ALPHABET INC-CL A (ABEA.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ABEA - US02079K3059 - Common Stock
280.7 EUR
-1.65 (-0.58%)
Taking everything into account, ABEA scores 7 out of 10 in our fundamental rating. ABEA was compared to 19 industry peers in the Interactive Media & Services industry. ABEA scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ABEA is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make ABEA a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
- In the past year ABEA was profitable.
- ABEA had a positive operating cash flow in the past year.
- In the past 5 years ABEA has always been profitable.
- ABEA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ABEA's Return On Assets of 23.16% is amongst the best of the industry. ABEA outperforms 90.91% of its industry peers.
- The Return On Equity of ABEA (32.12%) is better than 90.91% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 24.90%, ABEA is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ABEA is significantly below the industry average of 108.93%.
- The last Return On Invested Capital (24.90%) for ABEA is above the 3 year average (24.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.16% | ||
| ROE | 32.12% | ||
| ROIC | 24.9% |
ROA(3y)19%
ROA(5y)18.15%
ROE(3y)26.75%
ROE(5y)25.71%
ROIC(3y)24.19%
ROIC(5y)21.8%
1.3 Margins
- The Profit Margin of ABEA (32.23%) is better than 90.91% of its industry peers.
- ABEA's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 32.83%, ABEA is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
- In the last couple of years the Operating Margin of ABEA has grown nicely.
- The Gross Margin of ABEA (59.17%) is comparable to the rest of the industry.
- ABEA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.83% | ||
| PM (TTM) | 32.23% | ||
| GM | 59.17% |
OM growth 3Y2.22%
OM growth 5Y8.01%
PM growth 3Y-1.04%
PM growth 5Y6.16%
GM growth 3Y0.73%
GM growth 5Y0.93%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ABEA is creating value.
- Compared to 1 year ago, ABEA has less shares outstanding
- The number of shares outstanding for ABEA has been reduced compared to 5 years ago.
- The debt/assets ratio for ABEA has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 18.39 indicates that ABEA is not in any danger for bankruptcy at the moment.
- The Altman-Z score of ABEA (18.39) is better than 86.36% of its industry peers.
- The Debt to FCF ratio of ABEA is 0.29, which is an excellent value as it means it would take ABEA, only 0.29 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of ABEA (0.29) is better than 81.82% of its industry peers.
- ABEA has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of ABEA (0.06) is better than 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 18.39 |
ROIC/WACC2.81
WACC8.86%
2.3 Liquidity
- ABEA has a Current Ratio of 1.75. This is a normal value and indicates that ABEA is financially healthy and should not expect problems in meeting its short term obligations.
- ABEA has a Current ratio of 1.75. This is in the better half of the industry: ABEA outperforms 68.18% of its industry peers.
- A Quick Ratio of 1.75 indicates that ABEA should not have too much problems paying its short term obligations.
- With a decent Quick ratio value of 1.75, ABEA is doing good in the industry, outperforming 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.75 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 30.37% over the past year.
- ABEA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.25% yearly.
- ABEA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.42%.
- Measured over the past years, ABEA shows a quite strong growth in Revenue. The Revenue has been growing by 16.68% on average per year.
EPS 1Y (TTM)30.37%
EPS 3Y12.78%
EPS 5Y25.25%
EPS Q2Q%46.23%
Revenue 1Y (TTM)13.42%
Revenue growth 3Y10.75%
Revenue growth 5Y16.68%
Sales Q2Q%15.95%
3.2 Future
- The Earnings Per Share is expected to grow by 16.87% on average over the next years. This is quite good.
- The Revenue is expected to grow by 12.67% on average over the next years. This is quite good.
EPS Next Y35.48%
EPS Next 2Y19.79%
EPS Next 3Y18.39%
EPS Next 5Y16.87%
Revenue Next Year13.94%
Revenue Next 2Y13.85%
Revenue Next 3Y13.55%
Revenue Next 5Y12.67%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 33.54, the valuation of ABEA can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of ABEA is on the same level as its industry peers.
- ABEA is valuated rather expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- ABEA is valuated quite expensively with a Price/Forward Earnings ratio of 28.53.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ABEA is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. ABEA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.54 | ||
| Fwd PE | 28.53 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as ABEA.
- The rest of the industry has a similar Price/Free Cash Flow ratio as ABEA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.07 | ||
| EV/EBITDA | 26.22 |
4.3 Compensation for Growth
- ABEA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of ABEA may justify a higher PE ratio.
- ABEA's earnings are expected to grow with 18.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.95
PEG (5Y)1.33
EPS Next 2Y19.79%
EPS Next 3Y18.39%
5. Dividend
5.1 Amount
- ABEA has a yearly dividend return of 0.25%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.20, ABEA pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, ABEA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 8.01% of the earnings are spent on dividend by ABEA. This is a low number and sustainable payout ratio.
DP8.01%
EPS Next 2Y19.79%
EPS Next 3Y18.39%
ALPHABET INC-CL A / ABEA.DE FAQ
Can you provide the ChartMill fundamental rating for ALPHABET INC-CL A?
ChartMill assigns a fundamental rating of 7 / 10 to ABEA.DE.
What is the valuation status for ABEA stock?
ChartMill assigns a valuation rating of 4 / 10 to ALPHABET INC-CL A (ABEA.DE). This can be considered as Fairly Valued.
What is the profitability of ABEA stock?
ALPHABET INC-CL A (ABEA.DE) has a profitability rating of 8 / 10.
Can you provide the financial health for ABEA stock?
The financial health rating of ALPHABET INC-CL A (ABEA.DE) is 8 / 10.
What is the earnings growth outlook for ALPHABET INC-CL A?
The Earnings per Share (EPS) of ALPHABET INC-CL A (ABEA.DE) is expected to grow by 35.48% in the next year.