Somfy SA (SO.PA) Stock Fundamental Analysis
Europe • Euronext Paris • EPA:SO • FR0013199916
143 EUR
0 (0%)
Last: Jan 12, 2023, 07:00 PM
Taking everything into account, SO scores 7 out of 10 in our fundamental rating. SO was compared to 67 industry peers in the Electrical Equipment industry. Both the health and profitability get an excellent rating, making SO a very profitable company, without any liquidiy or solvency issues. SO has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- SO had positive earnings in the past year.
- In the past year SO had a positive cash flow from operations.
1.2 Ratios
- Looking at the Return On Assets, with a value of 12.21%, SO belongs to the top of the industry, outperforming 94.23% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 16.11%, SO is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
- SO has a Return On Invested Capital of 14.24%. This is amongst the best in the industry. SO outperforms 96.15% of its industry peers.
- SO had an Average Return On Invested Capital over the past 3 years of 36.17%. This is significantly above the industry average of 9.49%.
- The last Return On Invested Capital (14.24%) for SO is well below the 3 year average (36.17%), which needs to be investigated, but indicates that SO had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.21% | ||
| ROE | 16.11% | ||
| ROIC | 14.24% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)36.17%
ROIC(5y)N/A
1.3 Margins
- With an excellent Profit Margin value of 15.55%, SO belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
- SO's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 18.65%, SO belongs to the best of the industry, outperforming 96.15% of the companies in the same industry.
- SO's Operating Margin has improved in the last couple of years.
- SO has a Gross Margin of 49.34%. This is in the better half of the industry: SO outperforms 73.08% of its industry peers.
- SO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.65% | ||
| PM (TTM) | 15.55% | ||
| GM | 49.34% |
OM growth 3Y9.92%
OM growth 5Y5.39%
PM growth 3Y11.89%
PM growth 5Y6.97%
GM growth 3Y1.96%
GM growth 5Y1.63%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SO is creating value.
- The number of shares outstanding for SO remains at a similar level compared to 1 year ago.
- SO has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 9.17 indicates that SO is not in any danger for bankruptcy at the moment.
- SO has a better Altman-Z score (9.17) than 92.31% of its industry peers.
- SO has a debt to FCF ratio of 0.58. This is a very positive value and a sign of high solvency as it would only need 0.58 years to pay back of all of its debts.
- The Debt to FCF ratio of SO (0.58) is better than 100.00% of its industry peers.
- SO has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
- SO's Debt to Equity ratio of 0.05 is amongst the best of the industry. SO outperforms 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | 9.17 |
ROIC/WACC1.63
WACC8.75%
2.3 Liquidity
- SO has a Current Ratio of 3.58. This indicates that SO is financially healthy and has no problem in meeting its short term obligations.
- With an excellent Current ratio value of 3.58, SO belongs to the best of the industry, outperforming 86.54% of the companies in the same industry.
- A Quick Ratio of 2.83 indicates that SO has no problem at all paying its short term obligations.
- With an excellent Quick ratio value of 2.83, SO belongs to the best of the industry, outperforming 88.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.58 | ||
| Quick Ratio | 2.83 |
3. Growth
3.1 Past
- SO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.98%.
- Measured over the past years, SO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.73% on average per year.
- Looking at the last year, SO shows a small growth in Revenue. The Revenue has grown by 1.73% in the last year.
- SO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.48% yearly.
EPS 1Y (TTM)-24.98%
EPS 3Y22.33%
EPS 5Y12.73%
EPS Q2Q%-11.98%
Revenue 1Y (TTM)1.73%
Revenue growth 3Y9.46%
Revenue growth 5Y5.48%
Sales Q2Q%5.12%
3.2 Future
- The Earnings Per Share is expected to grow by 0.28% on average over the next years.
- Based on estimates for the next years, SO will show a small growth in Revenue. The Revenue will grow by 1.44% on average per year.
EPS Next Y-9.09%
EPS Next 2Y-4.79%
EPS Next 3Y-0.88%
EPS Next 5Y0.28%
Revenue Next Year4.07%
Revenue Next 2Y2.08%
Revenue Next 3Y2.94%
Revenue Next 5Y1.44%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- SO is valuated rather expensively with a Price/Earnings ratio of 20.88.
- Based on the Price/Earnings ratio, SO is valued a bit cheaper than 75.00% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, SO is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 20.53, SO is valued on the expensive side.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SO indicates a somewhat cheap valuation: SO is cheaper than 65.38% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of SO to the average of the S&P500 Index (25.57), we can say SO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.88 | ||
| Fwd PE | 20.53 |
4.2 Price Multiples
- SO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SO is cheaper than 71.15% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, SO is valued cheaply inside the industry as 90.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.63 | ||
| EV/EBITDA | 12.59 |
4.3 Compensation for Growth
- SO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.64
EPS Next 2Y-4.79%
EPS Next 3Y-0.88%
5. Dividend
5.1 Amount
- SO has a Yearly Dividend Yield of 1.50%. Purely for dividend investing, there may be better candidates out there.
- SO's Dividend Yield is a higher than the industry average which is at 0.79.
- SO's Dividend Yield is comparable with the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
5.2 History
- The dividend of SO is nicely growing with an annual growth rate of 15.37%!
Dividend Growth(5Y)15.37%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 31.77% of the earnings are spent on dividend by SO. This is a low number and sustainable payout ratio.
- SO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31.77%
EPS Next 2Y-4.79%
EPS Next 3Y-0.88%
Somfy SA / SO.PA FAQ
What is the fundamental rating for SO stock?
ChartMill assigns a fundamental rating of 5 / 10 to SO.PA.
What is the valuation status of Somfy SA (SO.PA) stock?
ChartMill assigns a valuation rating of 1 / 10 to Somfy SA (SO.PA). This can be considered as Overvalued.
How profitable is Somfy SA (SO.PA) stock?
Somfy SA (SO.PA) has a profitability rating of 6 / 10.
Can you provide the financial health for SO stock?
The financial health rating of Somfy SA (SO.PA) is 8 / 10.
Can you provide the dividend sustainability for SO stock?
The dividend rating of Somfy SA (SO.PA) is 4 / 10 and the dividend payout ratio is 31.77%.