Marel hf (MAREL.AS) Stock Fundamental Analysis

Europe • Euronext Amsterdam • AMS:MAREL • IS0000000388

4.55 EUR
+0.12 (+2.71%)
Last: Jan 3, 2025, 07:00 PM
Fundamental Rating

2

Taking everything into account, MAREL scores 2 out of 10 in our fundamental rating. MAREL was compared to 111 industry peers in the Machinery industry. MAREL has a bad profitability rating. Also its financial health evaluation is rather negative. MAREL has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

  • In the past year MAREL was profitable.
  • In the past year MAREL had a positive cash flow from operations.
  • In the past 5 years MAREL has always been profitable.
  • MAREL had a positive operating cash flow in each of the past 5 years.
MAREL.AS Yearly Net Income VS EBIT VS OCF VS FCFMAREL.AS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 50M 100M 150M

1.2 Ratios

  • MAREL's Return On Assets of 0.44% is on the low side compared to the rest of the industry. MAREL is outperformed by 63.37% of its industry peers.
  • MAREL has a Return On Equity of 1.10%. This is in the lower half of the industry: MAREL underperforms 61.39% of its industry peers.
  • With a Return On Invested Capital value of 3.55%, MAREL is not doing good in the industry: 63.37% of the companies in the same industry are doing better.
  • MAREL had an Average Return On Invested Capital over the past 3 years of 5.23%. This is below the industry average of 9.21%.
Industry RankSector Rank
ROA 0.44%
ROE 1.1%
ROIC 3.55%
ROA(3y)2.73%
ROA(5y)3.95%
ROE(3y)6.07%
ROE(5y)8.09%
ROIC(3y)5.23%
ROIC(5y)6.94%
MAREL.AS Yearly ROA, ROE, ROICMAREL.AS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20

1.3 Margins

  • MAREL's Profit Margin of 0.69% is on the low side compared to the rest of the industry. MAREL is outperformed by 62.38% of its industry peers.
  • In the last couple of years the Profit Margin of MAREL has declined.
  • MAREL has a Operating Margin of 5.21%. This is comparable to the rest of the industry: MAREL outperforms 49.51% of its industry peers.
  • MAREL's Operating Margin has declined in the last couple of years.
  • MAREL has a Gross Margin (36.06%) which is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of MAREL has declined.
Industry RankSector Rank
OM 5.21%
PM (TTM) 0.69%
GM 36.06%
OM growth 3Y-23.73%
OM growth 5Y-17.24%
PM growth 3Y-39.86%
PM growth 5Y-29.33%
GM growth 3Y-2.31%
GM growth 5Y-2.35%
MAREL.AS Yearly Profit, Operating, Gross MarginsMAREL.AS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30 40

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2

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MAREL is destroying value.
  • Compared to 1 year ago, MAREL has about the same amount of shares outstanding.
  • Compared to 1 year ago, MAREL has about the same debt to assets ratio.
MAREL.AS Yearly Shares OutstandingMAREL.AS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M
MAREL.AS Yearly Total Debt VS Total AssetsMAREL.AS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B 2.5B

2.2 Solvency

  • An Altman-Z score of 2.59 indicates that MAREL is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • MAREL has a Altman-Z score of 2.59. This is in the better half of the industry: MAREL outperforms 64.36% of its industry peers.
  • MAREL has a debt to FCF ratio of 17.03. This is a negative value and a sign of low solvency as MAREL would need 17.03 years to pay back of all of its debts.
  • MAREL has a Debt to FCF ratio of 17.03. This is in the lower half of the industry: MAREL underperforms 63.37% of its industry peers.
  • MAREL has a Debt/Equity ratio of 0.84. This is a neutral value indicating MAREL is somewhat dependend on debt financing.
  • MAREL has a Debt to Equity ratio of 0.84. This is in the lower half of the industry: MAREL underperforms 70.30% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.84
Debt/FCF 17.03
Altman-Z 2.59
ROIC/WACC0.64
WACC5.55%
MAREL.AS Yearly LT Debt VS Equity VS FCFMAREL.AS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M 600M 800M 1B

2.3 Liquidity

  • MAREL has a Current Ratio of 1.36. This is a normal value and indicates that MAREL is financially healthy and should not expect problems in meeting its short term obligations.
  • MAREL has a Current ratio of 1.36. This is in the lower half of the industry: MAREL underperforms 65.35% of its industry peers.
  • MAREL has a Quick Ratio of 1.36. This is a bad value and indicates that MAREL is not financially healthy enough and could expect problems in meeting its short term obligations.
  • MAREL has a worse Quick ratio (0.77) than 69.31% of its industry peers.
Industry RankSector Rank
Current Ratio 1.36
Quick Ratio 0.77
MAREL.AS Yearly Current Assets VS Current LiabilitesMAREL.AS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

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3

3. Growth

3.1 Past

  • MAREL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -72.06%.
  • MAREL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -25.45% yearly.
  • The Revenue has decreased by -5.67% in the past year.
  • Measured over the past years, MAREL shows a small growth in Revenue. The Revenue has been growing by 7.52% on average per year.
EPS 1Y (TTM)-72.06%
EPS 3Y-32.75%
EPS 5Y-25.45%
EPS Q2Q%-62.39%
Revenue 1Y (TTM)-5.67%
Revenue growth 3Y11.62%
Revenue growth 5Y7.52%
Sales Q2Q%-4.14%

3.2 Future

  • MAREL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 39.00% yearly.
  • The Revenue is expected to grow by 4.44% on average over the next years.
EPS Next Y45.24%
EPS Next 2Y45.57%
EPS Next 3Y39%
EPS Next 5YN/A
Revenue Next Year-0.68%
Revenue Next 2Y2.53%
Revenue Next 3Y3.66%
Revenue Next 5Y4.44%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better 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.
MAREL.AS Yearly Revenue VS EstimatesMAREL.AS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 500M 1B 1.5B 2B 2.5B
MAREL.AS Yearly EPS VS EstimatesMAREL.AS Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 1 2 3 4 5

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1

4. Valuation

4.1 Price/Earnings Ratio

  • MAREL is valuated quite expensively with a Price/Earnings ratio of 227.50.
  • Compared to the rest of the industry, the Price/Earnings ratio of MAREL indicates a slightly more expensive valuation: MAREL is more expensive than 66.34% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 28.39. MAREL is valued rather expensively when compared to this.
  • MAREL is valuated quite expensively with a Price/Forward Earnings ratio of 29.78.
  • 78.22% of the companies in the same industry are cheaper than MAREL, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 25.72. MAREL is around the same levels.
Industry RankSector Rank
PE 227.5
Fwd PE 29.78
MAREL.AS Price Earnings VS Forward Price EarningsMAREL.AS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150 200

4.2 Price Multiples

  • MAREL's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. MAREL is more expensive than 75.25% of the companies in the same industry.
  • 67.33% of the companies in the same industry are cheaper than MAREL, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 67.72
EV/EBITDA 23.03
MAREL.AS Per share dataMAREL.AS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 0.5 1 1.5 2

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MAREL does not grow enough to justify the current Price/Earnings ratio.
  • MAREL's earnings are expected to grow with 39.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.03
PEG (5Y)N/A
EPS Next 2Y45.57%
EPS Next 3Y39%

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2

5. Dividend

5.1 Amount

  • With a yearly dividend of 0.19%, MAREL is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 1.48, MAREL has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, MAREL's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.19%

5.2 History

  • The dividend of MAREL decreases each year by -18.19%.
Dividend Growth(5Y)-18.19%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

  • 54.39% of the earnings are spent on dividend by MAREL. This is a bit on the high side, but may be sustainable.
DP54.39%
EPS Next 2Y45.57%
EPS Next 3Y39%
MAREL.AS Yearly Income VS Free CF VS DividendMAREL.AS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 0 50M 100M
MAREL.AS Dividend Payout.MAREL.AS Dividend Payout, showing the Payout Ratio.MAREL.AS Dividend Payout.PayoutRetained Earnings

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Marel hf / MAREL.AS FAQ

What is the fundamental rating for MAREL stock?

ChartMill assigns a fundamental rating of 2 / 10 to MAREL.AS.


What is the valuation status for MAREL stock?

ChartMill assigns a valuation rating of 1 / 10 to Marel hf (MAREL.AS). This can be considered as Overvalued.


What is the profitability of MAREL stock?

Marel hf (MAREL.AS) has a profitability rating of 3 / 10.


How financially healthy is Marel hf?

The financial health rating of Marel hf (MAREL.AS) is 2 / 10.


How sustainable is the dividend of Marel hf (MAREL.AS) stock?

The dividend rating of Marel hf (MAREL.AS) is 2 / 10 and the dividend payout ratio is 54.39%.