WORLDLINE SA (WLN.PA)

FR0011981968 - Common Stock

11.78  -0.41 (-3.36%)

Fundamental Rating

4

Overall WLN gets a fundamental rating of 4 out of 10. We evaluated WLN against 50 industry peers in the Financial Services industry. Both the profitability and financial health of WLN have multiple concerns. WLN may be a bit undervalued, certainly considering the very reasonable score on growth



3

1. Profitability

1.1 Basic Checks

In the past year WLN was profitable.
In the past year WLN had a positive cash flow from operations.
In multiple years WLN reported negative net income over the last 5 years.
Each year in the past 5 years WLN had a positive operating cash flow.

1.2 Ratios

With a Return On Assets value of -3.76%, WLN is not doing good in the industry: 88.37% of the companies in the same industry are doing better.
WLN has a worse Return On Equity (-9.53%) than 86.05% of its industry peers.
With a Return On Invested Capital value of 2.65%, WLN is not doing good in the industry: 62.79% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for WLN is significantly below the industry average of 9.59%.
The 3 year average ROIC (2.44%) for WLN is below the current ROIC(2.65%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA -3.76%
ROE -9.53%
ROIC 2.65%
ROA(3y)-2.05%
ROA(5y)-0.16%
ROE(3y)-4.88%
ROE(5y)-0.65%
ROIC(3y)2.44%
ROIC(5y)2.81%

1.3 Margins

WLN has a Operating Margin of 10.55%. This is in the lower half of the industry: WLN underperforms 62.79% of its industry peers.
In the last couple of years the Operating Margin of WLN has declined.
WLN has a better Gross Margin (88.46%) than 88.37% of its industry peers.
WLN's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 10.55%
PM (TTM) N/A
GM 88.46%
OM growth 3Y-6.92%
OM growth 5Y-6.73%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.27%
GM growth 5Y-2.17%

3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WLN is destroying value.
The number of shares outstanding for WLN has been increased compared to 1 year ago.
The number of shares outstanding for WLN has been increased compared to 5 years ago.
Compared to 1 year ago, WLN has an improved debt to assets ratio.

2.2 Solvency

WLN has an Altman-Z score of 0.48. This is a bad value and indicates that WLN is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.48, WLN is not doing good in the industry: 72.09% of the companies in the same industry are doing better.
The Debt to FCF ratio of WLN is 8.83, which is on the high side as it means it would take WLN, 8.83 years of fcf income to pay off all of its debts.
WLN has a Debt to FCF ratio of 8.83. This is comparable to the rest of the industry: WLN outperforms 48.84% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that WLN is not too dependend on debt financing.
The Debt to Equity ratio of WLN (0.37) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.37
Debt/FCF 8.83
Altman-Z 0.48
ROIC/WACC0.54
WACC4.86%

2.3 Liquidity

A Current Ratio of 1.05 indicates that WLN should not have too much problems paying its short term obligations.
WLN has a worse Current ratio (1.05) than 72.09% of its industry peers.
A Quick Ratio of 1.04 indicates that WLN should not have too much problems paying its short term obligations.
WLN has a worse Quick ratio (1.04) than 65.12% of its industry peers.
Industry RankSector Rank
Current Ratio 1.05
Quick Ratio 1.04

4

3. Growth

3.1 Past

WLN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.60%.
The Earnings Per Share has been growing by 10.56% on average over the past years. This is quite good.
Looking at the last year, WLN shows a small growth in Revenue. The Revenue has grown by 5.64% in the last year.
Measured over the past years, WLN shows a very strong growth in Revenue. The Revenue has been growing by 21.80% on average per year.
EPS 1Y (TTM)-1.6%
EPS 3YN/A
EPS 5Y10.56%
EPS Q2Q%10.99%
Revenue 1Y (TTM)5.64%
Revenue growth 3Y23.25%
Revenue growth 5Y21.8%
Sales Q2Q%1.01%

3.2 Future

The Earnings Per Share is expected to grow by 3.38% on average over the next years.
Based on estimates for the next years, WLN will show a small growth in Revenue. The Revenue will grow by 4.13% on average per year.
EPS Next Y10.3%
EPS Next 2Y12.12%
EPS Next 3Y11.74%
EPS Next 5Y3.38%
Revenue Next Year2.74%
Revenue Next 2Y3.95%
Revenue Next 3Y4.52%
Revenue Next 5Y4.13%

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.

8

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 6.37, the valuation of WLN can be described as very cheap.
WLN's Price/Earnings ratio is a bit cheaper when compared to the industry. WLN is cheaper than 72.09% of the companies in the same industry.
WLN is valuated cheaply when we compare the Price/Earnings ratio to 28.20, which is the current average of the S&P500 Index.
WLN is valuated cheaply with a Price/Forward Earnings ratio of 5.77.
Based on the Price/Forward Earnings ratio, WLN is valued cheaper than 86.05% of the companies in the same industry.
WLN is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.02, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 6.37
Fwd PE 5.77

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, WLN is valued cheaper than 83.72% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WLN is valued a bit cheaper than the industry average as 74.42% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 7.26
EV/EBITDA 2.4

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.
PEG (NY)0.62
PEG (5Y)0.6
EPS Next 2Y12.12%
EPS Next 3Y11.74%

0

5. Dividend

5.1 Amount

WLN does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

WORLDLINE SA

EPA:WLN (5/29/2024, 5:29:45 PM)

11.78

-0.41 (-3.36%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.33B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 6.37
Fwd PE 5.77
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.62
PEG (5Y)0.6
Profitability
Industry RankSector Rank
ROA -3.76%
ROE -9.53%
ROCE
ROIC
ROICexc
ROICexgc
OM 10.55%
PM (TTM) N/A
GM 88.46%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.21
Health
Industry RankSector Rank
Debt/Equity 0.37
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.05
Quick Ratio 1.04
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-1.6%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y10.3%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.64%
Revenue growth 3Y23.25%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y