2G ENERGY AG (2GB.DE) Stock Fundamental Analysis
FRA:2GB - Deutsche Boerse Ag - DE000A0HL8N9 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to 2GB. 2GB was compared to 59 industry peers in the Electrical Equipment industry. Both the health and profitability get an excellent rating, making 2GB a very profitable company, without any liquidiy or solvency issues. 2GB has a correct valuation and a medium growth rate. These ratings would make 2GB suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year 2GB was profitable.
2GB had a positive operating cash flow in the past year.
Each year in the past 5 years 2GB has been profitable.
Each year in the past 5 years 2GB had a positive operating cash flow.
1.2 Ratios
2GB's Return On Assets of 7.74% is amongst the best of the industry. 2GB outperforms 91.67% of its industry peers.
2GB's Return On Equity of 14.55% is amongst the best of the industry. 2GB outperforms 81.67% of its industry peers.
2GB has a Return On Invested Capital of 7.80%. This is in the better half of the industry: 2GB outperforms 70.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 2GB is in line with the industry average of 8.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.74% | ||
| ROE | 14.55% | ||
| ROIC | 7.8% |
ROA(3y)7.69%
ROA(5y)7.71%
ROE(3y)14.3%
ROE(5y)14.64%
ROIC(3y)9.39%
ROIC(5y)10.42%
1.3 Margins
Looking at the Profit Margin, with a value of 5.00%, 2GB is in the better half of the industry, outperforming 71.67% of the companies in the same industry.
2GB's Profit Margin has improved in the last couple of years.
2GB's Operating Margin of 7.44% is fine compared to the rest of the industry. 2GB outperforms 68.33% of its industry peers.
2GB's Operating Margin has improved in the last couple of years.
2GB has a Gross Margin of 37.73%. This is comparable to the rest of the industry: 2GB outperforms 56.67% of its industry peers.
2GB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.44% | ||
| PM (TTM) | 5% | ||
| GM | 37.73% |
OM growth 3Y4.39%
OM growth 5Y6.21%
PM growth 3Y0.44%
PM growth 5Y6.53%
GM growth 3Y1.04%
GM growth 5Y1.04%
2. Health
2.1 Basic Checks
2GB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
2GB has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, 2GB has more shares outstanding
Compared to 1 year ago, 2GB has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.97 indicates that 2GB is not in any danger for bankruptcy at the moment.
2GB has a better Altman-Z score (5.97) than 98.33% of its industry peers.
The Debt to FCF ratio of 2GB is 1.24, which is an excellent value as it means it would take 2GB, only 1.24 years of fcf income to pay off all of its debts.
2GB has a Debt to FCF ratio of 1.24. This is amongst the best in the industry. 2GB outperforms 95.00% of its industry peers.
2GB has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.08, 2GB belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.24 | ||
| Altman-Z | 5.97 |
ROIC/WACC1.1
WACC7.1%
2.3 Liquidity
A Current Ratio of 26010.40 indicates that 2GB has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 26010.40, 2GB belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
2GB has a Quick Ratio of 9289.86. This indicates that 2GB is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of 2GB (9289.86) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 26010.4 | ||
| Quick Ratio | 9289.86 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.40% over the past year.
The Earnings Per Share has been growing by 18.72% on average over the past years. This is quite good.
2GB shows a small growth in Revenue. In the last year, the Revenue has grown by 7.93%.
The Revenue has been growing by 11.72% on average over the past years. This is quite good.
EPS 1Y (TTM)4.4%
EPS 3Y13.99%
EPS 5Y18.72%
EPS Q2Q%2.73%
Revenue 1Y (TTM)7.93%
Revenue growth 3Y13.95%
Revenue growth 5Y11.72%
Sales Q2Q%-3.23%
3.2 Future
2GB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.77% yearly.
2GB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.92% yearly.
EPS Next Y14.71%
EPS Next 2Y24.14%
EPS Next 3Y21.91%
EPS Next 5Y19.77%
Revenue Next Year9.14%
Revenue Next 2Y12.86%
Revenue Next 3Y11.93%
Revenue Next 5Y11.92%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 24.70, 2GB is valued on the expensive side.
Based on the Price/Earnings ratio, 2GB is valued a bit cheaper than the industry average as 65.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.35, 2GB is valued at the same level.
Based on the Price/Forward Earnings ratio of 15.56, the valuation of 2GB can be described as correct.
Based on the Price/Forward Earnings ratio, 2GB is valued a bit cheaper than 65.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. 2GB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.7 | ||
| Fwd PE | 15.56 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 2GB.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 2GB is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.12 | ||
| EV/EBITDA | 12.86 |
4.3 Compensation for Growth
2GB's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of 2GB may justify a higher PE ratio.
A more expensive valuation may be justified as 2GB's earnings are expected to grow with 21.91% in the coming years.
PEG (NY)1.68
PEG (5Y)1.32
EPS Next 2Y24.14%
EPS Next 3Y21.91%
5. Dividend
5.1 Amount
2GB has a yearly dividend return of 0.70%, which is pretty low.
2GB's Dividend Yield is a higher than the industry average which is at 2.91.
With a Dividend Yield of 0.70, 2GB pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
5.2 History
The dividend of 2GB has a limited annual growth rate of 5.92%.
Dividend Growth(5Y)5.92%
Div Incr Years3
Div Non Decr Years5
5.3 Sustainability
2GB pays out 16.92% of its income as dividend. This is a sustainable payout ratio.
The dividend of 2GB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP16.92%
EPS Next 2Y24.14%
EPS Next 3Y21.91%
FRA:2GB (3/7/2025, 7:00:00 PM)
24.7
+0.4 (+1.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners11.57%
Inst Owner ChangeN/A
Ins Owners45.1%
Ins Owner ChangeN/A
Market Cap443.12M
Analysts84.44
Price Target35.93 (45.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
Yearly Dividend0.14
Dividend Growth(5Y)5.92%
DP16.92%
Div Incr Years3
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.71%
PT rev (3m)0.71%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-5.8%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)-0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.7 | ||
| Fwd PE | 15.56 | ||
| P/S | 1.23 | ||
| P/FCF | 57.12 | ||
| P/OCF | 26.98 | ||
| P/B | 3.58 | ||
| P/tB | 3.9 | ||
| EV/EBITDA | 12.86 |
EPS(TTM)1
EY4.05%
EPS(NY)1.59
Fwd EY6.43%
FCF(TTM)0.43
FCFY1.75%
OCF(TTM)0.92
OCFY3.71%
SpS20.11
BVpS6.9
TBVpS6.33
PEG (NY)1.68
PEG (5Y)1.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.74% | ||
| ROE | 14.55% | ||
| ROCE | 11.53% | ||
| ROIC | 7.8% | ||
| ROICexc | 8.19% | ||
| ROICexgc | 8.59% | ||
| OM | 7.44% | ||
| PM (TTM) | 5% | ||
| GM | 37.73% | ||
| FCFM | 2.15% |
ROA(3y)7.69%
ROA(5y)7.71%
ROE(3y)14.3%
ROE(5y)14.64%
ROIC(3y)9.39%
ROIC(5y)10.42%
ROICexc(3y)10.55%
ROICexc(5y)11.75%
ROICexgc(3y)11.01%
ROICexgc(5y)12.25%
ROCE(3y)13.88%
ROCE(5y)15.4%
ROICexcg growth 3Y-10.97%
ROICexcg growth 5Y-4.1%
ROICexc growth 3Y-11.44%
ROICexc growth 5Y-4.03%
OM growth 3Y4.39%
OM growth 5Y6.21%
PM growth 3Y0.44%
PM growth 5Y6.53%
GM growth 3Y1.04%
GM growth 5Y1.04%
F-Score6
Asset Turnover1.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.24 | ||
| Debt/EBITDA | 0.28 | ||
| Cap/Depr | 115.56% | ||
| Cap/Sales | 2.4% | ||
| Interest Coverage | 38.55 | ||
| Cash Conversion | 47.82% | ||
| Profit Quality | 43.04% | ||
| Current Ratio | 26010.4 | ||
| Quick Ratio | 9289.86 | ||
| Altman-Z | 5.97 |
F-Score6
WACC7.1%
ROIC/WACC1.1
Cap/Depr(3y)148.73%
Cap/Depr(5y)128.48%
Cap/Sales(3y)2.35%
Cap/Sales(5y)2.01%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)4.4%
EPS 3Y13.99%
EPS 5Y18.72%
EPS Q2Q%2.73%
EPS Next Y14.71%
EPS Next 2Y24.14%
EPS Next 3Y21.91%
EPS Next 5Y19.77%
Revenue 1Y (TTM)7.93%
Revenue growth 3Y13.95%
Revenue growth 5Y11.72%
Sales Q2Q%-3.23%
Revenue Next Year9.14%
Revenue Next 2Y12.86%
Revenue Next 3Y11.93%
Revenue Next 5Y11.92%
EBIT growth 1Y7.7%
EBIT growth 3Y18.95%
EBIT growth 5Y18.66%
EBIT Next Year44.19%
EBIT Next 3Y27.28%
EBIT Next 5Y22.44%
FCF growth 1Y203.58%
FCF growth 3Y-20.35%
FCF growth 5YN/A
OCF growth 1Y2036.19%
OCF growth 3Y6.21%
OCF growth 5Y19.18%