FREQUENTIS AG (FQT.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:FQT - ATFREQUENT09 - Common Stock
82 EUR
+1.2 (+1.49%)
Taking everything into account, FQT scores 6 out of 10 in our fundamental rating. FQT was compared to 53 industry peers in the Aerospace & Defense industry. FQT has an excellent financial health rating, but there are some minor concerns on its profitability. FQT is valued quite expensive, but it does show an excellent growth. These ratings would make FQT suitable for growth investing!
1. Profitability
1.1 Basic Checks
- In the past year FQT was profitable.
- FQT had a positive operating cash flow in the past year.
- FQT had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years FQT had a positive operating cash flow.
1.2 Ratios
- FQT has a Return On Assets of 4.74%. This is in the better half of the industry: FQT outperforms 62.26% of its industry peers.
- With a Return On Equity value of 12.39%, FQT perfoms like the industry average, outperforming 50.94% of the companies in the same industry.
- The Return On Invested Capital of FQT (11.66%) is better than 79.25% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for FQT is in line with the industry average of 9.24%.
- The last Return On Invested Capital (11.66%) for FQT is above the 3 year average (9.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 12.39% | ||
| ROIC | 11.66% |
ROA(3y)5.35%
ROA(5y)4.18%
ROE(3y)12.57%
ROE(5y)9.96%
ROIC(3y)9.67%
ROIC(5y)10.64%
1.3 Margins
- The Profit Margin of FQT (3.91%) is worse than 60.38% of its industry peers.
- FQT's Profit Margin has improved in the last couple of years.
- FQT has a Operating Margin of 7.66%. This is comparable to the rest of the industry: FQT outperforms 41.51% of its industry peers.
- In the last couple of years the Operating Margin of FQT has grown nicely.
- Looking at the Gross Margin, with a value of 74.69%, FQT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- In the last couple of years the Gross Margin of FQT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.66% | ||
| PM (TTM) | 3.91% | ||
| GM | 74.69% |
OM growth 3Y-6.9%
OM growth 5Y4.04%
PM growth 3Y-7.7%
PM growth 5Y3.75%
GM growth 3Y-0.57%
GM growth 5Y0.58%
2. Health
2.1 Basic Checks
- FQT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- FQT has about the same amout of shares outstanding than it did 1 year ago.
- FQT has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for FQT is higher compared to a year ago.
2.2 Solvency
- FQT has an Altman-Z score of 4.94. This indicates that FQT is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 4.94, FQT belongs to the best of the industry, outperforming 83.02% of the companies in the same industry.
- The Debt to FCF ratio of FQT is 3.59, which is a good value as it means it would take FQT, 3.59 years of fcf income to pay off all of its debts.
- FQT has a Debt to FCF ratio of 3.59. This is in the better half of the industry: FQT outperforms 71.70% of its industry peers.
- FQT has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of FQT (0.24) is better than 79.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 3.59 | ||
| Altman-Z | 4.94 |
ROIC/WACC1.33
WACC8.75%
2.3 Liquidity
- A Current Ratio of 1.86 indicates that FQT should not have too much problems paying its short term obligations.
- The Current ratio of FQT (1.86) is better than 81.13% of its industry peers.
- A Quick Ratio of 1.62 indicates that FQT should not have too much problems paying its short term obligations.
- FQT's Quick ratio of 1.62 is amongst the best of the industry. FQT outperforms 84.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
- FQT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.86%, which is quite impressive.
- Measured over the past years, FQT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.30% on average per year.
- Looking at the last year, FQT shows a quite strong growth in Revenue. The Revenue has grown by 14.31% in the last year.
- The Revenue has been growing by 9.13% on average over the past years. This is quite good.
EPS 1Y (TTM)24.86%
EPS 3Y3.16%
EPS 5Y12.3%
EPS Q2Q%-88.24%
Revenue 1Y (TTM)14.31%
Revenue growth 3Y11.89%
Revenue growth 5Y9.13%
Sales Q2Q%14.81%
3.2 Future
- Based on estimates for the next years, FQT will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.19% on average per year.
- FQT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.17% yearly.
EPS Next Y20.72%
EPS Next 2Y18.93%
EPS Next 3Y18.84%
EPS Next 5Y13.19%
Revenue Next Year13.37%
Revenue Next 2Y12.72%
Revenue Next 3Y12.84%
Revenue Next 5Y14.17%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- 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
- Based on the Price/Earnings ratio of 54.67, the valuation of FQT can be described as expensive.
- FQT's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of FQT to the average of the S&P500 Index (28.87), we can say FQT is valued expensively.
- The Price/Forward Earnings ratio is 33.27, which means the current valuation is very expensive for FQT.
- The rest of the industry has a similar Price/Forward Earnings ratio as FQT.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, FQT is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.67 | ||
| Fwd PE | 33.27 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FQT indicates a somewhat cheap valuation: FQT is cheaper than 79.25% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of FQT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 74.57 | ||
| EV/EBITDA | 17.01 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FQT does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of FQT may justify a higher PE ratio.
- A more expensive valuation may be justified as FQT's earnings are expected to grow with 18.84% in the coming years.
PEG (NY)2.64
PEG (5Y)4.44
EPS Next 2Y18.93%
EPS Next 3Y18.84%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.32%, FQT is not a good candidate for dividend investing.
- FQT's Dividend Yield is slightly below the industry average, which is at 0.74.
- Compared to an average S&P500 Dividend Yield of 1.82, FQT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.32% |
5.2 History
- On average, the dividend of FQT grows each year by 18.03%, which is quite nice.
Dividend Growth(5Y)18.03%
Div Incr Years4
Div Non Decr Years6
5.3 Sustainability
- FQT pays out 17.95% of its income as dividend. This is a sustainable payout ratio.
- The dividend of FQT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP17.95%
EPS Next 2Y18.93%
EPS Next 3Y18.84%
FREQUENTIS AG / FQT.DE FAQ
Can you provide the ChartMill fundamental rating for FREQUENTIS AG?
ChartMill assigns a fundamental rating of 6 / 10 to FQT.DE.
Can you provide the valuation status for FREQUENTIS AG?
ChartMill assigns a valuation rating of 2 / 10 to FREQUENTIS AG (FQT.DE). This can be considered as Overvalued.
Can you provide the profitability details for FREQUENTIS AG?
FREQUENTIS AG (FQT.DE) has a profitability rating of 6 / 10.
Can you provide the expected EPS growth for FQT stock?
The Earnings per Share (EPS) of FREQUENTIS AG (FQT.DE) is expected to grow by 20.72% in the next year.
How sustainable is the dividend of FREQUENTIS AG (FQT.DE) stock?
The dividend rating of FREQUENTIS AG (FQT.DE) is 3 / 10 and the dividend payout ratio is 17.95%.