RINGMETALL AG (HP3A.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:HP3A - DE000A3E5E55 - Common Stock
2.94 EUR
0 (0%)
Taking everything into account, HP3A scores 5 out of 10 in our fundamental rating. HP3A was compared to 115 industry peers in the Machinery industry. While HP3A is still in line with the averages on profitability rating, there are concerns on its financial health. HP3A has a decent growth rate and is not valued too expensively. Finally HP3A also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- HP3A had positive earnings in the past year.
- In the past year HP3A had a positive cash flow from operations.
- HP3A had positive earnings in each of the past 5 years.
- HP3A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- HP3A's Return On Assets of 3.98% is in line compared to the rest of the industry. HP3A outperforms 60.00% of its industry peers.
- HP3A has a Return On Equity of 8.47%. This is comparable to the rest of the industry: HP3A outperforms 55.65% of its industry peers.
- HP3A's Return On Invested Capital of 7.31% is fine compared to the rest of the industry. HP3A outperforms 60.87% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for HP3A is in line with the industry average of 8.97%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.98% | ||
| ROE | 8.47% | ||
| ROIC | 7.31% |
ROA(3y)7.32%
ROA(5y)7.18%
ROE(3y)13.14%
ROE(5y)13.47%
ROIC(3y)10.59%
ROIC(5y)10.76%
1.3 Margins
- HP3A has a Profit Margin of 3.96%. This is comparable to the rest of the industry: HP3A outperforms 50.43% of its industry peers.
- HP3A's Profit Margin has improved in the last couple of years.
- With a Operating Margin value of 7.22%, HP3A perfoms like the industry average, outperforming 57.39% of the companies in the same industry.
- In the last couple of years the Operating Margin of HP3A has grown nicely.
- HP3A has a Gross Margin of 53.69%. This is in the better half of the industry: HP3A outperforms 71.30% of its industry peers.
- HP3A's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.22% | ||
| PM (TTM) | 3.96% | ||
| GM | 53.69% |
OM growth 3Y-8.74%
OM growth 5Y17.63%
PM growth 3Y-10.24%
PM growth 5Y21.98%
GM growth 3Y4.78%
GM growth 5Y3.04%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HP3A is still creating some value.
- HP3A has about the same amout of shares outstanding than it did 1 year ago.
- HP3A has about the same amout of shares outstanding than it did 5 years ago.
- The debt/assets ratio for HP3A is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.22 indicates that HP3A is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.22, HP3A is in line with its industry, outperforming 53.04% of the companies in the same industry.
- The Debt to FCF ratio of HP3A is 5.18, which is a neutral value as it means it would take HP3A, 5.18 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 5.18, HP3A is in line with its industry, outperforming 55.65% of the companies in the same industry.
- A Debt/Equity ratio of 0.51 indicates that HP3A is somewhat dependend on debt financing.
- The Debt to Equity ratio of HP3A (0.51) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 5.18 | ||
| Altman-Z | 2.22 |
ROIC/WACC1.07
WACC6.86%
2.3 Liquidity
- A Current Ratio of 1.38 indicates that HP3A should not have too much problems paying its short term obligations.
- HP3A has a worse Current ratio (1.38) than 60.87% of its industry peers.
- HP3A has a Quick Ratio of 1.38. This is a bad value and indicates that HP3A is not financially healthy enough and could expect problems in meeting its short term obligations.
- HP3A has a Quick ratio (0.88) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
- HP3A shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -34.01%.
- Measured over the past years, HP3A shows a very strong growth in Earnings Per Share. The EPS has been growing by 31.41% on average per year.
- Looking at the last year, HP3A shows a small growth in Revenue. The Revenue has grown by 5.61% in the last year.
- Measured over the past years, HP3A shows a small growth in Revenue. The Revenue has been growing by 7.72% on average per year.
EPS 1Y (TTM)-34.01%
EPS 3Y-9.79%
EPS 5Y31.41%
EPS Q2Q%-54.52%
Revenue 1Y (TTM)5.61%
Revenue growth 3Y0.49%
Revenue growth 5Y7.72%
Sales Q2Q%7.23%
3.2 Future
- HP3A is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.89% yearly.
- HP3A is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.54% yearly.
EPS Next Y-33.33%
EPS Next 2Y-9.73%
EPS Next 3Y6.92%
EPS Next 5Y16.89%
Revenue Next Year10.35%
Revenue Next 2Y11.13%
Revenue Next 3Y11.08%
Revenue Next 5Y10.54%
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.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- HP3A is valuated reasonably with a Price/Earnings ratio of 11.76.
- HP3A's Price/Earnings ratio is rather cheap when compared to the industry. HP3A is cheaper than 90.43% of the companies in the same industry.
- HP3A is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 13.10 indicates a correct valuation of HP3A.
- HP3A's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HP3A is cheaper than 66.96% of the companies in the same industry.
- HP3A is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.76 | ||
| Fwd PE | 13.1 |
4.2 Price Multiples
- 74.78% of the companies in the same industry are more expensive than HP3A, based on the Enterprise Value to EBITDA ratio.
- HP3A's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HP3A is cheaper than 88.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.78 | ||
| EV/EBITDA | 6.8 |
4.3 Compensation for Growth
- HP3A has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.37
EPS Next 2Y-9.73%
EPS Next 3Y6.92%
5. Dividend
5.1 Amount
- HP3A has a Yearly Dividend Yield of 3.62%. Purely for dividend investing, there may be better candidates out there.
- HP3A's Dividend Yield is rather good when compared to the industry average which is at 1.50. HP3A pays more dividend than 90.43% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, HP3A pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
5.2 History
- On average, the dividend of HP3A grows each year by 9.95%, which is quite nice.
Dividend Growth(5Y)9.95%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
- HP3A pays out 47.83% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of HP3A is growing, but earnings are growing more, so the dividend growth is sustainable.
DP47.83%
EPS Next 2Y-9.73%
EPS Next 3Y6.92%
RINGMETALL AG / HP3A.DE FAQ
Can you provide the ChartMill fundamental rating for RINGMETALL AG?
ChartMill assigns a fundamental rating of 5 / 10 to HP3A.DE.
What is the valuation status for HP3A stock?
ChartMill assigns a valuation rating of 6 / 10 to RINGMETALL AG (HP3A.DE). This can be considered as Fairly Valued.
How profitable is RINGMETALL AG (HP3A.DE) stock?
RINGMETALL AG (HP3A.DE) has a profitability rating of 6 / 10.
What are the PE and PB ratios of RINGMETALL AG (HP3A.DE) stock?
The Price/Earnings (PE) ratio for RINGMETALL AG (HP3A.DE) is 11.76 and the Price/Book (PB) ratio is 1.01.
Is the dividend of RINGMETALL AG sustainable?
The dividend rating of RINGMETALL AG (HP3A.DE) is 7 / 10 and the dividend payout ratio is 47.83%.