PUBLICIS GROUPE (PUB.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:PUB - FR0000130577 - Common Stock
83.92 EUR
-4.12 (-4.68%)
PUB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 68 industry peers in the Media industry. PUB has an excellent profitability rating, but there are some minor concerns on its financial health. PUB is valued correctly, but it does not seem to be growing. Finally PUB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- PUB had positive earnings in the past year.
- In the past year PUB had a positive cash flow from operations.
- PUB had positive earnings in each of the past 5 years.
- In the past 5 years PUB always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 4.74%, PUB belongs to the best of the industry, outperforming 83.58% of the companies in the same industry.
- PUB has a better Return On Equity (17.77%) than 86.57% of its industry peers.
- PUB has a Return On Invested Capital of 12.64%. This is amongst the best in the industry. PUB outperforms 92.54% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for PUB is above the industry average of 7.53%.
- The last Return On Invested Capital (12.64%) for PUB is above the 3 year average (10.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 17.77% | ||
| ROIC | 12.64% |
ROA(3y)3.71%
ROA(5y)3.24%
ROE(3y)13.7%
ROE(5y)12.21%
ROIC(3y)10.31%
ROIC(5y)9.2%
1.3 Margins
- With an excellent Profit Margin value of 10.15%, PUB belongs to the best of the industry, outperforming 89.55% of the companies in the same industry.
- In the last couple of years the Profit Margin of PUB has grown nicely.
- Looking at the Operating Margin, with a value of 15.07%, PUB belongs to the top of the industry, outperforming 88.06% of the companies in the same industry.
- PUB's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.07% | ||
| PM (TTM) | 10.15% | ||
| GM | N/A |
OM growth 3Y3.85%
OM growth 5Y2.68%
PM growth 3Y5.78%
PM growth 5Y6.26%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PUB is still creating some value.
- The number of shares outstanding for PUB remains at a similar level compared to 1 year ago.
- PUB has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for PUB has been reduced compared to a year ago.
2.2 Solvency
- PUB has an Altman-Z score of 1.41. This is a bad value and indicates that PUB is not financially healthy and even has some risk of bankruptcy.
- PUB's Altman-Z score of 1.41 is in line compared to the rest of the industry. PUB outperforms 50.75% of its industry peers.
- The Debt to FCF ratio of PUB is 2.63, which is a good value as it means it would take PUB, 2.63 years of fcf income to pay off all of its debts.
- PUB's Debt to FCF ratio of 2.63 is fine compared to the rest of the industry. PUB outperforms 79.10% of its industry peers.
- A Debt/Equity ratio of 0.51 indicates that PUB is somewhat dependend on debt financing.
- The Debt to Equity ratio of PUB (0.51) is better than 61.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.63 | ||
| Altman-Z | 1.41 |
ROIC/WACC1.78
WACC7.09%
2.3 Liquidity
- A Current Ratio of 0.93 indicates that PUB may have some problems paying its short term obligations.
- With a Current ratio value of 0.93, PUB perfoms like the industry average, outperforming 46.27% of the companies in the same industry.
- A Quick Ratio of 0.90 indicates that PUB may have some problems paying its short term obligations.
- With a Quick ratio value of 0.90, PUB perfoms like the industry average, outperforming 53.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
- PUB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.21%.
- PUB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.78% yearly.
- The Revenue has grown by 9.88% in the past year. This is quite good.
- Measured over the past years, PUB shows a small growth in Revenue. The Revenue has been growing by 7.82% on average per year.
EPS 1Y (TTM)4.21%
EPS 3Y13.29%
EPS 5Y7.78%
EPS Q2Q%3.85%
Revenue 1Y (TTM)9.88%
Revenue growth 3Y10.95%
Revenue growth 5Y7.82%
Sales Q2Q%6.94%
3.2 Future
- Based on estimates for the next years, PUB will show a small growth in Earnings Per Share. The EPS will grow by 5.50% on average per year.
- Based on estimates for the next years, PUB will show a small growth in Revenue. The Revenue will grow by 2.58% on average per year.
EPS Next Y3.8%
EPS Next 2Y4.87%
EPS Next 3Y5.22%
EPS Next 5Y5.5%
Revenue Next Year4.58%
Revenue Next 2Y4.36%
Revenue Next 3Y4.65%
Revenue Next 5Y2.58%
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 decreasing.
- 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
- Based on the Price/Earnings ratio of 11.29, the valuation of PUB can be described as reasonable.
- 73.13% of the companies in the same industry are more expensive than PUB, based on the Price/Earnings ratio.
- PUB is valuated cheaply when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 10.45, the valuation of PUB can be described as reasonable.
- Based on the Price/Forward Earnings ratio, PUB is valued a bit cheaper than the industry average as 64.18% of the companies are valued more expensively.
- PUB is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.29 | ||
| Fwd PE | 10.45 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PUB is on the same level as its industry peers.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of PUB is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.29 | ||
| EV/EBITDA | 7.27 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of PUB may justify a higher PE ratio.
PEG (NY)2.97
PEG (5Y)1.45
EPS Next 2Y4.87%
EPS Next 3Y5.22%
5. Dividend
5.1 Amount
- PUB has a Yearly Dividend Yield of 4.14%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.08, PUB pays a bit more dividend than its industry peers.
- PUB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.14% |
5.2 History
- The dividend of PUB is nicely growing with an annual growth rate of 22.83%!
Dividend Growth(5Y)22.83%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- 49.85% of the earnings are spent on dividend by PUB. This is a bit on the high side, but may be sustainable.
- The dividend of PUB is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP49.85%
EPS Next 2Y4.87%
EPS Next 3Y5.22%
PUBLICIS GROUPE / PUB.PA FAQ
What is the ChartMill fundamental rating of PUBLICIS GROUPE (PUB.PA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to PUB.PA.
What is the valuation status of PUBLICIS GROUPE (PUB.PA) stock?
ChartMill assigns a valuation rating of 5 / 10 to PUBLICIS GROUPE (PUB.PA). This can be considered as Fairly Valued.
Can you provide the profitability details for PUBLICIS GROUPE?
PUBLICIS GROUPE (PUB.PA) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for PUB stock?
The Price/Earnings (PE) ratio for PUBLICIS GROUPE (PUB.PA) is 11.29 and the Price/Book (PB) ratio is 2.22.
How sustainable is the dividend of PUBLICIS GROUPE (PUB.PA) stock?
The dividend rating of PUBLICIS GROUPE (PUB.PA) is 7 / 10 and the dividend payout ratio is 49.85%.