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 76 industry peers in the IT Services industry. Both the profitability and financial health of OVH have multiple concerns. OVH is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
OVH had negative earnings in the past year.
In the past year OVH had a positive cash flow from operations.
In the past 5 years OVH always reported negative net income.
In the past 5 years OVH always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of OVH (-0.57%) is worse than 65.79% of its industry peers.
With a Return On Equity value of -18.58%, OVH is not doing good in the industry: 76.32% of the companies in the same industry are doing better.
The Return On Invested Capital of OVH (1.56%) is worse than 69.74% 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: 64.47% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of OVH has declined.
With a decent Gross Margin value of 78.81%, OVH is doing good in the industry, outperforming 72.37% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so OVH is destroying value.
The number of shares outstanding for OVH remains at a similar level compared to 1 year ago.
OVH has more shares outstanding than it did 5 years ago.
The debt/assets ratio for OVH is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.06, we must say that OVH is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of OVH (1.06) is worse than 76.32% of its industry peers.
OVH has a debt to FCF ratio of 32.25. This is a negative value and a sign of low solvency as OVH would need 32.25 years to pay back of all of its debts.
With a Debt to FCF ratio value of 32.25, OVH is not doing good in the industry: 71.05% of the companies in the same industry are doing better.
OVH has a Debt/Equity ratio of 22.70. This is a high value indicating a heavy dependency on external financing.
OVH has a Debt to Equity ratio of 22.70. This is amonst the worse of the industry: OVH underperforms 88.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 22.7 | ||
| Debt/FCF | 32.25 | ||
| Altman-Z | 1.06 |
ROIC/WACC0.24
WACC6.4%
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.
The Current ratio of OVH (0.52) is worse than 86.84% of its industry peers.
A Quick Ratio of 0.52 indicates that OVH may have some problems paying its short term obligations.
OVH has a Quick ratio of 0.52. This is amonst the worse of the industry: OVH underperforms 86.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 76.19% over the past year.
Looking at the last year, OVH shows a quite strong growth in Revenue. The Revenue has grown by 10.67% in the last year.
The Revenue has been growing by 11.34% on average over the past years. This is quite good.
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.
The Revenue is expected to grow by 10.20% on average over the next years. This is quite good.
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
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
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 71.64, which means the current valuation is very expensive for OVH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OVH indicates a slightly more expensive valuation: OVH is more expensive than 63.16% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, OVH is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 71.64 |
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.
67.11% of the companies in the same industry are cheaper than OVH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.31 | ||
| EV/EBITDA | 9.06 |
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.
A more expensive valuation may be justified as OVH's earnings are expected to grow with 151.55% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y177.74%
EPS Next 3Y151.55%
5. Dividend
5.1 Amount
No dividends for OVH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EPA:OVH (5/30/2025, 3:57:53 PM)
14.16
-0.07 (-0.49%)
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 Cap2.15B
Analysts70.67
Price Target10.98 (-22.46%)
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)0%
EPS NY rev (3m)0.3%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 71.64 | ||
| P/S | 2.16 | ||
| P/FCF | 53.31 | ||
| P/OCF | 5.09 | ||
| P/B | 38.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.06 |
EPS(TTM)-0.05
EYN/A
EPS(NY)0.2
Fwd EY1.4%
FCF(TTM)0.27
FCFY1.88%
OCF(TTM)2.78
OCFY19.63%
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 | 1.06 |
F-Score7
WACC6.4%
ROIC/WACC0.24
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 Year1490%
EBIT Next 3Y170.71%
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%