MOTA ENGIL SGPS SA (EGL.LS) Stock Fundamental Analysis
Europe - Euronext Lisbon - ELI:EGL - PTMEN0AE0005 - Common Stock
4.474 EUR
-0.15 (-3.33%)
Taking everything into account, EGL scores 4 out of 10 in our fundamental rating. EGL was compared to 43 industry peers in the Construction & Engineering industry. There are concerns on the financial health of EGL while its profitability can be described as average. EGL has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- EGL had positive earnings in the past year.
- EGL had a positive operating cash flow in the past year.
- Of the past 5 years EGL 4 years were profitable.
- Each year in the past 5 years EGL had a positive operating cash flow.
1.2 Ratios
- EGL's Return On Assets of 1.64% is on the low side compared to the rest of the industry. EGL is outperformed by 76.74% of its industry peers.
- The Return On Equity of EGL (66.23%) is better than 97.67% of its industry peers.
- EGL has a better Return On Invested Capital (12.65%) than 67.44% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for EGL is below the industry average of 11.17%.
- The last Return On Invested Capital (12.65%) for EGL is above the 3 year average (7.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.64% | ||
| ROE | 66.23% | ||
| ROIC | 12.65% |
ROA(3y)1.28%
ROA(5y)0.76%
ROE(3y)38.76%
ROE(5y)N/A
ROIC(3y)7.98%
ROIC(5y)6.72%
1.3 Margins
- EGL's Profit Margin of 2.23% is on the low side compared to the rest of the industry. EGL is outperformed by 69.77% of its industry peers.
- EGL's Profit Margin has improved in the last couple of years.
- EGL's Operating Margin of 10.97% is fine compared to the rest of the industry. EGL outperforms 76.74% of its industry peers.
- In the last couple of years the Operating Margin of EGL has grown nicely.
- EGL has a worse Gross Margin (31.47%) than 69.77% of its industry peers.
- In the last couple of years the Gross Margin of EGL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.97% | ||
| PM (TTM) | 2.23% | ||
| GM | 31.47% |
OM growth 3Y6.04%
OM growth 5Y9.41%
PM growth 3Y35.16%
PM growth 5Y16.87%
GM growth 3Y-6.28%
GM growth 5Y-3.18%
2. Health
2.1 Basic Checks
- EGL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- EGL has about the same amout of shares outstanding than it did 1 year ago.
- EGL has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for EGL is higher compared to a year ago.
2.2 Solvency
- EGL has an Altman-Z score of 1.15. This is a bad value and indicates that EGL is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of EGL (1.15) is worse than 83.72% of its industry peers.
- EGL has a debt to FCF ratio of 15.42. This is a negative value and a sign of low solvency as EGL would need 15.42 years to pay back of all of its debts.
- EGL has a worse Debt to FCF ratio (15.42) than 62.79% of its industry peers.
- A Debt/Equity ratio of 9.37 is on the high side and indicates that EGL has dependencies on debt financing.
- EGL has a worse Debt to Equity ratio (9.37) than 97.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.37 | ||
| Debt/FCF | 15.42 | ||
| Altman-Z | 1.15 |
ROIC/WACC2.18
WACC5.8%
2.3 Liquidity
- A Current Ratio of 0.94 indicates that EGL may have some problems paying its short term obligations.
- EGL has a worse Current ratio (0.94) than 79.07% of its industry peers.
- EGL has a Quick Ratio of 0.94. This is a bad value and indicates that EGL is not financially healthy enough and could expect problems in meeting its short term obligations.
- EGL has a worse Quick ratio (0.84) than 72.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 0.46% over the past year.
- The Earnings Per Share has been growing by 28.20% on average over the past years. This is a very strong growth
- EGL shows a small growth in Revenue. In the last year, the Revenue has grown by 4.14%.
- The Revenue has been growing by 16.05% on average over the past years. This is quite good.
EPS 1Y (TTM)0.46%
EPS 3Y78.34%
EPS 5Y28.2%
EPS Q2Q%20.46%
Revenue 1Y (TTM)4.14%
Revenue growth 3Y31.93%
Revenue growth 5Y16.05%
Sales Q2Q%0.47%
3.2 Future
- Based on estimates for the next years, EGL will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.37% on average per year.
- Based on estimates for the next years, EGL will show a small growth in Revenue. The Revenue will grow by 3.34% on average per year.
EPS Next Y9.32%
EPS Next 2Y13.87%
EPS Next 3Y10.1%
EPS Next 5Y10.37%
Revenue Next Year-2.35%
Revenue Next 2Y3.04%
Revenue Next 3Y3.07%
Revenue Next 5Y3.34%
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
- The Price/Earnings ratio is 10.40, which indicates a very decent valuation of EGL.
- Based on the Price/Earnings ratio, EGL is valued cheaper than 83.72% of the companies in the same industry.
- EGL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- Based on the Price/Forward Earnings ratio of 8.69, the valuation of EGL can be described as reasonable.
- 90.70% of the companies in the same industry are more expensive than EGL, based on the Price/Forward Earnings ratio.
- EGL is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.4 | ||
| Fwd PE | 8.69 |
4.2 Price Multiples
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of EGL indicates a somewhat cheap valuation: EGL is cheaper than 79.07% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.02 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- EGL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.12
PEG (5Y)0.37
EPS Next 2Y13.87%
EPS Next 3Y10.1%
5. Dividend
5.1 Amount
- EGL has a Yearly Dividend Yield of 2.96%. Purely for dividend investing, there may be better candidates out there.
- In the last 3 months the price of EGL has falen by -25.50%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- Compared to an average industry Dividend Yield of 2.48, EGL pays a bit more dividend than its industry peers.
- EGL's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
5.2 History
- The dividend of EGL is nicely growing with an annual growth rate of 9.79%!
Dividend Growth(5Y)9.79%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- EGL pays out 40.16% of its income as dividend. This is a bit on the high side, but may be sustainable.
- EGL's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP40.16%
EPS Next 2Y13.87%
EPS Next 3Y10.1%
MOTA ENGIL SGPS SA / EGL.LS FAQ
What is the ChartMill fundamental rating of MOTA ENGIL SGPS SA (EGL.LS) stock?
ChartMill assigns a fundamental rating of 4 / 10 to EGL.LS.
Can you provide the valuation status for MOTA ENGIL SGPS SA?
ChartMill assigns a valuation rating of 6 / 10 to MOTA ENGIL SGPS SA (EGL.LS). This can be considered as Fairly Valued.
How profitable is MOTA ENGIL SGPS SA (EGL.LS) stock?
MOTA ENGIL SGPS SA (EGL.LS) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for EGL stock?
The Price/Earnings (PE) ratio for MOTA ENGIL SGPS SA (EGL.LS) is 10.4 and the Price/Book (PB) ratio is 6.85.
Can you provide the dividend sustainability for EGL stock?
The dividend rating of MOTA ENGIL SGPS SA (EGL.LS) is 6 / 10 and the dividend payout ratio is 40.16%.