SES (SESG.PA)
LU0088087324
We assign a fundamental rating of 5 out of 10 to SESG. SESG was compared to 65 industry peers in the Media industry. The financial health of SESG is average, but there are quite some concerns on its profitability. SESG is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
SESG had positive earnings in the past year.
In the past year SESG had a positive cash flow from operations.
In multiple years SESG reported negative net income over the last 5 years.
SESG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SESG has a worse Return On Assets (-9.24%) than 87.30% of its industry peers.
Looking at the Return On Equity, with a value of -25.43%, SESG is doing worse than 79.37% of the companies in the same industry.
SESG has a worse Return On Invested Capital (3.14%) than 60.32% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SESG is significantly below the industry average of 9.78%.
The 3 year average ROIC (2.88%) for SESG is below the current ROIC(3.14%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.24% | ||
| ROE | -25.43% | ||
| ROIC | 3.14% |
ROA(3y)-2.2%
ROA(5y)-1.17%
ROE(3y)-6.47%
ROE(5y)-3.58%
ROIC(3y)2.88%
ROIC(5y)2.93%
1.3 Margins
SESG's Operating Margin of 17.19% is amongst the best of the industry. SESG outperforms 92.06% of its industry peers.
SESG's Operating Margin has declined in the last couple of years.
The Gross Margin of SESG (78.62%) is better than 73.02% of its industry peers.
SESG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.19% | ||
| PM (TTM) | N/A | ||
| GM | 78.62% |
OM growth 3Y-9.28%
OM growth 5Y-9.16%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.62%
GM growth 5Y-1.73%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SESG is destroying value.
Compared to 1 year ago, SESG has less shares outstanding
The number of shares outstanding for SESG has been reduced compared to 5 years ago.
The debt/assets ratio for SESG is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.87, we must say that SESG is in the distress zone and has some risk of bankruptcy.
SESG's Altman-Z score of 0.87 is on the low side compared to the rest of the industry. SESG is outperformed by 73.02% of its industry peers.
SESG has a debt to FCF ratio of 1.37. This is a very positive value and a sign of high solvency as it would only need 1.37 years to pay back of all of its debts.
SESG's Debt to FCF ratio of 1.37 is amongst the best of the industry. SESG outperforms 84.13% of its industry peers.
SESG has a Debt/Equity ratio of 0.94. This is a neutral value indicating SESG is somewhat dependend on debt financing.
SESG has a Debt to Equity ratio of 0.94. This is comparable to the rest of the industry: SESG outperforms 41.27% of its industry peers.
Even though the debt/equity ratio score it not favorable for SESG, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 1.37 | ||
| Altman-Z | 0.87 |
ROIC/WACC0.66
WACC4.75%
2.3 Liquidity
SESG has a Current Ratio of 1.93. This is a normal value and indicates that SESG is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Current ratio value of 1.93, SESG belongs to the best of the industry, outperforming 87.30% of the companies in the same industry.
A Quick Ratio of 1.90 indicates that SESG should not have too much problems paying its short term obligations.
The Quick ratio of SESG (1.90) is better than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.9 |
3. Growth
3.1 Past
SESG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1337.50%, which is quite impressive.
The Earnings Per Share has been growing by 27.83% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 4.42% in the past year.
The Revenue has been growing slightly by 0.20% on average over the past years.
EPS 1Y (TTM)1337.5%
EPS 3YN/A
EPS 5Y27.83%
EPS Q2Q%114.55%
Revenue 1Y (TTM)4.42%
Revenue growth 3Y2.66%
Revenue growth 5Y0.2%
Sales Q2Q%-48.71%
3.2 Future
The Earnings Per Share is expected to decrease by -30.39% on average over the next years. This is quite bad
SESG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.67% yearly.
EPS Next Y-81.1%
EPS Next 2Y-54.44%
EPS Next 3Y-39.44%
EPS Next 5Y-30.39%
Revenue Next Year-0.3%
Revenue Next 2Y0.47%
Revenue Next 3Y1.17%
Revenue Next 5Y0.67%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 2.51, which indicates a rather cheap valuation of SESG.
SESG's Price/Earnings ratio is rather cheap when compared to the industry. SESG is cheaper than 96.83% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.41, SESG is valued rather cheaply.
With a Price/Forward Earnings ratio of 13.26, SESG is valued correctly.
SESG's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.59, SESG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.51 | ||
| Fwd PE | 13.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SESG is valued cheaply inside the industry as 95.24% of the companies are valued more expensively.
SESG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SESG is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.58 | ||
| EV/EBITDA | 0.65 |
4.3 Compensation for Growth
SESG's earnings are expected to decrease with -39.44% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.09
EPS Next 2Y-54.44%
EPS Next 3Y-39.44%
5. Dividend
5.1 Amount
SESG has a Yearly Dividend Yield of 8.55%, which is a nice return.
SESG's Dividend Yield is rather good when compared to the industry average which is at 5.26. SESG pays more dividend than 95.24% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, SESG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.55% |
5.2 History
The dividend of SESG decreases each year by -8.86%.
Dividend Growth(5Y)-8.86%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of SESG are negative and hence is the payout ratio. SESG will probably not be able to sustain this dividend level.
SESG's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-23.38%
EPS Next 2Y-54.44%
EPS Next 3Y-39.44%
SES
EPA:SESG (7/26/2024, 7:00:00 PM)
4.964
+0.04 (+0.89%)
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 Cap1.80B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.55% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.51 | ||
| Fwd PE | 13.26 | ||
| 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)N/A
PEG (5Y)0.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.24% | ||
| ROE | -25.43% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.19% | ||
| PM (TTM) | N/A | ||
| GM | 78.62% | ||
| 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 Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.9 | ||
| 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)1337.5%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-81.1%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.42%
Revenue growth 3Y2.66%
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
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y