MOTA ENGIL SGPS SA (EGL.LS)

PTMEN0AE0005 - Common Stock

3.588  -0.1 (-2.82%)

Fundamental Rating

5

EGL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 38 industry peers in the Construction & Engineering industry. While EGL is still in line with the averages on profitability rating, there are concerns on its financial health. EGL is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! EGL also has an excellent dividend rating.



6

1. Profitability

1.1 Basic Checks

In the past year EGL was profitable.
EGL had a positive operating cash flow in the past year.
EGL had positive earnings in 4 of the past 5 years.
EGL had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

EGL has a worse Return On Assets (1.47%) than 64.86% of its industry peers.
EGL has a better Return On Equity (49.99%) than 100.00% of its industry peers.
EGL's Return On Invested Capital of 12.21% is amongst the best of the industry. EGL outperforms 81.08% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EGL is below the industry average of 9.54%.
The last Return On Invested Capital (12.21%) for EGL is above the 3 year average (6.50%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 1.47%
ROE 49.99%
ROIC 12.21%
ROA(3y)0.9%
ROA(5y)0.56%
ROE(3y)29.5%
ROE(5y)N/A
ROIC(3y)6.5%
ROIC(5y)5.78%

1.3 Margins

EGL's Profit Margin of 2.04% is in line compared to the rest of the industry. EGL outperforms 40.54% of its industry peers.
In the last couple of years the Profit Margin of EGL has grown nicely.
Looking at the Operating Margin, with a value of 9.68%, EGL is in the better half of the industry, outperforming 75.68% of the companies in the same industry.
EGL's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 30.44%, EGL is not doing good in the industry: 70.27% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of EGL has declined.
Industry RankSector Rank
OM 9.68%
PM (TTM) 2.04%
GM 30.44%
OM growth 3Y6.98%
OM growth 5Y14.38%
PM growth 3YN/A
PM growth 5Y19.63%
GM growth 3Y-5.66%
GM growth 5Y-1.94%

1

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EGL is creating value.
EGL has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, EGL has more shares outstanding
The debt/assets ratio for EGL has been reduced compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of 1.09, we must say that EGL is in the distress zone and has some risk of bankruptcy.
EGL's Altman-Z score of 1.09 is on the low side compared to the rest of the industry. EGL is outperformed by 83.78% of its industry peers.
A Debt/Equity ratio of 6.42 is on the high side and indicates that EGL has dependencies on debt financing.
With a Debt to Equity ratio value of 6.42, EGL is not doing good in the industry: 91.89% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 6.42
Debt/FCF N/A
Altman-Z 1.09
ROIC/WACC2.25
WACC5.43%

2.3 Liquidity

A Current Ratio of 1.00 indicates that EGL may have some problems paying its short term obligations.
With a Current ratio value of 1.00, EGL is not doing good in the industry: 70.27% of the companies in the same industry are doing better.
A Quick Ratio of 0.89 indicates that EGL may have some problems paying its short term obligations.
EGL's Quick ratio of 0.89 is in line compared to the rest of the industry. EGL outperforms 43.24% of its industry peers.
Industry RankSector Rank
Current Ratio 1
Quick Ratio 0.89

7

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 118.16% over the past year.
The Earnings Per Share has been growing by 29.85% on average over the past years. This is a very strong growth
The Revenue has grown by 45.94% in the past year. This is a very strong growth!
Measured over the past years, EGL shows a quite strong growth in Revenue. The Revenue has been growing by 14.66% on average per year.
EPS 1Y (TTM)118.16%
EPS 3YN/A
EPS 5Y29.85%
EPS Q2Q%108.82%
Revenue 1Y (TTM)45.94%
Revenue growth 3Y31.72%
Revenue growth 5Y14.66%
Sales Q2Q%22.21%

3.2 Future

The Earnings Per Share is expected to grow by 23.31% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 4.20% on average over the next years.
EPS Next Y41.67%
EPS Next 2Y29.9%
EPS Next 3Y23.31%
EPS Next 5YN/A
Revenue Next Year7.44%
Revenue Next 2Y3.54%
Revenue Next 3Y4.2%
Revenue Next 5YN/A

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 9.70, the valuation of EGL can be described as very reasonable.
Based on the Price/Earnings ratio, EGL is valued a bit cheaper than the industry average as 78.38% of the companies are valued more expensively.
EGL is valuated cheaply when we compare the Price/Earnings ratio to 29.53, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.45, which indicates a very decent valuation of EGL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EGL indicates a somewhat cheap valuation: EGL is cheaper than 62.16% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.94, EGL is valued rather cheaply.
Industry RankSector Rank
PE 9.7
Fwd PE 10.45

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A

4.3 Compensation for Growth

EGL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of EGL may justify a higher PE ratio.
EGL's earnings are expected to grow with 23.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.23
PEG (5Y)0.32
EPS Next 2Y29.9%
EPS Next 3Y23.31%

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5. Dividend

5.1 Amount

EGL has a Yearly Dividend Yield of 3.57%.
EGL's Dividend Yield is a higher than the industry average which is at 3.26.
EGL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
Industry RankSector Rank
Dividend Yield 3.57%

5.2 History

On average, the dividend of EGL grows each year by 12.00%, which is quite nice.
Dividend Growth(5Y)12%
Div Incr Years2
Div Non Decr Years2

5.3 Sustainability

53.44% of the earnings are spent on dividend by EGL. This is a bit on the high side, but may be sustainable.
EGL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP53.44%
EPS Next 2Y29.9%
EPS Next 3Y23.31%

MOTA ENGIL SGPS SA

ELI:EGL (7/17/2024, 4:08:39 PM)

3.588

-0.1 (-2.82%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.08B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.57%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 9.7
Fwd PE 10.45
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.23
PEG (5Y)0.32
Profitability
Industry RankSector Rank
ROA 1.47%
ROE 49.99%
ROCE
ROIC
ROICexc
ROICexgc
OM 9.68%
PM (TTM) 2.04%
GM 30.44%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.72
Health
Industry RankSector Rank
Debt/Equity 6.42
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1
Quick Ratio 0.89
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)118.16%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y41.67%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)45.94%
Revenue growth 3Y31.72%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y