LVMH MOET HENNESSY LOUIS VUI (MC.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:MC - FR0000121014 - Common Stock
542.4 EUR
-0.4 (-0.07%)
We assign a fundamental rating of 5 out of 10 to MC. MC was compared to 52 industry peers in the Textiles, Apparel & Luxury Goods industry. MC scores excellent on profitability, but there are some minor concerns on its financial health. MC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year MC was profitable.
- MC had a positive operating cash flow in the past year.
- Each year in the past 5 years MC has been profitable.
- In the past 5 years MC always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 7.76%, MC is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- MC has a Return On Equity of 16.82%. This is comparable to the rest of the industry: MC outperforms 57.69% of its industry peers.
- MC has a better Return On Invested Capital (11.02%) than 67.31% of its industry peers.
- MC had an Average Return On Invested Capital over the past 3 years of 13.10%. This is in line with the industry average of 11.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.76% | ||
| ROE | 16.82% | ||
| ROIC | 11.02% |
ROA(3y)9.81%
ROA(5y)8.67%
ROE(3y)23%
ROE(5y)21.42%
ROIC(3y)13.1%
ROIC(5y)11.61%
1.3 Margins
- The Profit Margin of MC (13.26%) is better than 76.92% of its industry peers.
- MC's Profit Margin has improved in the last couple of years.
- MC has a better Operating Margin (21.63%) than 82.69% of its industry peers.
- In the last couple of years the Operating Margin of MC has grown nicely.
- MC's Gross Margin of 66.03% is fine compared to the rest of the industry. MC outperforms 63.46% of its industry peers.
- MC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.63% | ||
| PM (TTM) | 13.26% | ||
| GM | 66.03% |
OM growth 3Y-4.64%
OM growth 5Y1.76%
PM growth 3Y-7.53%
PM growth 5Y2.09%
GM growth 3Y-0.62%
GM growth 5Y0.24%
2. Health
2.1 Basic Checks
- MC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for MC remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, MC has less shares outstanding
- MC has a worse debt/assets ratio than last year.
2.2 Solvency
- MC has an Altman-Z score of 3.90. This indicates that MC is financially healthy and has little risk of bankruptcy at the moment.
- MC has a better Altman-Z score (3.90) than 71.15% of its industry peers.
- MC has a debt to FCF ratio of 2.72. This is a good value and a sign of high solvency as MC would need 2.72 years to pay back of all of its debts.
- MC's Debt to FCF ratio of 2.72 is fine compared to the rest of the industry. MC outperforms 76.92% of its industry peers.
- MC has a Debt/Equity ratio of 0.51. This is a neutral value indicating MC is somewhat dependend on debt financing.
- MC has a Debt to Equity ratio (0.51) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.72 | ||
| Altman-Z | 3.9 |
ROIC/WACC1.48
WACC7.44%
2.3 Liquidity
- MC has a Current Ratio of 1.48. This is a normal value and indicates that MC is financially healthy and should not expect problems in meeting its short term obligations.
- MC has a Current ratio of 1.48. This is comparable to the rest of the industry: MC outperforms 48.08% of its industry peers.
- MC has a Quick Ratio of 1.48. This is a bad value and indicates that MC is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.72, MC is in line with its industry, outperforming 42.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
- MC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.26%.
- Measured over the past years, MC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.04% on average per year.
- MC shows a decrease in Revenue. In the last year, the revenue decreased by -3.24%.
- The Revenue has been growing by 9.55% on average over the past years. This is quite good.
EPS 1Y (TTM)-21.26%
EPS 3Y1.69%
EPS 5Y12.04%
EPS Q2Q%-21.46%
Revenue 1Y (TTM)-3.24%
Revenue growth 3Y9.66%
Revenue growth 5Y9.55%
Sales Q2Q%-4.48%
3.2 Future
- The Earnings Per Share is expected to grow by 10.58% on average over the next years. This is quite good.
- Based on estimates for the next years, MC will show a small growth in Revenue. The Revenue will grow by 3.48% on average per year.
EPS Next Y-11.72%
EPS Next 2Y-0.84%
EPS Next 3Y4.14%
EPS Next 5Y10.58%
Revenue Next Year-4.67%
Revenue Next 2Y-0.89%
Revenue Next 3Y1.44%
Revenue Next 5Y3.48%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- 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
- MC is valuated rather expensively with a Price/Earnings ratio of 24.65.
- Compared to the rest of the industry, the Price/Earnings ratio of MC indicates a somewhat cheap valuation: MC is cheaper than 61.54% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of MC to the average of the S&P500 Index (28.39), we can say MC is valued inline with the index average.
- The Price/Forward Earnings ratio is 21.96, which indicates a rather expensive current valuation of MC.
- Based on the Price/Forward Earnings ratio, MC is valued a bit cheaper than 61.54% of the companies in the same industry.
- MC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.65 | ||
| Fwd PE | 21.96 |
4.2 Price Multiples
- MC's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, MC is valued a bit cheaper than the industry average as 67.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.75 | ||
| EV/EBITDA | 11.03 |
4.3 Compensation for Growth
- MC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.05
EPS Next 2Y-0.84%
EPS Next 3Y4.14%
5. Dividend
5.1 Amount
- MC has a Yearly Dividend Yield of 2.18%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.99, MC has a dividend in line with its industry peers.
- MC's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
5.2 History
- The dividend of MC is nicely growing with an annual growth rate of 15.93%!
Dividend Growth(5Y)15.93%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- MC pays out 61.30% of its income as dividend. This is not a sustainable payout ratio.
- MC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP61.3%
EPS Next 2Y-0.84%
EPS Next 3Y4.14%
LVMH MOET HENNESSY LOUIS VUI / MC.PA FAQ
What is the ChartMill fundamental rating of LVMH MOET HENNESSY LOUIS VUI (MC.PA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to MC.PA.
What is the valuation status for MC stock?
ChartMill assigns a valuation rating of 4 / 10 to LVMH MOET HENNESSY LOUIS VUI (MC.PA). This can be considered as Fairly Valued.
What is the profitability of MC stock?
LVMH MOET HENNESSY LOUIS VUI (MC.PA) has a profitability rating of 7 / 10.
What is the valuation of LVMH MOET HENNESSY LOUIS VUI based on its PE and PB ratios?
The Price/Earnings (PE) ratio for LVMH MOET HENNESSY LOUIS VUI (MC.PA) is 24.65 and the Price/Book (PB) ratio is 4.13.
What is the expected EPS growth for LVMH MOET HENNESSY LOUIS VUI (MC.PA) stock?
The Earnings per Share (EPS) of LVMH MOET HENNESSY LOUIS VUI (MC.PA) is expected to decline by -11.72% in the next year.