ARAMIS GROUP SAS (ARAMI.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:ARAMI - FR0014003U94 - Common Stock
4.575 EUR
-0.19 (-4.09%)
Taking everything into account, ARAMI scores 5 out of 10 in our fundamental rating. ARAMI was compared to 56 industry peers in the Specialty Retail industry. While ARAMI has a great health rating, there are worries on its profitability. ARAMI is not valued too expensively and it also shows a decent 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.
- In multiple years ARAMI reported negative net income over the last 5 years.
- In multiple years ARAMI reported negative operating cash flow during the last 5 years.
1.2 Ratios
- ARAMI has a Return On Assets of 2.82%. This is comparable to the rest of the industry: ARAMI outperforms 58.93% of 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.
- ARAMI has a Return On Invested Capital of 6.40%. This is comparable to the rest of the industry: ARAMI outperforms 58.93% of its industry peers.
| 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
- ARAMI has a Profit Margin of 0.70%. This is comparable to the rest of the industry: ARAMI outperforms 46.43% of its industry peers.
- ARAMI has a Operating Margin of 1.22%. This is in the lower half of the industry: ARAMI underperforms 62.50% of its industry peers.
- ARAMI's Operating Margin has improved in the last couple of years.
- The Gross Margin of ARAMI (17.41%) is worse than 80.36% of its industry peers.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ARAMI is destroying value.
- The number of shares outstanding for ARAMI remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, ARAMI has about the same amount of shares outstanding.
- Compared to 1 year ago, ARAMI has an improved debt to assets ratio.
2.2 Solvency
- ARAMI has an Altman-Z score of 4.84. This indicates that ARAMI is financially healthy and has little risk of bankruptcy at the moment.
- ARAMI has a better Altman-Z score (4.84) than 91.07% of its industry peers.
- The Debt to FCF ratio of ARAMI is 1.94, which is an excellent value as it means it would take ARAMI, only 1.94 years of fcf income to pay off 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.
- Looking at the Debt to Equity ratio, with a value of 0.52, ARAMI is in line with its industry, outperforming 57.14% of the companies in the same industry.
- Even though the debt/equity ratio score it not favorable for ARAMI, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.94 | ||
| Altman-Z | 4.84 |
ROIC/WACC0.95
WACC6.77%
2.3 Liquidity
- ARAMI has a Current Ratio of 1.33. This is a normal value and indicates that ARAMI is financially healthy and should not expect problems in meeting its short term obligations.
- ARAMI has a better Current ratio (1.33) than 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.
- ARAMI has a Quick ratio (0.49) which is in line with its industry peers.
| 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%.
- The Revenue has been growing by 23.42% on average over the past years. This is a very strong growth!
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.
- ARAMI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.54% yearly.
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
- The Price/Earnings ratio is 22.88, which indicates a rather expensive current valuation of ARAMI.
- Compared to the rest of the industry, the Price/Earnings ratio of ARAMI indicates a somewhat cheap valuation: ARAMI is cheaper than 71.43% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.82, ARAMI is valued a bit cheaper.
- A Price/Forward Earnings ratio of 17.77 indicates a rather expensive valuation of ARAMI.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ARAMI indicates a somewhat cheap valuation: ARAMI is cheaper than 60.71% of the companies listed in the same industry.
- ARAMI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.88 | ||
| Fwd PE | 17.77 |
4.2 Price Multiples
- ARAMI's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, ARAMI is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.09 | ||
| EV/EBITDA | 8.55 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- A more expensive valuation may be justified as ARAMI's earnings are expected to grow with 15.92% in the coming years.
PEG (NY)1.27
PEG (5Y)N/A
EPS Next 2Y14.28%
EPS Next 3Y15.92%
5. Dividend
5.1 Amount
- ARAMI does not give a dividend.
| 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.