PUBLICIS GROUPE (PUB.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:PUB - FR0000130577 - Common Stock
85 EUR
+1.08 (+1.29%)
PUB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 68 industry peers in the Media industry. While PUB belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PUB has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally PUB also has an excellent dividend rating.
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
- PUB has a Return On Assets of 4.74%. This is amongst the best in the industry. PUB outperforms 83.58% of its industry peers.
- With an excellent Return On Equity value of 17.77%, PUB belongs to the best of the industry, outperforming 86.57% of the companies in the same industry.
- PUB has a better Return On Invested Capital (12.64%) than 92.54% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for PUB is above the industry average of 7.53%.
- The 3 year average ROIC (10.31%) for PUB is below the current ROIC(12.64%), indicating increased profibility in the last year.
| 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
- PUB's Profit Margin of 10.15% is amongst the best of the industry. PUB outperforms 89.55% of its industry peers.
- PUB's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 15.07%, PUB belongs to the best 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PUB is creating some value.
- PUB has about the same amout of shares outstanding than it did 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.
- Looking at the Altman-Z score, with a value of 1.41, PUB is in line with its industry, outperforming 50.75% of the companies in the same industry.
- PUB has a debt to FCF ratio of 2.63. This is a good value and a sign of high solvency as PUB would need 2.63 years to pay back of all of its debts.
- The Debt to FCF ratio of PUB (2.63) is better than 79.10% of its industry peers.
- PUB has a Debt/Equity ratio of 0.51. This is a neutral value indicating PUB is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.51, PUB is in the better half of the industry, outperforming 61.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.63 | ||
| Altman-Z | 1.41 |
ROIC/WACC1.78
WACC7.1%
2.3 Liquidity
- PUB has a Current Ratio of 0.93. This is a bad value and indicates that PUB is not financially healthy enough and could expect problems in meeting 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.
- PUB has a Quick Ratio of 0.93. This is a bad value and indicates that PUB is not financially healthy enough and could expect problems in meeting 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
- The Earnings Per Share has been growing slightly by 4.21% over the past year.
- PUB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.78% yearly.
- PUB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.88%.
- 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
- The Earnings Per Share is expected to grow by 5.50% on average over the next years.
- The Revenue is expected to grow by 2.58% on average over the next years.
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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- The Price/Earnings ratio is 11.44, which indicates a very decent valuation of PUB.
- Compared to the rest of the industry, the Price/Earnings ratio of PUB indicates a somewhat cheap valuation: PUB is cheaper than 73.13% of the companies listed in the same industry.
- PUB is valuated cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 10.59, which indicates a very decent valuation of PUB.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of PUB indicates a somewhat cheap valuation: PUB is cheaper than 64.18% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. PUB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.44 | ||
| Fwd PE | 10.59 |
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.
- PUB's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.42 | ||
| 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)3.01
PEG (5Y)1.47
EPS Next 2Y4.87%
EPS Next 3Y5.22%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.14%, PUB is a good candidate for dividend investing.
- PUB's Dividend Yield is a higher than the industry average which is at 3.08.
- Compared to an average S&P500 Dividend Yield of 1.82, PUB pays a better dividend.
| 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
- PUB pays out 49.85% of its income as dividend. 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.
DP49.85%
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 11.44 and the Price/Book (PB) ratio is 2.24.
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%.