OVH GROUPE SAS (OVH.PA) Stock Fundamental Analysis
EPA:OVH - Euronext Paris - Matif - FR0014005HJ9 - Common Stock - Currency: EUR
We assign a fundamental rating of 2 out of 10 to OVH. OVH was compared to 70 industry peers in the IT Services industry. OVH has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, OVH is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
OVH had negative earnings in the past year.
In the past year OVH had a positive cash flow from operations.
OVH had negative earnings in each of the past 5 years.
Each year in the past 5 years OVH had a positive operating cash flow.
1.2 Ratios
OVH has a Return On Assets of -0.57%. This is in the lower half of the industry: OVH underperforms 67.14% of its industry peers.
Looking at the Return On Equity, with a value of -18.58%, OVH is doing worse than 80.00% of the companies in the same industry.
With a Return On Invested Capital value of 1.56%, OVH is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.57% | ||
| ROE | -18.58% | ||
| ROIC | 1.56% |
ROA(3y)-1.7%
ROA(5y)-1.75%
ROE(3y)-6.18%
ROE(5y)-11.71%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
OVH has a Operating Margin of 2.92%. This is in the lower half of the industry: OVH underperforms 68.57% of its industry peers.
OVH's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 78.81%, OVH is doing good in the industry, outperforming 70.00% of the companies in the same industry.
OVH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.92% | ||
| PM (TTM) | N/A | ||
| GM | 78.81% |
OM growth 3Y-33.17%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.32%
GM growth 5Y0.91%
2. Health
2.1 Basic Checks
OVH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for OVH remains at a similar level compared to 1 year ago.
The number of shares outstanding for OVH has been increased compared to 5 years ago.
The debt/assets ratio for OVH is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.95, we must say that OVH is in the distress zone and has some risk of bankruptcy.
OVH's Altman-Z score of 0.95 is on the low side compared to the rest of the industry. OVH is outperformed by 81.43% of its industry peers.
The Debt to FCF ratio of OVH is 32.25, which is on the high side as it means it would take OVH, 32.25 years of fcf income to pay off all of its debts.
OVH's Debt to FCF ratio of 32.25 is on the low side compared to the rest of the industry. OVH is outperformed by 74.29% of its industry peers.
A Debt/Equity ratio of 22.70 is on the high side and indicates that OVH has dependencies on debt financing.
The Debt to Equity ratio of OVH (22.70) is worse than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 22.7 | ||
| Debt/FCF | 32.25 | ||
| Altman-Z | 0.95 |
ROIC/WACC0.25
WACC6.33%
2.3 Liquidity
OVH has a Current Ratio of 0.52. This is a bad value and indicates that OVH is not financially healthy enough and could expect problems in meeting its short term obligations.
OVH has a Current ratio of 0.52. This is amonst the worse of the industry: OVH underperforms 88.57% of its industry peers.
OVH has a Quick Ratio of 0.52. This is a bad value and indicates that OVH is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.52, OVH is doing worse than 88.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
OVH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 76.19%, which is quite impressive.
Looking at the last year, OVH shows a quite strong growth in Revenue. The Revenue has grown by 10.67% in the last year.
The Revenue has been growing by 11.34% on average over the past years. This is quite good.
EPS 1Y (TTM)76.19%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%144.44%
Revenue 1Y (TTM)10.67%
Revenue growth 3Y14.4%
Revenue growth 5Y11.34%
Sales Q2Q%10.27%
3.2 Future
The Earnings Per Share is expected to grow by 151.55% on average over the next years. This is a very strong growth
OVH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.20% yearly.
EPS Next Y248.06%
EPS Next 2Y177.74%
EPS Next 3Y151.55%
EPS Next 5YN/A
Revenue Next Year10.08%
Revenue Next 2Y10.21%
Revenue Next 3Y10.2%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
OVH reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 62.33, which means the current valuation is very expensive for OVH.
67.14% of the companies in the same industry are cheaper than OVH, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, OVH is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 62.33 |
4.2 Price Multiples
OVH's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OVH indicates a slightly more expensive valuation: OVH is more expensive than 68.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.38 | ||
| EV/EBITDA | 8.25 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as OVH's earnings are expected to grow with 151.55% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y177.74%
EPS Next 3Y151.55%
5. Dividend
5.1 Amount
OVH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EPA:OVH (4/28/2025, 5:29:52 PM)
12.32
+0.07 (+0.57%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners6.7%
Inst Owner ChangeN/A
Ins Owners0.56%
Ins Owner ChangeN/A
Market Cap1.87B
Analysts70.67
Price Target10.98 (-10.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)15.33%
PT rev (3m)11.34%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)5.36%
EPS NY rev (3m)-53.66%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-2.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 62.33 | ||
| P/S | 1.88 | ||
| P/FCF | 46.38 | ||
| P/OCF | 4.43 | ||
| P/B | 33.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.25 |
EPS(TTM)-0.05
EYN/A
EPS(NY)0.2
Fwd EY1.6%
FCF(TTM)0.27
FCFY2.16%
OCF(TTM)2.78
OCFY22.56%
SpS6.55
BVpS0.37
TBVpS-2.01
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.57% | ||
| ROE | -18.58% | ||
| ROCE | 2.12% | ||
| ROIC | 1.56% | ||
| ROICexc | 1.69% | ||
| ROICexgc | 2.37% | ||
| OM | 2.92% | ||
| PM (TTM) | N/A | ||
| GM | 78.81% | ||
| FCFM | 4.06% |
ROA(3y)-1.7%
ROA(5y)-1.75%
ROE(3y)-6.18%
ROE(5y)-11.71%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-32.49%
ROICexcg growth 5YN/A
ROICexc growth 3Y-34.5%
ROICexc growth 5YN/A
OM growth 3Y-33.17%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.32%
GM growth 5Y0.91%
F-Score7
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 22.7 | ||
| Debt/FCF | 32.25 | ||
| Debt/EBITDA | 3.4 | ||
| Cap/Depr | 111.93% | ||
| Cap/Sales | 38.4% | ||
| Interest Coverage | 0.95 | ||
| Cash Conversion | 114.04% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 0.95 |
F-Score7
WACC6.33%
ROIC/WACC0.25
Cap/Depr(3y)126.96%
Cap/Depr(5y)132.9%
Cap/Sales(3y)43.99%
Cap/Sales(5y)45.61%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)76.19%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%144.44%
EPS Next Y248.06%
EPS Next 2Y177.74%
EPS Next 3Y151.55%
EPS Next 5YN/A
Revenue 1Y (TTM)10.67%
Revenue growth 3Y14.4%
Revenue growth 5Y11.34%
Sales Q2Q%10.27%
Revenue Next Year10.08%
Revenue Next 2Y10.21%
Revenue Next 3Y10.2%
Revenue Next 5YN/A
EBIT growth 1Y1771.99%
EBIT growth 3Y-23.54%
EBIT growth 5YN/A
EBIT Next Year1485.59%
EBIT Next 3Y169.75%
EBIT Next 5YN/A
FCF growth 1Y126.52%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y56.02%
OCF growth 3Y11.14%
OCF growth 5Y17.36%