HYBRID SOFTWARE GROUP PLC (HYSG.BR) Stock Fundamental Analysis
Europe - Euronext Brussels - EBR:HYSG - GB00BYN5BY03 - Common Stock
4 EUR
+0.08 (+2.04%)
HYSG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 114 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.
- In the past year HYSG had a positive cash flow from operations.
- Of the past 5 years HYSG 4 years were profitable.
- In the past 5 years HYSG always reported a positive cash flow from operatings.
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 64.04% of its industry peers.
- The Return On Equity of HYSG (-3.02%) is worse than 62.28% of its industry peers.
- The Return On Invested Capital of HYSG (1.97%) 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
- With a Operating Margin value of 5.97%, HYSG perfoms like the industry average, outperforming 54.39% of the companies in the same industry.
- In the last couple of years the Operating Margin of HYSG has declined.
- HYSG's Gross Margin of 84.76% is fine compared to the rest of the industry. HYSG outperforms 78.95% of its industry peers.
- HYSG's Gross Margin has been stable in the last couple of years.
| 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.
- Compared to 1 year ago, HYSG has about the same amount of shares outstanding.
- The number of shares outstanding for HYSG has been increased compared to 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 5.55. This indicates that HYSG is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of HYSG (5.55) is better than 73.68% of its industry peers.
- The Debt to FCF ratio of HYSG is 0.82, which is an excellent value as it means it would take HYSG, only 0.82 years of fcf income to pay off all of its debts.
- HYSG has a better Debt to FCF ratio (0.82) than 80.70% 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.
- Looking at the Debt to Equity ratio, with a value of 0.02, HYSG belongs to the top of the industry, outperforming 85.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.82 | ||
| Altman-Z | 5.55 |
ROIC/WACC0.21
WACC9.56%
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.
- The Current ratio of HYSG (1.92) is better than 71.05% 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.
- With a decent Quick ratio value of 1.72, HYSG is doing good in the industry, outperforming 65.79% of the companies in the same industry.
| 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.
- The Revenue has been growing slightly by 2.22% in the past 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
- The Earnings Per Share is expected to grow by 35.02% on average over the next years. This is a very strong growth
- 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
- The Price/Earnings Ratio is negative for HYSG. In the last year negative earnings were reported.
- A Price/Forward Earnings ratio of 15.08 indicates a correct valuation of HYSG.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HYSG indicates a rather cheap valuation: HYSG is cheaper than 84.21% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of HYSG to the average of the S&P500 Index (25.98), we can say HYSG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 15.08 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HYSG is valued a bit cheaper than 79.82% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, HYSG is valued a bit cheaper than the industry average as 79.82% of the companies are valued more expensively.
| 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 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.