SES (SESG.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:SESG - LU0088087324
6.49 EUR
+0.06 (+0.85%)
Overall SESG gets a fundamental rating of 4 out of 10. We evaluated SESG against 69 industry peers in the Media industry. SESG scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. SESG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- SESG had negative earnings in the past year.
- In the past year SESG had a positive cash flow from operations.
- In the past 5 years SESG reported 4 times negative net income.
- In the past 5 years SESG always reported a positive cash flow from operatings.
1.2 Ratios
- SESG has a worse Return On Assets (-0.14%) than 67.65% of its industry peers.
- SESG's Return On Equity of -0.53% is on the low side compared to the rest of the industry. SESG is outperformed by 67.65% of its industry peers.
- With a Return On Invested Capital value of 2.65%, SESG is not doing good in the industry: 61.76% of the companies in the same industry are doing better.
- Measured over the past 3 years, the Average Return On Invested Capital for SESG is significantly below the industry average of 8.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.14% | ||
| ROE | -0.53% | ||
| ROIC | 2.65% |
ROA(3y)-3.27%
ROA(5y)-1.54%
ROE(3y)-8.89%
ROE(5y)-4.39%
ROIC(3y)2.67%
ROIC(5y)2.77%
1.3 Margins
- SESG has a Operating Margin of 9.94%. This is in the better half of the industry: SESG outperforms 63.24% of its industry peers.
- In the last couple of years the Operating Margin of SESG has declined.
- SESG has a Gross Margin of 51.25%. This is comparable to the rest of the industry: SESG outperforms 51.47% of its industry peers.
- In the last couple of years the Gross Margin of SESG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.94% | ||
| PM (TTM) | N/A | ||
| GM | 51.25% |
OM growth 3Y-16.52%
OM growth 5Y-10.8%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.22%
GM growth 5Y-2.28%
2. Health
2.1 Basic Checks
- SESG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, SESG has a worse debt to assets ratio.
2.2 Solvency
- SESG has an Altman-Z score of 1.04. This is a bad value and indicates that SESG is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of SESG (1.04) is worse than 64.71% of its industry peers.
- The Debt to FCF ratio of SESG is 7.08, which is on the high side as it means it would take SESG, 7.08 years of fcf income to pay off all of its debts.
- SESG has a Debt to FCF ratio (7.08) which is in line with its industry peers.
- SESG has a Debt/Equity ratio of 1.73. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.73, SESG is not doing good in the industry: 69.12% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | 7.08 | ||
| Altman-Z | 1.04 |
ROIC/WACC0.63
WACC4.22%
2.3 Liquidity
- A Current Ratio of 2.33 indicates that SESG has no problem at all paying its short term obligations.
- SESG has a Current ratio of 2.33. This is amongst the best in the industry. SESG outperforms 95.59% of its industry peers.
- SESG has a Quick Ratio of 2.31. This indicates that SESG is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 2.31, SESG belongs to the top of the industry, outperforming 95.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.33 | ||
| Quick Ratio | 2.31 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 88.52% over the past year.
- Looking at the last year, SESG shows a quite strong growth in Revenue. The Revenue has grown by 8.72% in the last year.
- The Revenue has been growing slightly by 0.17% on average over the past years.
EPS 1Y (TTM)88.52%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-874.5%
Revenue 1Y (TTM)8.72%
Revenue growth 3Y3.94%
Revenue growth 5Y0.17%
Sales Q2Q%54.73%
3.2 Future
- Based on estimates for the next years, SESG will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.59% on average per year.
- The Revenue is expected to grow by 0.74% on average over the next years.
EPS Next Y32.83%
EPS Next 2Y3.73%
EPS Next 3Y9.59%
EPS Next 5YN/A
Revenue Next Year35.02%
Revenue Next 2Y29.28%
Revenue Next 3Y19.2%
Revenue Next 5Y0.74%
3.3 Evolution
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- SESG reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- Based on the Price/Forward Earnings ratio of 19.88, the valuation of SESG can be described as rather expensive.
- SESG's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. SESG is more expensive than 61.76% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, SESG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 19.88 |
4.2 Price Multiples
- 91.18% of the companies in the same industry are more expensive than SESG, based on the Enterprise Value to EBITDA ratio.
- 94.12% of the companies in the same industry are more expensive than SESG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.54 | ||
| EV/EBITDA | 3.29 |
4.3 Compensation for Growth
- SESG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.73%
EPS Next 3Y9.59%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.45%, SESG is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 3.07, SESG pays a better dividend. On top of this SESG pays more dividend than 86.76% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, SESG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.45% |
5.2 History
Dividend Growth(5Y)N/A
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.
DP-1380%
EPS Next 2Y3.73%
EPS Next 3Y9.59%
SES / SESG.PA FAQ
What is the fundamental rating for SESG stock?
ChartMill assigns a fundamental rating of 4 / 10 to SESG.PA.
What is the valuation status of SES (SESG.PA) stock?
ChartMill assigns a valuation rating of 4 / 10 to SES (SESG.PA). This can be considered as Fairly Valued.
Can you provide the profitability details for SES?
SES (SESG.PA) has a profitability rating of 2 / 10.
What is the earnings growth outlook for SES?
The Earnings per Share (EPS) of SES (SESG.PA) is expected to grow by 32.83% in the next year.
How sustainable is the dividend of SES (SESG.PA) stock?
The dividend rating of SES (SESG.PA) is 5 / 10 and the dividend payout ratio is -1380%.