EUTELSAT COMMUNICATIONS (ETL.PA)

FR0010221234 - Common Stock

3.844  +0.08 (+2.18%)

Fundamental Rating

5

Overall ETL gets a fundamental rating of 5 out of 10. We evaluated ETL against 64 industry peers in the Media industry. While ETL belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ETL has a correct valuation and a medium growth rate.



7

1. Profitability

1.1 Basic Checks

ETL had positive earnings in the past year.
In the past year ETL had a positive cash flow from operations.
ETL had positive earnings in each of the past 5 years.
ETL had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

ETL has a Return On Assets of 0.81%. This is comparable to the rest of the industry: ETL outperforms 42.62% of its industry peers.
ETL has a Return On Equity (1.77%) which is comparable to the rest of the industry.
ETL has a Return On Invested Capital (3.27%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for ETL is in line with the industry average of 6.64%.
Industry RankSector Rank
ROA 0.81%
ROE 1.77%
ROIC 3.27%
ROA(3y)3.41%
ROA(5y)3.65%
ROE(3y)9.03%
ROE(5y)10.19%
ROIC(3y)6.69%
ROIC(5y)6.68%

1.3 Margins

ETL's Profit Margin of 6.34% is fine compared to the rest of the industry. ETL outperforms 72.13% of its industry peers.
ETL's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 26.78%, ETL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of ETL has grown nicely.
Looking at the Gross Margin, with a value of 94.58%, ETL belongs to the top of the industry, outperforming 90.16% of the companies in the same industry.
ETL's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 26.78%
PM (TTM) 6.34%
GM 94.58%
OM growth 3Y19.21%
OM growth 5Y10.14%
PM growth 3Y6.14%
PM growth 5Y5.83%
GM growth 3Y-0.38%
GM growth 5Y0.32%

4

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ETL is still creating some value.
The number of shares outstanding for ETL has been increased compared to 1 year ago.
ETL has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ETL has an improved debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 0.63, we must say that ETL is in the distress zone and has some risk of bankruptcy.
ETL has a Altman-Z score of 0.63. This is in the lower half of the industry: ETL underperforms 78.69% of its industry peers.
ETL has a debt to FCF ratio of 10.40. This is a negative value and a sign of low solvency as ETL would need 10.40 years to pay back of all of its debts.
With a Debt to FCF ratio value of 10.40, ETL perfoms like the industry average, outperforming 44.26% of the companies in the same industry.
A Debt/Equity ratio of 0.82 indicates that ETL is somewhat dependend on debt financing.
ETL has a Debt to Equity ratio (0.82) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.82
Debt/FCF 10.4
Altman-Z 0.63
ROIC/WACC0.78
WACC4.21%

2.3 Liquidity

ETL has a Current Ratio of 1.81. This is a normal value and indicates that ETL is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Current ratio value of 1.81, ETL belongs to the best of the industry, outperforming 88.52% of the companies in the same industry.
ETL has a Quick Ratio of 1.69. This is a normal value and indicates that ETL is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ETL (1.69) is better than 86.89% of its industry peers.
Industry RankSector Rank
Current Ratio 1.81
Quick Ratio 1.69

4

3. Growth

3.1 Past

ETL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.45%, which is quite impressive.
Measured over the past 5 years, ETL shows a small growth in Earnings Per Share. The EPS has been growing by 0.27% on average per year.
ETL shows a decrease in Revenue. In the last year, the revenue decreased by -2.00%.
ETL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.04% yearly.
EPS 1Y (TTM)26.45%
EPS 3Y-0.34%
EPS 5Y0.27%
EPS growth Q2QN/A
Revenue 1Y (TTM)-2%
Revenue growth 3Y-3.99%
Revenue growth 5Y-4.04%
Revenue growth Q2Q-0.21%

3.2 Future

The Earnings Per Share is expected to grow by 20.97% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -2.44% on average over the next years.
EPS Next Y-130.69%
EPS Next 2Y-44.99%
EPS Next 3Y-26.72%
EPS Next 5Y20.97%
Revenue Next Year9.67%
Revenue Next 2Y11.12%
Revenue Next 3Y10.33%
Revenue Next 5Y-2.44%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.

5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 3.03, which indicates a rather cheap valuation of ETL.
Based on the Price/Earnings ratio, ETL is valued cheaply inside the industry as 93.44% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 24.75, ETL is valued rather cheaply.
The Forward Price/Earnings Ratio is negative for ETL. No positive earnings are expected for the next year.
Industry RankSector Rank
PE 3.03
Fwd PE N/A

4.2 Price Multiples

ETL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ETL is cheaper than 75.41% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ETL is valued a bit cheaper than the industry average as 78.69% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 5.41
EV/EBITDA 4.21

4.3 Compensation for Growth

The decent profitability rating of ETL may justify a higher PE ratio.
A cheap valuation may be justified as ETL's earnings are expected to decrease with -26.72% in the coming years.
PEG (NY)N/A
PEG (5Y)11.19
EPS Next 2Y-44.99%
EPS Next 3Y-26.72%

0

5. Dividend

5.1 Amount

ETL does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

EUTELSAT COMMUNICATIONS

EPA:ETL (4/22/2024, 5:18:15 PM)

3.844

+0.08 (+2.18%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.82B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
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)
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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 3.03
Fwd PE N/A
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)N/A
PEG (5Y)11.19
Profitability
Industry RankSector Rank
ROA 0.81%
ROE 1.77%
ROCE
ROIC
ROICexc
ROICexgc
OM 26.78%
PM (TTM) 6.34%
GM 94.58%
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 Turnover0.13
Health
Industry RankSector Rank
Debt/Equity 0.82
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.81
Quick Ratio 1.69
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)
Growth
EPS 1Y (TTM)26.45%
EPS 3Y-0.34%
EPS 5Y
EPS growth Q2Q
EPS Next Y-130.69%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2%
Revenue growth 3Y-3.99%
Revenue growth 5Y
Revenue growth 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