OVH GROUPE SAS (OVH.PA) Stock Fundamental Analysis
EPA:OVH - Euronext Paris - Matif - FR0014005HJ9 - Common Stock - Currency: EUR
OVH gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 69 industry peers in the IT Services industry. OVH may be in some trouble as it scores bad on both profitability and health. OVH is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year OVH has reported negative net income.
In the past year OVH had a positive cash flow from operations.
In the past 5 years OVH always reported negative net income.
Each year in the past 5 years OVH had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.57%, OVH is doing worse than 65.22% of the companies in the same industry.
OVH's Return On Equity of -18.58% is on the low side compared to the rest of the industry. OVH is outperformed by 78.26% of its industry peers.
The Return On Invested Capital of OVH (1.56%) is worse than 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.57% | ||
| ROE | -18.58% | ||
| ROIC | 1.56% |
ROA(3y)-1.7%
ROA(5y)-1.75%
ROE(3y)-6.18%
ROE(5y)-11.71%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Operating Margin value of 2.92%, OVH is not doing good in the industry: 65.22% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of OVH has declined.
The Gross Margin of OVH (78.81%) is better than 69.57% of its industry peers.
OVH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.92% | ||
| PM (TTM) | N/A | ||
| GM | 78.81% |
OM growth 3Y-33.17%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.32%
GM growth 5Y0.91%
2. Health
2.1 Basic Checks
OVH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, OVH has about the same amount of shares outstanding.
Compared to 5 years ago, OVH has more shares outstanding
Compared to 1 year ago, OVH has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.94, we must say that OVH is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.94, OVH is doing worse than 79.71% of the companies in the same industry.
The Debt to FCF ratio of OVH is 32.25, which is on the high side as it means it would take OVH, 32.25 years of fcf income to pay off all of its debts.
OVH has a worse Debt to FCF ratio (32.25) than 72.46% of its industry peers.
OVH has a Debt/Equity ratio of 22.70. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 22.70, OVH is not doing good in the industry: 86.96% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 22.7 | ||
| Debt/FCF | 32.25 | ||
| Altman-Z | 0.94 |
ROIC/WACC0.25
WACC6.31%
2.3 Liquidity
OVH has a Current Ratio of 0.52. This is a bad value and indicates that OVH is not financially healthy enough and could expect problems in meeting its short term obligations.
OVH has a worse Current ratio (0.52) than 85.51% of its industry peers.
OVH has a Quick Ratio of 0.52. This is a bad value and indicates that OVH is not financially healthy enough and could expect problems in meeting its short term obligations.
OVH has a worse Quick ratio (0.52) than 85.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
OVH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 76.19%, which is quite impressive.
OVH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.67%.
OVH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.34% yearly.
EPS 1Y (TTM)76.19%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%144.44%
Revenue 1Y (TTM)10.67%
Revenue growth 3Y14.4%
Revenue growth 5Y11.34%
Sales Q2Q%10.27%
3.2 Future
OVH is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 151.55% yearly.
OVH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.20% yearly.
EPS Next Y248.06%
EPS Next 2Y177.74%
EPS Next 3Y151.55%
EPS Next 5YN/A
Revenue Next Year10.08%
Revenue Next 2Y10.21%
Revenue Next 3Y10.2%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for OVH. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 61.72, which means the current valuation is very expensive for OVH.
Based on the Price/Forward Earnings ratio, OVH is valued a bit more expensive than the industry average as 63.77% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.74, OVH is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 61.72 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OVH is on the same level as its industry peers.
OVH's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. OVH is more expensive than 68.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.93 | ||
| EV/EBITDA | 8.15 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
OVH's earnings are expected to grow with 151.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y177.74%
EPS Next 3Y151.55%
5. Dividend
5.1 Amount
OVH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EPA:OVH (5/5/2025, 7:00:00 PM)
12.2
+0.2 (+1.67%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners6.7%
Inst Owner ChangeN/A
Ins Owners0.56%
Ins Owner ChangeN/A
Market Cap1.85B
Analysts70.67
Price Target10.98 (-10%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)16.89%
PT rev (3m)15.33%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)5.36%
EPS NY rev (3m)0.3%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-2.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 61.72 | ||
| P/S | 1.86 | ||
| P/FCF | 45.93 | ||
| P/OCF | 4.39 | ||
| P/B | 33.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.15 |
EPS(TTM)-0.05
EYN/A
EPS(NY)0.2
Fwd EY1.62%
FCF(TTM)0.27
FCFY2.18%
OCF(TTM)2.78
OCFY22.79%
SpS6.55
BVpS0.37
TBVpS-2.01
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.57% | ||
| ROE | -18.58% | ||
| ROCE | 2.12% | ||
| ROIC | 1.56% | ||
| ROICexc | 1.69% | ||
| ROICexgc | 2.37% | ||
| OM | 2.92% | ||
| PM (TTM) | N/A | ||
| GM | 78.81% | ||
| FCFM | 4.06% |
ROA(3y)-1.7%
ROA(5y)-1.75%
ROE(3y)-6.18%
ROE(5y)-11.71%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-32.49%
ROICexcg growth 5YN/A
ROICexc growth 3Y-34.5%
ROICexc growth 5YN/A
OM growth 3Y-33.17%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.32%
GM growth 5Y0.91%
F-Score7
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 22.7 | ||
| Debt/FCF | 32.25 | ||
| Debt/EBITDA | 3.4 | ||
| Cap/Depr | 111.93% | ||
| Cap/Sales | 38.4% | ||
| Interest Coverage | 0.95 | ||
| Cash Conversion | 114.04% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 0.94 |
F-Score7
WACC6.31%
ROIC/WACC0.25
Cap/Depr(3y)126.96%
Cap/Depr(5y)132.9%
Cap/Sales(3y)43.99%
Cap/Sales(5y)45.61%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)76.19%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%144.44%
EPS Next Y248.06%
EPS Next 2Y177.74%
EPS Next 3Y151.55%
EPS Next 5YN/A
Revenue 1Y (TTM)10.67%
Revenue growth 3Y14.4%
Revenue growth 5Y11.34%
Sales Q2Q%10.27%
Revenue Next Year10.08%
Revenue Next 2Y10.21%
Revenue Next 3Y10.2%
Revenue Next 5YN/A
EBIT growth 1Y1771.99%
EBIT growth 3Y-23.54%
EBIT growth 5YN/A
EBIT Next Year1485.59%
EBIT Next 3Y169.75%
EBIT Next 5YN/A
FCF growth 1Y126.52%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y56.02%
OCF growth 3Y11.14%
OCF growth 5Y17.36%