PUBLICIS GROUPE (PUB.PA) Stock Fundamental Analysis
EPA:PUB - Euronext Paris - Matif - FR0000130577 - Common Stock - Currency: EUR
Overall PUB gets a fundamental rating of 5 out of 10. We evaluated PUB against 69 industry peers in the Media industry. PUB has only an average score on both its financial health and profitability. PUB is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
PUB had positive earnings in the past year.
PUB had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 4.07%, PUB is in the better half of the industry, outperforming 61.29% of the companies in the same industry.
PUB's Return On Equity of 14.74% is fine compared to the rest of the industry. PUB outperforms 75.81% of its industry peers.
PUB has a Return On Invested Capital of 10.64%. This is amongst the best in the industry. PUB outperforms 83.87% of its industry peers.
PUB had an Average Return On Invested Capital over the past 3 years of 9.07%. This is in line with the industry average of 9.42%.
The 3 year average ROIC (9.07%) for PUB is below the current ROIC(10.64%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.07% | ||
| ROE | 14.74% | ||
| ROIC | 10.64% |
ROA(3y)3.37%
ROA(5y)2.92%
ROE(3y)12.68%
ROE(5y)11.49%
ROIC(3y)9.07%
ROIC(5y)8.29%
1.3 Margins
PUB's Profit Margin of 9.53% is fine compared to the rest of the industry. PUB outperforms 79.03% of its industry peers.
In the last couple of years the Profit Margin of PUB has remained more or less at the same level.
The Operating Margin of PUB (13.14%) is better than 85.48% of its industry peers.
PUB's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.14% | ||
| PM (TTM) | 9.53% | ||
| GM | N/A |
OM growth 3Y4.16%
OM growth 5Y-2.63%
PM growth 3Y18.41%
PM growth 5Y-0.82%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
PUB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for PUB has been reduced compared to 1 year ago.
The number of shares outstanding for PUB has been increased compared to 5 years ago.
Compared to 1 year ago, PUB has an improved debt to assets ratio.
2.2 Solvency
PUB has an Altman-Z score of 1.39. This is a bad value and indicates that PUB is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.39, PUB is in line with its industry, outperforming 43.55% of the companies in the same industry.
The Debt to FCF ratio of PUB is 4.06, which is a neutral value as it means it would take PUB, 4.06 years of fcf income to pay off all of its debts.
PUB has a Debt to FCF ratio of 4.06. This is in the better half of the industry: PUB outperforms 61.29% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that PUB is not too dependend on debt financing.
PUB's Debt to Equity ratio of 0.37 is in line compared to the rest of the industry. PUB outperforms 59.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 4.06 | ||
| Altman-Z | 1.39 |
ROIC/WACC1.59
WACC6.68%
2.3 Liquidity
PUB has a Current Ratio of 0.89. This is a bad value and indicates that PUB is not financially healthy enough and could expect problems in meeting its short term obligations.
PUB's Current ratio of 0.89 is in line compared to the rest of the industry. PUB outperforms 41.94% of its industry peers.
A Quick Ratio of 0.87 indicates that PUB may have some problems paying its short term obligations.
PUB has a Quick ratio (0.87) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.74% over the past year.
The Earnings Per Share has been growing by 8.45% on average over the past years. This is quite good.
Looking at the last year, PUB shows a small growth in Revenue. The Revenue has grown by 4.02% in the last year.
PUB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.27% yearly.
EPS 1Y (TTM)6.74%
EPS 3Y17.69%
EPS 5Y8.45%
EPS Q2Q%5.3%
Revenue 1Y (TTM)4.02%
Revenue growth 3Y11.12%
Revenue growth 5Y8.27%
Sales Q2Q%5.86%
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 4.54% on average per year.
PUB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.31% yearly.
EPS Next Y5.64%
EPS Next 2Y6.63%
EPS Next 3Y6.35%
EPS Next 5Y4.54%
Revenue Next Year10.62%
Revenue Next 2Y8.5%
Revenue Next 3Y7.31%
Revenue Next 5YN/A
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.
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
Based on the Price/Earnings ratio of 14.69, the valuation of PUB can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as PUB.
The average S&P500 Price/Earnings ratio is at 28.47. PUB is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 13.24 indicates a correct valuation of PUB.
PUB's Price/Forward Earnings ratio is in line with the industry average.
PUB is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.69 | ||
| Fwd PE | 13.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PUB indicates a slightly more expensive valuation: PUB is more expensive than 62.90% of the companies listed in the same industry.
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 | 20.03 | ||
| EV/EBITDA | 10.01 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PUB does not grow enough to justify the current Price/Earnings ratio.
PUB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.6
PEG (5Y)1.74
EPS Next 2Y6.63%
EPS Next 3Y6.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.11%, PUB has a reasonable but not impressive dividend return.
PUB's Dividend Yield is a higher than the industry average which is at 5.05.
Compared to an average S&P500 Dividend Yield of 2.28, PUB pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
5.2 History
On average, the dividend of PUB grows each year by 25.77%, which is quite nice.
Dividend Growth(5Y)25.77%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
49.66% of the earnings are spent on dividend by PUB. This is a bit on the high side, but may be sustainable.
PUB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP49.66%
EPS Next 2Y6.63%
EPS Next 3Y6.35%
PUBLICIS GROUPE
EPA:PUB (2/4/2025, 7:00:00 PM)
104.75
+2.35 (+2.29%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners63.21%
Inst Owner ChangeN/A
Ins Owners9.24%
Ins Owner ChangeN/A
Market Cap26.64B
Analysts80
Price Target118.09 (12.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
Yearly Dividend2.89
Dividend Growth(5Y)25.77%
DP49.66%
Div Incr Years1
Div Non Decr Years1
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)1.81%
PT rev (3m)1.91%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-0.3%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.69 | ||
| Fwd PE | 13.24 | ||
| P/S | 1.74 | ||
| P/FCF | 20.03 | ||
| P/OCF | 17.13 | ||
| P/B | 2.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.01 |
EPS(TTM)7.13
EY6.81%
EPS(NY)7.91
Fwd EY7.55%
FCF(TTM)5.23
FCFY4.99%
OCF(TTM)6.11
OCFY5.84%
SpS60.35
BVpS38.99
TBVpS-14.93
PEG (NY)2.6
PEG (5Y)1.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.07% | ||
| ROE | 14.74% | ||
| ROCE | 14.19% | ||
| ROIC | 10.64% | ||
| ROICexc | 13.58% | ||
| ROICexgc | N/A | ||
| OM | 13.14% | ||
| PM (TTM) | 9.53% | ||
| GM | N/A | ||
| FCFM | 8.67% |
ROA(3y)3.37%
ROA(5y)2.92%
ROE(3y)12.68%
ROE(5y)11.49%
ROIC(3y)9.07%
ROIC(5y)8.29%
ROICexc(3y)12.6%
ROICexc(5y)11.38%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)12.11%
ROCE(5y)11.07%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y12.16%
ROICexc growth 5Y0.92%
OM growth 3Y4.16%
OM growth 5Y-2.63%
PM growth 3Y18.41%
PM growth 5Y-0.82%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 4.06 | ||
| Debt/EBITDA | 1.29 | ||
| Cap/Depr | 27.57% | ||
| Cap/Sales | 1.47% | ||
| Interest Coverage | 11.2 | ||
| Cash Conversion | 54.91% | ||
| Profit Quality | 90.97% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.39 |
F-Score7
WACC6.68%
ROIC/WACC1.59
Cap/Depr(3y)19.15%
Cap/Depr(5y)18.97%
Cap/Sales(3y)1.26%
Cap/Sales(5y)1.49%
Profit Quality(3y)161.64%
Profit Quality(5y)244.35%
High Growth Momentum
Growth
EPS 1Y (TTM)6.74%
EPS 3Y17.69%
EPS 5Y8.45%
EPS Q2Q%5.3%
EPS Next Y5.64%
EPS Next 2Y6.63%
EPS Next 3Y6.35%
EPS Next 5Y4.54%
Revenue 1Y (TTM)4.02%
Revenue growth 3Y11.12%
Revenue growth 5Y8.27%
Sales Q2Q%5.86%
Revenue Next Year10.62%
Revenue Next 2Y8.5%
Revenue Next 3Y7.31%
Revenue Next 5YN/A
EBIT growth 1Y-1.13%
EBIT growth 3Y15.74%
EBIT growth 5Y5.42%
EBIT Next Year37.56%
EBIT Next 3Y15.12%
EBIT Next 5Y10.19%
FCF growth 1Y-36.76%
FCF growth 3Y-12.61%
FCF growth 5Y1.49%
OCF growth 1Y-31.68%
OCF growth 3Y-11.61%
OCF growth 5Y1.07%