MOTA ENGIL SGPS SA (EGL.LS) Stock Fundamental Analysis
Europe - Euronext Lisbon - ELI:EGL - PTMEN0AE0005 - Common Stock
4.44 EUR
+0.04 (+0.86%)
Taking everything into account, EGL scores 4 out of 10 in our fundamental rating. EGL was compared to 45 industry peers in the Construction & Engineering industry. While EGL is still in line with the averages on profitability rating, there are concerns on its financial health. EGL has a decent growth rate and is not valued too expensively.
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.
- EGL had positive earnings in 4 of the past 5 years.
- In the past 5 years EGL always reported a positive cash flow from operatings.
1.2 Ratios
- EGL has a worse Return On Assets (1.64%) than 73.33% of its industry peers.
- EGL has a better Return On Equity (66.23%) than 97.78% of its industry peers.
- EGL has a Return On Invested Capital of 12.65%. This is in the better half of the industry: EGL outperforms 68.89% of its industry peers.
- EGL had an Average Return On Invested Capital over the past 3 years of 7.98%. This is below the industry average of 11.32%.
- 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 has a Profit Margin of 2.23%. This is in the lower half of the industry: EGL underperforms 66.67% of its industry peers.
- In the last couple of years the Profit Margin of EGL has grown nicely.
- EGL's Operating Margin of 10.97% is fine compared to the rest of the industry. EGL outperforms 77.78% of its industry peers.
- EGL's Operating Margin has improved in the last couple of years.
- EGL has a Gross Margin of 31.47%. This is in the lower half of the industry: EGL underperforms 64.44% 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EGL is creating value.
- Compared to 1 year ago, EGL has about the same amount of shares outstanding.
- EGL has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, EGL has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.14, we must say that EGL is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.14, EGL is doing worse than 82.22% of the companies in the same industry.
- 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.
- Looking at the Debt to FCF ratio, with a value of 15.42, EGL is doing worse than 62.22% of the companies in the same industry.
- A Debt/Equity ratio of 9.37 is on the high side and indicates that EGL has dependencies on debt financing.
- EGL's Debt to Equity ratio of 9.37 is on the low side compared to the rest of the industry. EGL is outperformed by 95.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.37 | ||
| Debt/FCF | 15.42 | ||
| Altman-Z | 1.14 |
ROIC/WACC2.18
WACC5.81%
2.3 Liquidity
- EGL has a Current 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's Current ratio of 0.94 is on the low side compared to the rest of the industry. EGL is outperformed by 77.78% 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.
- With a Quick ratio value of 0.84, EGL is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
- EGL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.46%.
- EGL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 28.20% yearly.
- EGL shows a small growth in Revenue. In the last year, the Revenue has grown by 4.14%.
- EGL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.05% yearly.
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
- The Earnings Per Share is expected to grow by 10.37% on average over the next years. This is quite good.
- EGL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.34% yearly.
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
- EGL is valuated reasonably with a Price/Earnings ratio of 10.33.
- Compared to the rest of the industry, the Price/Earnings ratio of EGL indicates a rather cheap valuation: EGL is cheaper than 84.44% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.87. EGL is valued rather cheaply when compared to this.
- EGL is valuated reasonably with a Price/Forward Earnings ratio of 8.62.
- Based on the Price/Forward Earnings ratio, EGL is valued cheaply inside the industry as 91.11% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.96. EGL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.33 | ||
| Fwd PE | 8.62 |
4.2 Price Multiples
- EGL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EGL is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.96 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.11
PEG (5Y)0.37
EPS Next 2Y13.87%
EPS Next 3Y10.1%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.23%, EGL has a reasonable but not impressive dividend return.
- In the last 3 months the price of EGL has falen by -26.00%. 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 2.33, 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 | 3.23% |
5.2 History
- On average, the dividend of EGL grows each year by 9.79%, which is quite nice.
Dividend Growth(5Y)9.79%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- 40.16% of the earnings are spent on dividend by EGL. 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 10.33 and the Price/Book (PB) ratio is 6.79.
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%.