KERING (PPX.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:PPX - FR0000121485 - Common Stock
275.25 EUR
-5.1 (-1.82%)
PPX gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 52 industry peers in the Textiles, Apparel & Luxury Goods industry. There are concerns on the financial health of PPX while its profitability can be described as average. While showing a medium growth rate, PPX is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- PPX had positive earnings in the past year.
- In the past year PPX had a positive cash flow from operations.
- In the past 5 years PPX has always been profitable.
- In the past 5 years PPX always reported a positive cash flow from operatings.
1.2 Ratios
- PPX has a Return On Assets of 1.72%. This is comparable to the rest of the industry: PPX outperforms 44.23% of its industry peers.
- The Return On Equity of PPX (4.94%) is comparable to the rest of the industry.
- Looking at the Return On Invested Capital, with a value of 3.65%, PPX is doing worse than 67.31% of the companies in the same industry.
- PPX had an Average Return On Invested Capital over the past 3 years of 10.05%. This is in line with the industry average of 11.64%.
- The 3 year average ROIC (10.05%) for PPX is well above the current ROIC(3.65%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.72% | ||
| ROE | 4.94% | ||
| ROIC | 3.65% |
ROA(3y)6.82%
ROA(5y)7.67%
ROE(3y)17.67%
ROE(5y)19%
ROIC(3y)10.05%
ROIC(5y)11.02%
1.3 Margins
- The Profit Margin of PPX (4.62%) is comparable to the rest of the industry.
- PPX's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 11.07%, PPX is in line with its industry, outperforming 57.69% of the companies in the same industry.
- PPX's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 73.03%, PPX is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
- PPX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.07% | ||
| PM (TTM) | 4.62% | ||
| GM | 73.03% |
OM growth 3Y-19.39%
OM growth 5Y-13.44%
PM growth 3Y-28.46%
PM growth 5Y-14.63%
GM growth 3Y-0.14%
GM growth 5Y-0.1%
2. Health
2.1 Basic Checks
- PPX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, PPX has about the same amount of shares outstanding.
- The number of shares outstanding for PPX has been reduced compared to 5 years ago.
- The debt/assets ratio for PPX is higher compared to a year ago.
2.2 Solvency
- PPX has an Altman-Z score of 1.81. This is not the best score and indicates that PPX is in the grey zone with still only limited risk for bankruptcy at the moment.
- The Altman-Z score of PPX (1.81) is worse than 65.38% of its industry peers.
- The Debt to FCF ratio of PPX is 13.86, which is on the high side as it means it would take PPX, 13.86 years of fcf income to pay off all of its debts.
- PPX's Debt to FCF ratio of 13.86 is on the low side compared to the rest of the industry. PPX is outperformed by 63.46% of its industry peers.
- A Debt/Equity ratio of 1.12 is on the high side and indicates that PPX has dependencies on debt financing.
- PPX has a Debt to Equity ratio of 1.12. This is in the lower half of the industry: PPX underperforms 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 13.86 | ||
| Altman-Z | 1.81 |
ROIC/WACC0.52
WACC7.04%
2.3 Liquidity
- PPX has a Current Ratio of 1.32. This is a normal value and indicates that PPX is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of PPX (1.32) is worse than 63.46% of its industry peers.
- PPX has a Quick Ratio of 1.32. This is a bad value and indicates that PPX is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.87, PPX perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
- The earnings per share for PPX have decreased strongly by -59.67% in the last year.
- PPX shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -16.03% yearly.
- Looking at the last year, PPX shows a very negative growth in Revenue. The Revenue has decreased by -14.56% in the last year.
- The Revenue has been growing slightly by 1.60% on average over the past years.
EPS 1Y (TTM)-59.67%
EPS 3Y-26.58%
EPS 5Y-16.03%
EPS Q2Q%-49.31%
Revenue 1Y (TTM)-14.56%
Revenue growth 3Y-0.86%
Revenue growth 5Y1.6%
Sales Q2Q%-15.97%
3.2 Future
- PPX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.83% yearly.
- PPX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.24% yearly.
EPS Next Y-45.58%
EPS Next 2Y-10.81%
EPS Next 3Y3.27%
EPS Next 5Y9.83%
Revenue Next Year-12.78%
Revenue Next 2Y-5.37%
Revenue Next 3Y-1.3%
Revenue Next 5Y2.24%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 38.71, the valuation of PPX can be described as expensive.
- The rest of the industry has a similar Price/Earnings ratio as PPX.
- PPX is valuated rather expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- PPX is valuated quite expensively with a Price/Forward Earnings ratio of 32.40.
- PPX's Price/Forward Earnings ratio is in line with the industry average.
- PPX is valuated rather expensively when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.71 | ||
| Fwd PE | 32.4 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PPX is valued a bit more expensive than the industry average as 61.54% of the companies are valued more cheaply.
- PPX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.55 | ||
| EV/EBITDA | 12.36 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-10.81%
EPS Next 3Y3.27%
5. Dividend
5.1 Amount
- PPX has a Yearly Dividend Yield of 2.14%.
- Compared to an average industry Dividend Yield of 1.99, PPX has a dividend in line with its industry peers.
- PPX's Dividend Yield is comparable with the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
5.2 History
- The dividend of PPX is nicely growing with an annual growth rate of 6.01%!
Dividend Growth(5Y)6.01%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
- PPX pays out 100.96% of its income as dividend. This is not a sustainable payout ratio.
- PPX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP100.96%
EPS Next 2Y-10.81%
EPS Next 3Y3.27%
KERING / PPX.DE FAQ
What is the fundamental rating for PPX stock?
ChartMill assigns a fundamental rating of 3 / 10 to PPX.DE.
What is the valuation status for PPX stock?
ChartMill assigns a valuation rating of 1 / 10 to KERING (PPX.DE). This can be considered as Overvalued.
How profitable is KERING (PPX.DE) stock?
KERING (PPX.DE) has a profitability rating of 4 / 10.
What is the valuation of KERING based on its PE and PB ratios?
The Price/Earnings (PE) ratio for KERING (PPX.DE) is 38.71 and the Price/Book (PB) ratio is 2.3.
Can you provide the expected EPS growth for PPX stock?
The Earnings per Share (EPS) of KERING (PPX.DE) is expected to decline by -45.58% in the next year.