SIGNIFY NV (G14.DE) Stock Fundamental Analysis
FRA:G14 - Deutsche Boerse Ag - NL0011821392 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to G14. G14 was compared to 53 industry peers in the Electrical Equipment industry. G14 has an excellent profitability rating, but there are some minor concerns on its financial health. G14 has a bad growth rate and is valued cheaply. Finally G14 also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year G14 was profitable.
In the past year G14 had a positive cash flow from operations.
G14 had positive earnings in each of the past 5 years.
G14 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 4.38%, G14 is in the better half of the industry, outperforming 73.58% of the companies in the same industry.
With a decent Return On Equity value of 10.40%, G14 is doing good in the industry, outperforming 69.81% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.73%, G14 is in the better half of the industry, outperforming 77.36% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for G14 is in line with the industry average of 8.14%.
The last Return On Invested Capital (8.73%) for G14 is above the 3 year average (8.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.38% | ||
| ROE | 10.4% | ||
| ROIC | 8.73% |
ROA(3y)4.41%
ROA(5y)4.45%
ROE(3y)11.83%
ROE(5y)13.29%
ROIC(3y)8.31%
ROIC(5y)8.73%
1.3 Margins
Looking at the Profit Margin, with a value of 5.36%, G14 is in the better half of the industry, outperforming 75.47% of the companies in the same industry.
In the last couple of years the Profit Margin of G14 has grown nicely.
G14 has a better Operating Margin (8.76%) than 77.36% of its industry peers.
G14's Operating Margin has improved in the last couple of years.
G14 has a Gross Margin of 40.75%. This is in the better half of the industry: G14 outperforms 62.26% of its industry peers.
In the last couple of years the Gross Margin of G14 has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.76% | ||
| PM (TTM) | 5.36% | ||
| GM | 40.75% |
OM growth 3Y-2.99%
OM growth 5Y7.06%
PM growth 3Y-2.65%
PM growth 5Y4.95%
GM growth 3Y1.11%
GM growth 5Y1.97%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), G14 is creating some value.
G14 has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, G14 has about the same amount of shares outstanding.
The debt/assets ratio for G14 has been reduced compared to a year ago.
2.2 Solvency
G14 has an Altman-Z score of 1.65. This is a bad value and indicates that G14 is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.65, G14 perfoms like the industry average, outperforming 54.72% of the companies in the same industry.
G14 has a debt to FCF ratio of 3.74. This is a good value and a sign of high solvency as G14 would need 3.74 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.74, G14 is in the better half of the industry, outperforming 73.58% of the companies in the same industry.
G14 has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
G14 has a better Debt to Equity ratio (0.36) than 64.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 3.74 | ||
| Altman-Z | 1.65 |
ROIC/WACC1.19
WACC7.34%
2.3 Liquidity
A Current Ratio of 1.22 indicates that G14 should not have too much problems paying its short term obligations.
With a Current ratio value of 1.22, G14 is not doing good in the industry: 64.15% of the companies in the same industry are doing better.
A Quick Ratio of 0.80 indicates that G14 may have some problems paying its short term obligations.
G14's Quick ratio of 0.80 is on the low side compared to the rest of the industry. G14 is outperformed by 62.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The earnings per share for G14 have decreased strongly by -16.75% in the last year.
The Earnings Per Share has been decreasing by -2.28% on average over the past years.
G14 shows a decrease in Revenue. In the last year, the revenue decreased by -8.38%.
Measured over the past years, G14 shows a decrease in Revenue. The Revenue has been decreasing by -0.34% on average per year.
EPS 1Y (TTM)-16.75%
EPS 3Y-12.27%
EPS 5Y-2.28%
EPS Q2Q%-18.7%
Revenue 1Y (TTM)-8.38%
Revenue growth 3Y-3.61%
Revenue growth 5Y-0.34%
Sales Q2Q%-4.56%
3.2 Future
Based on estimates for the next years, G14 will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.78% on average per year.
Based on estimates for the next years, G14 will show a decrease in Revenue. The Revenue will decrease by -0.44% on average per year.
EPS Next Y2.95%
EPS Next 2Y6.62%
EPS Next 3Y8.04%
EPS Next 5Y9.78%
Revenue Next Year0.67%
Revenue Next 2Y1.11%
Revenue Next 3Y1.31%
Revenue Next 5Y-0.44%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
G14 is valuated cheaply with a Price/Earnings ratio of 6.51.
Based on the Price/Earnings ratio, G14 is valued cheaply inside the industry as 96.23% of the companies are valued more expensively.
G14 is valuated cheaply when we compare the Price/Earnings ratio to 28.64, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 6.32, the valuation of G14 can be described as very cheap.
Based on the Price/Forward Earnings ratio, G14 is valued cheaper than 94.34% of the companies in the same industry.
G14's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.51 | ||
| Fwd PE | 6.32 |
4.2 Price Multiples
86.79% of the companies in the same industry are more expensive than G14, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, G14 is valued cheaper than 96.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.62 | ||
| EV/EBITDA | 4.1 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates G14 does not grow enough to justify the current Price/Earnings ratio.
G14 has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.21
PEG (5Y)N/A
EPS Next 2Y6.62%
EPS Next 3Y8.04%
5. Dividend
5.1 Amount
G14 has a Yearly Dividend Yield of 8.51%, which is a nice return.
In the last 3 months the price of G14 has falen by -25.27%. 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 2.98, G14 pays a better dividend. On top of this G14 pays more dividend than 98.11% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.52, G14 pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.51% |
5.2 History
The dividend of G14 has a limited annual growth rate of 3.47%.
Dividend Growth(5Y)3.47%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
G14 pays out 59.57% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of G14 is growing, but earnings are growing more, so the dividend growth is sustainable.
DP59.57%
EPS Next 2Y6.62%
EPS Next 3Y8.04%
FRA:G14 (4/22/2025, 7:00:00 PM)
18.16
-0.18 (-0.98%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners69.91%
Inst Owner ChangeN/A
Ins Owners0.33%
Ins Owner ChangeN/A
Market Cap2.33B
Analysts70.83
Price Target26.85 (47.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.51% |
Yearly Dividend1.55
Dividend Growth(5Y)3.47%
DP59.57%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.59%
Min EPS beat(2)25.36%
Max EPS beat(2)27.81%
EPS beat(4)3
Avg EPS beat(4)12.01%
Min EPS beat(4)-12.02%
Max EPS beat(4)27.81%
EPS beat(8)5
Avg EPS beat(8)12.65%
EPS beat(12)9
Avg EPS beat(12)13.05%
EPS beat(16)13
Avg EPS beat(16)17.39%
Revenue beat(2)0
Avg Revenue beat(2)-3.5%
Min Revenue beat(2)-3.72%
Max Revenue beat(2)-3.27%
Revenue beat(4)0
Avg Revenue beat(4)-4.96%
Min Revenue beat(4)-7.79%
Max Revenue beat(4)-3.27%
Revenue beat(8)0
Avg Revenue beat(8)-4.82%
Revenue beat(12)1
Avg Revenue beat(12)-3.75%
Revenue beat(16)2
Avg Revenue beat(16)-3.45%
PT rev (1m)-2.5%
PT rev (3m)-6.68%
EPS NQ rev (1m)-14.98%
EPS NQ rev (3m)-30.51%
EPS NY rev (1m)-7.18%
EPS NY rev (3m)-12.17%
Revenue NQ rev (1m)-2.2%
Revenue NQ rev (3m)-0.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.51 | ||
| Fwd PE | 6.32 | ||
| P/S | 0.38 | ||
| P/FCF | 5.62 | ||
| P/OCF | 4.53 | ||
| P/B | 0.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.1 |
EPS(TTM)2.79
EY15.36%
EPS(NY)2.87
Fwd EY15.81%
FCF(TTM)3.23
FCFY17.81%
OCF(TTM)4
OCFY22.05%
SpS47.87
BVpS24.64
TBVpS-2.72
PEG (NY)2.21
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.38% | ||
| ROE | 10.4% | ||
| ROCE | 10.59% | ||
| ROIC | 8.73% | ||
| ROICexc | 9.98% | ||
| ROICexgc | 47.32% | ||
| OM | 8.76% | ||
| PM (TTM) | 5.36% | ||
| GM | 40.75% | ||
| FCFM | 6.76% |
ROA(3y)4.41%
ROA(5y)4.45%
ROE(3y)11.83%
ROE(5y)13.29%
ROIC(3y)8.31%
ROIC(5y)8.73%
ROICexc(3y)10%
ROICexc(5y)10.53%
ROICexgc(3y)62.11%
ROICexgc(5y)51.97%
ROCE(3y)10.08%
ROCE(5y)10.59%
ROICexcg growth 3Y6.49%
ROICexcg growth 5Y14.46%
ROICexc growth 3Y-5.58%
ROICexc growth 5Y2.94%
OM growth 3Y-2.99%
OM growth 5Y7.06%
PM growth 3Y-2.65%
PM growth 5Y4.95%
GM growth 3Y1.11%
GM growth 5Y1.97%
F-Score7
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 3.74 | ||
| Debt/EBITDA | 1.43 | ||
| Cap/Depr | 38.82% | ||
| Cap/Sales | 1.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.82% | ||
| Profit Quality | 126.14% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 1.65 |
F-Score7
WACC7.34%
ROIC/WACC1.19
Cap/Depr(3y)41.13%
Cap/Depr(5y)38.27%
Cap/Sales(3y)1.71%
Cap/Sales(5y)1.68%
Profit Quality(3y)152.64%
Profit Quality(5y)169.78%
High Growth Momentum
Growth
EPS 1Y (TTM)-16.75%
EPS 3Y-12.27%
EPS 5Y-2.28%
EPS Q2Q%-18.7%
EPS Next Y2.95%
EPS Next 2Y6.62%
EPS Next 3Y8.04%
EPS Next 5Y9.78%
Revenue 1Y (TTM)-8.38%
Revenue growth 3Y-3.61%
Revenue growth 5Y-0.34%
Sales Q2Q%-4.56%
Revenue Next Year0.67%
Revenue Next 2Y1.11%
Revenue Next 3Y1.31%
Revenue Next 5Y-0.44%
EBIT growth 1Y-8.03%
EBIT growth 3Y-6.49%
EBIT growth 5Y6.7%
EBIT Next Year36.13%
EBIT Next 3Y13.12%
EBIT Next 5Y10.91%
FCF growth 1Y-28.2%
FCF growth 3Y-10.86%
FCF growth 5Y-4.11%
OCF growth 1Y-26.15%
OCF growth 3Y-9.95%
OCF growth 5Y-3.01%