Tarkett (TKTT.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:TKTT - FR0004188670 - Common Stock
17.3 EUR
+0.3 (+1.76%)
Taking everything into account, TKTT scores 3 out of 10 in our fundamental rating. TKTT was compared to 22 industry peers in the Building Products industry. TKTT may be in some trouble as it scores bad on both profitability and health. TKTT has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- TKTT had negative earnings in the past year.
- TKTT had a positive operating cash flow in the past year.
- In multiple years TKTT reported negative net income over the last 5 years.
- Of the past 5 years TKTT 4 years had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of -3.23%, TKTT is doing worse than 95.45% of the companies in the same industry.
- With a Return On Equity value of -10.61%, TKTT is not doing good in the industry: 95.45% of the companies in the same industry are doing better.
- TKTT has a Return On Invested Capital of 7.41%. This is comparable to the rest of the industry: TKTT outperforms 45.45% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for TKTT is below the industry average of 10.48%.
- The last Return On Invested Capital (7.41%) for TKTT is above the 3 year average (5.76%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.23% | ||
| ROE | -10.61% | ||
| ROIC | 7.41% |
ROA(3y)-0.92%
ROA(5y)-0.59%
ROE(3y)-2.77%
ROE(5y)-1.8%
ROIC(3y)5.76%
ROIC(5y)5.21%
1.3 Margins
- The Operating Margin of TKTT (5.02%) is worse than 68.18% of its industry peers.
- TKTT's Operating Margin has improved in the last couple of years.
- TKTT's Gross Margin of 23.03% is on the low side compared to the rest of the industry. TKTT is outperformed by 90.91% of its industry peers.
- In the last couple of years the Gross Margin of TKTT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.02% | ||
| PM (TTM) | N/A | ||
| GM | 23.03% |
OM growth 3Y24.14%
OM growth 5Y6.05%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.04%
GM growth 5Y0.21%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TKTT is still creating some value.
- TKTT has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, TKTT has more shares outstanding
- The debt/assets ratio for TKTT is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.26 indicates that TKTT is not a great score, but indicates only limited risk for bankruptcy at the moment.
- TKTT's Altman-Z score of 2.26 is on the low side compared to the rest of the industry. TKTT is outperformed by 68.18% of its industry peers.
- TKTT has a debt to FCF ratio of 6.26. This is a slightly negative value and a sign of low solvency as TKTT would need 6.26 years to pay back of all of its debts.
- TKTT has a Debt to FCF ratio of 6.26. This is comparable to the rest of the industry: TKTT outperforms 45.45% of its industry peers.
- A Debt/Equity ratio of 0.99 indicates that TKTT is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.99, TKTT is not doing good in the industry: 77.27% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 6.26 | ||
| Altman-Z | 2.26 |
ROIC/WACC1.04
WACC7.14%
2.3 Liquidity
- TKTT has a Current Ratio of 1.41. This is a normal value and indicates that TKTT is financially healthy and should not expect problems in meeting its short term obligations.
- TKTT has a Current ratio of 1.41. This is comparable to the rest of the industry: TKTT outperforms 45.45% of its industry peers.
- TKTT has a Quick Ratio of 1.41. This is a bad value and indicates that TKTT is not financially healthy enough and could expect problems in meeting its short term obligations.
- TKTT has a Quick ratio (0.82) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
- The earnings per share for TKTT have decreased strongly by -326.27% in the last year.
- Looking at the last year, TKTT shows a small growth in Revenue. The Revenue has grown by 1.00% in the last year.
- Measured over the past years, TKTT shows a small growth in Revenue. The Revenue has been growing by 2.18% on average per year.
EPS 1Y (TTM)-326.27%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-100%
Revenue 1Y (TTM)1%
Revenue growth 3Y6.07%
Revenue growth 5Y2.18%
Sales Q2Q%0.95%
3.2 Future
- The Earnings Per Share is expected to grow by 20.60% on average over the next years. This is a very strong growth
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next Y27.27%
EPS Next 2Y20.6%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-11.05%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings Ratio is negative for TKTT. In the last year negative earnings were reported.
- A Price/Forward Earnings ratio of 10.60 indicates a reasonable valuation of TKTT.
- Based on the Price/Forward Earnings ratio, TKTT is valued cheaper than 81.82% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. TKTT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 10.6 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TKTT indicates a rather cheap valuation: TKTT is cheaper than 90.91% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of TKTT indicates a somewhat cheap valuation: TKTT is cheaper than 72.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.46 | ||
| EV/EBITDA | 4.11 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as TKTT's earnings are expected to grow with 20.60% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y20.6%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- TKTT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Tarkett / TKTT.PA FAQ
What is the fundamental rating for TKTT stock?
ChartMill assigns a fundamental rating of 3 / 10 to TKTT.PA.
What is the valuation status of Tarkett (TKTT.PA) stock?
ChartMill assigns a valuation rating of 6 / 10 to Tarkett (TKTT.PA). This can be considered as Fairly Valued.
Can you provide the profitability details for Tarkett?
Tarkett (TKTT.PA) has a profitability rating of 3 / 10.
Is the dividend of Tarkett sustainable?
The dividend rating of Tarkett (TKTT.PA) is 0 / 10 and the dividend payout ratio is 0%.