RACING FORCE SPA (ALRFG.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:ALRFG - IT0005466963 - Common Stock
4.96 EUR
-0.2 (-3.88%)
Overall ALRFG gets a fundamental rating of 5 out of 10. We evaluated ALRFG against 14 industry peers in the Leisure Products industry. ALRFG has an average financial health and profitability rating. ALRFG is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year ALRFG was profitable.
- In the past year ALRFG had a positive cash flow from operations.
- Each year in the past 5 years ALRFG has been profitable.
- Each year in the past 5 years ALRFG had a positive operating cash flow.
1.2 Ratios
- ALRFG's Return On Assets of 5.11% is in line compared to the rest of the industry. ALRFG outperforms 56.25% of its industry peers.
- ALRFG has a Return On Equity (7.75%) which is in line with its industry peers.
- ALRFG has a Return On Invested Capital (7.66%) which is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ALRFG is in line with the industry average of 11.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.11% | ||
| ROE | 7.75% | ||
| ROIC | 7.66% |
ROA(3y)7.77%
ROA(5y)6.56%
ROE(3y)13.39%
ROE(5y)14.13%
ROIC(3y)10.5%
ROIC(5y)9.82%
1.3 Margins
- ALRFG's Profit Margin of 6.94% is fine compared to the rest of the industry. ALRFG outperforms 62.50% of its industry peers.
- ALRFG's Profit Margin has been stable in the last couple of years.
- The Operating Margin of ALRFG (9.37%) is better than 62.50% of its industry peers.
- ALRFG's Operating Margin has declined in the last couple of years.
- ALRFG has a Gross Margin of 61.19%. This is amongst the best in the industry. ALRFG outperforms 93.75% of its industry peers.
- In the last couple of years the Gross Margin of ALRFG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.37% | ||
| PM (TTM) | 6.94% | ||
| GM | 61.19% |
OM growth 3Y-5.92%
OM growth 5YN/A
PM growth 3Y-0.53%
PM growth 5YN/A
GM growth 3Y1.31%
GM growth 5YN/A
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ALRFG is creating some value.
- ALRFG has more shares outstanding than it did 1 year ago.
- The debt/assets ratio for ALRFG has been reduced compared to a year ago.
2.2 Solvency
- ALRFG has an Altman-Z score of 4.30. This indicates that ALRFG is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 4.30, ALRFG belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
- ALRFG has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
- With an excellent Debt to Equity ratio value of 0.15, ALRFG belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.3 |
ROIC/WACC0.98
WACC7.83%
2.3 Liquidity
- A Current Ratio of 2.27 indicates that ALRFG has no problem at all paying its short term obligations.
- ALRFG has a Current ratio of 2.27. This is amongst the best in the industry. ALRFG outperforms 93.75% of its industry peers.
- ALRFG has a Quick Ratio of 1.09. This is a normal value and indicates that ALRFG is financially healthy and should not expect problems in meeting its short term obligations.
- ALRFG's Quick ratio of 1.09 is amongst the best of the industry. ALRFG outperforms 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
- ALRFG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.00%.
- The Earnings Per Share has been growing slightly by 6.19% on average over the past years.
- Looking at the last year, ALRFG shows a small growth in Revenue. The Revenue has grown by 6.35% in the last year.
- The Revenue has been growing by 12.24% on average over the past years. This is quite good.
EPS 1Y (TTM)-15%
EPS 3Y6.19%
EPS 5YN/A
EPS Q2Q%-20%
Revenue 1Y (TTM)6.35%
Revenue growth 3Y12.24%
Revenue growth 5YN/A
Sales Q2Q%2.63%
3.2 Future
- The Earnings Per Share is expected to grow by 14.86% on average over the next years. This is quite good.
- ALRFG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.00% yearly.
EPS Next Y18.18%
EPS Next 2Y15.47%
EPS Next 3Y14.86%
EPS Next 5YN/A
Revenue Next Year8.54%
Revenue Next 2Y8.21%
Revenue Next 3Y7.68%
Revenue Next 5Y6%
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 accelerating.
- 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 29.18, the valuation of ALRFG can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of ALRFG is on the same level as its industry peers.
- ALRFG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 22.32, ALRFG is valued on the expensive side.
- ALRFG's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. ALRFG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.18 | ||
| Fwd PE | 22.32 |
4.2 Price Multiples
- ALRFG's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.95 |
4.3 Compensation for Growth
- ALRFG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- ALRFG has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as ALRFG's earnings are expected to grow with 14.86% in the coming years.
PEG (NY)1.6
PEG (5Y)N/A
EPS Next 2Y15.47%
EPS Next 3Y14.86%
5. Dividend
5.1 Amount
- ALRFG has a Yearly Dividend Yield of 1.81%. Purely for dividend investing, there may be better candidates out there.
- ALRFG's Dividend Yield is comparable with the industry average which is at 2.37.
- Compared to an average S&P500 Dividend Yield of 1.81, ALRFG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
- 53.12% of the earnings are spent on dividend by ALRFG. This is a bit on the high side, but may be sustainable.
DP53.12%
EPS Next 2Y15.47%
EPS Next 3Y14.86%
RACING FORCE SPA / ALRFG.PA FAQ
What is the ChartMill fundamental rating of RACING FORCE SPA (ALRFG.PA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to ALRFG.PA.
What is the valuation status for ALRFG stock?
ChartMill assigns a valuation rating of 2 / 10 to RACING FORCE SPA (ALRFG.PA). This can be considered as Overvalued.
How profitable is RACING FORCE SPA (ALRFG.PA) stock?
RACING FORCE SPA (ALRFG.PA) has a profitability rating of 5 / 10.
What is the valuation of RACING FORCE SPA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for RACING FORCE SPA (ALRFG.PA) is 29.18 and the Price/Book (PB) ratio is 2.26.
What is the expected EPS growth for RACING FORCE SPA (ALRFG.PA) stock?
The Earnings per Share (EPS) of RACING FORCE SPA (ALRFG.PA) is expected to grow by 18.18% in the next year.