FAGRON (FAGR.BR) Stock Fundamental Analysis
Europe - Euronext Brussels - EBR:FAGR - BE0003874915 - Common Stock
22.85 EUR
-0.1 (-0.44%)
Taking everything into account, FAGR scores 6 out of 10 in our fundamental rating. FAGR was compared to 30 industry peers in the Health Care Providers & Services industry. While FAGR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, FAGR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- FAGR had positive earnings in the past year.
- In the past year FAGR had a positive cash flow from operations.
- FAGR had positive earnings in each of the past 5 years.
- FAGR 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 7.65%, FAGR belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
- With an excellent Return On Equity value of 17.07%, FAGR belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
- FAGR has a Return On Invested Capital of 12.49%. This is amongst the best in the industry. FAGR outperforms 90.00% of its industry peers.
- FAGR had an Average Return On Invested Capital over the past 3 years of 11.03%. This is above the industry average of 6.46%.
- The last Return On Invested Capital (12.49%) for FAGR is above the 3 year average (11.03%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.65% | ||
| ROE | 17.07% | ||
| ROIC | 12.49% |
ROA(3y)7.2%
ROA(5y)7.43%
ROE(3y)16.16%
ROE(5y)18.22%
ROIC(3y)11.03%
ROIC(5y)11.51%
1.3 Margins
- The Profit Margin of FAGR (9.31%) is better than 96.67% of its industry peers.
- In the last couple of years the Profit Margin of FAGR has grown nicely.
- FAGR has a Operating Margin of 15.26%. This is amongst the best in the industry. FAGR outperforms 96.67% of its industry peers.
- In the last couple of years the Operating Margin of FAGR has remained more or less at the same level.
- Looking at the Gross Margin, with a value of 45.75%, FAGR is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- FAGR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.26% | ||
| PM (TTM) | 9.31% | ||
| GM | 45.75% |
OM growth 3Y-0.56%
OM growth 5Y-1.34%
PM growth 3Y-4.57%
PM growth 5Y3.77%
GM growth 3Y1.71%
GM growth 5Y0.22%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FAGR is still creating some value.
- Compared to 1 year ago, FAGR has less shares outstanding
- FAGR has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, FAGR has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.05 indicates that FAGR is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 3.05, FAGR belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
- The Debt to FCF ratio of FAGR is 4.73, which is a neutral value as it means it would take FAGR, 4.73 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 4.73, FAGR is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
- A Debt/Equity ratio of 0.78 indicates that FAGR is somewhat dependend on debt financing.
- The Debt to Equity ratio of FAGR (0.78) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 4.73 | ||
| Altman-Z | 3.05 |
ROIC/WACC1.62
WACC7.71%
2.3 Liquidity
- A Current Ratio of 1.76 indicates that FAGR should not have too much problems paying its short term obligations.
- The Current ratio of FAGR (1.76) is better than 83.33% of its industry peers.
- A Quick Ratio of 1.06 indicates that FAGR should not have too much problems paying its short term obligations.
- With a decent Quick ratio value of 1.06, FAGR is doing good in the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 10.38% over the past year.
- The Earnings Per Share has been growing by 14.55% on average over the past years. This is quite good.
- FAGR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.94%.
- The Revenue has been growing by 10.28% on average over the past years. This is quite good.
EPS 1Y (TTM)10.38%
EPS 3Y9.59%
EPS 5Y14.55%
EPS Q2Q%13.45%
Revenue 1Y (TTM)11.94%
Revenue growth 3Y14.97%
Revenue growth 5Y10.28%
Sales Q2Q%10.9%
3.2 Future
- FAGR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.21% yearly.
- FAGR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.18% yearly.
EPS Next Y11.64%
EPS Next 2Y13.36%
EPS Next 3Y12.21%
EPS Next 5YN/A
Revenue Next Year9.01%
Revenue Next 2Y8.04%
Revenue Next 3Y7.96%
Revenue Next 5Y8.18%
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 stable.
- 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
- The Price/Earnings ratio is 19.53, which indicates a rather expensive current valuation of FAGR.
- The rest of the industry has a similar Price/Earnings ratio as FAGR.
- The average S&P500 Price/Earnings ratio is at 27.30. FAGR is valued slightly cheaper when compared to this.
- A Price/Forward Earnings ratio of 15.14 indicates a correct valuation of FAGR.
- FAGR's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of FAGR to the average of the S&P500 Index (24.32), we can say FAGR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.53 | ||
| Fwd PE | 15.14 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, FAGR is valued a bit more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.74 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of FAGR may justify a higher PE ratio.
- A more expensive valuation may be justified as FAGR's earnings are expected to grow with 12.21% in the coming years.
PEG (NY)1.68
PEG (5Y)1.34
EPS Next 2Y13.36%
EPS Next 3Y12.21%
5. Dividend
5.1 Amount
- FAGR has a Yearly Dividend Yield of 1.11%.
- FAGR's Dividend Yield is comparable with the industry average which is at 1.73.
- Compared to the average S&P500 Dividend Yield of 1.82, FAGR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
5.2 History
- On average, the dividend of FAGR grows each year by 19.25%, which is quite nice.
Dividend Growth(5Y)19.25%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
- 28.07% of the earnings are spent on dividend by FAGR. This is a low number and sustainable payout ratio.
- The dividend of FAGR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP28.07%
EPS Next 2Y13.36%
EPS Next 3Y12.21%
FAGRON / FAGR.BR FAQ
Can you provide the ChartMill fundamental rating for FAGRON?
ChartMill assigns a fundamental rating of 6 / 10 to FAGR.BR.
Can you provide the valuation status for FAGRON?
ChartMill assigns a valuation rating of 3 / 10 to FAGRON (FAGR.BR). This can be considered as Overvalued.
Can you provide the profitability details for FAGRON?
FAGRON (FAGR.BR) has a profitability rating of 9 / 10.
What is the valuation of FAGRON based on its PE and PB ratios?
The Price/Earnings (PE) ratio for FAGRON (FAGR.BR) is 19.53 and the Price/Book (PB) ratio is 3.36.
How financially healthy is FAGRON?
The financial health rating of FAGRON (FAGR.BR) is 6 / 10.