PUBLICIS GROUPE (PUB.PA)

FR0000130577 - Common Stock

99.7  -1.35 (-1.34%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to PUB. PUB was compared to 65 industry peers in the Media industry. PUB has only an average score on both its financial health and profitability. PUB has a decent growth rate and is not valued too expensively.



6

1. Profitability

1.1 Basic Checks

In the past year PUB was profitable.
PUB had a positive operating cash flow in the past year.
PUB had positive earnings in each of the past 5 years.
Each year in the past 5 years PUB had a positive operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of 3.57%, PUB is in the better half of the industry, outperforming 65.08% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.40%, PUB is in the better half of the industry, outperforming 74.60% of the companies in the same industry.
The Return On Invested Capital of PUB (9.51%) is better than 87.30% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PUB is in line with the industry average of 7.48%.
The last Return On Invested Capital (9.51%) for PUB is above the 3 year average (9.07%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.57%
ROE 13.4%
ROIC 9.51%
ROA(3y)3.37%
ROA(5y)2.92%
ROE(3y)12.68%
ROE(5y)11.49%
ROIC(3y)9.07%
ROIC(5y)8.29%

1.3 Margins

PUB has a Profit Margin of 8.86%. This is in the better half of the industry: PUB outperforms 79.37% of its industry peers.
PUB's Profit Margin has been stable in the last couple of years.
PUB has a Operating Margin of 12.76%. This is amongst the best in the industry. PUB outperforms 84.13% of its industry peers.
In the last couple of years the Operating Margin of PUB has declined.
Industry RankSector Rank
OM 12.76%
PM (TTM) 8.86%
GM N/A
OM growth 3Y4.16%
OM growth 5Y-2.63%
PM growth 3Y18.41%
PM growth 5Y-0.82%
GM growth 3YN/A
GM growth 5YN/A

4

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PUB is still creating some value.
PUB has less shares outstanding than it did 1 year ago.
PUB has more shares outstanding than it did 5 years ago.
PUB has a better debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 1.46, we must say that PUB is in the distress zone and has some risk of bankruptcy.
PUB has a Altman-Z score (1.46) which is comparable to the rest of the industry.
PUB has a debt to FCF ratio of 2.97. This is a good value and a sign of high solvency as PUB would need 2.97 years to pay back of all of its debts.
PUB has a better Debt to FCF ratio (2.97) than 77.78% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that PUB is not too dependend on debt financing.
PUB has a Debt to Equity ratio (0.46) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.46
Debt/FCF 2.97
Altman-Z 1.46
ROIC/WACC1.47
WACC6.48%

2.3 Liquidity

A Current Ratio of 0.94 indicates that PUB may have some problems paying its short term obligations.
PUB has a Current ratio (0.94) which is comparable to the rest of the industry.
A Quick Ratio of 0.93 indicates that PUB may have some problems paying its short term obligations.
PUB has a Quick ratio (0.93) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 0.94
Quick Ratio 0.93

4

3. Growth

3.1 Past

PUB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.61%, which is quite good.
The Earnings Per Share has been growing by 8.45% on average over the past years. This is quite good.
Looking at the last year, PUB shows a small growth in Revenue. The Revenue has grown by 4.27% in the last year.
PUB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.27% yearly.
EPS 1Y (TTM)9.61%
EPS 3Y17.69%
EPS 5Y8.45%
EPS growth Q2Q8.07%
Revenue 1Y (TTM)4.27%
Revenue growth 3Y11.12%
Revenue growth 5Y8.27%
Revenue growth Q2Q0.63%

3.2 Future

Based on estimates for the next years, PUB will show a small growth in Earnings Per Share. The EPS will grow by 0.08% on average per year.
The Revenue is expected to grow by 5.51% on average over the next years.
EPS Next Y5.14%
EPS Next 2Y5.23%
EPS Next 3Y5.42%
EPS Next 5Y0.08%
Revenue Next Year7.97%
Revenue Next 2Y6.17%
Revenue Next 3Y5.51%
Revenue Next 5YN/A

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

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 14.32, the valuation of PUB can be described as correct.
Based on the Price/Earnings ratio, PUB is valued a bit cheaper than the industry average as 60.32% of the companies are valued more expensively.
PUB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.76.
With a Price/Forward Earnings ratio of 13.62, PUB is valued correctly.
PUB's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.26, PUB is valued a bit cheaper.
Industry RankSector Rank
PE 14.32
Fwd PE 13.62

4.2 Price Multiples

PUB's Enterprise Value to EBITDA is on the same level as the industry average.
PUB's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 13.37
EV/EBITDA 9.41

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PUB does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of PUB may justify a higher PE ratio.
PEG (NY)2.79
PEG (5Y)1.7
EPS Next 2Y5.23%
EPS Next 3Y5.42%

5

5. Dividend

5.1 Amount

PUB has a Yearly Dividend Yield of 3.36%.
PUB's Dividend Yield is a higher than the industry average which is at 4.49.
PUB's Dividend Yield is a higher than the S&P500 average which is at 2.44.
Industry RankSector Rank
Dividend Yield 3.36%

5.2 History

On average, the dividend of PUB grows each year by 25.77%, which is quite nice.
Dividend Growth(5Y)25.77%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

55.34% of the earnings are spent on dividend by PUB. This is a bit on the high side, but may be sustainable.
The dividend of PUB is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP55.34%
EPS Next 2Y5.23%
EPS Next 3Y5.42%

PUBLICIS GROUPE

EPA:PUB (4/19/2024, 7:00:00 PM)

99.7

-1.35 (-1.34%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap24.98B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.36%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 14.32
Fwd PE 13.62
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.79
PEG (5Y)1.7
Profitability
Industry RankSector Rank
ROA 3.57%
ROE 13.4%
ROCE
ROIC
ROICexc
ROICexgc
OM 12.76%
PM (TTM) 8.86%
GM N/A
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.4
Health
Industry RankSector Rank
Debt/Equity 0.46
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.94
Quick Ratio 0.93
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)9.61%
EPS 3Y17.69%
EPS 5Y
EPS growth Q2Q
EPS Next Y5.14%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.27%
Revenue growth 3Y11.12%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y