STINGRAY GROUP INC (RAY-A.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:RAY-A - CA86084H1001 - Common Stock
15.66 CAD
-0.13 (-0.82%)
Overall RAY-A gets a fundamental rating of 6 out of 10. We evaluated RAY-A against 12 industry peers in the Media industry. While RAY-A belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. RAY-A may be a bit undervalued, certainly considering the very reasonable score on growth Finally RAY-A also has an excellent dividend rating. This makes RAY-A very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
- In the past year RAY-A was profitable.
- RAY-A had a positive operating cash flow in the past year.
- RAY-A had positive earnings in 4 of the past 5 years.
- RAY-A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- RAY-A has a better Return On Assets (6.12%) than 80.00% of its industry peers.
- RAY-A's Return On Equity of 17.96% is amongst the best of the industry. RAY-A outperforms 93.33% of its industry peers.
- The Return On Invested Capital of RAY-A (10.36%) is better than 80.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for RAY-A is in line with the industry average of 8.38%.
- The last Return On Invested Capital (10.36%) for RAY-A is above the 3 year average (8.88%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.12% | ||
| ROE | 17.96% | ||
| ROIC | 10.36% |
ROA(3y)2.04%
ROA(5y)3.08%
ROE(3y)6.22%
ROE(5y)9.45%
ROIC(3y)8.88%
ROIC(5y)7.97%
1.3 Margins
- RAY-A has a better Profit Margin (12.56%) than 100.00% of its industry peers.
- In the last couple of years the Profit Margin of RAY-A has grown nicely.
- RAY-A's Operating Margin of 25.10% is amongst the best of the industry. RAY-A outperforms 100.00% of its industry peers.
- In the last couple of years the Operating Margin of RAY-A has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.1% | ||
| PM (TTM) | 12.56% | ||
| GM | N/A |
OM growth 3Y3.72%
OM growth 5Y1.04%
PM growth 3Y-7.18%
PM growth 5Y15.64%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- RAY-A has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for RAY-A has been reduced compared to 1 year ago.
- RAY-A has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, RAY-A has an improved debt to assets ratio.
2.2 Solvency
- RAY-A has an Altman-Z score of 1.80. This is a bad value and indicates that RAY-A is not financially healthy and even has some risk of bankruptcy.
- RAY-A has a Altman-Z score of 1.80. This is in the better half of the industry: RAY-A outperforms 80.00% of its industry peers.
- The Debt to FCF ratio of RAY-A is 3.50, which is a good value as it means it would take RAY-A, 3.50 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of RAY-A (3.50) is better than 73.33% of its industry peers.
- A Debt/Equity ratio of 1.23 is on the high side and indicates that RAY-A has dependencies on debt financing.
- The Debt to Equity ratio of RAY-A (1.23) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 3.5 | ||
| Altman-Z | 1.8 |
ROIC/WACC1.48
WACC6.99%
2.3 Liquidity
- A Current Ratio of 1.11 indicates that RAY-A should not have too much problems paying its short term obligations.
- RAY-A has a Current ratio of 1.11. This is in the better half of the industry: RAY-A outperforms 73.33% of its industry peers.
- RAY-A has a Quick Ratio of 1.04. This is a normal value and indicates that RAY-A is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of RAY-A (1.04) is better than 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 33.33% over the past year.
- The Earnings Per Share has been growing slightly by 7.84% on average over the past years.
- The Revenue has grown by 12.69% in the past year. This is quite good.
- The Revenue has been growing slightly by 4.75% on average over the past years.
EPS 1Y (TTM)33.33%
EPS 3Y9.49%
EPS 5Y7.84%
EPS Q2Q%33.33%
Revenue 1Y (TTM)12.69%
Revenue growth 3Y11.03%
Revenue growth 5Y4.75%
Sales Q2Q%21.03%
3.2 Future
- RAY-A is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.96% yearly.
- RAY-A is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.02% yearly.
EPS Next Y36.84%
EPS Next 2Y35.68%
EPS Next 3Y19.96%
EPS Next 5YN/A
Revenue Next Year23.85%
Revenue Next 2Y28.97%
Revenue Next 3Y17.02%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 12.63, the valuation of RAY-A can be described as correct.
- 86.67% of the companies in the same industry are more expensive than RAY-A, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, RAY-A is valued rather cheaply.
- With a Price/Forward Earnings ratio of 8.10, the valuation of RAY-A can be described as very reasonable.
- 100.00% of the companies in the same industry are more expensive than RAY-A, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, RAY-A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.63 | ||
| Fwd PE | 8.1 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RAY-A is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
- RAY-A's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RAY-A is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.42 | ||
| EV/EBITDA | 8.95 |
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.
- RAY-A has a very decent profitability rating, which may justify a higher PE ratio.
- RAY-A's earnings are expected to grow with 19.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.34
PEG (5Y)1.61
EPS Next 2Y35.68%
EPS Next 3Y19.96%
5. Dividend
5.1 Amount
- RAY-A has a Yearly Dividend Yield of 2.15%.
- RAY-A's Dividend Yield is rather good when compared to the industry average which is at 0.36. RAY-A pays more dividend than 93.33% of the companies in the same industry.
- RAY-A's Dividend Yield is comparable with the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
5.2 History
- The dividend of RAY-A has a limited annual growth rate of 1.15%.
- RAY-A has paid a dividend for at least 10 years, which is a reliable track record.
- As RAY-A did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)1.15%
Div Incr Years0
Div Non Decr Years9
5.3 Sustainability
- RAY-A pays out 39.32% of its income as dividend. This is a sustainable payout ratio.
- RAY-A's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP39.32%
EPS Next 2Y35.68%
EPS Next 3Y19.96%
STINGRAY GROUP INC / RAY-A.CA FAQ
What is the ChartMill fundamental rating of STINGRAY GROUP INC (RAY-A.CA) stock?
ChartMill assigns a fundamental rating of 7 / 10 to RAY-A.CA.
Can you provide the valuation status for STINGRAY GROUP INC?
ChartMill assigns a valuation rating of 7 / 10 to STINGRAY GROUP INC (RAY-A.CA). This can be considered as Undervalued.
What is the profitability of RAY-A stock?
STINGRAY GROUP INC (RAY-A.CA) has a profitability rating of 7 / 10.
What is the financial health of STINGRAY GROUP INC (RAY-A.CA) stock?
The financial health rating of STINGRAY GROUP INC (RAY-A.CA) is 6 / 10.
Can you provide the expected EPS growth for RAY-A stock?
The Earnings per Share (EPS) of STINGRAY GROUP INC (RAY-A.CA) is expected to grow by 36.84% in the next year.