ALLIANZ SE-REG (ALV.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ALV - DE0008404005 - Common Stock
363.9 EUR
-6.1 (-1.65%)
ALV gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 industry peers in the Insurance industry. Both the profitability and the financial health of ALV get a neutral evaluation. Nothing too spectacular is happening here. ALV is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year ALV was profitable.
- In the past year ALV had a positive cash flow from operations.
- ALV had positive earnings in each of the past 5 years.
- In the past 5 years ALV always reported a positive cash flow from operatings.
1.2 Ratios
- ALV's Return On Assets of 1.49% is fine compared to the rest of the industry. ALV outperforms 62.50% of its industry peers.
- ALV's Return On Equity of 25.91% is amongst the best of the industry. ALV outperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.49% | ||
| ROE | 25.91% | ||
| ROIC | N/A |
ROA(3y)0.82%
ROA(5y)0.74%
ROE(3y)14.08%
ROE(5y)11.77%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- With a decent Profit Margin value of 10.90%, ALV is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- ALV's Profit Margin has improved in the last couple of years.
- ALV does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 10.9% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y33.01%
PM growth 5Y14.21%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- ALV does not have a ROIC to compare to the WACC, probably because it is not profitable.
- The number of shares outstanding for ALV has been reduced compared to 1 year ago.
- Compared to 5 years ago, ALV has less shares outstanding
- ALV has a worse debt/assets ratio than last year.
2.2 Solvency
- ALV has an Altman-Z score of 0.23. This is a bad value and indicates that ALV is not financially healthy and even has some risk of bankruptcy.
- ALV has a better Altman-Z score (0.23) than 81.25% of its industry peers.
- The Debt to FCF ratio of ALV is 1.06, which is an excellent value as it means it would take ALV, only 1.06 years of fcf income to pay off all of its debts.
- ALV has a better Debt to FCF ratio (1.06) than 87.50% of its industry peers.
- ALV has a Debt/Equity ratio of 0.64. This is a neutral value indicating ALV is somewhat dependend on debt financing.
- ALV has a Debt to Equity ratio (0.64) which is in line with its industry peers.
- Although ALV does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 1.06 | ||
| Altman-Z | 0.23 |
ROIC/WACCN/A
WACC6.79%
2.3 Liquidity
- A Current Ratio of 0.05 indicates that ALV may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.05, ALV is in the better half of the industry, outperforming 60.42% of the companies in the same industry.
- ALV has a Quick Ratio of 0.05. This is a bad value and indicates that ALV is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.05, ALV is in the better half of the industry, outperforming 60.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 10.30% over the past year.
- Measured over the past 5 years, ALV shows a small growth in Earnings Per Share. The EPS has been growing by 6.23% on average per year.
- The Revenue has grown by 13.94% in the past year. This is quite good.
- ALV shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -8.64% yearly.
EPS 1Y (TTM)10.3%
EPS 3Y17.57%
EPS 5Y6.23%
EPS Q2Q%9.96%
Revenue 1Y (TTM)13.94%
Revenue growth 3Y-14.09%
Revenue growth 5Y-8.64%
Sales Q2Q%5.46%
3.2 Future
- The Earnings Per Share is expected to grow by 7.56% on average over the next years.
- The Revenue is expected to grow by 21.91% on average over the next years. This is a very strong growth
EPS Next Y11.59%
EPS Next 2Y9.54%
EPS Next 3Y8.69%
EPS Next 5Y7.56%
Revenue Next Year3.93%
Revenue Next 2Y4.46%
Revenue Next 3Y10.44%
Revenue Next 5Y21.91%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 13.43, which indicates a correct valuation of ALV.
- ALV's Price/Earnings ratio is in line with the industry average.
- ALV's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- The Price/Forward Earnings ratio is 11.89, which indicates a very decent valuation of ALV.
- Based on the Price/Forward Earnings ratio, ALV is valued a bit more expensive than 60.42% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, ALV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.43 | ||
| Fwd PE | 11.89 |
4.2 Price Multiples
- ALV's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ALV is cheaper than 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.97 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- ALV's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.16
PEG (5Y)2.16
EPS Next 2Y9.54%
EPS Next 3Y8.69%
5. Dividend
5.1 Amount
- ALV has a Yearly Dividend Yield of 4.03%, which is a nice return.
- Compared to an average industry Dividend Yield of 4.19, ALV has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, ALV pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.03% |
5.2 History
- The dividend of ALV is nicely growing with an annual growth rate of 8.88%!
Dividend Growth(5Y)8.88%
Div Incr Years1
Div Non Decr Years6
5.3 Sustainability
- 42.51% of the earnings are spent on dividend by ALV. This is a bit on the high side, but may be sustainable.
- The dividend of ALV is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP42.51%
EPS Next 2Y9.54%
EPS Next 3Y8.69%
ALLIANZ SE-REG / ALV.DE FAQ
Can you provide the ChartMill fundamental rating for ALLIANZ SE-REG?
ChartMill assigns a fundamental rating of 5 / 10 to ALV.DE.
Can you provide the valuation status for ALLIANZ SE-REG?
ChartMill assigns a valuation rating of 5 / 10 to ALLIANZ SE-REG (ALV.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for ALLIANZ SE-REG?
ALLIANZ SE-REG (ALV.DE) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for ALV stock?
The Earnings per Share (EPS) of ALLIANZ SE-REG (ALV.DE) is expected to grow by 11.59% in the next year.
How sustainable is the dividend of ALLIANZ SE-REG (ALV.DE) stock?
The dividend rating of ALLIANZ SE-REG (ALV.DE) is 6 / 10 and the dividend payout ratio is 42.51%.