ALLIANZ SE-REG (ALV.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ALV - DE0008404005 - Common Stock
370.9 EUR
+1.6 (+0.43%)
We assign a fundamental rating of 5 out of 10 to ALV. ALV was compared to 48 industry peers in the Insurance industry. ALV has only an average score on both its financial health and profitability. ALV is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- ALV had positive earnings in the past year.
- ALV had a positive operating cash flow in the past year.
- ALV had positive earnings in each of the past 5 years.
- ALV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ALV has a Return On Assets of 1.49%. This is in the better half of the industry: ALV outperforms 62.50% of its industry peers.
- The Return On Equity of ALV (25.91%) is better than 93.75% 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 68.75% of the companies in the same industry.
- In the last couple of years the Profit Margin of ALV has grown nicely.
- 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
- The debt/assets ratio for ALV is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.23, we must say that ALV is in the distress zone and has some risk of bankruptcy.
- With an excellent Altman-Z score value of 0.23, ALV belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
- ALV has a debt to FCF ratio of 1.06. This is a very positive value and a sign of high solvency as it would only need 1.06 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.06, ALV belongs to the top of the industry, outperforming 85.42% of the companies in the same industry.
- A Debt/Equity ratio of 0.64 indicates that ALV is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.64, ALV perfoms like the industry average, outperforming 52.08% of the companies in the same industry.
- 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
WACC6.8%
2.3 Liquidity
- A Current Ratio of 0.05 indicates that ALV may have some problems paying its short term obligations.
- ALV has a Current ratio of 0.05. This is in the better half of the industry: ALV outperforms 66.67% of its industry peers.
- A Quick Ratio of 0.05 indicates that ALV may have some problems paying its short term obligations.
- The Quick ratio of ALV (0.05) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 |
3. Growth
3.1 Past
- ALV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.30%, which is quite good.
- ALV shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.23% yearly.
- Looking at the last year, ALV shows a quite strong growth in Revenue. The Revenue has grown by 13.94% in the last year.
- 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
- ALV is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.56% yearly.
- 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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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 13.69, which indicates a correct valuation of ALV.
- Compared to the rest of the industry, the Price/Earnings ratio of ALV indicates a somewhat cheap valuation: ALV is cheaper than 60.42% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of ALV to the average of the S&P500 Index (28.39), we can say ALV is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 12.12, the valuation of ALV can be described as correct.
- Based on the Price/Forward Earnings ratio, ALV is valued a bit more expensive than the industry average as 60.42% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, ALV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.69 | ||
| Fwd PE | 12.12 |
4.2 Price Multiples
- ALV's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ALV is cheaper than 85.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.05 | ||
| 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)1.18
PEG (5Y)2.2
EPS Next 2Y9.54%
EPS Next 3Y8.69%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.16%, ALV is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 4.17, 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 | 4.16% |
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.
- ALV's earnings are growing slower than its dividend. 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%.