SEB SA (SK.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:SK - FR0000121709 - Common Stock
46.6 EUR
+0.1 (+0.22%)
Overall SK gets a fundamental rating of 4 out of 10. We evaluated SK against 32 industry peers in the Household Durables industry. SK has a medium profitability rating, but doesn't score so well on its financial health evaluation. SK is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- SK had positive earnings in the past year.
- In the past year SK had a positive cash flow from operations.
- SK had positive earnings in each of the past 5 years.
- SK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 1.46%, SK perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 4.53%, SK is in line with its industry, outperforming 53.13% of the companies in the same industry.
- With a Return On Invested Capital value of 4.76%, SK perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
- SK had an Average Return On Invested Capital over the past 3 years of 6.79%. This is below the industry average of 9.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.46% | ||
| ROE | 4.53% | ||
| ROIC | 4.76% |
ROA(3y)3.38%
ROA(5y)3.57%
ROE(3y)9.71%
ROE(5y)11.3%
ROIC(3y)6.79%
ROIC(5y)6.79%
1.3 Margins
- SK has a Profit Margin of 1.61%. This is comparable to the rest of the industry: SK outperforms 46.88% of its industry peers.
- SK's Profit Margin has declined in the last couple of years.
- The Operating Margin of SK (5.48%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of SK has declined.
- Looking at the Gross Margin, with a value of 40.54%, SK is in line with its industry, outperforming 50.00% of the companies in the same industry.
- SK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.48% | ||
| PM (TTM) | 1.61% | ||
| GM | 40.54% |
OM growth 3Y-9.35%
OM growth 5Y-5.03%
PM growth 3Y-20.71%
PM growth 5Y-11.48%
GM growth 3Y1.77%
GM growth 5Y1.07%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SK is creating some value.
- SK has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for SK has been reduced compared to 5 years ago.
- The debt/assets ratio for SK has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 1.87 indicates that SK is not a great score, but indicates only limited risk for bankruptcy at the moment.
- SK's Altman-Z score of 1.87 is in line compared to the rest of the industry. SK outperforms 46.88% of its industry peers.
- The Debt to FCF ratio of SK is 21.62, which is on the high side as it means it would take SK, 21.62 years of fcf income to pay off all of its debts.
- SK has a Debt to FCF ratio of 21.62. This is comparable to the rest of the industry: SK outperforms 50.00% of its industry peers.
- SK has a Debt/Equity ratio of 1.01. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of SK (1.01) is worse than 78.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 21.62 | ||
| Altman-Z | 1.87 |
ROIC/WACC0.95
WACC4.99%
2.3 Liquidity
- A Current Ratio of 1.22 indicates that SK should not have too much problems paying its short term obligations.
- The Current ratio of SK (1.22) is worse than 62.50% of its industry peers.
- A Quick Ratio of 0.61 indicates that SK may have some problems paying its short term obligations.
- The Quick ratio of SK (0.61) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
- SK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -67.44%.
- Measured over the past years, SK shows a decrease in Earnings Per Share. The EPS has been decreasing by -9.30% on average per year.
- Looking at the last year, SK shows a small growth in Revenue. The Revenue has grown by 1.71% in the last year.
- The Revenue has been growing slightly by 2.37% on average over the past years.
EPS 1Y (TTM)-67.44%
EPS 3Y-20.32%
EPS 5Y-9.3%
EPS Q2Q%-99.45%
Revenue 1Y (TTM)1.71%
Revenue growth 3Y0.85%
Revenue growth 5Y2.37%
Sales Q2Q%0.2%
3.2 Future
- Based on estimates for the next years, SK will show a small growth in Earnings Per Share. The EPS will grow by 3.25% on average per year.
- Based on estimates for the next years, SK will show a small growth in Revenue. The Revenue will grow by 3.71% on average per year.
EPS Next Y-43.42%
EPS Next 2Y-13.86%
EPS Next 3Y-4.18%
EPS Next 5Y3.25%
Revenue Next Year-1.41%
Revenue Next 2Y1.06%
Revenue Next 3Y2.15%
Revenue Next 5Y3.71%
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 accelerating.
- 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
- A Price/Earnings ratio of 19.34 indicates a rather expensive valuation of SK.
- Based on the Price/Earnings ratio, SK is valued a bit cheaper than 62.50% of the companies in the same industry.
- SK is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 7.37 indicates a rather cheap valuation of SK.
- Based on the Price/Forward Earnings ratio, SK is valued a bit cheaper than 78.13% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of SK to the average of the S&P500 Index (24.32), we can say SK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.34 | ||
| Fwd PE | 7.37 |
4.2 Price Multiples
- 68.75% of the companies in the same industry are more expensive than SK, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of SK indicates a somewhat cheap valuation: SK is cheaper than 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.62 | ||
| EV/EBITDA | 5.96 |
4.3 Compensation for Growth
- SK's earnings are expected to decrease with -4.18% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-13.86%
EPS Next 3Y-4.18%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.65%, SK is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.84, SK pays a bit more dividend than its industry peers.
- SK's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.65% |
5.2 History
- The dividend of SK is nicely growing with an annual growth rate of 7.10%!
Dividend Growth(5Y)7.1%
Div Incr Years2
Div Non Decr Years4
5.3 Sustainability
- SK pays out 155.72% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of SK is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP155.72%
EPS Next 2Y-13.86%
EPS Next 3Y-4.18%
SEB SA / SK.PA FAQ
What is the fundamental rating for SK stock?
ChartMill assigns a fundamental rating of 4 / 10 to SK.PA.
Can you provide the valuation status for SEB SA?
ChartMill assigns a valuation rating of 5 / 10 to SEB SA (SK.PA). This can be considered as Fairly Valued.
Can you provide the profitability details for SEB SA?
SEB SA (SK.PA) has a profitability rating of 4 / 10.
What is the valuation of SEB SA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SEB SA (SK.PA) is 19.34 and the Price/Book (PB) ratio is 0.88.
What is the earnings growth outlook for SEB SA?
The Earnings per Share (EPS) of SEB SA (SK.PA) is expected to decline by -43.42% in the next year.