CEOTRONICS AG (CEK.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:CEK - DE0005407407 - Common Stock
15.3 EUR
-0.55 (-3.47%)
Overall CEK gets a fundamental rating of 7 out of 10. We evaluated CEK against 31 industry peers in the Communications Equipment industry. Both the health and profitability get an excellent rating, making CEK a very profitable company, without any liquidiy or solvency issues. CEK has a correct valuation and a medium growth rate. These ratings would make CEK suitable for quality investing!
1. Profitability
1.1 Basic Checks
- CEK had positive earnings in the past year.
- CEK had a positive operating cash flow in the past year.
- Each year in the past 5 years CEK has been profitable.
- CEK had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- CEK has a Return On Assets of 11.12%. This is amongst the best in the industry. CEK outperforms 93.55% of its industry peers.
- With an excellent Return On Equity value of 16.71%, CEK belongs to the best of the industry, outperforming 83.87% of the companies in the same industry.
- The Return On Invested Capital of CEK (14.71%) is better than 93.55% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for CEK is in line with the industry average of 10.63%.
- The last Return On Invested Capital (14.71%) for CEK is above the 3 year average (10.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.12% | ||
| ROE | 16.71% | ||
| ROIC | 14.71% |
ROA(3y)7.53%
ROA(5y)8.01%
ROE(3y)12.55%
ROE(5y)13.67%
ROIC(3y)10.98%
ROIC(5y)10.81%
1.3 Margins
- With an excellent Profit Margin value of 8.49%, CEK belongs to the best of the industry, outperforming 80.65% of the companies in the same industry.
- CEK's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 14.25%, CEK belongs to the best of the industry, outperforming 87.10% of the companies in the same industry.
- In the last couple of years the Operating Margin of CEK has grown nicely.
- Looking at the Gross Margin, with a value of 40.85%, CEK is in line with its industry, outperforming 45.16% of the companies in the same industry.
- CEK's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.25% | ||
| PM (TTM) | 8.49% | ||
| GM | 40.85% |
OM growth 3Y7.47%
OM growth 5Y6.85%
PM growth 3Y-0.43%
PM growth 5Y4.94%
GM growth 3Y-5.93%
GM growth 5Y-2.18%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CEK is creating value.
- Compared to 1 year ago, CEK has more shares outstanding
- The number of shares outstanding for CEK has been increased compared to 5 years ago.
- The debt/assets ratio for CEK has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 8.31 indicates that CEK is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 8.31, CEK belongs to the best of the industry, outperforming 87.10% of the companies in the same industry.
- The Debt to FCF ratio of CEK is 0.56, which is an excellent value as it means it would take CEK, only 0.56 years of fcf income to pay off all of its debts.
- CEK has a better Debt to FCF ratio (0.56) than 87.10% of its industry peers.
- A Debt/Equity ratio of 0.09 indicates that CEK is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.09, CEK belongs to the top of the industry, outperforming 80.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.56 | ||
| Altman-Z | 8.31 |
ROIC/WACC1.89
WACC7.8%
2.3 Liquidity
- A Current Ratio of 4.44 indicates that CEK has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 4.44, CEK belongs to the top of the industry, outperforming 87.10% of the companies in the same industry.
- CEK has a Quick Ratio of 1.55. This is a normal value and indicates that CEK is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.55, CEK is in the better half of the industry, outperforming 74.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.44 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
- CEK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 201.73%, which is quite impressive.
- Measured over the past years, CEK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.20% on average per year.
- CEK shows a strong growth in Revenue. In the last year, the Revenue has grown by 88.29%.
- The Revenue has been growing by 17.90% on average over the past years. This is quite good.
EPS 1Y (TTM)201.73%
EPS 3Y16.23%
EPS 5Y19.2%
EPS Q2Q%65.07%
Revenue 1Y (TTM)88.29%
Revenue growth 3Y24.2%
Revenue growth 5Y17.9%
Sales Q2Q%84.28%
3.2 Future
- CEK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.34% yearly.
- Based on estimates for the next years, CEK will show a small growth in Revenue. The Revenue will grow by 6.10% on average per year.
EPS Next Y18.49%
EPS Next 2Y20.22%
EPS Next 3Y17.94%
EPS Next 5Y11.34%
Revenue Next Year3.67%
Revenue Next 2Y7.01%
Revenue Next 3Y7.45%
Revenue Next 5Y6.1%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- 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
- CEK is valuated quite expensively with a Price/Earnings ratio of 25.93.
- Compared to the rest of the industry, the Price/Earnings ratio of CEK indicates a somewhat cheap valuation: CEK is cheaper than 74.19% of the companies listed in the same industry.
- CEK's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.25.
- Based on the Price/Forward Earnings ratio of 21.49, the valuation of CEK can be described as rather expensive.
- CEK's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CEK is cheaper than 67.74% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of CEK to the average of the S&P500 Index (25.98), we can say CEK is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.93 | ||
| Fwd PE | 21.49 |
4.2 Price Multiples
- 74.19% of the companies in the same industry are more expensive than CEK, based on the Enterprise Value to EBITDA ratio.
- 83.87% of the companies in the same industry are more expensive than CEK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.64 | ||
| EV/EBITDA | 13.46 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- CEK has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as CEK's earnings are expected to grow with 17.94% in the coming years.
PEG (NY)1.4
PEG (5Y)1.35
EPS Next 2Y20.22%
EPS Next 3Y17.94%
5. Dividend
5.1 Amount
- CEK has a Yearly Dividend Yield of 1.44%. Purely for dividend investing, there may be better candidates out there.
- CEK's Dividend Yield is a higher than the industry average which is at 2.62.
- CEK's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
5.2 History
- On average, the dividend of CEK grows each year by 23.37%, which is quite nice.
Dividend Growth(5Y)23.37%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
- CEK pays out 22.98% of its income as dividend. This is a sustainable payout ratio.
- The dividend of CEK is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP22.98%
EPS Next 2Y20.22%
EPS Next 3Y17.94%
CEOTRONICS AG / CEK.DE FAQ
What is the fundamental rating for CEK stock?
ChartMill assigns a fundamental rating of 7 / 10 to CEK.DE.
What is the valuation status of CEOTRONICS AG (CEK.DE) stock?
ChartMill assigns a valuation rating of 5 / 10 to CEOTRONICS AG (CEK.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for CEOTRONICS AG?
CEOTRONICS AG (CEK.DE) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for CEK stock?
The Price/Earnings (PE) ratio for CEOTRONICS AG (CEK.DE) is 25.93 and the Price/Book (PB) ratio is 4.31.
Is the dividend of CEOTRONICS AG sustainable?
The dividend rating of CEOTRONICS AG (CEK.DE) is 4 / 10 and the dividend payout ratio is 22.98%.