HYBRID SOFTWARE GROUP PLC (HYSG.BR) Stock Fundamental Analysis
Europe - Euronext Brussels - EBR:HYSG - GB00BYN5BY03 - Common Stock
3.92 EUR
-0.06 (-1.51%)
HYSG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 119 industry peers in the Software industry. While HYSG has a great health rating, there are worries on its profitability. HYSG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- HYSG had negative earnings in the past year.
- In the past year HYSG had a positive cash flow from operations.
- HYSG had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years HYSG had a positive operating cash flow.
1.2 Ratios
- HYSG's Return On Assets of -2.54% is on the low side compared to the rest of the industry. HYSG is outperformed by 63.87% of its industry peers.
- With a Return On Equity value of -3.02%, HYSG is not doing good in the industry: 62.18% of the companies in the same industry are doing better.
- HYSG has a Return On Invested Capital (1.97%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.54% | ||
| ROE | -3.02% | ||
| ROIC | 1.97% |
ROA(3y)-0.15%
ROA(5y)3.84%
ROE(3y)-0.14%
ROE(5y)5.1%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- HYSG has a Operating Margin (5.97%) which is comparable to the rest of the industry.
- HYSG's Operating Margin has declined in the last couple of years.
- HYSG has a Gross Margin of 84.76%. This is in the better half of the industry: HYSG outperforms 79.83% of its industry peers.
- In the last couple of years the Gross Margin of HYSG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.97% | ||
| PM (TTM) | N/A | ||
| GM | 84.76% |
OM growth 3Y-14.69%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.7%
GM growth 5Y0.72%
2. Health
2.1 Basic Checks
- HYSG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- HYSG has about the same amout of shares outstanding than it did 1 year ago.
- HYSG has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, HYSG has an improved debt to assets ratio.
2.2 Solvency
- HYSG has an Altman-Z score of 5.47. This indicates that HYSG is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 5.47, HYSG is in the better half of the industry, outperforming 72.27% of the companies in the same industry.
- HYSG has a debt to FCF ratio of 0.82. This is a very positive value and a sign of high solvency as it would only need 0.82 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 0.82, HYSG is doing good in the industry, outperforming 78.99% of the companies in the same industry.
- A Debt/Equity ratio of 0.02 indicates that HYSG is not too dependend on debt financing.
- HYSG's Debt to Equity ratio of 0.02 is amongst the best of the industry. HYSG outperforms 84.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.82 | ||
| Altman-Z | 5.47 |
ROIC/WACC0.2
WACC9.89%
2.3 Liquidity
- A Current Ratio of 1.92 indicates that HYSG should not have too much problems paying its short term obligations.
- HYSG has a better Current ratio (1.92) than 72.27% of its industry peers.
- HYSG has a Quick Ratio of 1.72. This is a normal value and indicates that HYSG is financially healthy and should not expect problems in meeting its short term obligations.
- HYSG has a Quick ratio of 1.72. This is in the better half of the industry: HYSG outperforms 66.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
- The earnings per share for HYSG have decreased strongly by -184.63% in the last year.
- HYSG shows a small growth in Revenue. In the last year, the Revenue has grown by 2.22%.
- HYSG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.75% yearly.
EPS 1Y (TTM)-184.63%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-23.82%
Revenue 1Y (TTM)2.22%
Revenue growth 3Y1.98%
Revenue growth 5Y22.75%
Sales Q2Q%-1.23%
3.2 Future
- The Earnings Per Share is expected to grow by 35.02% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 8.10% on average over the next years. This is quite good.
EPS Next Y53.85%
EPS Next 2Y41.42%
EPS Next 3Y35.02%
EPS Next 5YN/A
Revenue Next Year5.26%
Revenue Next 2Y7.61%
Revenue Next 3Y8.1%
Revenue Next 5YN/A
3.3 Evolution
- 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
- The Price/Earnings Ratio is negative for HYSG. In the last year negative earnings were reported.
- Based on the Price/Forward Earnings ratio of 14.78, the valuation of HYSG can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HYSG indicates a rather cheap valuation: HYSG is cheaper than 85.71% of the companies listed in the same industry.
- HYSG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 14.78 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HYSG indicates a somewhat cheap valuation: HYSG is cheaper than 78.99% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, HYSG is valued cheaply inside the industry as 80.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.81 | ||
| EV/EBITDA | 10.75 |
4.3 Compensation for Growth
- HYSG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as HYSG's earnings are expected to grow with 35.02% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y41.42%
EPS Next 3Y35.02%
5. Dividend
5.1 Amount
- No dividends for HYSG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
HYBRID SOFTWARE GROUP PLC / HYSG.BR FAQ
What is the fundamental rating for HYSG stock?
ChartMill assigns a fundamental rating of 5 / 10 to HYSG.BR.
What is the valuation status for HYSG stock?
ChartMill assigns a valuation rating of 5 / 10 to HYBRID SOFTWARE GROUP PLC (HYSG.BR). This can be considered as Fairly Valued.
How profitable is HYBRID SOFTWARE GROUP PLC (HYSG.BR) stock?
HYBRID SOFTWARE GROUP PLC (HYSG.BR) has a profitability rating of 3 / 10.
What is the financial health of HYBRID SOFTWARE GROUP PLC (HYSG.BR) stock?
The financial health rating of HYBRID SOFTWARE GROUP PLC (HYSG.BR) is 7 / 10.