CARL ZEISS MEDITEC AG - BR (AFX.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AFX - DE0005313704 - Common Stock
28.36 EUR
-0.98 (-3.34%)
AFX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 67 industry peers in the Health Care Equipment & Supplies industry. AFX has an excellent financial health rating, but there are some minor concerns on its profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on AFX.
1. Profitability
1.1 Basic Checks
- AFX had positive earnings in the past year.
- In the past year AFX had a positive cash flow from operations.
- AFX had positive earnings in each of the past 5 years.
- Each year in the past 5 years AFX had a positive operating cash flow.
1.2 Ratios
- AFX has a Return On Assets of 4.15%. This is comparable to the rest of the industry: AFX outperforms 59.70% of its industry peers.
- AFX has a Return On Equity (6.67%) which is comparable to the rest of the industry.
- AFX has a Return On Invested Capital of 5.79%. This is comparable to the rest of the industry: AFX outperforms 52.24% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for AFX is below the industry average of 9.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.15% | ||
| ROE | 6.67% | ||
| ROIC | 5.79% |
ROA(3y)6.33%
ROA(5y)7.85%
ROE(3y)9.62%
ROE(5y)11.54%
ROIC(3y)7.11%
ROIC(5y)9.66%
1.3 Margins
- AFX has a Profit Margin of 6.34%. This is comparable to the rest of the industry: AFX outperforms 52.24% of its industry peers.
- AFX's Profit Margin has declined in the last couple of years.
- AFX has a Operating Margin (10.03%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of AFX has declined.
- AFX's Gross Margin of 52.76% is in line compared to the rest of the industry. AFX outperforms 43.28% of its industry peers.
- In the last couple of years the Gross Margin of AFX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.03% | ||
| PM (TTM) | 6.34% | ||
| GM | 52.76% |
OM growth 3Y-21.67%
OM growth 5Y-5.49%
PM growth 3Y-25.69%
PM growth 5Y-7.11%
GM growth 3Y-3.8%
GM growth 5Y-1.12%
2. Health
2.1 Basic Checks
- AFX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- AFX has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, AFX has less shares outstanding
- Compared to 1 year ago, AFX has an improved debt to assets ratio.
2.2 Solvency
- AFX has an Altman-Z score of 3.00. This indicates that AFX is financially healthy and has little risk of bankruptcy at the moment.
- AFX's Altman-Z score of 3.00 is fine compared to the rest of the industry. AFX outperforms 61.19% of its industry peers.
- AFX has a debt to FCF ratio of 4.41. This is a neutral value as AFX would need 4.41 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 4.41, AFX perfoms like the industry average, outperforming 56.72% of the companies in the same industry.
- AFX has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
- AFX has a better Debt to Equity ratio (0.27) than 64.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.41 | ||
| Altman-Z | 3 |
ROIC/WACC0.85
WACC6.82%
2.3 Liquidity
- AFX has a Current Ratio of 2.35. This indicates that AFX is financially healthy and has no problem in meeting its short term obligations.
- With a decent Current ratio value of 2.35, AFX is doing good in the industry, outperforming 71.64% of the companies in the same industry.
- A Quick Ratio of 1.44 indicates that AFX should not have too much problems paying its short term obligations.
- AFX's Quick ratio of 1.44 is fine compared to the rest of the industry. AFX outperforms 74.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
- AFX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.90%.
- The Earnings Per Share has been growing slightly by 3.28% on average over the past years.
- AFX shows a small growth in Revenue. In the last year, the Revenue has grown by 7.82%.
- The Revenue has been growing by 10.78% on average over the past years. This is quite good.
EPS 1Y (TTM)-19.9%
EPS 3Y-21.2%
EPS 5Y3.28%
EPS Q2Q%-14.49%
Revenue 1Y (TTM)7.82%
Revenue growth 3Y5.39%
Revenue growth 5Y10.78%
Sales Q2Q%8.27%
3.2 Future
- Based on estimates for the next years, AFX will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.64% on average per year.
- AFX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.21% yearly.
EPS Next Y24.48%
EPS Next 2Y22.06%
EPS Next 3Y22.65%
EPS Next 5Y19.64%
Revenue Next Year4.23%
Revenue Next 2Y5.18%
Revenue Next 3Y5.72%
Revenue Next 5Y6.21%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 17.61, the valuation of AFX can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of AFX indicates a rather cheap valuation: AFX is cheaper than 85.07% of the companies listed in the same industry.
- AFX is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 14.15, which indicates a correct valuation of AFX.
- Based on the Price/Forward Earnings ratio, AFX is valued cheaper than 80.60% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of AFX to the average of the S&P500 Index (24.26), we can say AFX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.61 | ||
| Fwd PE | 14.15 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AFX is valued cheaper than 88.06% of the companies in the same industry.
- AFX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AFX is cheaper than 82.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.03 | ||
| EV/EBITDA | 8.97 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- AFX's earnings are expected to grow with 22.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.72
PEG (5Y)5.37
EPS Next 2Y22.06%
EPS Next 3Y22.65%
5. Dividend
5.1 Amount
- AFX has a Yearly Dividend Yield of 1.87%.
- The stock price of AFX dropped by -38.16% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- Compared to an average industry Dividend Yield of 0.97, AFX pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, AFX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
5.2 History
- The dividend of AFX decreases each year by -1.59%.
Dividend Growth(5Y)-1.59%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
- AFX pays out 37.19% of its income as dividend. This is a sustainable payout ratio.
DP37.19%
EPS Next 2Y22.06%
EPS Next 3Y22.65%
CARL ZEISS MEDITEC AG - BR / AFX.DE FAQ
What is the fundamental rating for AFX stock?
ChartMill assigns a fundamental rating of 5 / 10 to AFX.DE.
What is the valuation status of CARL ZEISS MEDITEC AG - BR (AFX.DE) stock?
ChartMill assigns a valuation rating of 7 / 10 to CARL ZEISS MEDITEC AG - BR (AFX.DE). This can be considered as Undervalued.
Can you provide the profitability details for CARL ZEISS MEDITEC AG - BR?
CARL ZEISS MEDITEC AG - BR (AFX.DE) has a profitability rating of 4 / 10.
What are the PE and PB ratios of CARL ZEISS MEDITEC AG - BR (AFX.DE) stock?
The Price/Earnings (PE) ratio for CARL ZEISS MEDITEC AG - BR (AFX.DE) is 17.61 and the Price/Book (PB) ratio is 1.2.
Is the dividend of CARL ZEISS MEDITEC AG - BR sustainable?
The dividend rating of CARL ZEISS MEDITEC AG - BR (AFX.DE) is 3 / 10 and the dividend payout ratio is 37.19%.