ASSYSTEM (ASY.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:ASY - FR0000074148 - Common Stock
47.2 EUR
+1 (+2.16%)
We assign a fundamental rating of 3 out of 10 to ASY. ASY was compared to 36 industry peers in the Professional Services industry. While ASY seems to be doing ok healthwise, there are quite some concerns on its profitability. ASY is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- ASY had positive earnings in the past year.
- In the past year ASY had a positive cash flow from operations.
- Of the past 5 years ASY 4 years were profitable.
- ASY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of ASY (1.16%) is worse than 61.11% of its industry peers.
- Looking at the Return On Equity, with a value of 2.76%, ASY is doing worse than 61.11% of the companies in the same industry.
- ASY has a worse Return On Invested Capital (0.79%) than 72.22% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ASY is significantly below the industry average of 11.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.16% | ||
| ROE | 2.76% | ||
| ROIC | 0.79% |
ROA(3y)6.75%
ROA(5y)4.3%
ROE(3y)12.09%
ROE(5y)7.77%
ROIC(3y)4.12%
ROIC(5y)3.93%
1.3 Margins
- The Profit Margin of ASY (1.22%) is comparable to the rest of the industry.
- ASY's Profit Margin has declined in the last couple of years.
- ASY's Operating Margin of 0.72% is on the low side compared to the rest of the industry. ASY is outperformed by 72.22% of its industry peers.
- ASY's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.72% | ||
| PM (TTM) | 1.22% | ||
| GM | N/A |
OM growth 3Y-17.68%
OM growth 5Y-12.46%
PM growth 3Y-43.9%
PM growth 5Y-24.23%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- ASY 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, ASY has less shares outstanding
- Compared to 5 years ago, ASY has less shares outstanding
- Compared to 1 year ago, ASY has a worse debt to assets ratio.
2.2 Solvency
- ASY has an Altman-Z score of 2.69. This is not the best score and indicates that ASY is in the grey zone with still only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.69, ASY perfoms like the industry average, outperforming 52.78% of the companies in the same industry.
- The Debt to FCF ratio of ASY is 3.93, which is a good value as it means it would take ASY, 3.93 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of ASY (3.93) is better than 63.89% of its industry peers.
- A Debt/Equity ratio of 0.47 indicates that ASY is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.47, ASY is in the better half of the industry, outperforming 63.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.93 | ||
| Altman-Z | 2.69 |
ROIC/WACC0.1
WACC7.6%
2.3 Liquidity
- ASY has a Current Ratio of 1.16. This is a normal value and indicates that ASY is financially healthy and should not expect problems in meeting its short term obligations.
- ASY has a Current ratio (1.16) which is comparable to the rest of the industry.
- A Quick Ratio of 1.16 indicates that ASY should not have too much problems paying its short term obligations.
- ASY's Quick ratio of 1.16 is in line compared to the rest of the industry. ASY outperforms 58.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
- The earnings per share for ASY have decreased strongly by -91.12% in the last year.
- Measured over the past years, ASY shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -21.02% on average per year.
- ASY shows a small growth in Revenue. In the last year, the Revenue has grown by 6.71%.
- ASY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.24% yearly.
EPS 1Y (TTM)-91.12%
EPS 3Y-38.1%
EPS 5Y-21.02%
EPS Q2Q%-7.84%
Revenue 1Y (TTM)6.71%
Revenue growth 3Y11.19%
Revenue growth 5Y4.24%
Sales Q2Q%8.33%
3.2 Future
- The Earnings Per Share is expected to grow by 29.25% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 5.79% on average over the next years.
EPS Next Y38.72%
EPS Next 2Y39.39%
EPS Next 3Y29.25%
EPS Next 5YN/A
Revenue Next Year8.53%
Revenue Next 2Y6.32%
Revenue Next 3Y5.79%
Revenue Next 5YN/A
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
- With a Price/Earnings ratio of 90.77, ASY can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, ASY is valued a bit more expensive than the industry average as 63.89% of the companies are valued more cheaply.
- When comparing the Price/Earnings ratio of ASY to the average of the S&P500 Index (28.39), we can say ASY is valued expensively.
- Based on the Price/Forward Earnings ratio of 15.80, the valuation of ASY can be described as correct.
- 63.89% of the companies in the same industry are more expensive than ASY, based on the Price/Forward Earnings ratio.
- ASY is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 90.77 | ||
| Fwd PE | 15.8 |
4.2 Price Multiples
- ASY's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ASY is more expensive than 75.00% of the companies in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as ASY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.88 | ||
| EV/EBITDA | 39.44 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- A more expensive valuation may be justified as ASY's earnings are expected to grow with 29.25% in the coming years.
PEG (NY)2.34
PEG (5Y)N/A
EPS Next 2Y39.39%
EPS Next 3Y29.25%
5. Dividend
5.1 Amount
- ASY has a Yearly Dividend Yield of 2.13%.
- ASY's Dividend Yield is comparable with the industry average which is at 2.39.
- ASY's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
5.2 History
- The dividend of ASY is nicely growing with an annual growth rate of 61.63%!
Dividend Growth(5Y)61.63%
Div Incr Years1
Div Non Decr Years6
5.3 Sustainability
- 1051.28% of the earnings are spent on dividend by ASY. This is not a sustainable payout ratio.
- The dividend of ASY is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP1051.28%
EPS Next 2Y39.39%
EPS Next 3Y29.25%
ASSYSTEM / ASY.PA FAQ
What is the ChartMill fundamental rating of ASSYSTEM (ASY.PA) stock?
ChartMill assigns a fundamental rating of 3 / 10 to ASY.PA.
What is the valuation status of ASSYSTEM (ASY.PA) stock?
ChartMill assigns a valuation rating of 2 / 10 to ASSYSTEM (ASY.PA). This can be considered as Overvalued.
How profitable is ASSYSTEM (ASY.PA) stock?
ASSYSTEM (ASY.PA) has a profitability rating of 2 / 10.
Can you provide the expected EPS growth for ASY stock?
The Earnings per Share (EPS) of ASSYSTEM (ASY.PA) is expected to grow by 38.72% in the next year.
How sustainable is the dividend of ASSYSTEM (ASY.PA) stock?
The dividend rating of ASSYSTEM (ASY.PA) is 3 / 10 and the dividend payout ratio is 1051.28%.