TECHNIP ENERGIES NV (TE.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:TE - NL0014559478 - Common Stock
32.32 EUR
-0.2 (-0.62%)
Overall TE gets a fundamental rating of 5 out of 10. We evaluated TE against 36 industry peers in the Energy Equipment & Services industry. Both the profitability and the financial health of TE get a neutral evaluation. Nothing too spectacular is happening here. TE is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- TE had positive earnings in the past year.
- In the past year TE had a positive cash flow from operations.
- In the past 5 years TE has always been profitable.
- In the past 5 years TE always reported a positive cash flow from operatings.
1.2 Ratios
- TE has a better Return On Assets (6.31%) than 66.67% of its industry peers.
- TE has a Return On Equity of 26.03%. This is amongst the best in the industry. TE outperforms 83.33% of its industry peers.
- With an excellent Return On Invested Capital value of 14.65%, TE belongs to the best of the industry, outperforming 86.11% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for TE is in line with the industry average of 10.31%.
- The last Return On Invested Capital (14.65%) for TE is above the 3 year average (11.30%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.31% | ||
| ROE | 26.03% | ||
| ROIC | 14.65% |
ROA(3y)3.7%
ROA(5y)3.33%
ROE(3y)17.35%
ROE(5y)16.01%
ROIC(3y)11.3%
ROIC(5y)13.66%
1.3 Margins
- The Profit Margin of TE (5.38%) is comparable to the rest of the industry.
- TE's Profit Margin has improved in the last couple of years.
- With a Operating Margin value of 6.51%, TE is not doing good in the industry: 63.89% of the companies in the same industry are doing better.
- In the last couple of years the Operating Margin of TE has declined.
- TE has a worse Gross Margin (12.96%) than 63.89% of its industry peers.
- In the last couple of years the Gross Margin of TE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.51% | ||
| PM (TTM) | 5.38% | ||
| GM | 12.96% |
OM growth 3Y-9.17%
OM growth 5Y-12.34%
PM growth 3Y15.22%
PM growth 5Y18.05%
GM growth 3Y-1.23%
GM growth 5Y-8.82%
2. Health
2.1 Basic Checks
- TE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- TE has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for TE has been reduced compared to 5 years ago.
- TE has a better debt/assets ratio than last year.
2.2 Solvency
- The Debt to FCF ratio of TE is 1.06, which is an excellent value as it means it would take TE, only 1.06 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 1.06, TE belongs to the best of the industry, outperforming 86.11% of the companies in the same industry.
- TE has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
- TE has a Debt to Equity ratio (0.37) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.06 | ||
| Altman-Z | N/A |
ROIC/WACC1.94
WACC7.54%
2.3 Liquidity
- A Current Ratio of 1.05 indicates that TE should not have too much problems paying its short term obligations.
- TE has a Current ratio of 1.05. This is in the lower half of the industry: TE underperforms 77.78% of its industry peers.
- TE has a Quick Ratio of 1.05. This is a normal value and indicates that TE is financially healthy and should not expect problems in meeting its short term obligations.
- TE has a Quick ratio of 1.05. This is in the lower half of the industry: TE underperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 7.88% over the past year.
- The Earnings Per Share has been growing by 21.62% on average over the past years. This is a very strong growth
- TE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.06%.
- TE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.10% yearly.
EPS 1Y (TTM)7.88%
EPS 3Y18.44%
EPS 5Y21.62%
EPS Q2Q%0%
Revenue 1Y (TTM)15.06%
Revenue growth 3Y1.46%
Revenue growth 5Y3.1%
Sales Q2Q%-1.98%
3.2 Future
- Based on estimates for the next years, TE will show a small growth in Earnings Per Share. The EPS will grow by 7.70% on average per year.
- Based on estimates for the next years, TE will show a small growth in Revenue. The Revenue will grow by 6.41% on average per year.
EPS Next Y13.37%
EPS Next 2Y16.84%
EPS Next 3Y14.86%
EPS Next 5Y7.7%
Revenue Next Year8.51%
Revenue Next 2Y12.93%
Revenue Next 3Y10.55%
Revenue Next 5Y6.41%
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.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 14.76, TE is valued correctly.
- Compared to the rest of the industry, the Price/Earnings ratio of TE is on the same level as its industry peers.
- TE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- A Price/Forward Earnings ratio of 10.96 indicates a reasonable valuation of TE.
- 61.11% of the companies in the same industry are more expensive than TE, based on the Price/Forward Earnings ratio.
- TE is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.76 | ||
| Fwd PE | 10.96 |
4.2 Price Multiples
- TE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TE is cheaper than 75.00% of the companies in the same industry.
- 75.00% of the companies in the same industry are more expensive than TE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.18 | ||
| EV/EBITDA | 3.67 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- TE has a very decent profitability rating, which may justify a higher PE ratio.
- TE's earnings are expected to grow with 14.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.1
PEG (5Y)0.68
EPS Next 2Y16.84%
EPS Next 3Y14.86%
5. Dividend
5.1 Amount
- TE has a Yearly Dividend Yield of 2.65%.
- Compared to an average industry Dividend Yield of 3.63, TE has a dividend in line with its industry peers.
- TE's Dividend Yield is a higher than the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- TE pays out 27.87% of its income as dividend. This is a sustainable payout ratio.
DP27.87%
EPS Next 2Y16.84%
EPS Next 3Y14.86%
TECHNIP ENERGIES NV / TE.PA FAQ
Can you provide the ChartMill fundamental rating for TECHNIP ENERGIES NV?
ChartMill assigns a fundamental rating of 6 / 10 to TE.PA.
What is the valuation status for TE stock?
ChartMill assigns a valuation rating of 6 / 10 to TECHNIP ENERGIES NV (TE.PA). This can be considered as Fairly Valued.
How profitable is TECHNIP ENERGIES NV (TE.PA) stock?
TECHNIP ENERGIES NV (TE.PA) has a profitability rating of 6 / 10.
What is the valuation of TECHNIP ENERGIES NV based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TECHNIP ENERGIES NV (TE.PA) is 14.76 and the Price/Book (PB) ratio is 2.56.
How financially healthy is TECHNIP ENERGIES NV?
The financial health rating of TECHNIP ENERGIES NV (TE.PA) is 6 / 10.