EURAZEO SE (RF.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:RF - FR0000121121 - Common Stock
51 EUR
+0.5 (+0.99%)
We assign a fundamental rating of 3 out of 10 to RF. RF was compared to 59 industry peers in the Financial Services industry. RF may be in some trouble as it scores bad on both profitability and health. RF has a valuation in line with the averages, but it does not seem to be growing. RF also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- RF had negative earnings in the past year.
- RF had a positive operating cash flow in the past year.
- In multiple years RF reported negative net income over the last 5 years.
- RF had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- RF has a Return On Assets of -7.09%. This is amonst the worse of the industry: RF underperforms 84.75% of its industry peers.
- RF has a Return On Equity of -9.56%. This is amonst the worse of the industry: RF underperforms 81.36% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 0.57%, RF is doing worse than 67.80% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for RF is significantly below the industry average of 10.02%.
- The 3 year average ROIC (0.53%) for RF is below the current ROIC(0.57%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.09% | ||
| ROE | -9.56% | ||
| ROIC | 0.57% |
ROA(3y)5.76%
ROA(5y)5.15%
ROE(3y)8.59%
ROE(5y)9.57%
ROIC(3y)0.53%
ROIC(5y)N/A
1.3 Margins
- RF has a Operating Margin (14.05%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of RF has grown nicely.
- The Gross Margin of RF (75.72%) is better than 77.97% of its industry peers.
- RF's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.05% | ||
| PM (TTM) | N/A | ||
| GM | 75.72% |
OM growth 3Y59.9%
OM growth 5Y39.89%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.97%
GM growth 5Y5.4%
2. Health
2.1 Basic Checks
- RF has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- RF has less shares outstanding than it did 1 year ago.
- RF has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for RF is higher compared to a year ago.
2.2 Solvency
- RF has an Altman-Z score of 1.91. This is not the best score and indicates that RF is in the grey zone with still only limited risk for bankruptcy at the moment.
- RF's Altman-Z score of 1.91 is in line compared to the rest of the industry. RF outperforms 59.32% of its industry peers.
- The Debt to FCF ratio of RF is 13.82, which is on the high side as it means it would take RF, 13.82 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of RF (13.82) is worse than 61.02% of its industry peers.
- A Debt/Equity ratio of 0.04 indicates that RF is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.04, RF belongs to the top of the industry, outperforming 83.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 13.82 | ||
| Altman-Z | 1.91 |
ROIC/WACC0.07
WACC7.73%
2.3 Liquidity
- A Current Ratio of 0.28 indicates that RF may have some problems paying its short term obligations.
- RF has a Current ratio of 0.28. This is amonst the worse of the industry: RF underperforms 81.36% of its industry peers.
- A Quick Ratio of 0.28 indicates that RF may have some problems paying its short term obligations.
- RF has a Quick ratio of 0.28. This is amonst the worse of the industry: RF underperforms 81.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.28 |
3. Growth
3.1 Past
- The earnings per share for RF have decreased strongly by -755.99% in the last year.
- The Revenue has grown by 12.21% in the past year. This is quite good.
- The Revenue for RF have been decreasing by -39.38% on average. This is quite bad
EPS 1Y (TTM)-755.99%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-206.03%
Revenue 1Y (TTM)12.21%
Revenue growth 3Y-55.98%
Revenue growth 5Y-39.38%
Sales Q2Q%7.23%
3.2 Future
- The Earnings Per Share is expected to grow by 203.94% on average over the next years. This is a very strong growth
- RF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.50% yearly.
EPS Next Y542.37%
EPS Next 2Y364.46%
EPS Next 3Y203.94%
EPS Next 5YN/A
Revenue Next Year7.6%
Revenue Next 2Y6.18%
Revenue Next 3Y6.5%
Revenue Next 5YN/A
3.3 Evolution
- 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
- RF reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- A Price/Forward Earnings ratio of 4.38 indicates a rather cheap valuation of RF.
- Based on the Price/Forward Earnings ratio, RF is valued cheaper than 93.22% of the companies in the same industry.
- RF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 4.38 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RF is valued a bit more expensive than the industry average as 66.10% of the companies are valued more cheaply.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of RF indicates a slightly more expensive valuation: RF is more expensive than 62.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.1 | ||
| EV/EBITDA | 59.31 |
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.
- RF's earnings are expected to grow with 203.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y364.46%
EPS Next 3Y203.94%
5. Dividend
5.1 Amount
- RF has a Yearly Dividend Yield of 5.26%, which is a nice return.
- RF's Dividend Yield is rather good when compared to the industry average which is at 1.97. RF pays more dividend than 89.83% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, RF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.26% |
5.2 History
- The dividend of RF is nicely growing with an annual growth rate of 15.31%!
Dividend Growth(5Y)15.31%
Div Incr Years4
Div Non Decr Years6
5.3 Sustainability
- RF has negative earnings and hence a negative payout ratio. The dividend may be in danger.
- RF's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-29.76%
EPS Next 2Y364.46%
EPS Next 3Y203.94%
EURAZEO SE / RF.PA FAQ
What is the fundamental rating for RF stock?
ChartMill assigns a fundamental rating of 3 / 10 to RF.PA.
What is the valuation status of EURAZEO SE (RF.PA) stock?
ChartMill assigns a valuation rating of 4 / 10 to EURAZEO SE (RF.PA). This can be considered as Fairly Valued.
What is the profitability of RF stock?
EURAZEO SE (RF.PA) has a profitability rating of 3 / 10.
How sustainable is the dividend of EURAZEO SE (RF.PA) stock?
The dividend rating of EURAZEO SE (RF.PA) is 7 / 10 and the dividend payout ratio is -29.76%.