PWO AG (PWO.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:PWO - DE0006968001 - Common Stock
27 EUR
-0.2 (-0.74%)
Overall PWO gets a fundamental rating of 5 out of 10. We evaluated PWO against 31 industry peers in the Automobile Components industry. Both the profitability and the financial health of PWO get a neutral evaluation. Nothing too spectacular is happening here. PWO is cheap, but on the other hand it scores bad on growth. PWO also has an excellent dividend rating. These ratings could make PWO a good candidate for value and dividend investing.
1. Profitability
1.1 Basic Checks
- PWO had positive earnings in the past year.
- PWO had a positive operating cash flow in the past year.
- Of the past 5 years PWO 4 years were profitable.
- In the past 5 years PWO always reported a positive cash flow from operatings.
1.2 Ratios
- PWO's Return On Assets of 2.64% is fine compared to the rest of the industry. PWO outperforms 77.42% of its industry peers.
- PWO has a Return On Equity of 7.01%. This is in the better half of the industry: PWO outperforms 74.19% of its industry peers.
- PWO has a Return On Invested Capital of 6.67%. This is in the better half of the industry: PWO outperforms 67.74% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for PWO is in line with the industry average of 6.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.64% | ||
| ROE | 7.01% | ||
| ROIC | 6.67% |
ROA(3y)3.51%
ROA(5y)2.25%
ROE(3y)9.38%
ROE(5y)5.75%
ROIC(3y)7.74%
ROIC(5y)N/A
1.3 Margins
- With a decent Profit Margin value of 2.15%, PWO is doing good in the industry, outperforming 77.42% of the companies in the same industry.
- In the last couple of years the Profit Margin of PWO has grown nicely.
- Looking at the Operating Margin, with a value of 5.42%, PWO is in the better half of the industry, outperforming 67.74% of the companies in the same industry.
- PWO's Operating Margin has improved in the last couple of years.
- PWO has a Gross Margin of 42.47%. This is in the better half of the industry: PWO outperforms 64.52% of its industry peers.
- In the last couple of years the Gross Margin of PWO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.42% | ||
| PM (TTM) | 2.15% | ||
| GM | 42.47% |
OM growth 3Y-0.76%
OM growth 5Y2.03%
PM growth 3Y-14.75%
PM growth 5Y2.74%
GM growth 3Y-3.64%
GM growth 5Y-2.28%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PWO is creating some value.
- The number of shares outstanding for PWO remains at a similar level compared to 1 year ago.
- The number of shares outstanding for PWO remains at a similar level compared to 5 years ago.
- The debt/assets ratio for PWO has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.24 indicates that PWO is not a great score, but indicates only limited risk for bankruptcy at the moment.
- PWO's Altman-Z score of 2.24 is fine compared to the rest of the industry. PWO outperforms 67.74% of its industry peers.
- PWO has a debt to FCF ratio of 8.43. This is a slightly negative value and a sign of low solvency as PWO would need 8.43 years to pay back of all of its debts.
- The Debt to FCF ratio of PWO (8.43) is better than 61.29% of its industry peers.
- A Debt/Equity ratio of 0.54 indicates that PWO is somewhat dependend on debt financing.
- PWO has a Debt to Equity ratio of 0.54. This is in the better half of the industry: PWO outperforms 67.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 8.43 | ||
| Altman-Z | 2.24 |
ROIC/WACC0.96
WACC6.94%
2.3 Liquidity
- PWO has a Current Ratio of 1.60. This is a normal value and indicates that PWO is financially healthy and should not expect problems in meeting its short term obligations.
- With an excellent Current ratio value of 1.60, PWO belongs to the best of the industry, outperforming 83.87% of the companies in the same industry.
- PWO has a Quick Ratio of 1.23. This is a normal value and indicates that PWO is financially healthy and should not expect problems in meeting its short term obligations.
- PWO's Quick ratio of 1.23 is amongst the best of the industry. PWO outperforms 87.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
- PWO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.44%.
- The Earnings Per Share has been growing slightly by 6.74% on average over the past years.
- PWO shows a decrease in Revenue. In the last year, the revenue decreased by -4.01%.
- The Revenue has been growing slightly by 3.90% on average over the past years.
EPS 1Y (TTM)-10.44%
EPS 3Y-5.25%
EPS 5Y6.74%
EPS Q2Q%12.77%
Revenue 1Y (TTM)-4.01%
Revenue growth 3Y11.15%
Revenue growth 5Y3.9%
Sales Q2Q%-1.95%
3.2 Future
- PWO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.60% yearly.
- PWO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.35% yearly.
EPS Next Y-15.71%
EPS Next 2Y-2.28%
EPS Next 3Y5.39%
EPS Next 5Y5.6%
Revenue Next Year-9.47%
Revenue Next 2Y-3.1%
Revenue Next 3Y-0.5%
Revenue Next 5Y-0.35%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same 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 7.32, the valuation of PWO can be described as very cheap.
- Based on the Price/Earnings ratio, PWO is valued cheaply inside the industry as 83.87% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 28.60. PWO is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 6.82 indicates a rather cheap valuation of PWO.
- 93.55% of the companies in the same industry are more expensive than PWO, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of PWO to the average of the S&P500 Index (25.83), we can say PWO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.32 | ||
| Fwd PE | 6.82 |
4.2 Price Multiples
- PWO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PWO is cheaper than 67.74% of the companies in the same industry.
- PWO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PWO is cheaper than 61.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.39 | ||
| EV/EBITDA | 3.27 |
4.3 Compensation for Growth
- PWO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.09
EPS Next 2Y-2.28%
EPS Next 3Y5.39%
5. Dividend
5.1 Amount
- PWO has a Yearly Dividend Yield of 6.58%, which is a nice return.
- PWO's Dividend Yield is rather good when compared to the industry average which is at 2.91. PWO pays more dividend than 96.77% of the companies in the same industry.
- PWO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.58% |
5.2 History
- The dividend of PWO has a limited annual growth rate of 5.33%.
Dividend Growth(5Y)5.33%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
- PWO pays out 47.40% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of PWO is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP47.4%
EPS Next 2Y-2.28%
EPS Next 3Y5.39%
PWO AG / PWO.DE FAQ
Can you provide the ChartMill fundamental rating for PWO AG?
ChartMill assigns a fundamental rating of 5 / 10 to PWO.DE.
What is the valuation status for PWO stock?
ChartMill assigns a valuation rating of 7 / 10 to PWO AG (PWO.DE). This can be considered as Undervalued.
How profitable is PWO AG (PWO.DE) stock?
PWO AG (PWO.DE) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for PWO stock?
The Price/Earnings (PE) ratio for PWO AG (PWO.DE) is 7.32 and the Price/Book (PB) ratio is 0.51.
How financially healthy is PWO AG?
The financial health rating of PWO AG (PWO.DE) is 6 / 10.