PUBLICIS GROUPE (PUB.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:PUB - FR0000130577 - Common Stock
83.16 EUR
-1.84 (-2.16%)
Overall PUB gets a fundamental rating of 5 out of 10. We evaluated PUB against 68 industry peers in the Media industry. PUB scores excellent on profitability, but 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. 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.
- PUB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- PUB has a better Return On Assets (4.74%) than 83.58% of its industry peers.
- Looking at the Return On Equity, with a value of 17.77%, PUB belongs to the top of the industry, outperforming 86.57% of the companies in the same industry.
- The Return On Invested Capital of PUB (12.64%) is better 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
- Looking at the Profit Margin, with a value of 10.15%, PUB belongs to the top of the industry, outperforming 89.55% of the companies in the same industry.
- 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.
- In the last couple of years the Operating Margin of PUB has grown nicely.
| 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.
- Compared to 1 year ago, PUB has about the same amount of shares outstanding.
- Compared to 5 years ago, PUB has more shares outstanding
- The debt/assets ratio for PUB has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.42, we must say that PUB is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 1.42, PUB perfoms like the industry average, outperforming 50.75% of the companies in the same industry.
- 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 has a Debt to FCF ratio of 2.63. This is in the better half 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.
- PUB has a better Debt to Equity ratio (0.51) than 61.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.63 | ||
| Altman-Z | 1.42 |
ROIC/WACC1.79
WACC7.08%
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.
- 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.
- PUB has a Quick ratio (0.90) which is in line with its industry peers.
| 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.
- Measured over the past 5 years, PUB shows a small growth in Earnings Per Share. The EPS has been growing by 7.78% on average per year.
- The Revenue has grown by 9.88% in the past year. This is quite good.
- PUB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.82% yearly.
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 11.19, the valuation of PUB can be described as reasonable.
- 71.64% of the companies in the same industry are more expensive than PUB, based on the Price/Earnings ratio.
- PUB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.60.
- Based on the Price/Forward Earnings ratio of 10.36, 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.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, PUB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.19 | ||
| Fwd PE | 10.36 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as PUB.
- 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 | 10.19 | ||
| EV/EBITDA | 7.35 |
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.
- The excellent profitability rating of PUB may justify a higher PE ratio.
PEG (NY)2.95
PEG (5Y)1.44
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.
- Compared to an average industry Dividend Yield of 3.08, PUB pays a bit more dividend than its industry peers.
- 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
- On average, the dividend of PUB grows each year by 22.83%, which is quite nice.
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 11.19 and the Price/Book (PB) ratio is 2.2.
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%.