PHARMASGP HOLDING SE (PSG.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:PSG - DE000A2P4LJ5 - Common Stock
29 EUR
0 (0%)
PSG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 55 industry peers in the Pharmaceuticals industry. PSG scores excellent on profitability, but there are some minor concerns on its financial health. PSG is not overvalued while it is showing excellent growth. This is an interesting combination. This makes PSG very considerable for growth investing!
1. Profitability
1.1 Basic Checks
- In the past year PSG was profitable.
- In the past 5 years PSG has always been profitable.
- Each year in the past 5 years PSG had a positive operating cash flow.
1.2 Ratios
- PSG's Return On Assets of 13.88% is amongst the best of the industry. PSG outperforms 88.46% of its industry peers.
- With an excellent Return On Equity value of 44.72%, PSG belongs to the best of the industry, outperforming 90.38% of the companies in the same industry.
- PSG's Return On Invested Capital of 19.34% is amongst the best of the industry. PSG outperforms 86.54% of its industry peers.
- PSG had an Average Return On Invested Capital over the past 3 years of 27.58%. This is significantly above the industry average of 14.00%.
- The last Return On Invested Capital (19.34%) for PSG is well below the 3 year average (27.58%), which needs to be investigated, but indicates that PSG had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.88% | ||
| ROE | 44.72% | ||
| ROIC | 19.34% |
ROA(3y)10.34%
ROA(5y)17.96%
ROE(3y)42.62%
ROE(5y)47.56%
ROIC(3y)27.58%
ROIC(5y)38.56%
1.3 Margins
- PSG has a Profit Margin of 16.22%. This is in the better half of the industry: PSG outperforms 63.46% of its industry peers.
- In the last couple of years the Profit Margin of PSG has declined.
- PSG has a better Operating Margin (24.37%) than 61.54% of its industry peers.
- PSG's Operating Margin has declined in the last couple of years.
- The Gross Margin of PSG (90.64%) is better than 90.38% of its industry peers.
- PSG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.37% | ||
| PM (TTM) | 16.22% | ||
| GM | 90.64% |
OM growth 3Y1.74%
OM growth 5Y-5.45%
PM growth 3Y-1.21%
PM growth 5Y-7.78%
GM growth 3Y0.17%
GM growth 5Y0.3%
2. Health
2.1 Basic Checks
- PSG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for PSG remains at a similar level compared to 1 year ago.
- The debt/assets ratio for PSG has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 4.90 indicates that PSG is not in any danger for bankruptcy at the moment.
- PSG has a better Altman-Z score (4.90) than 76.92% of its industry peers.
- A Debt/Equity ratio of 1.58 is on the high side and indicates that PSG has dependencies on debt financing.
- PSG has a worse Debt to Equity ratio (1.58) than 73.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.58 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.9 |
ROIC/WACC2.91
WACC6.65%
2.3 Liquidity
- PSG has a Current Ratio of 2.68. This indicates that PSG is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 2.68, PSG belongs to the top of the industry, outperforming 86.54% of the companies in the same industry.
- PSG has a Quick Ratio of 2.24. This indicates that PSG is financially healthy and has no problem in meeting its short term obligations.
- PSG has a better Quick ratio (2.24) than 86.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.68 | ||
| Quick Ratio | 2.24 |
3. Growth
3.1 Past
- PSG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.25%, which is quite impressive.
- The Earnings Per Share has been growing slightly by 2.18% on average over the past years.
- The Revenue has grown by 17.80% in the past year. This is quite good.
- PSG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.78% yearly.
EPS 1Y (TTM)37.25%
EPS 3Y15.53%
EPS 5Y2.18%
EPS Q2Q%7.89%
Revenue 1Y (TTM)17.8%
Revenue growth 3Y16.92%
Revenue growth 5Y10.78%
Sales Q2Q%10.81%
3.2 Future
- Based on estimates for the next years, PSG will show a very strong growth in Earnings Per Share. The EPS will grow by 20.27% on average per year.
- Based on estimates for the next years, PSG will show a quite strong growth in Revenue. The Revenue will grow by 9.65% on average per year.
EPS Next Y28.05%
EPS Next 2Y23.3%
EPS Next 3Y20.27%
EPS Next 5YN/A
Revenue Next Year15.62%
Revenue Next 2Y11.7%
Revenue Next 3Y10.35%
Revenue Next 5Y9.65%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- A Price/Earnings ratio of 21.17 indicates a rather expensive valuation of PSG.
- The rest of the industry has a similar Price/Earnings ratio as PSG.
- PSG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.60.
- PSG is valuated correctly with a Price/Forward Earnings ratio of 15.35.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of PSG is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of PSG to the average of the S&P500 Index (25.83), we can say PSG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.17 | ||
| Fwd PE | 15.35 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as PSG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.32 |
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.
- PSG has an outstanding profitability rating, which may justify a higher PE ratio.
- PSG's earnings are expected to grow with 20.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.75
PEG (5Y)9.72
EPS Next 2Y23.3%
EPS Next 3Y20.27%
5. Dividend
5.1 Amount
- PSG has a Yearly Dividend Yield of 1.76%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.62, PSG has a dividend in line with its industry peers.
- PSG's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
DP0%
EPS Next 2Y23.3%
EPS Next 3Y20.27%
PHARMASGP HOLDING SE / PSG.DE FAQ
Can you provide the ChartMill fundamental rating for PHARMASGP HOLDING SE?
ChartMill assigns a fundamental rating of 6 / 10 to PSG.DE.
What is the valuation status of PHARMASGP HOLDING SE (PSG.DE) stock?
ChartMill assigns a valuation rating of 5 / 10 to PHARMASGP HOLDING SE (PSG.DE). This can be considered as Fairly Valued.
What is the profitability of PSG stock?
PHARMASGP HOLDING SE (PSG.DE) has a profitability rating of 8 / 10.
What is the financial health of PHARMASGP HOLDING SE (PSG.DE) stock?
The financial health rating of PHARMASGP HOLDING SE (PSG.DE) is 6 / 10.
Is the dividend of PHARMASGP HOLDING SE sustainable?
The dividend rating of PHARMASGP HOLDING SE (PSG.DE) is 2 / 10 and the dividend payout ratio is 0%.