ENGIE (ENGI.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:ENGI - FR0010208488 - Common Stock
24.1 EUR
+0.2 (+0.84%)
ENGI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 18 industry peers in the Multi-Utilities industry. While ENGI is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
- Of the past 5 years ENGI 4 years were profitable.
- Each year in the past 5 years ENGI had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.00%, ENGI is in line with its industry, outperforming 55.56% of the companies in the same industry.
- ENGI's Return On Equity of 15.96% is fine compared to the rest of the industry. ENGI outperforms 66.67% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 6.30%, ENGI is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for ENGI 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 has a Profit Margin (6.64%) which is in line with its industry peers.
- In the last couple of years the Profit Margin of ENGI has grown nicely.
- ENGI has a Operating Margin of 13.81%. This is comparable to the rest of the industry: ENGI outperforms 44.44% of its industry peers.
- In the last couple of years the Operating Margin of ENGI has grown nicely.
- The Gross Margin of ENGI (34.55%) is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of ENGI has remained more or less at the same level.
| 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.
- 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.
- Compared to 1 year ago, ENGI has a worse debt to assets ratio.
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.
- Looking at the Altman-Z score, with a value of 1.01, ENGI is in line with its industry, outperforming 50.00% 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's Debt to Equity ratio of 1.55 is on the low side compared to the rest of the industry. ENGI is outperformed by 61.11% of its industry peers.
| 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.
- The Current ratio of ENGI (1.06) is better than 66.67% 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 better Quick ratio (1.00) than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 1.00% over the past year.
- ENGI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 37.22% yearly.
- ENGI shows a small growth in Revenue. In the last year, the Revenue has grown by 1.77%.
- The Revenue has been growing slightly by 4.21% on average over the past years.
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.
- The Revenue is expected to decrease by -0.24% on average over the next years.
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.
- 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
- Based on the Price/Earnings ratio of 11.87, the valuation of ENGI can be described as reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of ENGI indicates a somewhat cheap valuation: ENGI is cheaper than 61.11% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of ENGI to the average of the S&P500 Index (27.21), we can say ENGI is valued rather cheaply.
- A Price/Forward Earnings ratio of 12.78 indicates a correct valuation of ENGI.
- Based on the Price/Forward Earnings ratio, ENGI is valued a bit cheaper than 61.11% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, ENGI is valued rather cheaply.
| 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 77.78% of the companies in the same industry.
| 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
- With a Yearly Dividend Yield of 6.19%, ENGI is a good candidate for dividend investing.
- 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
- On average, the dividend of ENGI grows each year by 9.08%, which is quite nice.
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.