ERNST RUSS AG (ERAG.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ERAG - DE000A161077 - Common Stock
7.46 EUR
-0.1 (-1.32%)
ERAG gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 118 industry peers in the Capital Markets industry. ERAG gets an excellent profitability rating and is at the same time showing great financial health properties. ERAG is cheap, but on the other hand it scores bad on growth. This makes ERAG very considerable for value investing!
1. Profitability
1.1 Basic Checks
- ERAG had positive earnings in the past year.
- Each year in the past 5 years ERAG has been profitable.
- ERAG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 28.42%, ERAG belongs to the top of the industry, outperforming 99.15% of the companies in the same industry.
- ERAG's Return On Equity of 42.91% is amongst the best of the industry. ERAG outperforms 95.76% of its industry peers.
- With an excellent Return On Invested Capital value of 10.85%, ERAG belongs to the best of the industry, outperforming 86.44% of the companies in the same industry.
- ERAG had an Average Return On Invested Capital over the past 3 years of 18.48%. This is significantly above the industry average of 8.65%.
- The last Return On Invested Capital (10.85%) for ERAG is well below the 3 year average (18.48%), which needs to be investigated, but indicates that ERAG had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 28.42% | ||
| ROE | 42.91% | ||
| ROIC | 10.85% |
ROA(3y)14.95%
ROA(5y)10.67%
ROE(3y)31.94%
ROE(5y)24.94%
ROIC(3y)18.48%
ROIC(5y)13.46%
1.3 Margins
- ERAG has a Profit Margin of 39.98%. This is amongst the best in the industry. ERAG outperforms 84.75% of its industry peers.
- In the last couple of years the Profit Margin of ERAG has grown nicely.
- ERAG's Operating Margin of 19.84% is fine compared to the rest of the industry. ERAG outperforms 60.17% of its industry peers.
- ERAG's Operating Margin has improved in the last couple of years.
- ERAG's Gross Margin of 35.90% is in line compared to the rest of the industry. ERAG outperforms 55.93% of its industry peers.
- ERAG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.84% | ||
| PM (TTM) | 39.98% | ||
| GM | 35.9% |
OM growth 3Y-2.94%
OM growth 5Y22.67%
PM growth 3Y12.88%
PM growth 5Y56.93%
GM growth 3Y2.91%
GM growth 5Y3.19%
2. Health
2.1 Basic Checks
- Compared to 1 year ago, ERAG has more shares outstanding
- Compared to 5 years ago, ERAG has more shares outstanding
- ERAG has a better debt/assets ratio than last year.
2.2 Solvency
- ERAG has an Altman-Z score of 3.53. This indicates that ERAG is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.53, ERAG belongs to the top of the industry, outperforming 84.75% of the companies in the same industry.
- There is no outstanding debt for ERAG. 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 | N/A | ||
| Altman-Z | 3.53 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- ERAG has a Current Ratio of 4.10. This indicates that ERAG is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 4.10, ERAG belongs to the top of the industry, outperforming 88.98% of the companies in the same industry.
- ERAG has a Quick Ratio of 4.05. This indicates that ERAG is financially healthy and has no problem in meeting its short term obligations.
- ERAG has a better Quick ratio (4.05) than 89.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.1 | ||
| Quick Ratio | 4.05 |
3. Growth
3.1 Past
- ERAG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.32%.
- Measured over the past years, ERAG shows a very strong growth in Earnings Per Share. The EPS has been growing by 93.23% on average per year.
- ERAG shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -14.78%.
- The Revenue has been growing by 24.05% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-23.32%
EPS 3Y37.36%
EPS 5Y93.23%
EPS Q2Q%101.83%
Revenue 1Y (TTM)-14.78%
Revenue growth 3Y23.24%
Revenue growth 5Y24.05%
Sales Q2Q%-6.19%
3.2 Future
- The Earnings Per Share is expected to decrease by -23.99% on average over the next years. This is quite bad
- The Revenue is expected to decrease by -4.22% on average over the next years.
EPS Next Y57.97%
EPS Next 2Y-8.63%
EPS Next 3Y-23.99%
EPS Next 5YN/A
Revenue Next Year-4.77%
Revenue Next 2Y-5.56%
Revenue Next 3Y-6.66%
Revenue Next 5Y-4.22%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 2.57, the valuation of ERAG can be described as very cheap.
- Based on the Price/Earnings ratio, ERAG is valued cheaper than 99.15% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, ERAG is valued rather cheaply.
- ERAG is valuated cheaply with a Price/Forward Earnings ratio of 7.62.
- Based on the Price/Forward Earnings ratio, ERAG is valued cheaply inside the industry as 97.46% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. ERAG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.57 | ||
| Fwd PE | 7.62 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ERAG indicates a rather cheap valuation: ERAG is cheaper than 97.46% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 1.91 |
4.3 Compensation for Growth
- ERAG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of ERAG may justify a higher PE ratio.
- A cheap valuation may be justified as ERAG's earnings are expected to decrease with -23.99% in the coming years.
PEG (NY)0.04
PEG (5Y)0.03
EPS Next 2Y-8.63%
EPS Next 3Y-23.99%
5. Dividend
5.1 Amount
- ERAG has a Yearly Dividend Yield of 2.61%.
- Compared to an average industry Dividend Yield of 3.08, ERAG pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, ERAG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- ERAG pays out 116.31% of its income as dividend. This is not a sustainable payout ratio.
DP116.31%
EPS Next 2Y-8.63%
EPS Next 3Y-23.99%
ERNST RUSS AG / ERAG.DE FAQ
What is the fundamental rating for ERAG stock?
ChartMill assigns a fundamental rating of 7 / 10 to ERAG.DE.
Can you provide the valuation status for ERNST RUSS AG?
ChartMill assigns a valuation rating of 8 / 10 to ERNST RUSS AG (ERAG.DE). This can be considered as Undervalued.
How profitable is ERNST RUSS AG (ERAG.DE) stock?
ERNST RUSS AG (ERAG.DE) has a profitability rating of 9 / 10.
What is the valuation of ERNST RUSS AG based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ERNST RUSS AG (ERAG.DE) is 2.57 and the Price/Book (PB) ratio is 1.1.
What is the earnings growth outlook for ERNST RUSS AG?
The Earnings per Share (EPS) of ERNST RUSS AG (ERAG.DE) is expected to grow by 57.97% in the next year.