BARCO N.V. (BAR.BR) Stock Fundamental Analysis
Europe - Euronext Brussels - EBR:BAR - BE0974362940 - Common Stock
11.855 EUR
-0.04 (-0.38%)
We assign a fundamental rating of 6 out of 10 to BAR. BAR was compared to 52 industry peers in the Electronic Equipment, Instruments & Components industry. BAR has an excellent financial health rating, but there are some minor concerns on its profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on BAR. Finally BAR also has an excellent dividend rating. This makes BAR very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
- In the past year BAR was profitable.
- In the past year BAR had a positive cash flow from operations.
- BAR had positive earnings in 4 of the past 5 years.
- BAR had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- BAR's Return On Assets of 7.10% is amongst the best of the industry. BAR outperforms 90.38% of its industry peers.
- Looking at the Return On Equity, with a value of 11.09%, BAR is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- BAR's Return On Invested Capital of 7.42% is fine compared to the rest of the industry. BAR outperforms 75.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for BAR is in line with the industry average of 7.60%.
- The 3 year average ROIC (7.25%) for BAR is below the current ROIC(7.42%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.1% | ||
| ROE | 11.09% | ||
| ROIC | 7.42% |
ROA(3y)6.2%
ROA(5y)3.79%
ROE(3y)9.3%
ROE(5y)5.7%
ROIC(3y)7.25%
ROIC(5y)4.83%
1.3 Margins
- BAR has a Profit Margin of 7.99%. This is amongst the best in the industry. BAR outperforms 82.69% of its industry peers.
- BAR's Profit Margin has declined in the last couple of years.
- BAR has a Operating Margin of 7.95%. This is in the better half of the industry: BAR outperforms 75.00% of its industry peers.
- BAR's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 40.80%, BAR is in line with its industry, outperforming 44.23% of the companies in the same industry.
- In the last couple of years the Gross Margin of BAR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.95% | ||
| PM (TTM) | 7.99% | ||
| GM | 40.8% |
OM growth 3Y51.51%
OM growth 5Y-8.88%
PM growth 3Y81.95%
PM growth 5Y-5.47%
GM growth 3Y4.44%
GM growth 5Y0.53%
2. Health
2.1 Basic Checks
- BAR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- BAR has less shares outstanding than it did 1 year ago.
- BAR has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for BAR is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 4.08 indicates that BAR is not in any danger for bankruptcy at the moment.
- BAR's Altman-Z score of 4.08 is fine compared to the rest of the industry. BAR outperforms 76.92% of its industry peers.
- BAR has a debt to FCF ratio of 0.83. This is a very positive value and a sign of high solvency as it would only need 0.83 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 0.83, BAR belongs to the best of the industry, outperforming 90.38% of the companies in the same industry.
- BAR has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
- BAR's Debt to Equity ratio of 0.11 is fine compared to the rest of the industry. BAR outperforms 73.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.83 | ||
| Altman-Z | 4.08 |
ROIC/WACC0.97
WACC7.68%
2.3 Liquidity
- BAR has a Current Ratio of 2.49. This indicates that BAR is financially healthy and has no problem in meeting its short term obligations.
- BAR has a better Current ratio (2.49) than 84.62% of its industry peers.
- BAR has a Quick Ratio of 1.74. This is a normal value and indicates that BAR is financially healthy and should not expect problems in meeting its short term obligations.
- With an excellent Quick ratio value of 1.74, BAR belongs to the best of the industry, outperforming 86.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.49 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
- BAR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.81%, which is quite impressive.
- Measured over the past years, BAR shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.09% on average per year.
- The Revenue has been growing slightly by 0.28% in the past year.
- The Revenue has been decreasing by -2.65% on average over the past years.
EPS 1Y (TTM)42.81%
EPS 3Y91.91%
EPS 5Y-8.09%
EPS Q2Q%170%
Revenue 1Y (TTM)0.28%
Revenue growth 3Y5.58%
Revenue growth 5Y-2.65%
Sales Q2Q%4.58%
3.2 Future
- The Earnings Per Share is expected to grow by 16.52% on average over the next years. This is quite good.
- The Revenue is expected to grow by 5.17% on average over the next years.
EPS Next Y39.84%
EPS Next 2Y25.47%
EPS Next 3Y20.32%
EPS Next 5Y16.52%
Revenue Next Year2.68%
Revenue Next 2Y3.2%
Revenue Next 3Y3.44%
Revenue Next 5Y5.17%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 13.47, the valuation of BAR can be described as correct.
- BAR's Price/Earnings ratio is rather cheap when compared to the industry. BAR is cheaper than 88.46% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.30. BAR is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 12.19, the valuation of BAR can be described as correct.
- Based on the Price/Forward Earnings ratio, BAR is valued a bit cheaper than 69.23% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. BAR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.47 | ||
| Fwd PE | 12.19 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BAR is valued a bit cheaper than 75.00% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of BAR indicates a somewhat cheap valuation: BAR is cheaper than 71.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.19 | ||
| EV/EBITDA | 7.33 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- BAR has a very decent profitability rating, which may justify a higher PE ratio.
- BAR's earnings are expected to grow with 20.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.34
PEG (5Y)N/A
EPS Next 2Y25.47%
EPS Next 3Y20.32%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.93%, BAR has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.54, BAR pays a bit more dividend than its industry peers.
- BAR's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
5.2 History
- On average, the dividend of BAR grows each year by 7.79%, which is quite nice.
Dividend Growth(5Y)7.79%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- 57.24% of the earnings are spent on dividend by BAR. This is a bit on the high side, but may be sustainable.
- BAR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP57.24%
EPS Next 2Y25.47%
EPS Next 3Y20.32%
BARCO N.V. / BAR.BR FAQ
Can you provide the ChartMill fundamental rating for BARCO N.V.?
ChartMill assigns a fundamental rating of 6 / 10 to BAR.BR.
Can you provide the valuation status for BARCO N.V.?
ChartMill assigns a valuation rating of 7 / 10 to BARCO N.V. (BAR.BR). This can be considered as Undervalued.
Can you provide the profitability details for BARCO N.V.?
BARCO N.V. (BAR.BR) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for BAR stock?
The Price/Earnings (PE) ratio for BARCO N.V. (BAR.BR) is 13.47 and the Price/Book (PB) ratio is 1.58.
How financially healthy is BARCO N.V.?
The financial health rating of BARCO N.V. (BAR.BR) is 7 / 10.