CEGEDIM SA (CGM.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:CGM - FR0000053506 - Common Stock
10.4 EUR
-0.2 (-1.89%)
CGM gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 11 industry peers in the Health Care Technology industry. CGM may be in some trouble as it scores bad on both profitability and health. CGM is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year CGM has reported negative net income.
- In the past year CGM had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: CGM reported negative net income in multiple years.
- Each year in the past 5 years CGM had a positive operating cash flow.
1.2 Ratios
- CGM has a Return On Assets (-1.49%) which is in line with its industry peers.
- CGM has a Return On Equity (-5.56%) which is comparable to the rest of the industry.
- CGM's Return On Invested Capital of 4.46% is in line compared to the rest of the industry. CGM outperforms 45.45% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for CGM is significantly below the industry average of 8.41%.
- The 3 year average ROIC (2.87%) for CGM is below the current ROIC(4.46%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.49% | ||
| ROE | -5.56% | ||
| ROIC | 4.46% |
ROA(3y)-0.25%
ROA(5y)0.74%
ROE(3y)-1.16%
ROE(5y)2.61%
ROIC(3y)2.87%
ROIC(5y)3.89%
1.3 Margins
- CGM has a Operating Margin (5.75%) which is comparable to the rest of the industry.
- CGM's Operating Margin has declined in the last couple of years.
- CGM has a worse Gross Margin (20.07%) than 81.82% of its industry peers.
- CGM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.75% | ||
| PM (TTM) | N/A | ||
| GM | 20.07% |
OM growth 3Y-6.64%
OM growth 5Y-3.53%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.96%
GM growth 5Y-1.7%
2. Health
2.1 Basic Checks
- CGM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- CGM has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, CGM has less shares outstanding
- The debt/assets ratio for CGM is higher compared to a year ago.
2.2 Solvency
- CGM has an Altman-Z score of 1.27. This is a bad value and indicates that CGM is not financially healthy and even has some risk of bankruptcy.
- CGM has a Altman-Z score (1.27) which is comparable to the rest of the industry.
- CGM has a debt to FCF ratio of 27.31. This is a negative value and a sign of low solvency as CGM would need 27.31 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 27.31, CGM is in line with its industry, outperforming 54.55% of the companies in the same industry.
- A Debt/Equity ratio of 1.14 is on the high side and indicates that CGM has dependencies on debt financing.
- CGM has a Debt to Equity ratio of 1.14. This is in the lower half of the industry: CGM underperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 27.31 | ||
| Altman-Z | 1.27 |
ROIC/WACC1.08
WACC4.14%
2.3 Liquidity
- A Current Ratio of 0.99 indicates that CGM may have some problems paying its short term obligations.
- CGM has a worse Current ratio (0.99) than 63.64% of its industry peers.
- A Quick Ratio of 0.97 indicates that CGM may have some problems paying its short term obligations.
- With a Quick ratio value of 0.97, CGM is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
- The earnings per share for CGM have decreased strongly by -97.97% in the last year.
- Looking at the last year, CGM shows a small growth in Revenue. The Revenue has grown by 6.25% in the last year.
- Measured over the past years, CGM shows a small growth in Revenue. The Revenue has been growing by 5.38% on average per year.
EPS 1Y (TTM)-97.97%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-1194.13%
Revenue 1Y (TTM)6.25%
Revenue growth 3Y7.65%
Revenue growth 5Y5.38%
Sales Q2Q%6.51%
3.2 Future
- CGM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.86% yearly.
- CGM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.41% yearly.
EPS Next Y-1.77%
EPS Next 2Y20.1%
EPS Next 3Y21.86%
EPS Next 5YN/A
Revenue Next Year1.46%
Revenue Next 2Y2.88%
Revenue Next 3Y3.41%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- CGM reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- A Price/Forward Earnings ratio of 9.28 indicates a reasonable valuation of CGM.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CGM indicates a rather cheap valuation: CGM is cheaper than 90.91% of the companies listed in the same industry.
- CGM is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.28 |
4.2 Price Multiples
- 100.00% of the companies in the same industry are more expensive than CGM, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, CGM is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.29 | ||
| EV/EBITDA | 3.23 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as CGM's earnings are expected to grow with 21.86% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y20.1%
EPS Next 3Y21.86%
5. Dividend
5.1 Amount
- CGM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CEGEDIM SA / CGM.PA FAQ
What is the fundamental rating for CGM stock?
ChartMill assigns a fundamental rating of 3 / 10 to CGM.PA.
What is the valuation status of CEGEDIM SA (CGM.PA) stock?
ChartMill assigns a valuation rating of 5 / 10 to CEGEDIM SA (CGM.PA). This can be considered as Fairly Valued.
What is the profitability of CGM stock?
CEGEDIM SA (CGM.PA) has a profitability rating of 3 / 10.
Can you provide the dividend sustainability for CGM stock?
The dividend rating of CEGEDIM SA (CGM.PA) is 0 / 10 and the dividend payout ratio is 0%.