ARAMIS GROUP SAS (ARAMI.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:ARAMI - FR0014003U94 - Common Stock
4.68 EUR
-0.02 (-0.43%)
Overall ARAMI gets a fundamental rating of 5 out of 10. We evaluated ARAMI against 56 industry peers in the Specialty Retail industry. ARAMI has a great financial health rating, but its profitability evaluates not so good. ARAMI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- ARAMI had positive earnings in the past year.
- ARAMI had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: ARAMI reported negative net income in multiple years.
- In multiple years ARAMI reported negative operating cash flow during the last 5 years.
1.2 Ratios
- ARAMI has a Return On Assets (2.82%) which is in line with its industry peers.
- ARAMI has a Return On Equity of 8.07%. This is in the better half of the industry: ARAMI outperforms 60.71% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 6.40%, ARAMI is in line with its industry, outperforming 58.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.82% | ||
| ROE | 8.07% | ||
| ROIC | 6.4% |
ROA(3y)-0.33%
ROA(5y)-3.19%
ROE(3y)-1.69%
ROE(5y)-8.04%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- Looking at the Profit Margin, with a value of 0.70%, ARAMI is in line with its industry, outperforming 46.43% of the companies in the same industry.
- ARAMI's Operating Margin of 1.22% is on the low side compared to the rest of the industry. ARAMI is outperformed by 62.50% of its industry peers.
- ARAMI's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 17.41%, ARAMI is not doing good in the industry: 80.36% of the companies in the same industry are doing better.
- ARAMI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.22% | ||
| PM (TTM) | 0.7% | ||
| GM | 17.41% |
OM growth 3YN/A
OM growth 5Y5.67%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.88%
GM growth 5Y-0.37%
2. Health
2.1 Basic Checks
- ARAMI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, ARAMI has about the same amount of shares outstanding.
- The number of shares outstanding for ARAMI remains at a similar level compared to 5 years ago.
- Compared to 1 year ago, ARAMI has an improved debt to assets ratio.
2.2 Solvency
- ARAMI has an Altman-Z score of 4.83. This indicates that ARAMI is financially healthy and has little risk of bankruptcy at the moment.
- ARAMI has a Altman-Z score of 4.83. This is amongst the best in the industry. ARAMI outperforms 91.07% of its industry peers.
- ARAMI has a debt to FCF ratio of 1.94. This is a very positive value and a sign of high solvency as it would only need 1.94 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 1.94, ARAMI belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
- A Debt/Equity ratio of 0.52 indicates that ARAMI is somewhat dependend on debt financing.
- ARAMI has a Debt to Equity ratio (0.52) which is in line with its industry peers.
- Although ARAMI 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 | 0.52 | ||
| Debt/FCF | 1.94 | ||
| Altman-Z | 4.83 |
ROIC/WACC0.95
WACC6.77%
2.3 Liquidity
- A Current Ratio of 1.33 indicates that ARAMI should not have too much problems paying its short term obligations.
- ARAMI's Current ratio of 1.33 is fine compared to the rest of the industry. ARAMI outperforms 64.29% of its industry peers.
- ARAMI has a Quick Ratio of 1.33. This is a bad value and indicates that ARAMI is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.49, ARAMI perfoms like the industry average, outperforming 46.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
- ARAMI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 120.09%, which is quite impressive.
- ARAMI shows a small growth in Revenue. In the last year, the Revenue has grown by 6.35%.
- ARAMI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.42% yearly.
EPS 1Y (TTM)120.09%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-51.05%
Revenue 1Y (TTM)6.35%
Revenue growth 3Y10.39%
Revenue growth 5Y23.42%
Sales Q2Q%2.37%
3.2 Future
- Based on estimates for the next years, ARAMI will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.92% on average per year.
- The Revenue is expected to grow by 5.54% on average over the next years.
EPS Next Y18.02%
EPS Next 2Y14.28%
EPS Next 3Y15.92%
EPS Next 5YN/A
Revenue Next Year2.02%
Revenue Next 2Y4.62%
Revenue Next 3Y3.05%
Revenue Next 5Y5.54%
3.3 Evolution
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 23.40 indicates a rather expensive valuation of ARAMI.
- Based on the Price/Earnings ratio, ARAMI is valued a bit cheaper than the industry average as 69.64% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.25. ARAMI is around the same levels.
- The Price/Forward Earnings ratio is 18.17, which indicates a rather expensive current valuation of ARAMI.
- 60.71% of the companies in the same industry are more expensive than ARAMI, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of ARAMI to the average of the S&P500 Index (25.98), we can say ARAMI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.4 | ||
| Fwd PE | 18.17 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as ARAMI.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARAMI indicates a somewhat cheap valuation: ARAMI is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.21 | ||
| EV/EBITDA | 8.46 |
4.3 Compensation for Growth
- ARAMI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- ARAMI's earnings are expected to grow with 15.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.3
PEG (5Y)N/A
EPS Next 2Y14.28%
EPS Next 3Y15.92%
5. Dividend
5.1 Amount
- No dividends for ARAMI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ARAMIS GROUP SAS / ARAMI.PA FAQ
Can you provide the ChartMill fundamental rating for ARAMIS GROUP SAS?
ChartMill assigns a fundamental rating of 5 / 10 to ARAMI.PA.
What is the valuation status for ARAMI stock?
ChartMill assigns a valuation rating of 4 / 10 to ARAMIS GROUP SAS (ARAMI.PA). This can be considered as Fairly Valued.
What is the profitability of ARAMI stock?
ARAMIS GROUP SAS (ARAMI.PA) has a profitability rating of 3 / 10.
Can you provide the financial health for ARAMI stock?
The financial health rating of ARAMIS GROUP SAS (ARAMI.PA) is 7 / 10.