AIRBUS SE (1AIR.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1AIR - NL0000235190 - Common Stock
193.72 EUR
-1.56 (-0.8%)
Overall 1AIR gets a fundamental rating of 4 out of 10. We evaluated 1AIR against 53 industry peers in the Aerospace & Defense industry. While 1AIR is still in line with the averages on profitability rating, there are concerns on its financial health. 1AIR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- 1AIR had positive earnings in the past year.
- 1AIR had a positive operating cash flow in the past year.
- 1AIR had positive earnings in 4 of the past 5 years.
- Of the past 5 years 1AIR 4 years had a positive operating cash flow.
1.2 Ratios
- 1AIR has a Return On Assets (3.91%) which is comparable to the rest of the industry.
- With a decent Return On Equity value of 21.46%, 1AIR is doing good in the industry, outperforming 73.58% of the companies in the same industry.
- 1AIR's Return On Invested Capital of 6.19% is in line compared to the rest of the industry. 1AIR outperforms 43.40% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for 1AIR is below the industry average of 9.24%.
- The last Return On Invested Capital (6.19%) for 1AIR is above the 3 year average (5.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.91% | ||
| ROE | 21.46% | ||
| ROIC | 6.19% |
ROA(3y)3.38%
ROA(5y)2.61%
ROE(3y)25.26%
ROE(5y)20.54%
ROIC(3y)5.64%
ROIC(5y)4.87%
1.3 Margins
- With a Profit Margin value of 7.02%, 1AIR perfoms like the industry average, outperforming 52.83% of the companies in the same industry.
- 1AIR's Profit Margin has declined in the last couple of years.
- 1AIR has a Operating Margin (7.82%) which is in line with its industry peers.
- 1AIR's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 15.54%, 1AIR is doing worse than 81.13% of the companies in the same industry.
- 1AIR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.82% | ||
| PM (TTM) | 7.02% | ||
| GM | 15.54% |
OM growth 3Y-10.35%
OM growth 5Y38.69%
PM growth 3Y-8.88%
PM growth 5YN/A
GM growth 3Y-5.84%
GM growth 5Y0.68%
2. Health
2.1 Basic Checks
- 1AIR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for 1AIR remains at a similar level compared to 1 year ago.
- 1AIR has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, 1AIR has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 1.87 indicates that 1AIR is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of 1AIR (1.87) is worse than 69.81% of its industry peers.
- The Debt to FCF ratio of 1AIR is 4.85, which is a neutral value as it means it would take 1AIR, 4.85 years of fcf income to pay off all of its debts.
- 1AIR's Debt to FCF ratio of 4.85 is fine compared to the rest of the industry. 1AIR outperforms 60.38% of its industry peers.
- A Debt/Equity ratio of 0.54 indicates that 1AIR is somewhat dependend on debt financing.
- 1AIR has a Debt to Equity ratio of 0.54. This is comparable to the rest of the industry: 1AIR outperforms 54.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 4.85 | ||
| Altman-Z | 1.87 |
ROIC/WACC0.73
WACC8.44%
2.3 Liquidity
- A Current Ratio of 1.15 indicates that 1AIR should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.15, 1AIR is in line with its industry, outperforming 47.17% of the companies in the same industry.
- A Quick Ratio of 0.43 indicates that 1AIR may have some problems paying its short term obligations.
- With a Quick ratio value of 0.43, 1AIR is not doing good in the industry: 88.68% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
- 1AIR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 65.12%, which is quite impressive.
- The Earnings Per Share has been decreasing by -2.79% on average over the past years.
- Looking at the last year, 1AIR shows a small growth in Revenue. The Revenue has grown by 7.05% in the last year.
- 1AIR shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.36% yearly.
EPS 1Y (TTM)65.12%
EPS 3Y-0.06%
EPS 5Y-2.79%
EPS Q2Q%36.84%
Revenue 1Y (TTM)7.05%
Revenue growth 3Y9.9%
Revenue growth 5Y-0.36%
Sales Q2Q%13.62%
3.2 Future
- Based on estimates for the next years, 1AIR will show a very strong growth in Earnings Per Share. The EPS will grow by 22.51% on average per year.
- 1AIR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.85% yearly.
EPS Next Y22.96%
EPS Next 2Y23.11%
EPS Next 3Y21.94%
EPS Next 5Y22.51%
Revenue Next Year7.55%
Revenue Next 2Y9.76%
Revenue Next 3Y10.36%
Revenue Next 5Y10.85%
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 accelerating.
- 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
- 1AIR is valuated quite expensively with a Price/Earnings ratio of 25.90.
- Based on the Price/Earnings ratio, 1AIR is valued cheaper than 84.91% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.39, 1AIR is valued at the same level.
- With a Price/Forward Earnings ratio of 24.25, 1AIR is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, 1AIR is valued a bit cheaper than 71.70% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. 1AIR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.9 | ||
| Fwd PE | 24.25 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1AIR is valued a bit cheaper than the industry average as 73.58% of the companies are valued more expensively.
- 1AIR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1AIR is cheaper than 60.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.99 | ||
| EV/EBITDA | 18.12 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- 1AIR's earnings are expected to grow with 21.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.13
PEG (5Y)N/A
EPS Next 2Y23.11%
EPS Next 3Y21.94%
5. Dividend
5.1 Amount
- 1AIR has a Yearly Dividend Yield of 1.45%.
- 1AIR's Dividend Yield is rather good when compared to the industry average which is at 0.74. 1AIR pays more dividend than 86.79% of the companies in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.82, 1AIR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
5.2 History
- On average, the dividend of 1AIR grows each year by 11.34%, which is quite nice.
Dividend Growth(5Y)11.34%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 46.83% of the earnings are spent on dividend by 1AIR. This is a bit on the high side, but may be sustainable.
- The dividend of 1AIR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP46.83%
EPS Next 2Y23.11%
EPS Next 3Y21.94%
AIRBUS SE / 1AIR.MI FAQ
What is the ChartMill fundamental rating of AIRBUS SE (1AIR.MI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to 1AIR.MI.
What is the valuation status of AIRBUS SE (1AIR.MI) stock?
ChartMill assigns a valuation rating of 5 / 10 to AIRBUS SE (1AIR.MI). This can be considered as Fairly Valued.
How profitable is AIRBUS SE (1AIR.MI) stock?
AIRBUS SE (1AIR.MI) has a profitability rating of 4 / 10.
What is the expected EPS growth for AIRBUS SE (1AIR.MI) stock?
The Earnings per Share (EPS) of AIRBUS SE (1AIR.MI) is expected to grow by 22.96% in the next year.
How sustainable is the dividend of AIRBUS SE (1AIR.MI) stock?
The dividend rating of AIRBUS SE (1AIR.MI) is 6 / 10 and the dividend payout ratio is 46.83%.