TESSENDERLO GROUP (TESB.BR) Stock Fundamental Analysis
EBR:TESB - Euronext Brussels - BE0003555639 - Common Stock - Currency: EUR
Taking everything into account, TESB scores 5 out of 10 in our fundamental rating. TESB was compared to 60 industry peers in the Chemicals industry. While TESB has a great health rating, its profitability is only average at the moment. TESB has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year TESB was profitable.
TESB had a positive operating cash flow in the past year.
In the past 5 years TESB has always been profitable.
TESB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TESB has a Return On Assets of 3.08%. This is in the better half of the industry: TESB outperforms 66.67% of its industry peers.
Looking at the Return On Equity, with a value of 4.63%, TESB is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
TESB's Return On Invested Capital of 2.40% is in line compared to the rest of the industry. TESB outperforms 56.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TESB is above the industry average of 6.56%.
The 3 year average ROIC (10.62%) for TESB is well above the current ROIC(2.40%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.08% | ||
| ROE | 4.63% | ||
| ROIC | 2.4% |
ROA(3y)7.38%
ROA(5y)6.44%
ROE(3y)12.83%
ROE(5y)12.23%
ROIC(3y)10.62%
ROIC(5y)9.86%
1.3 Margins
Looking at the Profit Margin, with a value of 3.33%, TESB is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
TESB's Profit Margin has declined in the last couple of years.
The Operating Margin of TESB (2.40%) is comparable to the rest of the industry.
TESB's Operating Margin has declined in the last couple of years.
TESB has a worse Gross Margin (18.76%) than 65.00% of its industry peers.
In the last couple of years the Gross Margin of TESB has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.4% | ||
| PM (TTM) | 3.33% | ||
| GM | 18.76% |
OM growth 3Y-27.56%
OM growth 5Y-7.93%
PM growth 3Y-13.13%
PM growth 5Y-7.95%
GM growth 3Y-11.73%
GM growth 5Y-4.32%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TESB is creating some value.
The number of shares outstanding for TESB has been increased compared to 1 year ago.
TESB has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TESB has an improved debt to assets ratio.
2.2 Solvency
TESB has an Altman-Z score of 2.54. This is not the best score and indicates that TESB is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.54, TESB is in the better half of the industry, outperforming 68.33% of the companies in the same industry.
TESB has a debt to FCF ratio of 1.69. This is a very positive value and a sign of high solvency as it would only need 1.69 years to pay back of all of its debts.
TESB has a better Debt to FCF ratio (1.69) than 95.00% of its industry peers.
TESB has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.08, TESB belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.69 | ||
| Altman-Z | 2.54 |
ROIC/WACC0.33
WACC7.23%
2.3 Liquidity
A Current Ratio of 2.40 indicates that TESB has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.40, TESB is doing good in the industry, outperforming 70.00% of the companies in the same industry.
A Quick Ratio of 1.33 indicates that TESB should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.33, TESB is doing good in the industry, outperforming 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.4 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
TESB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -47.43%.
Measured over the past years, TESB shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.96% on average per year.
TESB shows a decrease in Revenue. In the last year, the revenue decreased by -6.38%.
Measured over the past years, TESB shows a quite strong growth in Revenue. The Revenue has been growing by 12.56% on average per year.
EPS 1Y (TTM)-47.43%
EPS 3Y-8.92%
EPS 5Y-3.96%
EPS Q2Q%-23.17%
Revenue 1Y (TTM)-6.38%
Revenue growth 3Y19.01%
Revenue growth 5Y12.56%
Sales Q2Q%-14.6%
3.2 Future
TESB is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -13.33% yearly.
TESB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.26% yearly.
EPS Next Y-59.86%
EPS Next 2Y-26.76%
EPS Next 3Y-13.33%
EPS Next 5YN/A
Revenue Next Year-12.04%
Revenue Next 2Y-4.5%
Revenue Next 3Y-1.84%
Revenue Next 5Y0.26%
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
TESB is valuated rather expensively with a Price/Earnings ratio of 17.92.
Based on the Price/Earnings ratio, TESB is valued a bit cheaper than 73.33% of the companies in the same industry.
TESB is valuated rather cheaply when we compare the Price/Earnings ratio to 28.89, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.90, which indicates a correct valuation of TESB.
Based on the Price/Forward Earnings ratio, TESB is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.98. TESB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.92 | ||
| Fwd PE | 16.9 |
4.2 Price Multiples
TESB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TESB is cheaper than 71.67% of the companies in the same industry.
TESB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TESB is cheaper than 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.34 | ||
| EV/EBITDA | 8.31 |
4.3 Compensation for Growth
TESB's earnings are expected to decrease with -13.33% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-26.76%
EPS Next 3Y-13.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.34%, TESB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.99, TESB has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, TESB has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
5.2 History
The dividend of TESB has a limited annual growth rate of 2.41%.
Dividend Growth(5Y)2.41%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
TESB pays out 60.34% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of TESB has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP60.34%
EPS Next 2Y-26.76%
EPS Next 3Y-13.33%
EBR:TESB (3/27/2025, 11:20:50 AM)
25.8
+0.55 (+2.18%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners4.44%
Inst Owner ChangeN/A
Ins Owners47.46%
Ins Owner ChangeN/A
Market Cap2.21B
Analysts78
Price Target27.54 (6.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
Yearly Dividend0.76
Dividend Growth(5Y)2.41%
DP60.34%
Div Incr Years0
Div Non Decr Years1
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)0%
PT rev (3m)-6.9%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-14.83%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.94%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.92 | ||
| Fwd PE | 16.9 | ||
| P/S | 0.82 | ||
| P/FCF | 17.34 | ||
| P/OCF | 7.77 | ||
| P/B | 1.14 | ||
| P/tB | 1.34 | ||
| EV/EBITDA | 8.31 |
EPS(TTM)1.44
EY5.58%
EPS(NY)1.53
Fwd EY5.92%
FCF(TTM)1.49
FCFY5.77%
OCF(TTM)3.32
OCFY12.87%
SpS31.48
BVpS22.62
TBVpS19.2
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.08% | ||
| ROE | 4.63% | ||
| ROCE | 2.71% | ||
| ROIC | 2.4% | ||
| ROICexc | 2.59% | ||
| ROICexgc | 2.99% | ||
| OM | 2.4% | ||
| PM (TTM) | 3.33% | ||
| GM | 18.76% | ||
| FCFM | 4.73% |
ROA(3y)7.38%
ROA(5y)6.44%
ROE(3y)12.83%
ROE(5y)12.23%
ROIC(3y)10.62%
ROIC(5y)9.86%
ROICexc(3y)12.26%
ROICexc(5y)11.37%
ROICexgc(3y)13.65%
ROICexgc(5y)12.8%
ROCE(3y)12.02%
ROCE(5y)11.23%
ROICexcg growth 3Y-26.31%
ROICexcg growth 5Y-7.02%
ROICexc growth 3Y-26.84%
ROICexc growth 5Y-6.46%
OM growth 3Y-27.56%
OM growth 5Y-7.93%
PM growth 3Y-13.13%
PM growth 5Y-7.95%
GM growth 3Y-11.73%
GM growth 5Y-4.32%
F-Score6
Asset Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.69 | ||
| Debt/EBITDA | 0.58 | ||
| Cap/Depr | 78.46% | ||
| Cap/Sales | 5.82% | ||
| Interest Coverage | 6.6 | ||
| Cash Conversion | 107.38% | ||
| Profit Quality | 142.12% | ||
| Current Ratio | 2.4 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 2.54 |
F-Score6
WACC7.23%
ROIC/WACC0.33
Cap/Depr(3y)82.53%
Cap/Depr(5y)80.58%
Cap/Sales(3y)5.03%
Cap/Sales(5y)5.37%
Profit Quality(3y)52.08%
Profit Quality(5y)92.02%
High Growth Momentum
Growth
EPS 1Y (TTM)-47.43%
EPS 3Y-8.92%
EPS 5Y-3.96%
EPS Q2Q%-23.17%
EPS Next Y-59.86%
EPS Next 2Y-26.76%
EPS Next 3Y-13.33%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.38%
Revenue growth 3Y19.01%
Revenue growth 5Y12.56%
Sales Q2Q%-14.6%
Revenue Next Year-12.04%
Revenue Next 2Y-4.5%
Revenue Next 3Y-1.84%
Revenue Next 5Y0.26%
EBIT growth 1Y-71.18%
EBIT growth 3Y-13.79%
EBIT growth 5Y3.64%
EBIT Next Year51.42%
EBIT Next 3Y24.97%
EBIT Next 5Y18.68%
FCF growth 1Y64.55%
FCF growth 3Y-39.31%
FCF growth 5Y10.87%
OCF growth 1Y48.2%
OCF growth 3Y-8.09%
OCF growth 5Y15.29%