NOVONESIS (NOVOZYMES) B (NZM2.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:NZM2 - DK0060336014 - Common Stock
54.16 EUR
-0.28 (-0.51%)
Overall NZM2 gets a fundamental rating of 4 out of 10. We evaluated NZM2 against 71 industry peers in the Chemicals industry. NZM2 has an average financial health and profitability rating. NZM2 is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year NZM2 was profitable.
- NZM2 had positive earnings in each of the past 5 years.
- In the past 5 years NZM2 always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 4.31%, NZM2 is doing good in the industry, outperforming 63.38% of the companies in the same industry.
- With a decent Return On Equity value of 6.54%, NZM2 is doing good in the industry, outperforming 60.56% of the companies in the same industry.
- NZM2 has a Return On Invested Capital (5.66%) which is in line with its industry peers.
- NZM2 had an Average Return On Invested Capital over the past 3 years of 11.83%. This is above the industry average of 7.19%.
- The 3 year average ROIC (11.83%) for NZM2 is well above the current ROIC(5.66%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.31% | ||
| ROE | 6.54% | ||
| ROIC | 5.66% |
ROA(3y)8.6%
ROA(5y)10.46%
ROE(3y)16.98%
ROE(5y)20.54%
ROIC(3y)11.83%
ROIC(5y)13.54%
1.3 Margins
- With an excellent Profit Margin value of 13.61%, NZM2 belongs to the best of the industry, outperforming 91.55% of the companies in the same industry.
- In the last couple of years the Profit Margin of NZM2 has declined.
- NZM2's Operating Margin of 21.89% is amongst the best of the industry. NZM2 outperforms 94.37% of its industry peers.
- NZM2's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 52.79%, NZM2 is in the better half of the industry, outperforming 77.46% of the companies in the same industry.
- In the last couple of years the Gross Margin of NZM2 has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.89% | ||
| PM (TTM) | 13.61% | ||
| GM | 52.79% |
OM growth 3Y-13.18%
OM growth 5Y-7.58%
PM growth 3Y-27.63%
PM growth 5Y-18.32%
GM growth 3Y-6.52%
GM growth 5Y-3.21%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NZM2 is still creating some value.
- NZM2 has more shares outstanding than it did 1 year ago.
- NZM2 has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, NZM2 has an improved debt to assets ratio.
2.2 Solvency
- NZM2 has an Altman-Z score of 3.97. This indicates that NZM2 is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of NZM2 (3.97) is better than 77.46% of its industry peers.
- A Debt/Equity ratio of 0.26 indicates that NZM2 is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.26, NZM2 is in the better half of the industry, outperforming 66.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.97 |
ROIC/WACC0.79
WACC7.15%
2.3 Liquidity
- NZM2 has a Current Ratio of 1.61. This is a normal value and indicates that NZM2 is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of NZM2 (1.61) is comparable to the rest of the industry.
- A Quick Ratio of 1.00 indicates that NZM2 should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.00, NZM2 is in line with its industry, outperforming 42.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
- The earnings per share for NZM2 have decreased strongly by -54.35% in the last year.
- NZM2 shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -42.95% yearly.
- The Revenue has grown by 59.91% in the past year. This is a very strong growth!
- Measured over the past years, NZM2 shows a very negative growth in Revenue. The Revenue has been decreasing by -23.23% on average per year.
EPS 1Y (TTM)-54.35%
EPS 3Y-23.83%
EPS 5Y-42.95%
EPS Q2Q%N/A
Revenue 1Y (TTM)59.91%
Revenue growth 3Y24.12%
Revenue growth 5Y-23.23%
Sales Q2Q%N/A
3.2 Future
- Based on estimates for the next years, NZM2 will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.05% on average per year.
- NZM2 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.10% yearly.
EPS Next Y42.39%
EPS Next 2Y24.75%
EPS Next 3Y20.21%
EPS Next 5Y16.05%
Revenue Next Year6.01%
Revenue Next 2Y6.49%
Revenue Next 3Y6.7%
Revenue Next 5Y7.1%
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 accelerating.
- 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
- With a Price/Earnings ratio of 35.87, NZM2 can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of NZM2 is on the same level as its industry peers.
- NZM2's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.21.
- The Price/Forward Earnings ratio is 26.64, which means the current valuation is very expensive for NZM2.
- 63.38% of the companies in the same industry are cheaper than NZM2, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. NZM2 is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.87 | ||
| Fwd PE | 26.64 |
4.2 Price Multiples
- 61.97% of the companies in the same industry are cheaper than NZM2, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.6 |
4.3 Compensation for Growth
- NZM2's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of NZM2 may justify a higher PE ratio.
- NZM2's earnings are expected to grow with 20.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.85
PEG (5Y)N/A
EPS Next 2Y24.75%
EPS Next 3Y20.21%
5. Dividend
5.1 Amount
- NZM2 has a Yearly Dividend Yield of 1.57%.
- NZM2's Dividend Yield is comparable with the industry average which is at 2.45.
- Compared to an average S&P500 Dividend Yield of 1.81, NZM2 has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
5.2 History
- The dividend of NZM2 decreases each year by -33.21%.
Dividend Growth(5Y)-33.21%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- NZM2 pays out 92.84% of its income as dividend. This is not a sustainable payout ratio.
DP92.84%
EPS Next 2Y24.75%
EPS Next 3Y20.21%
NOVONESIS (NOVOZYMES) B / NZM2.DE FAQ
What is the ChartMill fundamental rating of NOVONESIS (NOVOZYMES) B (NZM2.DE) stock?
ChartMill assigns a fundamental rating of 4 / 10 to NZM2.DE.
What is the valuation status for NZM2 stock?
ChartMill assigns a valuation rating of 2 / 10 to NOVONESIS (NOVOZYMES) B (NZM2.DE). This can be considered as Overvalued.
What is the profitability of NZM2 stock?
NOVONESIS (NOVOZYMES) B (NZM2.DE) has a profitability rating of 7 / 10.
What is the earnings growth outlook for NOVONESIS (NOVOZYMES) B?
The Earnings per Share (EPS) of NOVONESIS (NOVOZYMES) B (NZM2.DE) is expected to grow by 42.39% in the next year.
Can you provide the dividend sustainability for NZM2 stock?
The dividend rating of NOVONESIS (NOVOZYMES) B (NZM2.DE) is 2 / 10 and the dividend payout ratio is 92.84%.