ENGIE (1ENGI.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1ENGI - FR0010208488 - Common Stock
24.61 EUR
+0.79 (+3.32%)
Taking everything into account, 1ENGI scores 4 out of 10 in our fundamental rating. 1ENGI was compared to 18 industry peers in the Multi-Utilities industry. There are concerns on the financial health of 1ENGI while its profitability can be described as average. 1ENGI has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year 1ENGI was profitable.
- In the past year 1ENGI had a positive cash flow from operations.
- Of the past 5 years 1ENGI 4 years were profitable.
- 1ENGI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- 1ENGI has a Return On Assets of 3.00%. This is in the better half of the industry: 1ENGI outperforms 66.67% of its industry peers.
- 1ENGI has a better Return On Equity (15.96%) than 77.78% of its industry peers.
- The Return On Invested Capital of 1ENGI (6.30%) is better than 72.22% of its industry peers.
- 1ENGI had an Average Return On Invested Capital over the past 3 years of 4.59%. This is in line with the industry average of 5.84%.
- The last Return On Invested Capital (6.30%) for 1ENGI is above the 3 year average (4.59%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3% | ||
| ROE | 15.96% | ||
| ROIC | 6.3% |
ROA(3y)1.09%
ROA(5y)0.74%
ROE(3y)6.38%
ROE(5y)4.55%
ROIC(3y)4.59%
ROIC(5y)3.95%
1.3 Margins
- The Profit Margin of 1ENGI (6.64%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of 1ENGI has grown nicely.
- The Operating Margin of 1ENGI (13.81%) is comparable to the rest of the industry.
- 1ENGI's Operating Margin has improved in the last couple of years.
- The Gross Margin of 1ENGI (34.55%) is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of 1ENGI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.81% | ||
| PM (TTM) | 6.64% | ||
| GM | 34.55% |
OM growth 3Y4.76%
OM growth 5Y8.74%
PM growth 3Y-3.71%
PM growth 5Y31.94%
GM growth 3Y0.14%
GM growth 5Y-0.3%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1ENGI is still creating some value.
- Compared to 1 year ago, 1ENGI has about the same amount of shares outstanding.
- Compared to 5 years ago, 1ENGI has more shares outstanding
- Compared to 1 year ago, 1ENGI has a worse debt to assets ratio.
2.2 Solvency
- 1ENGI has an Altman-Z score of 1.02. This is a bad value and indicates that 1ENGI is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 1.02, 1ENGI is not doing good in the industry: 61.11% of the companies in the same industry are doing better.
- A Debt/Equity ratio of 1.55 is on the high side and indicates that 1ENGI has dependencies on debt financing.
- 1ENGI has a Debt to Equity ratio of 1.55. This is comparable to the rest of the industry: 1ENGI outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.02 |
ROIC/WACC1.12
WACC5.62%
2.3 Liquidity
- 1ENGI has a Current Ratio of 1.06. This is a normal value and indicates that 1ENGI is financially healthy and should not expect problems in meeting its short term obligations.
- With a decent Current ratio value of 1.06, 1ENGI is doing good in the industry, outperforming 77.78% of the companies in the same industry.
- 1ENGI has a Quick Ratio of 1.00. This is a normal value and indicates that 1ENGI is financially healthy and should not expect problems in meeting its short term obligations.
- 1ENGI has a better Quick ratio (1.00) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
- 1ENGI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.00%.
- Measured over the past years, 1ENGI shows a very strong growth in Earnings Per Share. The EPS has been growing by 37.22% on average per year.
- 1ENGI shows a small growth in Revenue. In the last year, the Revenue has grown by 1.77%.
- The Revenue has been growing slightly by 4.21% on average over the past years.
EPS 1Y (TTM)1%
EPS 3Y4.25%
EPS 5Y37.22%
EPS Q2Q%48.72%
Revenue 1Y (TTM)1.77%
Revenue growth 3Y8.45%
Revenue growth 5Y4.21%
Sales Q2Q%1.44%
3.2 Future
- Based on estimates for the next years, 1ENGI will show a decrease in Earnings Per Share. The EPS will decrease by -1.09% on average per year.
- The Revenue is expected to decrease by -0.24% on average over the next years.
EPS Next Y-11.42%
EPS Next 2Y-8.99%
EPS Next 3Y-4.61%
EPS Next 5Y-1.09%
Revenue Next Year-10.63%
Revenue Next 2Y-5.73%
Revenue Next 3Y-2.67%
Revenue Next 5Y-0.24%
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 decreasing.
- 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
- A Price/Earnings ratio of 12.12 indicates a correct valuation of 1ENGI.
- 1ENGI's Price/Earnings ratio is a bit cheaper when compared to the industry. 1ENGI is cheaper than 72.22% of the companies in the same industry.
- 1ENGI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.82.
- With a Price/Forward Earnings ratio of 13.05, 1ENGI is valued correctly.
- 1ENGI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1ENGI is cheaper than 72.22% of the companies in the same industry.
- 1ENGI 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 | 12.12 | ||
| Fwd PE | 13.05 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1ENGI indicates a rather cheap valuation: 1ENGI is cheaper than 88.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.67 |
4.3 Compensation for Growth
- The decent profitability rating of 1ENGI may justify a higher PE ratio.
- A cheap valuation may be justified as 1ENGI's earnings are expected to decrease with -4.61% in the coming years.
PEG (NY)N/A
PEG (5Y)0.33
EPS Next 2Y-8.99%
EPS Next 3Y-4.61%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.19%, 1ENGI is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 4.30, 1ENGI pays a better dividend. On top of this 1ENGI pays more dividend than 88.89% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, 1ENGI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.19% |
5.2 History
- The dividend of 1ENGI is nicely growing with an annual growth rate of 9.08%!
Dividend Growth(5Y)9.08%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1ENGI pays out 91.17% of its income as dividend. This is not a sustainable payout ratio.
- The Dividend Rate of 1ENGI has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP91.17%
EPS Next 2Y-8.99%
EPS Next 3Y-4.61%
ENGIE / 1ENGI.MI FAQ
Can you provide the ChartMill fundamental rating for ENGIE?
ChartMill assigns a fundamental rating of 4 / 10 to 1ENGI.MI.
What is the valuation status for 1ENGI stock?
ChartMill assigns a valuation rating of 5 / 10 to ENGIE (1ENGI.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for ENGIE?
ENGIE (1ENGI.MI) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for 1ENGI stock?
The Price/Earnings (PE) ratio for ENGIE (1ENGI.MI) is 12.12 and the Price/Book (PB) ratio is 1.94.
How financially healthy is ENGIE?
The financial health rating of ENGIE (1ENGI.MI) is 3 / 10.