SES (SESG.PA)

LU0088087324

4.926  -0.2 (-3.88%)

Fundamental Rating

5

Taking everything into account, SESG scores 5 out of 10 in our fundamental rating. SESG was compared to 67 industry peers in the Media industry. SESG has an average financial health and profitability rating. SESG has a correct valuation and a medium growth rate.



4

1. Profitability

1.1 Basic Checks

In the past year SESG was profitable.
SESG had a positive operating cash flow in the past year.
In multiple years SESG reported negative net income over the last 5 years.
Each year in the past 5 years SESG had a positive operating cash flow.

1.2 Ratios

SESG's Return On Assets of -9.24% is on the low side compared to the rest of the industry. SESG is outperformed by 89.23% of its industry peers.
Looking at the Return On Equity, with a value of -25.43%, SESG is doing worse than 80.00% of the companies in the same industry.
SESG has a Return On Invested Capital (3.14%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for SESG is significantly below the industry average of 8.80%.
The last Return On Invested Capital (3.14%) for SESG is above the 3 year average (2.88%), which is a sign of increasing profitability.
Industry RankSector 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 has a better Operating Margin (17.19%) than 90.77% of its industry peers.
SESG's Operating Margin has declined in the last couple of years.
SESG has a better Gross Margin (78.62%) than 72.31% of its industry peers.
In the last couple of years the Gross Margin of SESG has declined.
Industry RankSector 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%

6

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SESG is destroying value.
Compared to 1 year ago, SESG has less shares outstanding
Compared to 5 years ago, SESG has less shares outstanding
SESG has a worse debt/assets ratio than last year.

2.2 Solvency

SESG has an Altman-Z score of 0.91. This is a bad value and indicates that SESG is not financially healthy and even has some risk of bankruptcy.
SESG's Altman-Z score of 0.91 is on the low side compared to the rest of the industry. SESG is outperformed by 69.23% 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 has a better Debt to FCF ratio (1.37) than 84.62% 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.
The Debt to Equity ratio of SESG (0.94) is worse than 61.54% of its industry peers.
Although SESG does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.94
Debt/FCF 1.37
Altman-Z 0.91
ROIC/WACC0.73
WACC4.3%

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.
SESG's Current ratio of 1.93 is amongst the best of the industry. SESG outperforms 87.69% of its industry peers.
A Quick Ratio of 1.90 indicates that SESG should not have too much problems paying its short term obligations.
SESG's Quick ratio of 1.90 is amongst the best of the industry. SESG outperforms 89.23% of its industry peers.
Industry RankSector Rank
Current Ratio 1.93
Quick Ratio 1.9

5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 1337.50% over the past year.
Measured over the past years, SESG shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.83% on average per year.
SESG shows a small growth in Revenue. In the last year, the Revenue has grown by 4.42%.
SESG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.20% yearly.
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

SESG is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -30.37% yearly.
The Revenue is expected to grow by 2.01% on average over the next years.
EPS Next Y-81.1%
EPS Next 2Y-52.98%
EPS Next 3Y-39.44%
EPS Next 5Y-30.37%
Revenue Next Year-0.3%
Revenue Next 2Y0.47%
Revenue Next 3Y1.17%
Revenue Next 5Y2.01%

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.

6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 2.49, the valuation of SESG can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of SESG indicates a rather cheap valuation: SESG is cheaper than 100.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SESG to the average of the S&P500 Index (28.39), we can say SESG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 13.16, the valuation of SESG can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as SESG.
The average S&P500 Price/Forward Earnings ratio is at 19.91. SESG is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 2.49
Fwd PE 13.16

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, SESG is valued cheaply inside the industry as 95.38% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SESG indicates a rather cheap valuation: SESG is cheaper than 98.46% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 0.71
EV/EBITDA 0.76

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-52.98%
EPS Next 3Y-39.44%

5

5. Dividend

5.1 Amount

SESG has a Yearly Dividend Yield of 8.29%, which is a nice return.
SESG's Dividend Yield is rather good when compared to the industry average which is at 4.16. SESG pays more dividend than 95.38% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, SESG pays a better dividend.
Industry RankSector Rank
Dividend Yield 8.29%

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

SESG has negative earnings and hence a negative payout ratio. The dividend may be in danger.
SESG's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-23.38%
EPS Next 2Y-52.98%
EPS Next 3Y-39.44%

SES

EPA:SESG (6/14/2024, 7:00:00 PM)

4.926

-0.2 (-3.88%)

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 Cap1.78B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 8.29%
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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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)
Avg Revenue beat(12)
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 RankSector Rank
PE 2.49
Fwd PE 13.16
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 RankSector 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 RankSector 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