ENGIE (ENGI.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:ENGI - FR0010208488 - Common Stock
24.1 EUR
+0.2 (+0.84%)
We assign a fundamental rating of 4 out of 10 to ENGI. 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 is valued correctly, but it does not seem to be growing.
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.
- ENGI had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years ENGI had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of ENGI (3.00%) is comparable to the rest of the industry.
- Looking at the Return On Equity, with a value of 15.96%, ENGI is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
- With a Return On Invested Capital value of 6.30%, ENGI perfoms like the industry average, outperforming 58.82% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ENGI is in line with the industry average of 5.84%.
- The 3 year average ROIC (4.59%) for ENGI is below the current ROIC(6.30%), indicating increased profibility in the last year.
| 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 has a Profit Margin (6.64%) which is in line with its industry peers.
- ENGI's Profit Margin has improved in the last couple of years.
- ENGI has a Operating Margin of 13.81%. This is comparable to the rest of the industry: ENGI outperforms 47.06% of its industry peers.
- In the last couple of years the Operating Margin of ENGI has grown nicely.
- ENGI has a Gross Margin of 34.55%. This is comparable to the rest of the industry: ENGI outperforms 41.18% of 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ENGI is creating some value.
- ENGI has about the same amout of shares outstanding than it did 1 year ago.
- ENGI has more shares outstanding than it did 5 years ago.
- ENGI has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.01, we must say that ENGI is in the distress zone and has some risk of bankruptcy.
- ENGI has a Altman-Z score of 1.01. This is comparable to the rest of the industry: ENGI outperforms 52.94% of its industry peers.
- A Debt/Equity ratio of 1.55 is on the high side and indicates that ENGI has dependencies on debt financing.
- The Debt to Equity ratio of ENGI (1.55) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.01 |
ROIC/WACC1.13
WACC5.59%
2.3 Liquidity
- ENGI has a Current Ratio of 1.06. This is a normal value and indicates that ENGI is financially healthy and should not expect problems in meeting its short term obligations.
- ENGI has a better Current ratio (1.06) than 70.59% 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 has a Quick ratio of 1.00. This is in the better half of the industry: ENGI outperforms 76.47% 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%.
- ENGI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 37.22% yearly.
- 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
- Based on estimates for the next years, ENGI will show a decrease in Earnings Per Share. The EPS will decrease by -1.09% on average per year.
- Based on estimates for the next years, ENGI will show a decrease in Revenue. The Revenue will decrease by -0.24% on average per year.
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
- The Price/Earnings ratio is 11.87, which indicates a very decent valuation of ENGI.
- ENGI's Price/Earnings ratio is in line with the industry average.
- ENGI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- The Price/Forward Earnings ratio is 12.78, which indicates a correct valuation of ENGI.
- ENGI's Price/Forward Earnings ratio is in line with the industry average.
- ENGI is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.87 | ||
| Fwd PE | 12.78 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ENGI is valued a bit cheaper than the industry average as 76.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.59 |
4.3 Compensation for Growth
- The decent profitability rating of ENGI may justify a higher PE ratio.
- ENGI's earnings are expected to decrease with -4.61% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.32
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 100.00% of the companies in the same industry.
- ENGI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| 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.
- ENGI's earnings are declining while the Dividend Rate has been growing. 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.