CFE (CFEB.BR) Stock Fundamental Analysis
Europe - Euronext Brussels - EBR:CFEB - BE0003883031 - Common Stock
9.18 EUR
+0.1 (+1.1%)
Overall CFEB gets a fundamental rating of 4 out of 10. We evaluated CFEB against 43 industry peers in the Construction & Engineering industry. CFEB scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. A decent growth rate in combination with a cheap valuation! Better keep an eye on CFEB.
1. Profitability
1.1 Basic Checks
- In the past year CFEB was profitable.
- CFEB had a positive operating cash flow in the past year.
- Each year in the past 5 years CFEB has been profitable.
- Each year in the past 5 years CFEB had a positive operating cash flow.
1.2 Ratios
- CFEB has a worse Return On Assets (2.54%) than 65.12% of its industry peers.
- CFEB's Return On Equity of 11.66% is on the low side compared to the rest of the industry. CFEB is outperformed by 67.44% of its industry peers.
- CFEB's Return On Invested Capital of 3.63% is on the low side compared to the rest of the industry. CFEB is outperformed by 79.07% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for CFEB is significantly below the industry average of 11.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.54% | ||
| ROE | 11.66% | ||
| ROIC | 3.63% |
ROA(3y)8.6%
ROA(5y)5.97%
ROE(3y)40.47%
ROE(5y)26.55%
ROIC(3y)4.48%
ROIC(5y)2.95%
1.3 Margins
- Looking at the Profit Margin, with a value of 2.44%, CFEB is doing worse than 65.12% of the companies in the same industry.
- In the last couple of years the Profit Margin of CFEB has declined.
- CFEB's Operating Margin of 2.15% is on the low side compared to the rest of the industry. CFEB is outperformed by 81.40% of its industry peers.
- In the last couple of years the Operating Margin of CFEB has declined.
- CFEB's Gross Margin of 30.18% is on the low side compared to the rest of the industry. CFEB is outperformed by 72.09% of its industry peers.
- In the last couple of years the Gross Margin of CFEB has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.15% | ||
| PM (TTM) | 2.44% | ||
| GM | 30.18% |
OM growth 3Y-20.31%
OM growth 5Y-10.97%
PM growth 3Y-46.62%
PM growth 5Y-11.25%
GM growth 3Y-0.87%
GM growth 5Y-7.1%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CFEB is destroying value.
- Compared to 1 year ago, CFEB has about the same amount of shares outstanding.
- CFEB has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for CFEB has been reduced compared to a year ago.
2.2 Solvency
- CFEB has an Altman-Z score of 1.47. This is a bad value and indicates that CFEB is not financially healthy and even has some risk of bankruptcy.
- CFEB has a Altman-Z score of 1.47. This is in the lower half of the industry: CFEB underperforms 67.44% of its industry peers.
- The Debt to FCF ratio of CFEB is 1.63, which is an excellent value as it means it would take CFEB, only 1.63 years of fcf income to pay off all of its debts.
- CFEB has a Debt to FCF ratio of 1.63. This is amongst the best in the industry. CFEB outperforms 86.05% of its industry peers.
- A Debt/Equity ratio of 0.72 indicates that CFEB is somewhat dependend on debt financing.
- CFEB has a Debt to Equity ratio (0.72) which is comparable to the rest of the industry.
- Although CFEB does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 1.63 | ||
| Altman-Z | 1.47 |
ROIC/WACC0.54
WACC6.69%
2.3 Liquidity
- CFEB has a Current Ratio of 1.03. This is a normal value and indicates that CFEB is financially healthy and should not expect problems in meeting its short term obligations.
- CFEB has a worse Current ratio (1.03) than 60.47% of its industry peers.
- CFEB has a Quick Ratio of 1.03. This is a bad value and indicates that CFEB is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.84, CFEB is doing worse than 74.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 90.45% over the past year.
- CFEB shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -28.77% yearly.
- Looking at the last year, CFEB shows a decrease in Revenue. The Revenue has decreased by -6.64% in the last year.
- Measured over the past years, CFEB shows a very negative growth in Revenue. The Revenue has been decreasing by -20.08% on average per year.
EPS 1Y (TTM)90.45%
EPS 3Y-45.35%
EPS 5Y-28.77%
EPS Q2Q%79.18%
Revenue 1Y (TTM)-6.64%
Revenue growth 3Y1.66%
Revenue growth 5Y-20.08%
Sales Q2Q%-9.14%
3.2 Future
- The Earnings Per Share is expected to grow by 13.30% on average over the next years. This is quite good.
- The Revenue is expected to grow by 0.05% on average over the next years.
EPS Next Y-1.21%
EPS Next 2Y6.84%
EPS Next 3Y13.3%
EPS Next 5YN/A
Revenue Next Year-4.69%
Revenue Next 2Y0.29%
Revenue Next 3Y0.05%
Revenue Next 5YN/A
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 8.35, the valuation of CFEB can be described as reasonable.
- CFEB's Price/Earnings ratio is rather cheap when compared to the industry. CFEB is cheaper than 90.70% of the companies in the same industry.
- CFEB is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 7.96, the valuation of CFEB can be described as very cheap.
- Based on the Price/Forward Earnings ratio, CFEB is valued cheaper than 93.02% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. CFEB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.35 | ||
| Fwd PE | 7.96 |
4.2 Price Multiples
- 76.74% of the companies in the same industry are more expensive than CFEB, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of CFEB indicates a rather cheap valuation: CFEB is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.01 | ||
| EV/EBITDA | 5.62 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as CFEB's earnings are expected to grow with 13.30% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.84%
EPS Next 3Y13.3%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.06%, CFEB has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.48, CFEB pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, CFEB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
5.2 History
- The dividend of CFEB decreases each year by -30.12%.
Dividend Growth(5Y)-30.12%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
- CFEB pays out 36.03% of its income as dividend. This is a sustainable payout ratio.
DP36.03%
EPS Next 2Y6.84%
EPS Next 3Y13.3%
CFE / CFEB.BR FAQ
What is the ChartMill fundamental rating of CFE (CFEB.BR) stock?
ChartMill assigns a fundamental rating of 4 / 10 to CFEB.BR.
What is the valuation status for CFEB stock?
ChartMill assigns a valuation rating of 7 / 10 to CFE (CFEB.BR). This can be considered as Undervalued.
What is the profitability of CFEB stock?
CFE (CFEB.BR) has a profitability rating of 2 / 10.
Can you provide the expected EPS growth for CFEB stock?
The Earnings per Share (EPS) of CFE (CFEB.BR) is expected to decline by -1.21% in the next year.
Can you provide the dividend sustainability for CFEB stock?
The dividend rating of CFE (CFEB.BR) is 5 / 10 and the dividend payout ratio is 36.03%.