ANDRITZ AG (AZ2.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AZ2 - AT0000730007 - Common Stock
71.6 EUR
+0.2 (+0.28%)
AZ2 gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 115 industry peers in the Machinery industry. AZ2 has an excellent profitability rating, but there are some minor concerns on its financial health. AZ2 is valued correctly, but it does not seem to be growing. AZ2 also has an excellent dividend rating. With these ratings, AZ2 could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
- AZ2 had positive earnings in the past year.
- In the past year AZ2 had a positive cash flow from operations.
- Each year in the past 5 years AZ2 has been profitable.
- Each year in the past 5 years AZ2 had a positive operating cash flow.
1.2 Ratios
- AZ2 has a Return On Assets of 5.55%. This is in the better half of the industry: AZ2 outperforms 73.91% of its industry peers.
- With an excellent Return On Equity value of 19.97%, AZ2 belongs to the best of the industry, outperforming 84.35% of the companies in the same industry.
- The Return On Invested Capital of AZ2 (12.84%) is better than 86.09% of its industry peers.
- AZ2 had an Average Return On Invested Capital over the past 3 years of 13.75%. This is above the industry average of 8.97%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.55% | ||
| ROE | 19.97% | ||
| ROIC | 12.84% |
ROA(3y)5.64%
ROA(5y)4.82%
ROE(3y)22.46%
ROE(5y)20.91%
ROIC(3y)13.75%
ROIC(5y)11.75%
1.3 Margins
- AZ2's Profit Margin of 5.84% is fine compared to the rest of the industry. AZ2 outperforms 64.35% of its industry peers.
- In the last couple of years the Profit Margin of AZ2 has grown nicely.
- AZ2 has a better Operating Margin (7.53%) than 60.87% of its industry peers.
- AZ2's Operating Margin has improved in the last couple of years.
- AZ2 has a Gross Margin of 51.89%. This is in the better half of the industry: AZ2 outperforms 69.57% of its industry peers.
- AZ2's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.53% | ||
| PM (TTM) | 5.84% | ||
| GM | 51.89% |
OM growth 3Y3.96%
OM growth 5Y14.56%
PM growth 3Y5.84%
PM growth 5Y25.54%
GM growth 3Y0.42%
GM growth 5Y-0.28%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), AZ2 is creating value.
- Compared to 1 year ago, AZ2 has less shares outstanding
- The number of shares outstanding for AZ2 has been reduced compared to 5 years ago.
- The debt/assets ratio for AZ2 has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.47 indicates that AZ2 is not a great score, but indicates only limited risk for bankruptcy at the moment.
- AZ2 has a Altman-Z score (2.47) which is comparable to the rest of the industry.
- AZ2 has a debt to FCF ratio of 2.38. This is a good value and a sign of high solvency as AZ2 would need 2.38 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 2.38, AZ2 is doing good in the industry, outperforming 77.39% of the companies in the same industry.
- A Debt/Equity ratio of 0.21 indicates that AZ2 is not too dependend on debt financing.
- AZ2 has a better Debt to Equity ratio (0.21) than 66.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 2.38 | ||
| Altman-Z | 2.47 |
ROIC/WACC1.74
WACC7.36%
2.3 Liquidity
- AZ2 has a Current Ratio of 1.11. This is a normal value and indicates that AZ2 is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.11, AZ2 is doing worse than 75.65% of the companies in the same industry.
- AZ2 has a Quick Ratio of 1.11. This is a bad value and indicates that AZ2 is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.84, AZ2 is not doing good in the industry: 63.48% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
- AZ2 shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.36%.
- Measured over the past years, AZ2 shows a very strong growth in Earnings Per Share. The EPS has been growing by 31.53% on average per year.
- AZ2 shows a decrease in Revenue. In the last year, the revenue decreased by -7.68%.
- The Revenue has been growing slightly by 4.49% on average over the past years.
EPS 1Y (TTM)-7.36%
EPS 3Y15.21%
EPS 5Y31.53%
EPS Q2Q%-4.2%
Revenue 1Y (TTM)-7.68%
Revenue growth 3Y8.76%
Revenue growth 5Y4.49%
Sales Q2Q%-7.57%
3.2 Future
- The Earnings Per Share is expected to grow by 6.84% on average over the next years.
- AZ2 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.81% yearly.
EPS Next Y-4.79%
EPS Next 2Y6.35%
EPS Next 3Y8.21%
EPS Next 5Y6.84%
Revenue Next Year-5.29%
Revenue Next 2Y1.82%
Revenue Next 3Y3.34%
Revenue Next 5Y4.81%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 15.36 indicates a correct valuation of AZ2.
- 80.00% of the companies in the same industry are more expensive than AZ2, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, AZ2 is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 12.66, AZ2 is valued correctly.
- 69.57% of the companies in the same industry are more expensive than AZ2, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. AZ2 is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.36 | ||
| Fwd PE | 12.66 |
4.2 Price Multiples
- 68.70% of the companies in the same industry are more expensive than AZ2, based on the Enterprise Value to EBITDA ratio.
- AZ2's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.81 | ||
| EV/EBITDA | 8.28 |
4.3 Compensation for Growth
- AZ2 has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.49
EPS Next 2Y6.35%
EPS Next 3Y8.21%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.26%, AZ2 is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.50, AZ2 pays a better dividend. On top of this AZ2 pays more dividend than 93.91% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, AZ2 pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
5.2 History
- On average, the dividend of AZ2 grows each year by 10.14%, which is quite nice.
Dividend Growth(5Y)10.14%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- 55.55% of the earnings are spent on dividend by AZ2. This is a bit on the high side, but may be sustainable.
- The dividend of AZ2 is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP55.55%
EPS Next 2Y6.35%
EPS Next 3Y8.21%
ANDRITZ AG / AZ2.DE FAQ
Can you provide the ChartMill fundamental rating for ANDRITZ AG?
ChartMill assigns a fundamental rating of 6 / 10 to AZ2.DE.
What is the valuation status of ANDRITZ AG (AZ2.DE) stock?
ChartMill assigns a valuation rating of 5 / 10 to ANDRITZ AG (AZ2.DE). This can be considered as Fairly Valued.
What is the profitability of AZ2 stock?
ANDRITZ AG (AZ2.DE) has a profitability rating of 8 / 10.
How financially healthy is ANDRITZ AG?
The financial health rating of ANDRITZ AG (AZ2.DE) is 5 / 10.
Is the dividend of ANDRITZ AG sustainable?
The dividend rating of ANDRITZ AG (AZ2.DE) is 7 / 10 and the dividend payout ratio is 55.55%.