CANCOM SE (COK.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:COK - DE0005419105 - Common Stock
28.3 EUR
-0.45 (-1.57%)
Taking everything into account, COK scores 4 out of 10 in our fundamental rating. COK was compared to 70 industry peers in the IT Services industry. The financial health of COK is average, but there are quite some concerns on its profitability. COK has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year COK was profitable.
- COK had a positive operating cash flow in the past year.
- Each year in the past 5 years COK has been profitable.
- COK had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- The Return On Assets of COK (1.30%) is worse than 67.11% of its industry peers.
- COK's Return On Equity of 3.14% is on the low side compared to the rest of the industry. COK is outperformed by 67.11% of its industry peers.
- COK's Return On Invested Capital of 3.02% is on the low side compared to the rest of the industry. COK is outperformed by 72.37% of its industry peers.
- COK had an Average Return On Invested Capital over the past 3 years of 3.89%. This is significantly below the industry average of 26.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.3% | ||
| ROE | 3.14% | ||
| ROIC | 3.02% |
ROA(3y)2.37%
ROA(5y)6.29%
ROE(3y)5.12%
ROE(5y)11.79%
ROIC(3y)3.89%
ROIC(5y)4.61%
1.3 Margins
- Looking at the Profit Margin, with a value of 1.01%, COK is doing worse than 65.79% of the companies in the same industry.
- COK's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 1.93%, COK is not doing good in the industry: 72.37% of the companies in the same industry are doing better.
- In the last couple of years the Operating Margin of COK has declined.
- COK has a Gross Margin of 39.19%. This is in the lower half of the industry: COK underperforms 68.42% of its industry peers.
- COK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.93% | ||
| PM (TTM) | 1.01% | ||
| GM | 39.19% |
OM growth 3Y-25.37%
OM growth 5Y-9.34%
PM growth 3Y-55.07%
PM growth 5Y-4%
GM growth 3Y6.58%
GM growth 5Y6.71%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so COK is destroying value.
- Compared to 1 year ago, COK has less shares outstanding
- Compared to 5 years ago, COK has less shares outstanding
- COK has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.22 indicates that COK is not a great score, but indicates only limited risk for bankruptcy at the moment.
- COK's Altman-Z score of 2.22 is in line compared to the rest of the industry. COK outperforms 40.79% of its industry peers.
- There is no outstanding debt for COK. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.14 | ||
| Altman-Z | 2.22 |
ROIC/WACC0.24
WACC12.67%
2.3 Liquidity
- A Current Ratio of 1.24 indicates that COK should not have too much problems paying its short term obligations.
- COK has a Current ratio of 1.24. This is comparable to the rest of the industry: COK outperforms 46.05% of its industry peers.
- COK has a Quick Ratio of 1.14. This is a normal value and indicates that COK is financially healthy and should not expect problems in meeting its short term obligations.
- COK has a Quick ratio (1.14) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
- The earnings per share for COK have decreased by -1.39% in the last year.
- The Earnings Per Share has been decreasing by -5.51% on average over the past years.
- COK shows a decrease in Revenue. In the last year, the revenue decreased by -0.61%.
- The Revenue has been growing slightly by 2.32% on average over the past years.
EPS 1Y (TTM)-1.39%
EPS 3Y-48.05%
EPS 5Y-5.51%
EPS Q2Q%-14.29%
Revenue 1Y (TTM)-0.61%
Revenue growth 3Y10.55%
Revenue growth 5Y2.32%
Sales Q2Q%0.31%
3.2 Future
- Based on estimates for the next years, COK will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.72% on average per year.
- Based on estimates for the next years, COK will show a small growth in Revenue. The Revenue will grow by 2.86% on average per year.
EPS Next Y-14.61%
EPS Next 2Y14.14%
EPS Next 3Y18.01%
EPS Next 5Y17.72%
Revenue Next Year-0.23%
Revenue Next 2Y2.35%
Revenue Next 3Y3.51%
Revenue Next 5Y2.86%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 28.59 indicates a quite expensive valuation of COK.
- Compared to the rest of the industry, the Price/Earnings ratio of COK is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, COK is valued at the same level.
- Based on the Price/Forward Earnings ratio of 21.94, the valuation of COK can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of COK is on the same level as its industry peers.
- COK 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 | 28.59 | ||
| Fwd PE | 21.94 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, COK is valued a bit cheaper than the industry average as 64.47% of the companies are valued more expensively.
- COK's Price/Free Cash Flow ratio is rather cheap when compared to the industry. COK is cheaper than 82.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.39 | ||
| EV/EBITDA | 7.7 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as COK's earnings are expected to grow with 18.01% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y14.14%
EPS Next 3Y18.01%
5. Dividend
5.1 Amount
- COK has a Yearly Dividend Yield of 3.48%.
- COK's Dividend Yield is rather good when compared to the industry average which is at 2.27. COK pays more dividend than 80.26% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, COK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
5.2 History
- The dividend of COK is nicely growing with an annual growth rate of 16.67%!
Dividend Growth(5Y)16.67%
Div Incr Years1
Div Non Decr Years7
5.3 Sustainability
- COK pays out 183.24% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of COK is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP183.24%
EPS Next 2Y14.14%
EPS Next 3Y18.01%
CANCOM SE / COK.DE FAQ
What is the ChartMill fundamental rating of CANCOM SE (COK.DE) stock?
ChartMill assigns a fundamental rating of 4 / 10 to COK.DE.
What is the valuation status of CANCOM SE (COK.DE) stock?
ChartMill assigns a valuation rating of 4 / 10 to CANCOM SE (COK.DE). This can be considered as Fairly Valued.
How profitable is CANCOM SE (COK.DE) stock?
CANCOM SE (COK.DE) has a profitability rating of 2 / 10.
Can you provide the expected EPS growth for COK stock?
The Earnings per Share (EPS) of CANCOM SE (COK.DE) is expected to decline by -14.61% in the next year.
How sustainable is the dividend of CANCOM SE (COK.DE) stock?
The dividend rating of CANCOM SE (COK.DE) is 6 / 10 and the dividend payout ratio is 183.24%.