ENGIE (ENGI.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:ENGI - FR0010208488 - Common Stock
24.68 EUR
+0.22 (+0.9%)
Taking everything into account, ENGI scores 4 out of 10 in our fundamental rating. ENGI was compared to 18 industry peers in the Multi-Utilities industry. There are concerns on the financial health of ENGI while its profitability can be described as average. ENGI has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year ENGI was profitable.
- In the past year ENGI had a positive cash flow from operations.
- Of the past 5 years ENGI 4 years were profitable.
- In the past 5 years ENGI always reported a positive cash flow from operatings.
1.2 Ratios
- ENGI's Return On Assets of 3.00% is fine compared to the rest of the industry. ENGI outperforms 61.11% of its industry peers.
- Looking at the Return On Equity, with a value of 15.96%, ENGI is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
- ENGI has a Return On Invested Capital of 6.30%. This is in the better half of the industry: ENGI outperforms 66.67% of its industry peers.
- ENGI had an Average Return On Invested Capital over the past 3 years of 4.59%. This is in line with the industry average of 5.84%.
- The last Return On Invested Capital (6.30%) for ENGI is above the 3 year average (4.59%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3% | ||
| ROE | 15.96% | ||
| ROIC | 6.3% |
ROA(3y)1.09%
ROA(5y)0.74%
ROE(3y)6.38%
ROE(5y)4.55%
ROIC(3y)4.59%
ROIC(5y)3.95%
1.3 Margins
- ENGI's Profit Margin of 6.64% is in line compared to the rest of the industry. ENGI outperforms 50.00% of its industry peers.
- In the last couple of years the Profit Margin of ENGI has grown nicely.
- The Operating Margin of ENGI (13.81%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of ENGI has grown nicely.
- ENGI has a Gross Margin (34.55%) which is in line with its industry peers.
- ENGI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.81% | ||
| PM (TTM) | 6.64% | ||
| GM | 34.55% |
OM growth 3Y4.76%
OM growth 5Y8.74%
PM growth 3Y-3.71%
PM growth 5Y31.94%
GM growth 3Y0.14%
GM growth 5Y-0.3%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ENGI is still creating some value.
- Compared to 1 year ago, ENGI has about the same amount of shares outstanding.
- The number of shares outstanding for ENGI has been increased compared to 5 years ago.
- Compared to 1 year ago, ENGI has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.02, we must say that ENGI is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.02, ENGI is in line with its industry, outperforming 44.44% of the companies in the same industry.
- A Debt/Equity ratio of 1.55 is on the high side and indicates that ENGI has dependencies on debt financing.
- ENGI has a Debt to Equity ratio of 1.55. This is comparable to the rest of the industry: ENGI outperforms 44.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.02 |
ROIC/WACC1.12
WACC5.61%
2.3 Liquidity
- A Current Ratio of 1.06 indicates that ENGI should not have too much problems paying its short term obligations.
- ENGI's Current ratio of 1.06 is fine compared to the rest of the industry. ENGI outperforms 72.22% of its industry peers.
- ENGI has a Quick Ratio of 1.00. This is a normal value and indicates that ENGI is financially healthy and should not expect problems in meeting its short term obligations.
- ENGI's Quick ratio of 1.00 is fine compared to the rest of the industry. ENGI outperforms 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
- ENGI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.00%.
- Measured over the past years, ENGI shows a very strong growth in Earnings Per Share. The EPS has been growing by 37.22% on average per year.
- The Revenue has been growing slightly by 1.77% in the past year.
- Measured over the past years, ENGI shows a small growth in Revenue. The Revenue has been growing by 4.21% on average per year.
EPS 1Y (TTM)1%
EPS 3Y4.25%
EPS 5Y37.22%
EPS Q2Q%48.72%
Revenue 1Y (TTM)1.77%
Revenue growth 3Y8.45%
Revenue growth 5Y4.21%
Sales Q2Q%1.44%
3.2 Future
- ENGI is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.09% yearly.
- ENGI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.24% yearly.
EPS Next Y-11.42%
EPS Next 2Y-8.99%
EPS Next 3Y-4.61%
EPS Next 5Y-1.09%
Revenue Next Year-10.63%
Revenue Next 2Y-5.73%
Revenue Next 3Y-2.67%
Revenue Next 5Y-0.24%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 12.16, ENGI is valued correctly.
- 66.67% of the companies in the same industry are more expensive than ENGI, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.25. ENGI is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 13.08 indicates a correct valuation of ENGI.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ENGI indicates a somewhat cheap valuation: ENGI is cheaper than 66.67% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, ENGI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.16 | ||
| Fwd PE | 13.08 |
4.2 Price Multiples
- ENGI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ENGI is cheaper than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.65 |
4.3 Compensation for Growth
- The decent profitability rating of ENGI may justify a higher PE ratio.
- A cheap valuation may be justified as ENGI's earnings are expected to decrease with -4.61% in the coming years.
PEG (NY)N/A
PEG (5Y)0.33
EPS Next 2Y-8.99%
EPS Next 3Y-4.61%
5. Dividend
5.1 Amount
- ENGI has a Yearly Dividend Yield of 6.19%, which is a nice return.
- ENGI's Dividend Yield is rather good when compared to the industry average which is at 4.30. ENGI pays more dividend than 94.44% of the companies in the same industry.
- ENGI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.19% |
5.2 History
- The dividend of ENGI is nicely growing with an annual growth rate of 9.08%!
Dividend Growth(5Y)9.08%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- ENGI pays out 91.17% of its income as dividend. This is not a sustainable payout ratio.
- The Dividend Rate of ENGI has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP91.17%
EPS Next 2Y-8.99%
EPS Next 3Y-4.61%
ENGIE / ENGI.PA FAQ
Can you provide the ChartMill fundamental rating for ENGIE?
ChartMill assigns a fundamental rating of 4 / 10 to ENGI.PA.
What is the valuation status for ENGI stock?
ChartMill assigns a valuation rating of 4 / 10 to ENGIE (ENGI.PA). This can be considered as Fairly Valued.
How profitable is ENGIE (ENGI.PA) stock?
ENGIE (ENGI.PA) has a profitability rating of 6 / 10.
What is the financial health of ENGIE (ENGI.PA) stock?
The financial health rating of ENGIE (ENGI.PA) is 3 / 10.
What is the earnings growth outlook for ENGIE?
The Earnings per Share (EPS) of ENGIE (ENGI.PA) is expected to decline by -11.42% in the next year.