PUBLICIS GROUPE (PUB.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:PUB - FR0000130577 - Common Stock
87.34 EUR
+0.28 (+0.32%)
PUB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 69 industry peers in the Media industry. PUB has an excellent profitability rating, but there are concerns on its financial health. PUB is valued correctly, but it does not seem to be growing. PUB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year PUB was profitable.
- In the past year PUB had a positive cash flow from operations.
- In the past 5 years PUB has always been profitable.
- Each year in the past 5 years PUB had a positive operating cash flow.
1.2 Ratios
- PUB's Return On Assets of 4.74% is amongst the best of the industry. PUB outperforms 80.88% of its industry peers.
- PUB's Return On Equity of 17.77% is amongst the best of the industry. PUB outperforms 83.82% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 12.64%, PUB belongs to the top of the industry, outperforming 89.71% of the companies in the same industry.
- PUB had an Average Return On Invested Capital over the past 3 years of 10.31%. This is above the industry average of 8.04%.
- 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
- Looking at the Profit Margin, with a value of 10.15%, PUB belongs to the top of the industry, outperforming 86.76% of the companies in the same industry.
- PUB's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 15.07%, PUB belongs to the top of the industry, outperforming 85.29% 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.
- The number of shares outstanding for PUB has been increased compared to 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 1.43. 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 1.43, PUB is in line with its industry, outperforming 48.53% 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 better Debt to FCF ratio (2.63) than 77.94% 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.
- PUB has a Debt to Equity ratio (0.51) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.63 | ||
| Altman-Z | 1.43 |
ROIC/WACC1.77
WACC7.13%
2.3 Liquidity
- A Current Ratio of 0.93 indicates that PUB may have some problems paying its short term obligations.
- PUB has a Current ratio (0.93) which is in line with its industry peers.
- A Quick Ratio of 0.90 indicates that PUB may have some problems paying its short term obligations.
- PUB has a Quick ratio (0.90) which is comparable to the rest of the 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%.
- The Earnings Per Share has been growing slightly by 7.78% on average over the past years.
- PUB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.88%.
- 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
- The Earnings Per Share is expected to grow by 5.50% on average over the next years.
- PUB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.58% yearly.
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 11.76 indicates a reasonable valuation of PUB.
- 69.12% of the companies in the same industry are more expensive than PUB, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, PUB is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 10.88, the valuation of PUB can be described as reasonable.
- PUB's Price/Forward Earnings is on the same level as the industry average.
- When comparing the Price/Forward Earnings ratio of PUB to the average of the S&P500 Index (24.26), we can say PUB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.76 | ||
| Fwd PE | 10.88 |
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.
- The rest of the industry has a similar Price/Free Cash Flow ratio as PUB.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.7 | ||
| EV/EBITDA | 7.51 |
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)3.09
PEG (5Y)1.51
EPS Next 2Y4.87%
EPS Next 3Y5.22%
5. Dividend
5.1 Amount
- PUB has a Yearly Dividend Yield of 4.16%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.07, 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 | 4.16% |
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 11.76 and the Price/Book (PB) ratio is 2.31.
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%.