CS Group (SX.PA) Stock Fundamental Analysis

Europe • Euronext Paris • EPA:SX • FR0007317813

11.5 EUR
-0.05 (-0.43%)
Last: Apr 28, 2023, 07:00 PM
Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to SX. SX was compared to 70 industry peers in the IT Services industry. Both the profitability and financial health of SX have multiple concerns. SX is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

1

1. Profitability

1.1 Basic Checks

  • SX had positive earnings in the past year.
  • SX had a positive operating cash flow in the past year.
SX.PA Yearly Net Income VS EBIT VS OCF VS FCFSX.PA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 0 10M -10M 20M -20M

1.2 Ratios

  • SX has a Return On Assets of 0.29%. This is in the lower half of the industry: SX underperforms 70.00% of its industry peers.
  • SX has a worse Return On Equity (1.87%) than 67.14% of its industry peers.
  • SX has a worse Return On Invested Capital (5.52%) than 61.43% of its industry peers.
Industry RankSector Rank
ROA 0.29%
ROE 1.87%
ROIC 5.52%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
SX.PA Yearly ROA, ROE, ROICSX.PA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 0 5 -5 10 -10

1.3 Margins

  • SX's Profit Margin of 0.45% is on the low side compared to the rest of the industry. SX is outperformed by 71.43% of its industry peers.
  • SX has a worse Operating Margin (4.86%) than 60.00% of its industry peers.
  • SX's Operating Margin has declined in the last couple of years.
  • SX has a Gross Margin of 65.47%. This is comparable to the rest of the industry: SX outperforms 52.86% of its industry peers.
  • In the last couple of years the Gross Margin of SX has remained more or less at the same level.
Industry RankSector Rank
OM 4.86%
PM (TTM) 0.45%
GM 65.47%
OM growth 3Y-27.8%
OM growth 5Y-4.31%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.21%
GM growth 5Y0.28%
SX.PA Yearly Profit, Operating, Gross MarginsSX.PA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 0 20 40 60

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2

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SX is destroying value.
  • Compared to 1 year ago, SX has about the same amount of shares outstanding.
  • The debt/assets ratio for SX has been reduced compared to a year ago.
SX.PA Yearly Shares OutstandingSX.PA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 5M 10M 15M 20M
SX.PA Yearly Total Debt VS Total AssetsSX.PA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 100M 200M 300M

2.2 Solvency

  • Based on the Altman-Z score of 1.15, we must say that SX is in the distress zone and has some risk of bankruptcy.
  • SX's Altman-Z score of 1.15 is on the low side compared to the rest of the industry. SX is outperformed by 78.57% of its industry peers.
  • SX has a debt to FCF ratio of 72.35. This is a negative value and a sign of low solvency as SX would need 72.35 years to pay back of all of its debts.
  • SX has a Debt to FCF ratio of 72.35. This is in the lower half of the industry: SX underperforms 64.29% of its industry peers.
  • SX has a Debt/Equity ratio of 1.26. This is a high value indicating a heavy dependency on external financing.
  • The Debt to Equity ratio of SX (1.26) is worse than 81.43% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.26
Debt/FCF 72.35
Altman-Z 1.15
ROIC/WACC0.65
WACC8.47%
SX.PA Yearly LT Debt VS Equity VS FCFSX.PA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 0 20M -20M 40M 60M 80M

2.3 Liquidity

  • A Current Ratio of 1.03 indicates that SX should not have too much problems paying its short term obligations.
  • SX has a worse Current ratio (1.03) than 68.57% of its industry peers.
  • SX has a Quick Ratio of 1.01. This is a normal value and indicates that SX is financially healthy and should not expect problems in meeting its short term obligations.
  • SX has a worse Quick ratio (1.01) than 65.71% of its industry peers.
Industry RankSector Rank
Current Ratio 1.03
Quick Ratio 1.01
SX.PA Yearly Current Assets VS Current LiabilitesSX.PA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 50M 100M 150M 200M

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6

3. Growth

3.1 Past

  • SX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 129.61%, which is quite impressive.
  • SX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.45%.
  • Measured over the past years, SX shows a small growth in Revenue. The Revenue has been growing by 6.11% on average per year.
EPS 1Y (TTM)129.61%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%54.97%
Revenue 1Y (TTM)14.45%
Revenue growth 3Y5.63%
Revenue growth 5Y6.11%
Sales Q2Q%13.97%

3.2 Future

  • The Earnings Per Share is expected to grow by 197.44% on average over the next years. This is a very strong growth
  • The Revenue is expected to grow by 17.81% on average over the next years. This is quite good.
EPS Next Y292.98%
EPS Next 2Y331.85%
EPS Next 3Y197.44%
EPS Next 5YN/A
Revenue Next Year20.77%
Revenue Next 2Y21.04%
Revenue Next 3Y17.81%
Revenue Next 5YN/A

3.3 Evolution

  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
SX.PA Yearly Revenue VS EstimatesSX.PA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
SX.PA Yearly EPS VS EstimatesSX.PA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 0.2 -0.2 0.4 0.6

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2

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 230.00 indicates a quite expensive valuation of SX.
  • Based on the Price/Earnings ratio, SX is valued a bit more expensive than 71.43% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 28.30. SX is valued rather expensively when compared to this.
  • The Price/Forward Earnings ratio is 21.01, which indicates a rather expensive current valuation of SX.
  • Based on the Price/Forward Earnings ratio, SX is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
  • SX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.57.
Industry RankSector Rank
PE 230
Fwd PE 21.01
SX.PA Price Earnings VS Forward Price EarningsSX.PA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150 200

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, SX is valued a bit more expensive than 62.86% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, SX is valued a bit more expensive than 61.43% of the companies in the same industry.
Industry RankSector Rank
P/FCF 138.83
EV/EBITDA 13.3
SX.PA Per share dataSX.PA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

4.3 Compensation for Growth

  • SX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • SX's earnings are expected to grow with 197.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.79
PEG (5Y)N/A
EPS Next 2Y331.85%
EPS Next 3Y197.44%

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1

5. Dividend

5.1 Amount

  • With a yearly dividend of 0.35%, SX is not a good candidate for dividend investing.
  • SX's Dividend Yield is comparable with the industry average which is at 2.27.
  • Compared to an average S&P500 Dividend Yield of 1.82, SX's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.35%

5.2 History

  • The dividend of SX decreases each year by -30.50%.
Dividend Growth(5Y)-30.5%
Div Incr Years0
Div Non Decr Years0
SX.PA Yearly Dividends per shareSX.PA Yearly Dividends per shareYearly Dividends per share 2019 2022 0 0 0 0 0

5.3 Sustainability

DP0%
EPS Next 2Y331.85%
EPS Next 3Y197.44%
SX.PA Yearly Income VS Free CF VS DividendSX.PA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 0 10M -10M 20M -20M

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CS Group / SX.PA FAQ

What is the fundamental rating for SX stock?

ChartMill assigns a fundamental rating of 3 / 10 to SX.PA.


Can you provide the valuation status for CS Group?

ChartMill assigns a valuation rating of 3 / 10 to CS Group (SX.PA). This can be considered as Overvalued.


Can you provide the profitability details for CS Group?

CS Group (SX.PA) has a profitability rating of 2 / 10.


What is the financial health of CS Group (SX.PA) stock?

The financial health rating of CS Group (SX.PA) is 2 / 10.


Is the dividend of CS Group sustainable?

The dividend rating of CS Group (SX.PA) is 1 / 10 and the dividend payout ratio is 0%.