CONTEXTVISION AB (CONTX.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:CONTX - SE0014731154 - Common Stock
3.8 NOK
+0.05 (+1.33%)
CONTX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 11 industry peers in the Health Care Technology industry. While CONTX has a great profitability rating, there are some minor concerns on its financial health. CONTX has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year CONTX was profitable.
- In the past year CONTX had a positive cash flow from operations.
- CONTX had positive earnings in 4 of the past 5 years.
- CONTX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- CONTX has a better Return On Assets (3.07%) than 63.64% of its industry peers.
- CONTX has a Return On Equity (3.95%) which is in line with its industry peers.
- The Return On Invested Capital of CONTX (2.67%) is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for CONTX is significantly above the industry average of 8.41%.
- The 3 year average ROIC (36.72%) for CONTX is well above the current ROIC(2.67%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.07% | ||
| ROE | 3.95% | ||
| ROIC | 2.67% |
ROA(3y)26.09%
ROA(5y)16.55%
ROE(3y)37.17%
ROE(5y)21.28%
ROIC(3y)36.72%
ROIC(5y)47.42%
1.3 Margins
- CONTX has a Profit Margin (3.17%) which is in line with its industry peers.
- CONTX's Profit Margin has improved in the last couple of years.
- CONTX has a Operating Margin (2.90%) which is in line with its industry peers.
- CONTX's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 97.62%, CONTX belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
- CONTX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.9% | ||
| PM (TTM) | 3.17% | ||
| GM | 97.62% |
OM growth 3Y-20.47%
OM growth 5Y1.61%
PM growth 3YN/A
PM growth 5Y19.46%
GM growth 3Y-0.19%
GM growth 5Y-0.03%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CONTX is creating value.
- Compared to 1 year ago, CONTX has about the same amount of shares outstanding.
- CONTX has about the same amout of shares outstanding than it did 5 years ago.
- CONTX has a worse debt/assets ratio than last year.
2.2 Solvency
- The Debt to FCF ratio of CONTX is 5.01, which is a neutral value as it means it would take CONTX, 5.01 years of fcf income to pay off all of its debts.
- CONTX has a Debt to FCF ratio of 5.01. This is in the better half of the industry: CONTX outperforms 63.64% of its industry peers.
- CONTX has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
- CONTX's Debt to Equity ratio of 0.07 is fine compared to the rest of the industry. CONTX outperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 5.01 | ||
| Altman-Z | N/A |
ROIC/WACC0.28
WACC9.45%
2.3 Liquidity
- CONTX has a Current Ratio of 4.79. This indicates that CONTX is financially healthy and has no problem in meeting its short term obligations.
- CONTX's Current ratio of 4.79 is amongst the best of the industry. CONTX outperforms 90.91% of its industry peers.
- A Quick Ratio of 4.70 indicates that CONTX has no problem at all paying its short term obligations.
- CONTX has a better Quick ratio (4.70) than 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.79 | ||
| Quick Ratio | 4.7 |
3. Growth
3.1 Past
- The earnings per share for CONTX have decreased strongly by -83.70% in the last year.
- CONTX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.26% yearly.
- Looking at the last year, CONTX shows a very negative growth in Revenue. The Revenue has decreased by -13.08% in the last year.
- CONTX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.51% yearly.
EPS 1Y (TTM)-83.7%
EPS 3YN/A
EPS 5Y27.26%
EPS Q2Q%-100%
Revenue 1Y (TTM)-13.08%
Revenue growth 3Y10.03%
Revenue growth 5Y6.51%
Sales Q2Q%-21.24%
3.2 Future
- CONTX is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -7.44% yearly.
- Based on estimates for the next years, CONTX will show a small growth in Revenue. The Revenue will grow by 0.49% on average per year.
EPS Next Y-103.45%
EPS Next 2Y-38.41%
EPS Next 3Y-7.44%
EPS Next 5YN/A
Revenue Next Year-17.19%
Revenue Next 2Y-6.46%
Revenue Next 3Y-3.79%
Revenue Next 5Y0.49%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
- CONTX is valuated quite expensively with a Price/Earnings ratio of 76.00.
- The rest of the industry has a similar Price/Earnings ratio as CONTX.
- When comparing the Price/Earnings ratio of CONTX to the average of the S&P500 Index (27.21), we can say CONTX is valued expensively.
- The Price/Forward Earnings ratio is 30.69, which means the current valuation is very expensive for CONTX.
- CONTX's Price/Forward Earnings ratio is in line with the industry average.
- CONTX's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 76 | ||
| Fwd PE | 30.69 |
4.2 Price Multiples
- CONTX's Enterprise Value to EBITDA is on the same level as the industry average.
- CONTX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 160.83 | ||
| EV/EBITDA | 18.58 |
4.3 Compensation for Growth
- The decent profitability rating of CONTX may justify a higher PE ratio.
- CONTX's earnings are expected to decrease with -7.44% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.79
EPS Next 2Y-38.41%
EPS Next 3Y-7.44%
5. Dividend
5.1 Amount
- CONTX has a Yearly Dividend Yield of 4.18%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.24, CONTX pays a better dividend. On top of this CONTX pays more dividend than 81.82% of the companies listed in the same industry.
- CONTX's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y-38.41%
EPS Next 3Y-7.44%
CONTEXTVISION AB / CONTX.OL FAQ
What is the ChartMill fundamental rating of CONTEXTVISION AB (CONTX.OL) stock?
ChartMill assigns a fundamental rating of 5 / 10 to CONTX.OL.
What is the valuation status for CONTX stock?
ChartMill assigns a valuation rating of 2 / 10 to CONTEXTVISION AB (CONTX.OL). This can be considered as Overvalued.
What is the profitability of CONTX stock?
CONTEXTVISION AB (CONTX.OL) has a profitability rating of 7 / 10.
What is the financial health of CONTEXTVISION AB (CONTX.OL) stock?
The financial health rating of CONTEXTVISION AB (CONTX.OL) is 6 / 10.
What is the expected EPS growth for CONTEXTVISION AB (CONTX.OL) stock?
The Earnings per Share (EPS) of CONTEXTVISION AB (CONTX.OL) is expected to decline by -103.45% in the next year.