PORR AG (ABS2.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ABS2 - AT0000609607 - Common Stock
34.75 EUR
+0.65 (+1.91%)
We assign a fundamental rating of 4 out of 10 to ABS2. ABS2 was compared to 43 industry peers in the Construction & Engineering industry. There are concerns on the financial health of ABS2 while its profitability can be described as average. ABS2 is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
- ABS2 had positive earnings in the past year.
- In the past year ABS2 had a positive cash flow from operations.
- Of the past 5 years ABS2 4 years were profitable.
- In the past 5 years ABS2 always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of ABS2 (2.17%) is worse than 72.09% of its industry peers.
- ABS2's Return On Equity of 10.63% is on the low side compared to the rest of the industry. ABS2 is outperformed by 72.09% of its industry peers.
- The Return On Invested Capital of ABS2 (4.94%) is worse than 76.74% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ABS2 is significantly below the industry average of 11.17%.
- The last Return On Invested Capital (4.94%) for ABS2 is above the 3 year average (2.10%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.17% | ||
| ROE | 10.63% | ||
| ROIC | 4.94% |
ROA(3y)1.9%
ROA(5y)0.94%
ROE(3y)9.63%
ROE(5y)4.62%
ROIC(3y)2.1%
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of ABS2 (1.48%) is worse than 79.07% of its industry peers.
- In the last couple of years the Profit Margin of ABS2 has grown nicely.
- ABS2's Operating Margin of 1.69% is on the low side compared to the rest of the industry. ABS2 is outperformed by 83.72% of its industry peers.
- ABS2's Operating Margin has improved in the last couple of years.
- ABS2 has a Gross Margin of 34.42%. This is in the lower half of the industry: ABS2 underperforms 65.12% of its industry peers.
- ABS2's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.69% | ||
| PM (TTM) | 1.48% | ||
| GM | 34.42% |
OM growth 3Y61%
OM growth 5YN/A
PM growth 3Y27.41%
PM growth 5Y37.43%
GM growth 3Y0.66%
GM growth 5Y0.79%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ABS2 is destroying value.
- Compared to 1 year ago, ABS2 has less shares outstanding
- ABS2 has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for ABS2 has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 1.95 indicates that ABS2 is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 1.95, ABS2 perfoms like the industry average, outperforming 55.81% of the companies in the same industry.
- The Debt to FCF ratio of ABS2 is 3.58, which is a good value as it means it would take ABS2, 3.58 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 3.58, ABS2 is in the better half of the industry, outperforming 69.77% of the companies in the same industry.
- ABS2 has a Debt/Equity ratio of 0.59. This is a neutral value indicating ABS2 is somewhat dependend on debt financing.
- ABS2's Debt to Equity ratio of 0.59 is in line compared to the rest of the industry. ABS2 outperforms 58.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.58 | ||
| Altman-Z | 1.95 |
ROIC/WACC0.37
WACC13.27%
2.3 Liquidity
- A Current Ratio of 0.94 indicates that ABS2 may have some problems paying its short term obligations.
- The Current ratio of ABS2 (0.94) is worse than 81.40% of its industry peers.
- A Quick Ratio of 0.90 indicates that ABS2 may have some problems paying its short term obligations.
- The Quick ratio of ABS2 (0.90) is worse than 62.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 2.16% over the past year.
- The Earnings Per Share has been growing by 37.76% on average over the past years. This is a very strong growth
- The Revenue has been growing slightly by 2.92% in the past year.
- Measured over the past years, ABS2 shows a small growth in Revenue. The Revenue has been growing by 4.87% on average per year.
EPS 1Y (TTM)2.16%
EPS 3Y25.27%
EPS 5Y37.76%
EPS Q2Q%23.81%
Revenue 1Y (TTM)2.92%
Revenue growth 3Y6.19%
Revenue growth 5Y4.87%
Sales Q2Q%3.81%
3.2 Future
- ABS2 is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.59% yearly.
- ABS2 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.48% yearly.
EPS Next Y20.27%
EPS Next 2Y16.94%
EPS Next 3Y15.59%
EPS Next 5YN/A
Revenue Next Year2.02%
Revenue Next 2Y3.1%
Revenue Next 3Y3.28%
Revenue Next 5Y3.48%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 14.42, the valuation of ABS2 can be described as correct.
- ABS2's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, ABS2 is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 10.87, the valuation of ABS2 can be described as reasonable.
- ABS2's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ABS2 is cheaper than 72.09% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, ABS2 is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.42 | ||
| Fwd PE | 10.87 |
4.2 Price Multiples
- 97.67% of the companies in the same industry are more expensive than ABS2, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABS2 indicates a rather cheap valuation: ABS2 is cheaper than 81.40% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.34 | ||
| EV/EBITDA | 3.24 |
4.3 Compensation for Growth
- ABS2's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- ABS2's earnings are expected to grow with 15.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.71
PEG (5Y)0.38
EPS Next 2Y16.94%
EPS Next 3Y15.59%
5. Dividend
5.1 Amount
- ABS2 has a Yearly Dividend Yield of 5.08%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.48, ABS2 pays a better dividend. On top of this ABS2 pays more dividend than 90.70% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, ABS2 pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.08% |
5.2 History
- The dividend of ABS2 decreases each year by -5.04%.
Dividend Growth(5Y)-5.04%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- ABS2 pays out 54.60% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP54.6%
EPS Next 2Y16.94%
EPS Next 3Y15.59%
PORR AG / ABS2.DE FAQ
What is the ChartMill fundamental rating of PORR AG (ABS2.DE) stock?
ChartMill assigns a fundamental rating of 4 / 10 to ABS2.DE.
What is the valuation status of PORR AG (ABS2.DE) stock?
ChartMill assigns a valuation rating of 7 / 10 to PORR AG (ABS2.DE). This can be considered as Undervalued.
How profitable is PORR AG (ABS2.DE) stock?
PORR AG (ABS2.DE) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for ABS2 stock?
The Price/Earnings (PE) ratio for PORR AG (ABS2.DE) is 14.42 and the Price/Book (PB) ratio is 1.58.
Can you provide the financial health for ABS2 stock?
The financial health rating of PORR AG (ABS2.DE) is 3 / 10.