PUBLICIS GROUPE (PUB.PA)
FR0000130577 - Common Stock
We assign a fundamental rating of 4 out of 10 to PUB. PUB was compared to 65 industry peers in the Media industry. While PUB is still in line with the averages on profitability rating, there are concerns on its financial health. PUB has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year PUB was profitable.
In the past year PUB had a positive cash flow from operations.
Each year in the past 5 years PUB has been profitable.
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 4.07%, PUB is in the better half of the industry, outperforming 68.25% of the companies in the same industry.
Looking at the Return On Equity, with a value of 14.74%, PUB is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
PUB has a better Return On Invested Capital (10.50%) than 85.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PUB is in line with the industry average of 9.78%.
The 3 year average ROIC (9.07%) for PUB is below the current ROIC(10.50%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.07% | ||
| ROE | 14.74% | ||
| ROIC | 10.5% |
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
The Profit Margin of PUB (9.53%) is better than 79.37% of its industry peers.
PUB's Profit Margin has been stable in the last couple of years.
PUB has a better Operating Margin (12.97%) than 87.30% of its industry peers.
PUB's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.97% | ||
| PM (TTM) | 9.53% | ||
| 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
2. Health
2.1 Basic Checks
PUB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, PUB has less shares outstanding
Compared to 5 years ago, PUB has more shares outstanding
The debt/assets ratio for PUB has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.48, we must say that PUB is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of PUB (1.48) is comparable to the rest of the industry.
PUB has a debt to FCF ratio of 4.06. This is a neutral value as PUB would need 4.06 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.06, PUB is in the better half of the industry, outperforming 65.08% of the companies in the same industry.
PUB has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
PUB has a Debt to Equity ratio of 0.37. This is in the better half of the industry: PUB outperforms 60.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 4.06 | ||
| Altman-Z | 1.48 |
ROIC/WACC1.56
WACC6.72%
2.3 Liquidity
A Current Ratio of 0.89 indicates that PUB may have some problems paying its short term obligations.
PUB has a Current ratio of 0.89. This is in the lower half of the industry: PUB underperforms 60.32% of its industry peers.
PUB has a Quick Ratio of 0.89. This is a bad value and indicates that PUB is not financially healthy enough and could expect problems in meeting its short term obligations.
PUB has a Quick ratio of 0.87. This is in the lower half of the industry: PUB underperforms 60.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.61% over the past year.
Measured over the past years, PUB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.45% on average per year.
Looking at the last year, PUB shows a small growth in Revenue. The Revenue has grown by 4.02% in the last year.
Measured over the past years, PUB shows a quite strong growth in Revenue. The Revenue has been growing by 8.27% on average per year.
EPS 1Y (TTM)9.61%
EPS 3Y17.69%
EPS 5Y8.45%
EPS Q2Q%23.98%
Revenue 1Y (TTM)4.02%
Revenue growth 3Y11.12%
Revenue growth 5Y8.27%
Sales Q2Q%21.08%
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 4.10% on average per year.
Based on estimates for the next years, PUB will show a small growth in Revenue. The Revenue will grow by 5.86% on average per year.
EPS Next Y5.37%
EPS Next 2Y5.57%
EPS Next 3Y5.56%
EPS Next 5Y4.1%
Revenue Next Year8.81%
Revenue Next 2Y6.67%
Revenue Next 3Y5.86%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.09, the valuation of PUB can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as PUB.
PUB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.41.
A Price/Forward Earnings ratio of 12.64 indicates a correct valuation of PUB.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PUB is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of PUB to the average of the S&P500 Index (20.59), we can say PUB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.09 | ||
| Fwd PE | 12.64 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PUB is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PUB is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.44 | ||
| EV/EBITDA | 9.51 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PUB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.62
PEG (5Y)1.67
EPS Next 2Y5.57%
EPS Next 3Y5.56%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.19%, PUB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.26, PUB pays a bit more dividend than its industry peers.
PUB's Dividend Yield is a higher than the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
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 Years1
Div Non Decr Years1
5.3 Sustainability
PUB pays out 49.66% of its income as dividend. 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.
DP49.66%
EPS Next 2Y5.57%
EPS Next 3Y5.56%
PUBLICIS GROUPE
EPA:PUB (7/26/2024, 7:00:00 PM)
98.04
+0.56 (+0.57%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
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Market Cap24.53B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
Dividend Growth(5Y)
DP
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Surprises & Revisions
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EPS NQ rev (1m)
EPS NQ rev (3m)
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Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.09 | ||
| Fwd PE | 12.64 | ||
| 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)2.62
PEG (5Y)1.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.07% | ||
| ROE | 14.74% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.97% | ||
| PM (TTM) | 9.53% | ||
| 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 Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.87 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)9.61%
EPS 3Y17.69%
EPS 5Y
EPS Q2Q%
EPS Next Y5.37%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.02%
Revenue growth 3Y11.12%
Revenue growth 5Y
Sales 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
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FCF growth 5Y
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