SII (SII.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:SII - FR0000074122 - Common Stock
70.1 EUR
+0.1 (+0.14%)
Taking everything into account, SII scores 7 out of 10 in our fundamental rating. SII was compared to 76 industry peers in the IT Services industry. SII gets an excellent profitability rating and is at the same time showing great financial health properties. SII has a decent growth rate and is not valued too expensively. These ratings would make SII suitable for quality investing!
1. Profitability
1.1 Basic Checks
- In the past year SII was profitable.
- In the past year SII had a positive cash flow from operations.
- SII had positive earnings in each of the past 5 years.
- Each year in the past 5 years SII had a positive operating cash flow.
1.2 Ratios
- SII has a better Return On Assets (12.65%) than 94.20% of its industry peers.
- SII's Return On Equity of 30.79% is amongst the best of the industry. SII outperforms 91.30% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 23.27%, SII belongs to the top of the industry, outperforming 97.10% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for SII is significantly below the industry average of 25.98%.
- The 3 year average ROIC (18.74%) for SII is below the current ROIC(23.27%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.65% | ||
| ROE | 30.79% | ||
| ROIC | 23.27% |
ROA(3y)9.35%
ROA(5y)8.45%
ROE(3y)23.66%
ROE(5y)21.13%
ROIC(3y)18.74%
ROIC(5y)17.64%
1.3 Margins
- SII has a Profit Margin of 8.01%. This is amongst the best in the industry. SII outperforms 85.51% of its industry peers.
- In the last couple of years the Profit Margin of SII has grown nicely.
- Looking at the Operating Margin, with a value of 9.58%, SII is in the better half of the industry, outperforming 72.46% of the companies in the same industry.
- In the last couple of years the Operating Margin of SII has grown nicely.
- Looking at the Gross Margin, with a value of 67.06%, SII is in line with its industry, outperforming 49.28% of the companies in the same industry.
- SII's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.58% | ||
| PM (TTM) | 8.01% | ||
| GM | 67.06% |
OM growth 3Y15.08%
OM growth 5Y7.39%
PM growth 3Y25.09%
PM growth 5Y11.33%
GM growth 3Y-2.24%
GM growth 5Y-1.47%
2. Health
2.1 Basic Checks
- SII has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- SII has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 1 year ago, SII has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.88 indicates that SII is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.88, SII belongs to the top of the industry, outperforming 88.41% of the companies in the same industry.
- SII has a debt to FCF ratio of 0.79. This is a very positive value and a sign of high solvency as it would only need 0.79 years to pay back of all of its debts.
- SII has a Debt to FCF ratio of 0.79. This is amongst the best in the industry. SII outperforms 92.75% of its industry peers.
- A Debt/Equity ratio of 0.18 indicates that SII is not too dependend on debt financing.
- SII's Debt to Equity ratio of 0.18 is fine compared to the rest of the industry. SII outperforms 68.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 0.79 | ||
| Altman-Z | 4.88 |
ROIC/WACC3.28
WACC7.09%
2.3 Liquidity
- SII has a Current Ratio of 1.48. This is a normal value and indicates that SII is financially healthy and should not expect problems in meeting its short term obligations.
- With a decent Current ratio value of 1.48, SII is doing good in the industry, outperforming 68.12% of the companies in the same industry.
- SII has a Quick Ratio of 1.48. This is a normal value and indicates that SII is financially healthy and should not expect problems in meeting its short term obligations.
- SII's Quick ratio of 1.48 is fine compared to the rest of the industry. SII outperforms 75.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 30.97% over the past year.
- SII shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.37% yearly.
- The Revenue has grown by 16.53% in the past year. This is quite good.
- Measured over the past years, SII shows a quite strong growth in Revenue. The Revenue has been growing by 12.76% on average per year.
EPS 1Y (TTM)30.97%
EPS 3Y43.57%
EPS 5Y25.37%
EPS Q2Q%18.1%
Revenue 1Y (TTM)16.53%
Revenue growth 3Y14.77%
Revenue growth 5Y12.76%
Sales Q2Q%12.79%
3.2 Future
- SII is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.64% yearly.
- Based on estimates for the next years, SII will show a quite strong growth in Revenue. The Revenue will grow by 8.50% on average per year.
EPS Next Y4.78%
EPS Next 2Y4.6%
EPS Next 3Y6.64%
EPS Next 5YN/A
Revenue Next Year8.83%
Revenue Next 2Y7.86%
Revenue Next 3Y8.5%
Revenue Next 5YN/A
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 16.15 indicates a correct valuation of SII.
- 72.46% of the companies in the same industry are more expensive than SII, based on the Price/Earnings ratio.
- SII's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.32.
- A Price/Forward Earnings ratio of 16.93 indicates a correct valuation of SII.
- SII's Price/Forward Earnings ratio is in line with the industry average.
- SII's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.15 | ||
| Fwd PE | 16.93 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as SII.
- SII's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SII is cheaper than 75.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.96 | ||
| EV/EBITDA | 9.28 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of SII may justify a higher PE ratio.
PEG (NY)3.38
PEG (5Y)0.64
EPS Next 2Y4.6%
EPS Next 3Y6.64%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.71%, SII is not a good candidate for dividend investing.
- SII's Dividend Yield is comparable with the industry average which is at 2.10.
- Compared to an average S&P500 Dividend Yield of 1.83, SII's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
5.2 History
- The dividend of SII is nicely growing with an annual growth rate of 29.85%!
Dividend Growth(5Y)29.85%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- SII pays out 11.37% of its income as dividend. This is a sustainable payout ratio.
- SII's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP11.37%
EPS Next 2Y4.6%
EPS Next 3Y6.64%
SII / SII.PA FAQ
What is the ChartMill fundamental rating of SII (SII.PA) stock?
ChartMill assigns a fundamental rating of 7 / 10 to SII.PA.
What is the valuation status of SII (SII.PA) stock?
ChartMill assigns a valuation rating of 5 / 10 to SII (SII.PA). This can be considered as Fairly Valued.
How profitable is SII (SII.PA) stock?
SII (SII.PA) has a profitability rating of 9 / 10.
What is the valuation of SII based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SII (SII.PA) is 16.15 and the Price/Book (PB) ratio is 4.8.
What is the financial health of SII (SII.PA) stock?
The financial health rating of SII (SII.PA) is 8 / 10.