CECONOMY AG (CEC.DE) Stock Fundamental Analysis
FRA:CEC - Deutsche Boerse Ag - DE0007257503 - Common Stock - Currency: EUR
Overall CEC gets a fundamental rating of 3 out of 10. We evaluated CEC against 54 industry peers in the Specialty Retail industry. Both the profitability and financial health of CEC have multiple concerns. CEC scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year CEC has reported negative net income.
In the past year CEC had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: CEC reported negative net income in multiple years.
In the past 5 years CEC always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 0.60%, CEC perfoms like the industry average, outperforming 56.60% of the companies in the same industry.
CEC has a better Return On Equity (11.84%) than 73.58% of its industry peers.
The Return On Invested Capital of CEC (7.04%) is better than 73.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.6% | ||
| ROE | 11.84% | ||
| ROIC | 7.04% |
ROA(3y)0.54%
ROA(5y)0.31%
ROE(3y)9.22%
ROE(5y)2.51%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 0.34%, CEC perfoms like the industry average, outperforming 58.49% of the companies in the same industry.
In the last couple of years the Profit Margin of CEC has declined.
With a Operating Margin value of 1.12%, CEC perfoms like the industry average, outperforming 54.72% of the companies in the same industry.
CEC's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 17.58%, CEC is doing worse than 75.47% of the companies in the same industry.
CEC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.12% | ||
| PM (TTM) | 0.34% | ||
| GM | 17.58% |
OM growth 3Y10.44%
OM growth 5Y-3.93%
PM growth 3Y-32.19%
PM growth 5Y-9.85%
GM growth 3Y1.03%
GM growth 5Y-1.8%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CEC is destroying value.
CEC has about the same amout of shares outstanding than it did 1 year ago.
CEC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CEC has an improved debt to assets ratio.
2.2 Solvency
CEC has an Altman-Z score of 1.76. This is a bad value and indicates that CEC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of CEC (1.76) is comparable to the rest of the industry.
The Debt to FCF ratio of CEC is 4.72, which is a neutral value as it means it would take CEC, 4.72 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.72, CEC is doing good in the industry, outperforming 62.26% of the companies in the same industry.
CEC has a Debt/Equity ratio of 3.09. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CEC (3.09) is worse than 86.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.09 | ||
| Debt/FCF | 4.72 | ||
| Altman-Z | 1.76 |
ROIC/WACC0.95
WACC7.43%
2.3 Liquidity
A Current Ratio of 0.95 indicates that CEC may have some problems paying its short term obligations.
CEC has a worse Current ratio (0.95) than 73.58% of its industry peers.
CEC has a Quick Ratio of 0.95. This is a bad value and indicates that CEC is not financially healthy enough and could expect problems in meeting its short term obligations.
CEC has a Quick ratio (0.58) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
CEC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 347.02%, which is quite impressive.
Measured over the past years, CEC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -15.59% on average per year.
The Revenue has been growing slightly by 3.92% in the past year.
CEC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.90% yearly.
EPS 1Y (TTM)347.02%
EPS 3Y-37.45%
EPS 5Y-15.59%
EPS Q2Q%-74.15%
Revenue 1Y (TTM)3.92%
Revenue growth 3Y1.66%
Revenue growth 5Y0.9%
Sales Q2Q%12.08%
3.2 Future
CEC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 56.34% yearly.
The Revenue is expected to grow by 1.03% on average over the next years.
EPS Next Y133.98%
EPS Next 2Y83.09%
EPS Next 3Y56.34%
EPS Next 5YN/A
Revenue Next Year3.51%
Revenue Next 2Y2.65%
Revenue Next 3Y2.54%
Revenue Next 5Y1.03%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CEC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 7.04, the valuation of CEC can be described as very cheap.
84.91% of the companies in the same industry are more expensive than CEC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.10. CEC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 7.04 |
4.2 Price Multiples
98.11% of the companies in the same industry are more expensive than CEC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CEC is valued cheaper than 83.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.13 | ||
| EV/EBITDA | 1.7 |
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.
CEC's earnings are expected to grow with 56.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y83.09%
EPS Next 3Y56.34%
5. Dividend
5.1 Amount
CEC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:CEC (3/7/2025, 7:00:00 PM)
3.538
-0.01 (-0.17%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners8.85%
Inst Owner ChangeN/A
Ins Owners4.85%
Ins Owner ChangeN/A
Market Cap1.72B
Analysts76.67
Price Target3.47 (-1.92%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP2.53%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)4.01%
PT rev (3m)11.88%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-9.74%
EPS NY rev (3m)-13.12%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.41%
Revenue NY rev (3m)1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 7.04 | ||
| P/S | 0.07 | ||
| P/FCF | 3.13 | ||
| P/OCF | 2.3 | ||
| P/B | 2.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 1.7 |
EPS(TTM)-0.07
EYN/A
EPS(NY)0.5
Fwd EY14.21%
FCF(TTM)1.13
FCFY31.98%
OCF(TTM)1.54
OCFY43.57%
SpS47.46
BVpS1.37
TBVpS-0.05
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.6% | ||
| ROE | 11.84% | ||
| ROCE | 8.05% | ||
| ROIC | 7.04% | ||
| ROICexc | 36.77% | ||
| ROICexgc | N/A | ||
| OM | 1.12% | ||
| PM (TTM) | 0.34% | ||
| GM | 17.58% | ||
| FCFM | 2.38% |
ROA(3y)0.54%
ROA(5y)0.31%
ROE(3y)9.22%
ROE(5y)2.51%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y3.14%
ROICexcg growth 5YN/A
ROICexc growth 3Y5.41%
ROICexc growth 5Y-23.73%
OM growth 3Y10.44%
OM growth 5Y-3.93%
PM growth 3Y-32.19%
PM growth 5Y-9.85%
GM growth 3Y1.03%
GM growth 5Y-1.8%
F-Score6
Asset Turnover1.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.09 | ||
| Debt/FCF | 4.72 | ||
| Debt/EBITDA | 2.17 | ||
| Cap/Depr | 28.8% | ||
| Cap/Sales | 0.86% | ||
| Interest Coverage | 1.19 | ||
| Cash Conversion | 78.82% | ||
| Profit Quality | 694.94% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 1.76 |
F-Score6
WACC7.43%
ROIC/WACC0.95
Cap/Depr(3y)25.77%
Cap/Depr(5y)22.09%
Cap/Sales(3y)0.87%
Cap/Sales(5y)0.76%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)347.02%
EPS 3Y-37.45%
EPS 5Y-15.59%
EPS Q2Q%-74.15%
EPS Next Y133.98%
EPS Next 2Y83.09%
EPS Next 3Y56.34%
EPS Next 5YN/A
Revenue 1Y (TTM)3.92%
Revenue growth 3Y1.66%
Revenue growth 5Y0.9%
Sales Q2Q%12.08%
Revenue Next Year3.51%
Revenue Next 2Y2.65%
Revenue Next 3Y2.54%
Revenue Next 5Y1.03%
EBIT growth 1Y101.56%
EBIT growth 3Y12.28%
EBIT growth 5Y-3.07%
EBIT Next Year268.47%
EBIT Next 3Y60.28%
EBIT Next 5YN/A
FCF growth 1Y-23.54%
FCF growth 3Y27%
FCF growth 5YN/A
OCF growth 1Y-20.68%
OCF growth 3Y22.44%
OCF growth 5Y75.23%