CANCOM SE (COK.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:COK - DE0005419105 - Common Stock
28.25 EUR
-0.05 (-0.18%)
We assign a fundamental rating of 4 out of 10 to COK. COK was compared to 70 industry peers in the IT Services industry. The financial health of COK is average, but there are quite some concerns on its profitability. COK is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year COK was profitable.
- COK had a positive operating cash flow in the past year.
- In the past 5 years COK has always been profitable.
- Of the past 5 years COK 4 years had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 1.30%, COK is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
- COK has a worse Return On Equity (3.14%) than 68.57% of its industry peers.
- COK's Return On Invested Capital of 3.02% is on the low side compared to the rest of the industry. COK is outperformed by 74.29% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for COK is significantly below the industry average of 26.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.3% | ||
| ROE | 3.14% | ||
| ROIC | 3.02% |
ROA(3y)2.37%
ROA(5y)6.29%
ROE(3y)5.12%
ROE(5y)11.79%
ROIC(3y)3.89%
ROIC(5y)4.61%
1.3 Margins
- The Profit Margin of COK (1.01%) is worse than 68.57% of its industry peers.
- In the last couple of years the Profit Margin of COK has declined.
- COK has a Operating Margin of 1.93%. This is in the lower half of the industry: COK underperforms 75.71% of its industry peers.
- COK's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 39.19%, COK is doing worse than 67.14% of the companies in the same industry.
- COK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.93% | ||
| PM (TTM) | 1.01% | ||
| GM | 39.19% |
OM growth 3Y-25.37%
OM growth 5Y-9.34%
PM growth 3Y-55.07%
PM growth 5Y-4%
GM growth 3Y6.58%
GM growth 5Y6.71%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), COK is destroying value.
- The number of shares outstanding for COK has been reduced compared to 1 year ago.
- The number of shares outstanding for COK has been reduced compared to 5 years ago.
- Compared to 1 year ago, COK has a worse debt to assets ratio.
2.2 Solvency
- COK has an Altman-Z score of 2.22. This is not the best score and indicates that COK is in the grey zone with still only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.22, COK is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
- There is no outstanding debt for COK. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.14 | ||
| Altman-Z | 2.22 |
ROIC/WACC0.45
WACC6.75%
2.3 Liquidity
- COK has a Current Ratio of 1.24. This is a normal value and indicates that COK is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.24, COK is in line with its industry, outperforming 51.43% of the companies in the same industry.
- A Quick Ratio of 1.14 indicates that COK should not have too much problems paying its short term obligations.
- COK's Quick ratio of 1.14 is in line compared to the rest of the industry. COK outperforms 52.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
- COK shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.39%.
- Measured over the past years, COK shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.51% on average per year.
- COK shows a decrease in Revenue. In the last year, the revenue decreased by -0.61%.
- COK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.32% yearly.
EPS 1Y (TTM)-1.39%
EPS 3Y-48.05%
EPS 5Y-5.51%
EPS Q2Q%-14.29%
Revenue 1Y (TTM)-0.61%
Revenue growth 3Y10.55%
Revenue growth 5Y2.32%
Sales Q2Q%0.31%
3.2 Future
- Based on estimates for the next years, COK will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.72% on average per year.
- The Revenue is expected to grow by 2.86% on average over the next years.
EPS Next Y-14.61%
EPS Next 2Y14.14%
EPS Next 3Y18.01%
EPS Next 5Y17.72%
Revenue Next Year-0.23%
Revenue Next 2Y2.35%
Revenue Next 3Y3.51%
Revenue Next 5Y2.86%
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 28.54, the valuation of COK can be described as expensive.
- Based on the Price/Earnings ratio, COK is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
- When comparing the Price/Earnings ratio of COK to the average of the S&P500 Index (27.21), we can say COK is valued inline with the index average.
- The Price/Forward Earnings ratio is 21.90, which indicates a rather expensive current valuation of COK.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of COK is on the same level as its industry peers.
- COK's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.54 | ||
| Fwd PE | 21.9 |
4.2 Price Multiples
- COK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. COK is cheaper than 62.86% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, COK is valued cheaper than 81.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.37 | ||
| EV/EBITDA | 7.7 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as COK's earnings are expected to grow with 18.01% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y14.14%
EPS Next 3Y18.01%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.48%, COK has a reasonable but not impressive dividend return.
- COK's Dividend Yield is a higher than the industry average which is at 2.27.
- Compared to an average S&P500 Dividend Yield of 1.81, COK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
5.2 History
- On average, the dividend of COK grows each year by 16.67%, which is quite nice.
Dividend Growth(5Y)16.67%
Div Incr Years1
Div Non Decr Years7
5.3 Sustainability
- 183.24% of the earnings are spent on dividend by COK. This is not a sustainable payout ratio.
- The dividend of COK is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP183.24%
EPS Next 2Y14.14%
EPS Next 3Y18.01%
CANCOM SE / COK.DE FAQ
What is the ChartMill fundamental rating of CANCOM SE (COK.DE) stock?
ChartMill assigns a fundamental rating of 4 / 10 to COK.DE.
What is the valuation status of CANCOM SE (COK.DE) stock?
ChartMill assigns a valuation rating of 4 / 10 to CANCOM SE (COK.DE). This can be considered as Fairly Valued.
How profitable is CANCOM SE (COK.DE) stock?
CANCOM SE (COK.DE) has a profitability rating of 2 / 10.
Can you provide the expected EPS growth for COK stock?
The Earnings per Share (EPS) of CANCOM SE (COK.DE) is expected to decline by -14.61% in the next year.
How sustainable is the dividend of CANCOM SE (COK.DE) stock?
The dividend rating of CANCOM SE (COK.DE) is 6 / 10 and the dividend payout ratio is 183.24%.