SES (SESG.PA) Stock Fundamental Analysis
EPA:SESG - Euronext Paris - Matif - LU0088087324 - Currency: EUR
SESG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 68 industry peers in the Media industry. While SESG has a great health rating, there are worries on its profitability. SESG is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
SESG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SESG has a worse Return On Assets (-10.27%) than 88.52% of its industry peers.
SESG's Return On Equity of -26.28% is on the low side compared to the rest of the industry. SESG is outperformed by 85.25% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.20%, SESG is doing worse than 62.30% of the companies in the same industry.
SESG had an Average Return On Invested Capital over the past 3 years of 2.88%. This is significantly below the industry average of 9.33%.
The last Return On Invested Capital (3.20%) for SESG is above the 3 year average (2.88%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.27% | ||
| ROE | -26.28% | ||
| ROIC | 3.2% |
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
With an excellent Operating Margin value of 17.19%, SESG belongs to the best of the industry, outperforming 90.16% of the companies in the same industry.
SESG's Operating Margin has declined in the last couple of years.
SESG has a better Gross Margin (78.62%) than 68.85% 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
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
The debt/assets ratio for SESG is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.89, we must say that SESG is in the distress zone and has some risk of bankruptcy.
SESG has a worse Altman-Z score (0.89) than 72.13% of its industry peers.
The Debt to FCF ratio of SESG is 1.20, which is an excellent value as it means it would take SESG, only 1.20 years of fcf income to pay off all of its debts.
SESG has a better Debt to FCF ratio (1.20) than 88.52% of its industry peers.
SESG has a Debt/Equity ratio of 0.97. This is a neutral value indicating SESG is somewhat dependend on debt financing.
SESG has a Debt to Equity ratio of 0.97. This is in the lower half of the industry: SESG underperforms 67.21% 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 | 0.97 | ||
| Debt/FCF | 1.2 | ||
| Altman-Z | 0.89 |
ROIC/WACC0.8
WACC4%
2.3 Liquidity
A Current Ratio of 2.57 indicates that SESG has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.57, SESG belongs to the best of the industry, outperforming 93.44% of the companies in the same industry.
A Quick Ratio of 2.53 indicates that SESG has no problem at all paying its short term obligations.
SESG's Quick ratio of 2.53 is amongst the best of the industry. SESG outperforms 93.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.57 | ||
| Quick Ratio | 2.53 |
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.
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.
Looking at the last year, SESG shows a small growth in Revenue. The Revenue has grown by 4.42% in the last year.
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%-99.94%
Revenue 1Y (TTM)4.42%
Revenue growth 3Y2.66%
Revenue growth 5Y0.2%
Sales Q2Q%-1.97%
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 -30.39% yearly.
The Revenue is expected to grow by 0.67% on average over the next years.
EPS Next Y-86.69%
EPS Next 2Y-59.11%
EPS Next 3Y-40.55%
EPS Next 5Y-30.39%
Revenue Next Year0.1%
Revenue Next 2Y-0.22%
Revenue Next 3Y0.13%
Revenue Next 5Y0.67%
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 decreasing.
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
SESG is valuated cheaply with a Price/Earnings ratio of 1.54.
Based on the Price/Earnings ratio, SESG is valued cheaper than 98.36% of the companies in the same industry.
When comparing the Price/Earnings ratio of SESG to the average of the S&P500 Index (28.19), we can say SESG is valued rather cheaply.
SESG is valuated reasonably with a Price/Forward Earnings ratio of 9.22.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SESG indicates a somewhat cheap valuation: SESG is cheaper than 60.66% of the companies listed in the same industry.
SESG is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.37, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.54 | ||
| Fwd PE | 9.22 |
4.2 Price Multiples
95.08% of the companies in the same industry are more expensive than SESG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SESG is valued cheaply inside the industry as 98.36% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.46 | ||
| EV/EBITDA | 0.6 |
4.3 Compensation for Growth
SESG's earnings are expected to decrease with -40.55% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.06
EPS Next 2Y-59.11%
EPS Next 3Y-40.55%
5. Dividend
5.1 Amount
SESG has a Yearly Dividend Yield of 14.56%, which is a nice return.
In the last 3 months the price of SESG has falen by -20.18%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 5.12, SESG pays a better dividend. On top of this SESG pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, SESG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.56% |
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.
The Dividend Rate of SESG has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-22.95%
EPS Next 2Y-59.11%
EPS Next 3Y-40.55%
SES
EPA:SESG (1/23/2025, 5:29:44 PM)
3.054
+0.01 (+0.26%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners44.44%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.36B
Analysts75.71
Price Target6.13 (100.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.56% |
Yearly Dividend0.5
Dividend Growth(5Y)-8.86%
DP-22.95%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.45%
Min Revenue beat(2)-0.82%
Max Revenue beat(2)1.72%
Revenue beat(4)3
Avg Revenue beat(4)1.6%
Min Revenue beat(4)-0.82%
Max Revenue beat(4)3.75%
Revenue beat(8)6
Avg Revenue beat(8)34.99%
Revenue beat(12)9
Avg Revenue beat(12)39.11%
Revenue beat(16)11
Avg Revenue beat(16)41.05%
PT rev (1m)0%
PT rev (3m)-2.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-106.25%
EPS NY rev (1m)0%
EPS NY rev (3m)-17.48%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-1.46%
Revenue NY rev (1m)0.74%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.54 | ||
| Fwd PE | 9.22 | ||
| P/S | 0.67 | ||
| P/FCF | 0.46 | ||
| P/OCF | 0.42 | ||
| P/B | 0.38 | ||
| P/tB | 0.52 | ||
| EV/EBITDA | 0.6 |
EPS(TTM)1.98
EY64.83%
EPS(NY)0.33
Fwd EY10.84%
FCF(TTM)6.6
FCFY215.97%
OCF(TTM)7.32
OCFY239.69%
SpS4.55
BVpS8.03
TBVpS5.91
PEG (NY)N/A
PEG (5Y)0.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.27% | ||
| ROE | -26.28% | ||
| ROCE | 4.36% | ||
| ROIC | 3.2% | ||
| ROICexc | 4.32% | ||
| ROICexgc | 5.13% | ||
| OM | 17.19% | ||
| PM (TTM) | N/A | ||
| GM | 78.62% | ||
| FCFM | 144.83% |
ROA(3y)-2.2%
ROA(5y)-1.17%
ROE(3y)-6.47%
ROE(5y)-3.58%
ROIC(3y)2.88%
ROIC(5y)2.93%
ROICexc(3y)3.65%
ROICexc(5y)3.53%
ROICexgc(3y)5.43%
ROICexgc(5y)5.66%
ROCE(3y)3.92%
ROCE(5y)3.98%
ROICexcg growth 3Y0.83%
ROICexcg growth 5Y-3.89%
ROICexc growth 3Y14.21%
ROICexc growth 5Y4.35%
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%
F-Score5
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 1.2 | ||
| Debt/EBITDA | 0.74 | ||
| Cap/Depr | 7.39% | ||
| Cap/Sales | 15.91% | ||
| Interest Coverage | 2.22 | ||
| Cash Conversion | 69.18% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.57 | ||
| Quick Ratio | 2.53 | ||
| Altman-Z | 0.89 |
F-Score5
WACC4%
ROIC/WACC0.8
Cap/Depr(3y)50.74%
Cap/Depr(5y)41.83%
Cap/Sales(3y)35.1%
Cap/Sales(5y)26.38%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1337.5%
EPS 3YN/A
EPS 5Y27.83%
EPS Q2Q%-99.94%
EPS Next Y-86.69%
EPS Next 2Y-59.11%
EPS Next 3Y-40.55%
EPS Next 5Y-30.39%
Revenue 1Y (TTM)4.42%
Revenue growth 3Y2.66%
Revenue growth 5Y0.2%
Sales Q2Q%-1.97%
Revenue Next Year0.1%
Revenue Next 2Y-0.22%
Revenue Next 3Y0.13%
Revenue Next 5Y0.67%
EBIT growth 1Y-9.35%
EBIT growth 3Y-6.86%
EBIT growth 5Y-8.98%
EBIT Next Year6891.94%
EBIT Next 3Y315.89%
EBIT Next 5Y134.58%
FCF growth 1Y223.43%
FCF growth 3Y54.16%
FCF growth 5Y28.92%
OCF growth 1Y94.69%
OCF growth 3Y49.13%
OCF growth 5Y23.9%