VUSION (VU.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:VU - FR0010282822 - Common Stock
132.4 EUR
+2.4 (+1.85%)
Overall VU gets a fundamental rating of 4 out of 10. We evaluated VU against 51 industry peers in the Electronic Equipment, Instruments & Components industry. There are concerns on the financial health of VU while its profitability can be described as average. VU is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
- In the past year VU has reported negative net income.
- In the past year VU had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: VU reported negative net income in multiple years.
- VU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- VU has a Return On Assets (-0.74%) which is comparable to the rest of the industry.
- Looking at the Return On Equity, with a value of -6.16%, VU is doing worse than 62.75% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 8.77%, VU belongs to the top of the industry, outperforming 80.39% of the companies in the same industry.
- VU had an Average Return On Invested Capital over the past 3 years of 7.45%. This is in line with the industry average of 7.51%.
- The last Return On Invested Capital (8.77%) for VU is above the 3 year average (7.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.74% | ||
| ROE | -6.16% | ||
| ROIC | 8.77% |
ROA(3y)3.15%
ROA(5y)1.7%
ROE(3y)8.98%
ROE(5y)4.87%
ROIC(3y)7.45%
ROIC(5y)N/A
1.3 Margins
- VU has a Operating Margin of 3.37%. This is comparable to the rest of the industry: VU outperforms 54.90% of its industry peers.
- VU's Operating Margin has improved in the last couple of years.
- The Gross Margin of VU (28.15%) is worse than 76.47% of its industry peers.
- In the last couple of years the Gross Margin of VU has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.37% | ||
| PM (TTM) | N/A | ||
| GM | 28.15% |
OM growth 3Y25.55%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.83%
GM growth 5Y3.16%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VU is creating some value.
- The number of shares outstanding for VU has been increased compared to 1 year ago.
- VU has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for VU has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.60, we must say that VU is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 1.60, VU is not doing good in the industry: 68.63% of the companies in the same industry are doing better.
- The Debt to FCF ratio of VU is 0.37, which is an excellent value as it means it would take VU, only 0.37 years of fcf income to pay off all of its debts.
- VU has a Debt to FCF ratio of 0.37. This is amongst the best in the industry. VU outperforms 94.12% of its industry peers.
- A Debt/Equity ratio of 0.52 indicates that VU is somewhat dependend on debt financing.
- VU has a worse Debt to Equity ratio (0.52) than 64.71% of its industry peers.
- Although VU does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 0.37 | ||
| Altman-Z | 1.6 |
ROIC/WACC1.11
WACC7.92%
2.3 Liquidity
- VU has a Current Ratio of 0.87. This is a bad value and indicates that VU is not financially healthy enough and could expect problems in meeting its short term obligations.
- VU's Current ratio of 0.87 is on the low side compared to the rest of the industry. VU is outperformed by 88.24% of its industry peers.
- A Quick Ratio of 0.75 indicates that VU may have some problems paying its short term obligations.
- The Quick ratio of VU (0.75) is worse than 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 63.74% over the past year.
- The Revenue has grown by 39.72% in the past year. This is a very strong growth!
- The Revenue has been growing by 30.99% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)63.74%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%62%
Revenue 1Y (TTM)39.72%
Revenue growth 3Y31.19%
Revenue growth 5Y30.99%
Sales Q2Q%50.18%
3.2 Future
- VU is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 51.78% yearly.
- VU is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.83% yearly.
EPS Next Y101.41%
EPS Next 2Y77.55%
EPS Next 3Y59.84%
EPS Next 5Y51.78%
Revenue Next Year49.85%
Revenue Next 2Y35.68%
Revenue Next 3Y30%
Revenue Next 5Y21.83%
3.3 Evolution
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- VU reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- Based on the Price/Forward Earnings ratio of 13.17, the valuation of VU can be described as correct.
- Based on the Price/Forward Earnings ratio, VU is valued a bit cheaper than 64.71% of the companies in the same industry.
- VU is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 13.17 |
4.2 Price Multiples
- VU's Enterprise Value to EBITDA is on the same level as the industry average.
- 90.20% of the companies in the same industry are more expensive than VU, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.53 | ||
| EV/EBITDA | 13.08 |
4.3 Compensation for Growth
- VU's 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 VU's earnings are expected to grow with 59.84% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y77.55%
EPS Next 3Y59.84%
5. Dividend
5.1 Amount
- VU has a yearly dividend return of 0.45%, which is pretty low.
- The stock price of VU dropped by -45.20% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- VU's Dividend Yield is comparable with the industry average which is at 1.56.
- Compared to an average S&P500 Dividend Yield of 1.82, VU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- The earnings of VU are negative and hence is the payout ratio. VU will probably not be able to sustain this dividend level.
DP-73.71%
EPS Next 2Y77.55%
EPS Next 3Y59.84%
VUSION / VU.PA FAQ
Can you provide the ChartMill fundamental rating for VUSION?
ChartMill assigns a fundamental rating of 4 / 10 to VU.PA.
What is the valuation status for VU stock?
ChartMill assigns a valuation rating of 5 / 10 to VUSION (VU.PA). This can be considered as Fairly Valued.
What is the profitability of VU stock?
VUSION (VU.PA) has a profitability rating of 4 / 10.
How financially healthy is VUSION?
The financial health rating of VUSION (VU.PA) is 3 / 10.
Is the dividend of VUSION sustainable?
The dividend rating of VUSION (VU.PA) is 1 / 10 and the dividend payout ratio is -73.71%.