MELEXIS NV (MELE.BR) Stock Fundamental Analysis
Europe - Euronext Brussels - EBR:MELE - BE0165385973 - Common Stock
63.5 EUR
-1.35 (-2.08%)
MELE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 69 industry peers in the Semiconductors & Semiconductor Equipment industry. MELE scores excellent on profitability, but there are some minor concerns on its financial health. MELE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year MELE was profitable.
- In the past year MELE had a positive cash flow from operations.
- Each year in the past 5 years MELE has been profitable.
- MELE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- MELE has a Return On Assets of 11.74%. This is in the better half of the industry: MELE outperforms 67.65% of its industry peers.
- With a decent Return On Equity value of 20.24%, MELE is doing good in the industry, outperforming 64.71% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 13.29%, MELE is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
- MELE had an Average Return On Invested Capital over the past 3 years of 31.03%. This is significantly above the industry average of 14.31%.
- The 3 year average ROIC (31.03%) for MELE is well above the current ROIC(13.29%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.74% | ||
| ROE | 20.24% | ||
| ROIC | 13.29% |
ROA(3y)25.78%
ROA(5y)24.35%
ROE(3y)36.37%
ROE(5y)32.97%
ROIC(3y)31.03%
ROIC(5y)28.48%
1.3 Margins
- MELE has a Profit Margin (13.16%) which is in line with its industry peers.
- In the last couple of years the Profit Margin of MELE has grown nicely.
- MELE has a Operating Margin of 15.81%. This is comparable to the rest of the industry: MELE outperforms 51.47% of its industry peers.
- In the last couple of years the Operating Margin of MELE has grown nicely.
- With a Gross Margin value of 38.82%, MELE is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
- MELE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.81% | ||
| PM (TTM) | 13.16% | ||
| GM | 38.82% |
OM growth 3Y0.51%
OM growth 5Y8.98%
PM growth 3Y-3.36%
PM growth 5Y8.23%
GM growth 3Y0.09%
GM growth 5Y1.54%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MELE is creating value.
- MELE has about the same amout of shares outstanding than it did 1 year ago.
- MELE has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for MELE is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 6.81 indicates that MELE is not in any danger for bankruptcy at the moment.
- MELE's Altman-Z score of 6.81 is fine compared to the rest of the industry. MELE outperforms 60.29% of its industry peers.
- MELE has a debt to FCF ratio of 3.06. This is a good value and a sign of high solvency as MELE would need 3.06 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 3.06, MELE perfoms like the industry average, outperforming 42.65% of the companies in the same industry.
- A Debt/Equity ratio of 0.51 indicates that MELE is somewhat dependend on debt financing.
- MELE's Debt to Equity ratio of 0.51 is on the low side compared to the rest of the industry. MELE is outperformed by 73.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.06 | ||
| Altman-Z | 6.81 |
ROIC/WACC1.23
WACC10.79%
2.3 Liquidity
- MELE has a Current Ratio of 5.33. This indicates that MELE is financially healthy and has no problem in meeting its short term obligations.
- With an excellent Current ratio value of 5.33, MELE belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
- A Quick Ratio of 2.56 indicates that MELE has no problem at all paying its short term obligations.
- MELE's Quick ratio of 2.56 is amongst the best of the industry. MELE outperforms 82.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.33 | ||
| Quick Ratio | 2.56 |
3. Growth
3.1 Past
- MELE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -46.51%.
- Measured over the past years, MELE shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.04% on average per year.
- Looking at the last year, MELE shows a very negative growth in Revenue. The Revenue has decreased by -16.57% in the last year.
- MELE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.89% yearly.
EPS 1Y (TTM)-46.51%
EPS 3Y9.29%
EPS 5Y23.04%
EPS Q2Q%-46.03%
Revenue 1Y (TTM)-16.57%
Revenue growth 3Y13.16%
Revenue growth 5Y13.89%
Sales Q2Q%-13.14%
3.2 Future
- The Earnings Per Share is expected to grow by 7.10% on average over the next years.
- The Revenue is expected to grow by 5.23% on average over the next years.
EPS Next Y-29.34%
EPS Next 2Y-8.22%
EPS Next 3Y1.71%
EPS Next 5Y7.1%
Revenue Next Year-10.45%
Revenue Next 2Y-1.26%
Revenue Next 3Y2.16%
Revenue Next 5Y5.23%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less 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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 23.69 indicates a rather expensive valuation of MELE.
- 79.41% of the companies in the same industry are more expensive than MELE, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.21. MELE is around the same levels.
- The Price/Forward Earnings ratio is 17.82, which indicates a rather expensive current valuation of MELE.
- Based on the Price/Forward Earnings ratio, MELE is valued cheaper than 82.35% of the companies in the same industry.
- MELE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.69 | ||
| Fwd PE | 17.82 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MELE is valued a bit cheaper than the industry average as 70.59% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, MELE is valued cheaply inside the industry as 83.82% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.47 | ||
| EV/EBITDA | 15.42 |
4.3 Compensation for Growth
- MELE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.03
EPS Next 2Y-8.22%
EPS Next 3Y1.71%
5. Dividend
5.1 Amount
- MELE has a Yearly Dividend Yield of 2.00%.
- Compared to an average industry Dividend Yield of 0.74, MELE pays a better dividend. On top of this MELE pays more dividend than 91.18% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, MELE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
5.2 History
- On average, the dividend of MELE grows each year by 10.98%, which is quite nice.
Dividend Growth(5Y)10.98%
Div Incr Years3
Div Non Decr Years6
5.3 Sustainability
- MELE pays out 137.23% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of MELE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP137.23%
EPS Next 2Y-8.22%
EPS Next 3Y1.71%
MELEXIS NV / MELE.BR FAQ
What is the ChartMill fundamental rating of MELEXIS NV (MELE.BR) stock?
ChartMill assigns a fundamental rating of 6 / 10 to MELE.BR.
What is the valuation status of MELEXIS NV (MELE.BR) stock?
ChartMill assigns a valuation rating of 5 / 10 to MELEXIS NV (MELE.BR). This can be considered as Fairly Valued.
How profitable is MELEXIS NV (MELE.BR) stock?
MELEXIS NV (MELE.BR) has a profitability rating of 7 / 10.
What is the valuation of MELEXIS NV based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MELEXIS NV (MELE.BR) is 23.69 and the Price/Book (PB) ratio is 4.8.
What is the expected EPS growth for MELEXIS NV (MELE.BR) stock?
The Earnings per Share (EPS) of MELEXIS NV (MELE.BR) is expected to decline by -29.34% in the next year.