB) ratio is 4.39.
What is the financial health of CECONOMY AG (CEC.DE) stock?
The financial health rating of CECONOMY AG (CEC.DE) is 3 / 10.