ENGIE (ENGI.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:ENGI - FR0010208488 - Common Stock
24.47 EUR
+0.37 (+1.54%)
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. ENGI has a medium profitability rating, but doesn't score so well on its financial health evaluation. ENGI is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- ENGI had positive earnings in the past year.
- In the past year ENGI had a positive cash flow from operations.
- ENGI had positive earnings in 4 of the past 5 years.
- ENGI had a positive operating cash flow in each of the past 5 years.
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.
- With a decent Return On Equity value of 15.96%, ENGI is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- ENGI's Return On Invested Capital of 6.30% is fine compared to the rest of the industry. ENGI outperforms 61.11% of its industry peers.
- The Average Return On Invested Capital over the past 3 years 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 of 6.64%. This is comparable to the rest of the industry: ENGI outperforms 44.44% of its industry peers.
- In the last couple of years the Profit Margin of ENGI has grown nicely.
- With a Operating Margin value of 13.81%, ENGI perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
- ENGI's Operating Margin has improved in the last couple of years.
- 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ENGI is creating some value.
- The number of shares outstanding for ENGI remains at a similar level compared to 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.
- ENGI's Altman-Z score of 1.01 is in line compared to the rest of the industry. ENGI outperforms 50.00% 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 worse than 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.
- Looking at the Current ratio, with a value of 1.06, ENGI is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- 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.
- With a decent Quick ratio value of 1.00, ENGI is doing good in the industry, outperforming 72.22% of the companies in the same industry.
| 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
- The Earnings Per Share is expected to decrease by -1.09% on average over the next years.
- 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
- A Price/Earnings ratio of 12.05 indicates a correct valuation of ENGI.
- Based on the Price/Earnings ratio, ENGI is valued a bit cheaper than 61.11% of the companies in the same industry.
- 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 12.97, which 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 61.11% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of ENGI to the average of the S&P500 Index (25.98), we can say ENGI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.05 | ||
| Fwd PE | 12.97 |
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 | 5.59 |
4.3 Compensation for Growth
- ENGI has a very decent profitability rating, which 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)0.32
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.
- Compared to an average industry Dividend Yield of 4.30, ENGI pays a better dividend. On top of this ENGI pays more dividend than 100.00% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, ENGI pays a better dividend.
| 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
- 91.17% of the earnings are spent on dividend by ENGI. 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.