WE CONNECT (ALWEC.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:ALWEC - FR0013079092 - Common Stock
24.3 EUR
+0.5 (+2.1%)
Overall ALWEC gets a fundamental rating of 5 out of 10. We evaluated ALWEC against 51 industry peers in the Electronic Equipment, Instruments & Components industry. ALWEC has an excellent profitability rating, but there are some minor concerns on its financial health. ALWEC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- ALWEC had positive earnings in the past year.
- In the past year ALWEC has reported a negative cash flow from operations.
- In the past 5 years ALWEC has always been profitable.
- In multiple years ALWEC reported negative operating cash flow during the last 5 years.
1.2 Ratios
- With a decent Return On Assets value of 4.87%, ALWEC is doing good in the industry, outperforming 76.47% of the companies in the same industry.
- ALWEC's Return On Equity of 15.56% is amongst the best of the industry. ALWEC outperforms 92.16% of its industry peers.
- With an excellent Return On Invested Capital value of 12.11%, ALWEC belongs to the best of the industry, outperforming 90.20% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ALWEC is above the industry average of 7.51%.
- The last Return On Invested Capital (12.11%) for ALWEC is above the 3 year average (11.61%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.87% | ||
| ROE | 15.56% | ||
| ROIC | 12.11% |
ROA(3y)4.83%
ROA(5y)4.61%
ROE(3y)16.56%
ROE(5y)16.93%
ROIC(3y)11.61%
ROIC(5y)12.85%
1.3 Margins
- ALWEC's Profit Margin of 2.88% is fine compared to the rest of the industry. ALWEC outperforms 70.59% of its industry peers.
- In the last couple of years the Profit Margin of ALWEC has grown nicely.
- With a decent Operating Margin value of 3.89%, ALWEC is doing good in the industry, outperforming 60.78% of the companies in the same industry.
- ALWEC's Operating Margin has been stable in the last couple of years.
- The Gross Margin of ALWEC (10.59%) is worse than 86.27% of its industry peers.
- In the last couple of years the Gross Margin of ALWEC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.89% | ||
| PM (TTM) | 2.88% | ||
| GM | 10.59% |
OM growth 3Y-2.43%
OM growth 5Y-1.45%
PM growth 3Y-4.2%
PM growth 5Y11.15%
GM growth 3Y6.41%
GM growth 5Y3.57%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ALWEC is creating some value.
- The number of shares outstanding for ALWEC has been increased compared to 1 year ago.
- ALWEC has more shares outstanding than it did 5 years ago.
- ALWEC has a better debt/assets ratio than last year.
2.2 Solvency
- ALWEC has an Altman-Z score of 2.98. This is not the best score and indicates that ALWEC is in the grey zone with still only limited risk for bankruptcy at the moment.
- With a decent Altman-Z score value of 2.98, ALWEC is doing good in the industry, outperforming 60.78% of the companies in the same industry.
- ALWEC has a debt to FCF ratio of 3.55. This is a good value and a sign of high solvency as ALWEC would need 3.55 years to pay back of all of its debts.
- ALWEC's Debt to FCF ratio of 3.55 is fine compared to the rest of the industry. ALWEC outperforms 68.63% of its industry peers.
- ALWEC has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
- With a Debt to Equity ratio value of 0.36, ALWEC perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 3.55 | ||
| Altman-Z | 2.98 |
ROIC/WACC1.65
WACC7.32%
2.3 Liquidity
- A Current Ratio of 1.69 indicates that ALWEC should not have too much problems paying its short term obligations.
- The Current ratio of ALWEC (1.69) is comparable to the rest of the industry.
- A Quick Ratio of 0.86 indicates that ALWEC may have some problems paying its short term obligations.
- With a Quick ratio value of 0.86, ALWEC is not doing good in the industry: 62.75% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
- ALWEC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.01%, which is quite good.
- The Earnings Per Share has been growing by 24.99% on average over the past years. This is a very strong growth
- ALWEC shows a strong growth in Revenue. In the last year, the Revenue has grown by 39.30%.
- Measured over the past years, ALWEC shows a quite strong growth in Revenue. The Revenue has been growing by 14.13% on average per year.
EPS 1Y (TTM)9.01%
EPS 3Y4.26%
EPS 5Y24.99%
EPS Q2Q%66.14%
Revenue 1Y (TTM)39.3%
Revenue growth 3Y11.34%
Revenue growth 5Y14.13%
Sales Q2Q%45.39%
3.2 Future
- No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
- ALWEC is valuated cheaply with a Price/Earnings ratio of 7.02.
- Based on the Price/Earnings ratio, ALWEC is valued cheaper than 98.04% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.87, ALWEC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.02 | ||
| Fwd PE | N/A |
4.2 Price Multiples
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALWEC indicates a somewhat cheap valuation: ALWEC is cheaper than 68.63% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.91 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- The decent profitability rating of ALWEC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.28
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.66%, ALWEC has a reasonable but not impressive dividend return.
- ALWEC's Dividend Yield is a higher than the industry average which is at 1.56.
- Compared to an average S&P500 Dividend Yield of 1.82, ALWEC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
5.2 History
- The dividend of ALWEC is nicely growing with an annual growth rate of 9.23%!
Dividend Growth(5Y)9.23%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
- 11.61% of the earnings are spent on dividend by ALWEC. This is a low number and sustainable payout ratio.
- The dividend of ALWEC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP11.61%
EPS Next 2YN/A
EPS Next 3YN/A
WE CONNECT / ALWEC.PA FAQ
Can you provide the ChartMill fundamental rating for WE CONNECT?
ChartMill assigns a fundamental rating of 5 / 10 to ALWEC.PA.
What is the valuation status for ALWEC stock?
ChartMill assigns a valuation rating of 4 / 10 to WE CONNECT (ALWEC.PA). This can be considered as Fairly Valued.
What is the profitability of ALWEC stock?
WE CONNECT (ALWEC.PA) has a profitability rating of 7 / 10.
Can you provide the financial health for ALWEC stock?
The financial health rating of WE CONNECT (ALWEC.PA) is 4 / 10.
How sustainable is the dividend of WE CONNECT (ALWEC.PA) stock?
The dividend rating of WE CONNECT (ALWEC.PA) is 6 / 10 and the dividend payout ratio is 11.61%.