SII (SII.PA) Stock Fundamental Analysis
EPA:SII - Euronext Paris - Matif - FR0000074122 - Common Stock - Currency: EUR
SII gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 77 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 correct valuation and a medium growth rate. This makes SII very considerable for quality investing!
1. Profitability
1.1 Basic Checks
SII had positive earnings in the past year.
SII had a positive operating cash flow in the past year.
In the past 5 years SII has always been profitable.
Each year in the past 5 years SII had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SII (12.65%) is better than 94.20% of its industry peers.
The Return On Equity of SII (30.79%) is better than 91.30% of its industry peers.
SII has a better Return On Invested Capital (23.27%) than 97.10% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SII is significantly above the industry average of 11.17%.
The last Return On Invested Capital (23.27%) for SII is above the 3 year average (18.74%), which is a sign of increasing profitability.
| 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.
SII has a better Operating Margin (9.58%) than 72.46% of its industry peers.
SII's Operating Margin has improved in the last couple of years.
SII has a Gross Margin (67.06%) which is in line with its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SII is creating value.
Compared to 1 year ago, SII has about the same amount of shares outstanding.
Compared to 5 years ago, SII has less shares outstanding
Compared to 1 year ago, SII has an improved debt to assets ratio.
2.2 Solvency
SII has an Altman-Z score of 4.88. This indicates that SII is financially healthy and has little risk of 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.
SII has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of SII (0.18) is better than 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
A Current Ratio of 1.48 indicates that SII should not have too much problems paying 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 has a better Quick ratio (1.48) than 75.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
SII shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.97%, which is quite impressive.
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.
SII shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.76% yearly.
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
Based on estimates for the next years, SII will show a small growth in Earnings Per Share. The EPS will grow by 6.64% on average per year.
The Revenue is expected to grow by 8.50% on average over the next years. This is quite good.
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
Based on the Price/Earnings ratio of 16.15, the valuation of SII can be described as correct.
Based on the Price/Earnings ratio, SII is valued a bit cheaper than 72.46% of the companies in the same industry.
When comparing the Price/Earnings ratio of SII to the average of the S&P500 Index (26.31), we can say SII is valued slightly cheaper.
A Price/Forward Earnings ratio of 16.93 indicates a correct valuation of SII.
The rest of the industry has a similar Price/Forward Earnings ratio as SII.
When comparing the Price/Forward Earnings ratio of SII to the average of the S&P500 Index (22.06), we can say SII is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.15 | ||
| Fwd PE | 16.93 |
4.2 Price Multiples
SII's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, SII is valued a bit cheaper than the industry average as 75.36% of the companies are valued more expensively.
| 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 SII does not grow enough to justify the current Price/Earnings ratio.
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
SII has a yearly dividend return of 0.71%, which is pretty low.
SII's Dividend Yield is comparable with the industry average which is at 6.55.
Compared to an average S&P500 Dividend Yield of 2.38, SII's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
5.2 History
On average, the dividend of SII grows each year by 29.85%, which is quite nice.
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.
The dividend of SII is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP11.37%
EPS Next 2Y4.6%
EPS Next 3Y6.64%
EPA:SII (2/23/2024, 7:00:00 PM)
70.1
+0.1 (+0.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.35B
Analysts45.71
Price Target68.75 (-1.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
Yearly Dividend0.55
Dividend Growth(5Y)29.85%
DP11.37%
Div Incr Years3
Div Non Decr Years3
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)3.06%
PT rev (3m)8.59%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-2.89%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.15 | ||
| Fwd PE | 16.93 | ||
| P/S | 1.25 | ||
| P/FCF | 12.96 | ||
| P/OCF | 11.65 | ||
| P/B | 4.8 | ||
| P/tB | 6.71 | ||
| EV/EBITDA | 9.28 |
EPS(TTM)4.34
EY6.19%
EPS(NY)4.14
Fwd EY5.91%
FCF(TTM)5.41
FCFY7.71%
OCF(TTM)6.01
OCFY8.58%
SpS56.09
BVpS14.59
TBVpS10.44
PEG (NY)3.38
PEG (5Y)0.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.65% | ||
| ROE | 30.79% | ||
| ROCE | 30.58% | ||
| ROIC | 23.27% | ||
| ROICexc | 56.34% | ||
| ROICexgc | 131.33% | ||
| OM | 9.58% | ||
| PM (TTM) | 8.01% | ||
| GM | 67.06% | ||
| FCFM | 9.64% |
ROA(3y)9.35%
ROA(5y)8.45%
ROE(3y)23.66%
ROE(5y)21.13%
ROIC(3y)18.74%
ROIC(5y)17.64%
ROICexc(3y)43.52%
ROICexc(5y)51.7%
ROICexgc(3y)81.7%
ROICexgc(5y)N/A
ROCE(3y)24.6%
ROCE(5y)23.15%
ROICexcg growth 3Y52.48%
ROICexcg growth 5Y21.76%
ROICexc growth 3Y36.31%
ROICexc growth 5Y17.33%
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%
F-Score5
Asset Turnover1.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 0.79 | ||
| Debt/EBITDA | 0.37 | ||
| Cap/Depr | 39.89% | ||
| Cap/Sales | 1.08% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.24% | ||
| Profit Quality | 120.37% | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 4.88 |
F-Score5
WACC7.09%
ROIC/WACC3.28
Cap/Depr(3y)35.89%
Cap/Depr(5y)42.91%
Cap/Sales(3y)1.21%
Cap/Sales(5y)1.35%
Profit Quality(3y)147.97%
Profit Quality(5y)144.18%
High Growth Momentum
Growth
EPS 1Y (TTM)30.97%
EPS 3Y43.57%
EPS 5Y25.37%
EPS Q2Q%18.1%
EPS Next Y4.78%
EPS Next 2Y4.6%
EPS Next 3Y6.64%
EPS Next 5YN/A
Revenue 1Y (TTM)16.53%
Revenue growth 3Y14.77%
Revenue growth 5Y12.76%
Sales Q2Q%12.79%
Revenue Next Year8.83%
Revenue Next 2Y7.86%
Revenue Next 3Y8.5%
Revenue Next 5YN/A
EBIT growth 1Y16.86%
EBIT growth 3Y32.08%
EBIT growth 5Y21.09%
EBIT Next Year37.3%
EBIT Next 3Y18.55%
EBIT Next 5YN/A
FCF growth 1Y136.19%
FCF growth 3Y21.82%
FCF growth 5Y81.32%
OCF growth 1Y120.59%
OCF growth 3Y19.37%
OCF growth 5Y51.56%