IPSEN (IPN.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:IPN - FR0010259150 - Common Stock
136.6 EUR
+0.6 (+0.44%)
Overall IPN gets a fundamental rating of 6 out of 10. We evaluated IPN against 55 industry peers in the Pharmaceuticals industry. IPN is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. IPN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- IPN had positive earnings in the past year.
- In the past year IPN had a positive cash flow from operations.
- Each year in the past 5 years IPN has been profitable.
- In the past 5 years IPN always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 6.56%, IPN is in line with its industry, outperforming 56.36% of the companies in the same industry.
- With a Return On Equity value of 10.59%, IPN perfoms like the industry average, outperforming 52.73% of the companies in the same industry.
- The Return On Invested Capital of IPN (14.89%) is better than 72.73% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for IPN is in line with the industry average of 14.00%.
- The 3 year average ROIC (12.97%) for IPN is below the current ROIC(14.89%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.56% | ||
| ROE | 10.59% | ||
| ROIC | 14.89% |
ROA(3y)9.04%
ROA(5y)10.56%
ROE(3y)14.84%
ROE(5y)18.77%
ROIC(3y)12.97%
ROIC(5y)15.34%
1.3 Margins
- The Profit Margin of IPN (11.92%) is comparable to the rest of the industry.
- IPN's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 26.02%, IPN is in the better half of the industry, outperforming 61.82% of the companies in the same industry.
- In the last couple of years the Operating Margin of IPN has declined.
- The Gross Margin of IPN (83.32%) is better than 90.91% of its industry peers.
- IPN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.02% | ||
| PM (TTM) | 11.92% | ||
| GM | 83.32% |
OM growth 3Y-13.94%
OM growth 5Y-4.28%
PM growth 3Y-25.63%
PM growth 5YN/A
GM growth 3Y-0.54%
GM growth 5Y0.2%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), IPN is creating value.
- Compared to 1 year ago, IPN has more shares outstanding
- The number of shares outstanding for IPN remains at a similar level compared to 5 years ago.
- The debt/assets ratio for IPN has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 4.77 indicates that IPN is not in any danger for bankruptcy at the moment.
- IPN has a better Altman-Z score (4.77) than 67.27% of its industry peers.
- IPN has a debt to FCF ratio of 1.46. This is a very positive value and a sign of high solvency as it would only need 1.46 years to pay back of all of its debts.
- The Debt to FCF ratio of IPN (1.46) is better than 90.91% of its industry peers.
- IPN has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of IPN (0.20) is better than 74.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.46 | ||
| Altman-Z | 4.77 |
ROIC/WACC1.87
WACC7.95%
2.3 Liquidity
- A Current Ratio of 1.98 indicates that IPN should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.98, IPN is in the better half of the industry, outperforming 70.91% of the companies in the same industry.
- A Quick Ratio of 1.80 indicates that IPN should not have too much problems paying its short term obligations.
- With an excellent Quick ratio value of 1.80, IPN belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.8 |
3. Growth
3.1 Past
- IPN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.24%, which is quite good.
- IPN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.79% yearly.
- Looking at the last year, IPN shows a quite strong growth in Revenue. The Revenue has grown by 9.45% in the last year.
- IPN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.83% yearly.
EPS 1Y (TTM)12.24%
EPS 3Y4.15%
EPS 5Y8.79%
EPS Q2Q%44.4%
Revenue 1Y (TTM)9.45%
Revenue growth 3Y9.15%
Revenue growth 5Y5.83%
Sales Q2Q%9.67%
3.2 Future
- The Earnings Per Share is expected to grow by 5.43% on average over the next years.
- Based on estimates for the next years, IPN will show a small growth in Revenue. The Revenue will grow by 4.42% on average per year.
EPS Next Y10.38%
EPS Next 2Y5.39%
EPS Next 3Y4.79%
EPS Next 5Y5.43%
Revenue Next Year8.8%
Revenue Next 2Y6.24%
Revenue Next 3Y6.01%
Revenue Next 5Y4.42%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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
- IPN is valuated correctly with a Price/Earnings ratio of 13.30.
- 76.36% of the companies in the same industry are more expensive than IPN, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, IPN is valued rather cheaply.
- The Price/Forward Earnings ratio is 11.98, which indicates a very decent valuation of IPN.
- Based on the Price/Forward Earnings ratio, IPN is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. IPN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.3 | ||
| Fwd PE | 11.98 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IPN indicates a rather cheap valuation: IPN is cheaper than 96.36% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of IPN indicates a somewhat cheap valuation: IPN is cheaper than 72.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.25 | ||
| EV/EBITDA | 6.49 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- IPN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.28
PEG (5Y)1.51
EPS Next 2Y5.39%
EPS Next 3Y4.79%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.03%, IPN has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.62, IPN has a dividend in line with its industry peers.
- With a Dividend Yield of 1.03, IPN pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
5.2 History
- The dividend of IPN has a limited annual growth rate of 3.72%.
Dividend Growth(5Y)3.72%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
- 25.94% of the earnings are spent on dividend by IPN. This is a low number and sustainable payout ratio.
- IPN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP25.94%
EPS Next 2Y5.39%
EPS Next 3Y4.79%
IPSEN / IPN.PA FAQ
What is the fundamental rating for IPN stock?
ChartMill assigns a fundamental rating of 6 / 10 to IPN.PA.
What is the valuation status of IPSEN (IPN.PA) stock?
ChartMill assigns a valuation rating of 6 / 10 to IPSEN (IPN.PA). This can be considered as Fairly Valued.
Can you provide the profitability details for IPSEN?
IPSEN (IPN.PA) has a profitability rating of 6 / 10.
What is the financial health of IPSEN (IPN.PA) stock?
The financial health rating of IPSEN (IPN.PA) is 7 / 10.
How sustainable is the dividend of IPSEN (IPN.PA) stock?
The dividend rating of IPSEN (IPN.PA) is 4 / 10 and the dividend payout ratio is 25.94%.