HYBRID SOFTWARE GROUP PLC (HYSG.BR) Stock Fundamental Analysis
Europe - Euronext Brussels - EBR:HYSG - GB00BYN5BY03 - Common Stock
4 EUR
+0.08 (+2.04%)
Taking everything into account, HYSG scores 5 out of 10 in our fundamental rating. HYSG was compared to 119 industry peers in the Software industry. No worries on liquidiy or solvency for HYSG as it has an excellent financial health rating, but there are worries on the profitability. HYSG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- HYSG had negative earnings in the past year.
- HYSG had a positive operating cash flow in the past year.
- HYSG had positive earnings in 4 of the past 5 years.
- In the past 5 years HYSG always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of -2.54%, HYSG is doing worse than 63.87% of the companies in the same industry.
- Looking at the Return On Equity, with a value of -3.02%, HYSG is doing worse than 62.18% of the companies in the same industry.
- HYSG's Return On Invested Capital of 1.97% is in line compared to the rest of the industry. HYSG outperforms 51.26% of its industry peers.
| 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
- With a Operating Margin value of 5.97%, HYSG perfoms like the industry average, outperforming 55.46% of the companies in the same industry.
- In the last couple of years the Operating Margin of HYSG has declined.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HYSG is destroying value.
- The number of shares outstanding for HYSG remains at a similar level compared to 1 year ago.
- HYSG has more shares outstanding than it did 5 years ago.
- HYSG has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 5.55 indicates that HYSG is not in any danger for bankruptcy at the moment.
- HYSG has a Altman-Z score of 5.55. This is in the better half of the industry: HYSG outperforms 72.27% of its industry peers.
- 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.
- HYSG's Debt to FCF ratio of 0.82 is fine compared to the rest of the industry. HYSG outperforms 78.99% of its industry peers.
- HYSG has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
- With an excellent Debt to Equity ratio value of 0.02, HYSG belongs to the best of the industry, outperforming 84.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.82 | ||
| Altman-Z | 5.55 |
ROIC/WACC0.2
WACC9.88%
2.3 Liquidity
- HYSG has a Current Ratio of 1.92. This is a normal value and indicates that HYSG is financially healthy and should not expect problems in meeting its short term obligations.
- With a decent Current ratio value of 1.92, HYSG is doing good in the industry, outperforming 72.27% of the companies in the same industry.
- A Quick Ratio of 1.72 indicates that HYSG should not have too much problems paying its short term obligations.
- HYSG's Quick ratio of 1.72 is fine compared to the rest 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
- HYSG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -184.63%.
- Looking at the last year, HYSG shows a small growth in Revenue. The Revenue has grown by 2.22% in the last year.
- Measured over the past years, HYSG shows a very strong growth in Revenue. The Revenue has been growing by 22.75% on average per year.
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
- Based on estimates for the next years, HYSG will show a very strong growth in Earnings Per Share. The EPS will grow by 35.02% on average per year.
- HYSG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.10% yearly.
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
- HYSG reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- HYSG is valuated correctly with a Price/Forward Earnings ratio of 15.08.
- Based on the Price/Forward Earnings ratio, HYSG is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, HYSG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 15.08 |
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 cheaper than 80.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.17 | ||
| EV/EBITDA | 10.98 |
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.
- HYSG's earnings are expected to grow with 35.02% in the coming years. This may justify a more expensive valuation.
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 6 / 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.