PUBLICIS GROUPE (PU4.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:PU4 - FR0000130577 - Common Stock
86.74 EUR
-0.32 (-0.37%)
Taking everything into account, PU4 scores 5 out of 10 in our fundamental rating. PU4 was compared to 68 industry peers in the Media industry. PU4 scores excellent on profitability, but there are concerns on its financial health. PU4 has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally PU4 also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- PU4 had positive earnings in the past year.
- In the past year PU4 had a positive cash flow from operations.
- Each year in the past 5 years PU4 has been profitable.
- PU4 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of PU4 (4.74%) is better than 82.09% of its industry peers.
- PU4's Return On Equity of 17.77% is amongst the best of the industry. PU4 outperforms 85.07% of its industry peers.
- With an excellent Return On Invested Capital value of 12.64%, PU4 belongs to the best of the industry, outperforming 91.04% of the companies in the same industry.
- PU4 had an Average Return On Invested Capital over the past 3 years of 10.31%. This is above the industry average of 7.53%.
- The 3 year average ROIC (10.31%) for PU4 is below the current ROIC(12.64%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 17.77% | ||
| ROIC | 12.64% |
ROA(3y)3.71%
ROA(5y)3.24%
ROE(3y)13.7%
ROE(5y)12.21%
ROIC(3y)10.31%
ROIC(5y)9.2%
1.3 Margins
- The Profit Margin of PU4 (10.15%) is better than 88.06% of its industry peers.
- PU4's Profit Margin has improved in the last couple of years.
- PU4 has a Operating Margin of 15.07%. This is amongst the best in the industry. PU4 outperforms 86.57% of its industry peers.
- In the last couple of years the Operating Margin of PU4 has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.07% | ||
| PM (TTM) | 10.15% | ||
| GM | N/A |
OM growth 3Y3.85%
OM growth 5Y2.68%
PM growth 3Y5.78%
PM growth 5Y6.26%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- PU4 has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- PU4 has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, PU4 has more shares outstanding
- PU4 has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.43, we must say that PU4 is in the distress zone and has some risk of bankruptcy.
- PU4 has a Altman-Z score of 1.43. This is comparable to the rest of the industry: PU4 outperforms 53.73% of its industry peers.
- The Debt to FCF ratio of PU4 is 2.63, which is a good value as it means it would take PU4, 2.63 years of fcf income to pay off all of its debts.
- PU4's Debt to FCF ratio of 2.63 is fine compared to the rest of the industry. PU4 outperforms 77.61% of its industry peers.
- A Debt/Equity ratio of 0.51 indicates that PU4 is somewhat dependend on debt financing.
- PU4 has a Debt to Equity ratio of 0.51. This is comparable to the rest of the industry: PU4 outperforms 59.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.63 | ||
| Altman-Z | 1.43 |
ROIC/WACC1.78
WACC7.12%
2.3 Liquidity
- A Current Ratio of 0.93 indicates that PU4 may have some problems paying its short term obligations.
- PU4 has a Current ratio of 0.93. This is comparable to the rest of the industry: PU4 outperforms 44.78% of its industry peers.
- A Quick Ratio of 0.90 indicates that PU4 may have some problems paying its short term obligations.
- With a Quick ratio value of 0.90, PU4 perfoms like the industry average, outperforming 52.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
- PU4 shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.21%.
- Measured over the past 5 years, PU4 shows a small growth in Earnings Per Share. The EPS has been growing by 7.78% on average per year.
- The Revenue has grown by 9.88% in the past year. This is quite good.
- Measured over the past years, PU4 shows a small growth in Revenue. The Revenue has been growing by 7.82% on average per year.
EPS 1Y (TTM)4.21%
EPS 3Y13.29%
EPS 5Y7.78%
EPS Q2Q%3.85%
Revenue 1Y (TTM)9.88%
Revenue growth 3Y10.95%
Revenue growth 5Y7.82%
Sales Q2Q%-6.51%
3.2 Future
- PU4 is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.50% yearly.
- The Revenue is expected to grow by 2.58% on average over the next years.
EPS Next Y3.8%
EPS Next 2Y4.87%
EPS Next 3Y5.22%
EPS Next 5Y5.5%
Revenue Next Year4.58%
Revenue Next 2Y4.36%
Revenue Next 3Y4.65%
Revenue Next 5Y2.58%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 11.67, the valuation of PU4 can be described as reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of PU4 indicates a somewhat cheap valuation: PU4 is cheaper than 67.16% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, PU4 is valued rather cheaply.
- The Price/Forward Earnings ratio is 10.80, which indicates a very decent valuation of PU4.
- Based on the Price/Forward Earnings ratio, PU4 is valued a bit cheaper than the industry average as 62.69% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. PU4 is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.67 | ||
| Fwd PE | 10.8 |
4.2 Price Multiples
- PU4's Enterprise Value to EBITDA is on the same level as the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of PU4 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.63 | ||
| EV/EBITDA | 7.48 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- PU4 has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.07
PEG (5Y)1.5
EPS Next 2Y4.87%
EPS Next 3Y5.22%
5. Dividend
5.1 Amount
- PU4 has a Yearly Dividend Yield of 4.14%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.08, PU4 pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, PU4 pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.14% |
5.2 History
- The dividend of PU4 is nicely growing with an annual growth rate of 22.83%!
Dividend Growth(5Y)22.83%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- PU4 pays out 49.85% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of PU4 is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP49.85%
EPS Next 2Y4.87%
EPS Next 3Y5.22%
PUBLICIS GROUPE / PU4.DE FAQ
What is the fundamental rating for PU4 stock?
ChartMill assigns a fundamental rating of 5 / 10 to PU4.DE.
Can you provide the valuation status for PUBLICIS GROUPE?
ChartMill assigns a valuation rating of 5 / 10 to PUBLICIS GROUPE (PU4.DE). This can be considered as Fairly Valued.
How profitable is PUBLICIS GROUPE (PU4.DE) stock?
PUBLICIS GROUPE (PU4.DE) has a profitability rating of 8 / 10.
What is the financial health of PUBLICIS GROUPE (PU4.DE) stock?
The financial health rating of PUBLICIS GROUPE (PU4.DE) is 3 / 10.
Can you provide the expected EPS growth for PU4 stock?
The Earnings per Share (EPS) of PUBLICIS GROUPE (PU4.DE) is expected to grow by 3.8% in the next year.