ENGIE (GZF.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:GZF - FR0010208488 - Common Stock
24.84 EUR
+0.15 (+0.61%)
We assign a fundamental rating of 4 out of 10 to GZF. GZF was compared to 18 industry peers in the Multi-Utilities industry. There are concerns on the financial health of GZF while its profitability can be described as average. GZF 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 GZF was profitable.
- GZF had a positive operating cash flow in the past year.
- Of the past 5 years GZF 4 years were profitable.
- In the past 5 years GZF always reported a positive cash flow from operatings.
1.2 Ratios
- GZF has a Return On Assets (3.00%) which is in line with its industry peers.
- GZF's Return On Equity of 15.96% is fine compared to the rest of the industry. GZF outperforms 66.67% of its industry peers.
- GZF has a better Return On Invested Capital (6.30%) than 61.11% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for GZF is in line with the industry average of 5.84%.
- The last Return On Invested Capital (6.30%) for GZF 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
- GZF has a Profit Margin (6.64%) which is comparable to the rest of the industry.
- GZF's Profit Margin has improved in the last couple of years.
- GZF has a Operating Margin of 13.81%. This is comparable to the rest of the industry: GZF outperforms 44.44% of its industry peers.
- In the last couple of years the Operating Margin of GZF has grown nicely.
- GZF has a Gross Margin (34.55%) which is in line with its industry peers.
- In the last couple of years the Gross Margin of GZF 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 GZF is still creating some value.
- GZF has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, GZF has more shares outstanding
- Compared to 1 year ago, GZF has a worse debt to assets ratio.
2.2 Solvency
- GZF has an Altman-Z score of 1.02. This is a bad value and indicates that GZF is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 1.02, GZF perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- GZF has a Debt/Equity ratio of 1.55. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.55, GZF is not doing good in the industry: 61.11% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.02 |
ROIC/WACC1.12
WACC5.62%
2.3 Liquidity
- A Current Ratio of 1.06 indicates that GZF should not have too much problems paying its short term obligations.
- GZF has a better Current ratio (1.06) than 66.67% of its industry peers.
- GZF has a Quick Ratio of 1.00. This is a normal value and indicates that GZF is financially healthy and should not expect problems in meeting its short term obligations.
- GZF has a Quick ratio of 1.00. This is in the better half of the industry: GZF outperforms 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
- GZF shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.00%.
- The Earnings Per Share has been growing by 37.22% on average over the past years. This is a very strong growth
- Looking at the last year, GZF shows a small growth in Revenue. The Revenue has grown by 1.77% in the last year.
- GZF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.21% yearly.
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, GZF will show a decrease in Earnings Per Share. The EPS will decrease by -1.09% on average per year.
- 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.
- 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 12.24, GZF is valued correctly.
- Compared to the rest of the industry, the Price/Earnings ratio of GZF indicates a somewhat cheap valuation: GZF is cheaper than 61.11% of the companies listed in the same industry.
- GZF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.39.
- Based on the Price/Forward Earnings ratio of 13.17, the valuation of GZF can be described as correct.
- GZF's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GZF is cheaper than 61.11% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of GZF to the average of the S&P500 Index (25.72), we can say GZF is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.24 | ||
| Fwd PE | 13.17 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GZF is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.69 |
4.3 Compensation for Growth
- The decent profitability rating of GZF may justify a higher PE ratio.
- GZF'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)0.33
EPS Next 2Y-8.99%
EPS Next 3Y-4.61%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.19%, GZF is a good candidate for dividend investing.
- GZF's Dividend Yield is rather good when compared to the industry average which is at 4.30. GZF pays more dividend than 100.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, GZF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.19% |
5.2 History
- The dividend of GZF 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
- GZF pays out 91.17% of its income as dividend. This is not a sustainable payout ratio.
- The Dividend Rate of GZF 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 / GZF.DE FAQ
What is the ChartMill fundamental rating of ENGIE (GZF.DE) stock?
ChartMill assigns a fundamental rating of 4 / 10 to GZF.DE.
What is the valuation status of ENGIE (GZF.DE) stock?
ChartMill assigns a valuation rating of 4 / 10 to ENGIE (GZF.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for ENGIE?
ENGIE (GZF.DE) has a profitability rating of 6 / 10.
What are the PE and PB ratios of ENGIE (GZF.DE) stock?
The Price/Earnings (PE) ratio for ENGIE (GZF.DE) is 12.24 and the Price/Book (PB) ratio is 1.96.
Is the dividend of ENGIE sustainable?
The dividend rating of ENGIE (GZF.DE) is 6 / 10 and the dividend payout ratio is 91.17%.