VERBUND AG (OEWA.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:OEWA - AT0000746409 - Common Stock
60.85 EUR
+0.05 (+0.08%)
We assign a fundamental rating of 6 out of 10 to OEWA. OEWA was compared to 26 industry peers in the Electric Utilities industry. OEWA scores excellent points on both the profitability and health parts. This is a solid base for a good stock. OEWA has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- OEWA had positive earnings in the past year.
- In the past year OEWA had a positive cash flow from operations.
- Each year in the past 5 years OEWA has been profitable.
- Each year in the past 5 years OEWA had a positive operating cash flow.
1.2 Ratios
- OEWA has a better Return On Assets (9.29%) than 100.00% of its industry peers.
- Looking at the Return On Equity, with a value of 16.86%, OEWA is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
- OEWA has a better Return On Invested Capital (11.22%) than 88.46% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for OEWA is significantly above the industry average of 6.56%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.29% | ||
| ROE | 16.86% | ||
| ROIC | 11.22% |
ROA(3y)10.2%
ROA(5y)8.19%
ROE(3y)21.71%
ROE(5y)18.28%
ROIC(3y)12.64%
ROIC(5y)10.25%
1.3 Margins
- With an excellent Profit Margin value of 20.53%, OEWA belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
- In the last couple of years the Profit Margin of OEWA has grown nicely.
- With an excellent Operating Margin value of 29.02%, OEWA belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
- In the last couple of years the Operating Margin of OEWA has grown nicely.
- Looking at the Gross Margin, with a value of 54.66%, OEWA is in line with its industry, outperforming 50.00% of the companies in the same industry.
- In the last couple of years the Gross Margin of OEWA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.02% | ||
| PM (TTM) | 20.53% | ||
| GM | 54.66% |
OM growth 3Y20.98%
OM growth 5Y9.42%
PM growth 3Y7.54%
PM growth 5Y9.81%
GM growth 3Y6.75%
GM growth 5Y3.6%
2. Health
2.1 Basic Checks
- OEWA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- OEWA has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for OEWA remains at a similar level compared to 5 years ago.
- The debt/assets ratio for OEWA has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.41 indicates that OEWA is not a great score, but indicates only limited risk for bankruptcy at the moment.
- OEWA's Altman-Z score of 2.41 is amongst the best of the industry. OEWA outperforms 80.77% of its industry peers.
- OEWA has a debt to FCF ratio of 1.75. This is a very positive value and a sign of high solvency as it would only need 1.75 years to pay back of all of its debts.
- OEWA has a better Debt to FCF ratio (1.75) than 96.15% of its industry peers.
- OEWA has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.19, OEWA belongs to the top of the industry, outperforming 96.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.75 | ||
| Altman-Z | 2.41 |
ROIC/WACC1.74
WACC6.46%
2.3 Liquidity
- A Current Ratio of 1.08 indicates that OEWA should not have too much problems paying its short term obligations.
- With a decent Current ratio value of 1.08, OEWA is doing good in the industry, outperforming 76.92% of the companies in the same industry.
- OEWA has a Quick Ratio of 1.01. This is a normal value and indicates that OEWA is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of OEWA (1.01) is better than 73.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
- OEWA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.66%.
- OEWA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.54% yearly.
- The Revenue has grown by 27.50% in the past year. This is a very strong growth!
- Measured over the past years, OEWA shows a quite strong growth in Revenue. The Revenue has been growing by 16.18% on average per year.
EPS 1Y (TTM)1.66%
EPS 3Y29.09%
EPS 5Y27.54%
EPS Q2Q%-13.87%
Revenue 1Y (TTM)27.5%
Revenue growth 3Y19.95%
Revenue growth 5Y16.18%
Sales Q2Q%-5.38%
3.2 Future
- Based on estimates for the next years, OEWA will show a decrease in Earnings Per Share. The EPS will decrease by -7.71% on average per year.
- OEWA is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -7.79% yearly.
EPS Next Y-17.68%
EPS Next 2Y-18.46%
EPS Next 3Y-13.8%
EPS Next 5Y-7.71%
Revenue Next Year-9.2%
Revenue Next 2Y-5.54%
Revenue Next 3Y-2.81%
Revenue Next 5Y-7.79%
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
- Based on the Price/Earnings ratio of 12.44, the valuation of OEWA can be described as correct.
- OEWA's Price/Earnings ratio is rather cheap when compared to the industry. OEWA is cheaper than 88.46% of the companies in the same industry.
- OEWA is valuated cheaply when we compare the Price/Earnings ratio to 27.32, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 17.39, which indicates a rather expensive current valuation of OEWA.
- The rest of the industry has a similar Price/Forward Earnings ratio as OEWA.
- OEWA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.44 | ||
| Fwd PE | 17.39 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OEWA indicates a rather cheap valuation: OEWA is cheaper than 96.15% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, OEWA is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.9 | ||
| EV/EBITDA | 4.17 |
4.3 Compensation for Growth
- OEWA has an outstanding profitability rating, which may justify a higher PE ratio.
- OEWA's earnings are expected to decrease with -13.80% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.45
EPS Next 2Y-18.46%
EPS Next 3Y-13.8%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.31%, OEWA is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 3.03, OEWA pays a bit more dividend than its industry peers.
- OEWA's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.31% |
5.2 History
- The dividend of OEWA is nicely growing with an annual growth rate of 67.68%!
Dividend Growth(5Y)67.68%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
- 78.18% of the earnings are spent on dividend by OEWA. This is not a sustainable payout ratio.
- OEWA's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP78.18%
EPS Next 2Y-18.46%
EPS Next 3Y-13.8%
VERBUND AG / OEWA.DE FAQ
What is the fundamental rating for OEWA stock?
ChartMill assigns a fundamental rating of 6 / 10 to OEWA.DE.
Can you provide the valuation status for VERBUND AG?
ChartMill assigns a valuation rating of 6 / 10 to VERBUND AG (OEWA.DE). This can be considered as Fairly Valued.
How profitable is VERBUND AG (OEWA.DE) stock?
VERBUND AG (OEWA.DE) has a profitability rating of 8 / 10.
What is the earnings growth outlook for VERBUND AG?
The Earnings per Share (EPS) of VERBUND AG (OEWA.DE) is expected to decline by -17.68% in the next year.
Is the dividend of VERBUND AG sustainable?
The dividend rating of VERBUND AG (OEWA.DE) is 6 / 10 and the dividend payout ratio is 78.18%.