PUBLICIS GROUPE (PUB.PA) Stock Fundamental Analysis
EPA:PUB - Euronext Paris - Matif - FR0000130577 - Common Stock - Currency: EUR
PUB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 62 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 it does not seem to be growing.
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.
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 4.17% is fine compared to the rest of the industry. PUB outperforms 69.35% of its industry peers.
With a decent Return On Equity value of 15.01%, PUB is doing good in the industry, outperforming 79.03% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.64%, PUB belongs to the top of the industry, outperforming 91.94% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PUB is above the industry average of 8.25%.
The 3 year average ROIC (10.31%) for PUB is below the current ROIC(11.64%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.17% | ||
| ROE | 15.01% | ||
| ROIC | 11.64% |
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 has a Profit Margin of 10.36%. This is amongst the best in the industry. PUB outperforms 85.48% of its industry peers.
PUB's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 15.10%, PUB belongs to the best of the industry, outperforming 90.32% of the companies in the same industry.
PUB's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.1% | ||
| PM (TTM) | 10.36% | ||
| 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
PUB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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 1.29. This is a bad value and indicates that PUB is not financially healthy and even has some risk of bankruptcy.
PUB has a Altman-Z score (1.29) which is in line with its industry peers.
The Debt to FCF ratio of PUB is 2.51, which is a good value as it means it would take PUB, 2.51 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.51, PUB is in the better half of the industry, outperforming 75.81% of the companies in the same industry.
A Debt/Equity ratio of 0.36 indicates that PUB is not too dependend on debt financing.
PUB has a better Debt to Equity ratio (0.36) than 64.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.51 | ||
| Altman-Z | 1.29 |
ROIC/WACC1.68
WACC6.91%
2.3 Liquidity
A Current Ratio of 0.91 indicates that PUB may have some problems paying its short term obligations.
PUB's Current ratio of 0.91 is on the low side compared to the rest of the industry. PUB is outperformed by 62.90% of 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 of 0.90. This is comparable to the rest of the industry: PUB outperforms 41.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| 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 4.89%.
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 8.30%.
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)4.89%
EPS 3Y13.29%
EPS 5Y7.78%
EPS Q2Q%4.53%
Revenue 1Y (TTM)8.3%
Revenue growth 3Y10.95%
Revenue growth 5Y7.82%
Sales Q2Q%7.31%
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 2.74% on average per year.
The Revenue is expected to grow by 4.94% on average over the next years.
EPS Next Y5.43%
EPS Next 2Y5.56%
EPS Next 3Y5.82%
EPS Next 5Y2.74%
Revenue Next Year4.91%
Revenue Next 2Y4.64%
Revenue Next 3Y4.94%
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.
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
A Price/Earnings ratio of 12.35 indicates a correct valuation of PUB.
Based on the Price/Earnings ratio, PUB is valued a bit cheaper than 67.74% of the companies in the same industry.
PUB is valuated cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
PUB is valuated reasonably with a Price/Forward Earnings ratio of 11.71.
The rest of the industry has a similar Price/Forward Earnings ratio as PUB.
When comparing the Price/Forward Earnings ratio of PUB to the average of the S&P500 Index (21.90), we can say PUB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.35 | ||
| Fwd PE | 11.71 |
4.2 Price Multiples
PUB's Enterprise Value to EBITDA ratio is in line with the industry average.
PUB's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.11 | ||
| EV/EBITDA | 7.72 |
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)2.27
PEG (5Y)1.59
EPS Next 2Y5.56%
EPS Next 3Y5.82%
5. Dividend
5.1 Amount
PUB has a Yearly Dividend Yield of 3.85%. Purely for dividend investing, there may be better candidates out there.
PUB's Dividend Yield is a higher than the industry average which is at 4.99.
Compared to an average S&P500 Dividend Yield of 2.42, PUB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
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
51.39% 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.
DP51.39%
EPS Next 2Y5.56%
EPS Next 3Y5.82%
EPA:PUB (7/4/2025, 7:00:00 PM)
90.12
-2.08 (-2.26%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners59.01%
Inst Owner ChangeN/A
Ins Owners9.19%
Ins Owner ChangeN/A
Market Cap22.92B
Analysts80
Price Target107.99 (19.83%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
Yearly Dividend3.4
Dividend Growth(5Y)22.83%
DP51.39%
Div Incr Years2
Div Non Decr Years2
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)-0.15%
PT rev (3m)-10.8%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-3.63%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.35 | ||
| Fwd PE | 11.71 | ||
| P/S | 1.43 | ||
| P/FCF | 11.11 | ||
| P/OCF | 9.96 | ||
| P/B | 2.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.72 |
EPS(TTM)7.3
EY8.1%
EPS(NY)7.7
Fwd EY8.54%
FCF(TTM)8.11
FCFY9%
OCF(TTM)9.05
OCFY10.04%
SpS63.03
BVpS43.49
TBVpS-15.15
PEG (NY)2.27
PEG (5Y)1.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.17% | ||
| ROE | 15.01% | ||
| ROCE | 15.38% | ||
| ROIC | 11.64% | ||
| ROICexc | 15.14% | ||
| ROICexgc | N/A | ||
| OM | 15.1% | ||
| PM (TTM) | 10.36% | ||
| GM | N/A | ||
| FCFM | 12.87% |
ROA(3y)3.71%
ROA(5y)3.24%
ROE(3y)13.7%
ROE(5y)12.21%
ROIC(3y)10.31%
ROIC(5y)9.2%
ROICexc(3y)13.65%
ROICexc(5y)12.28%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)13.62%
ROCE(5y)12.17%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y7.91%
ROICexc growth 5Y7.09%
OM growth 3Y3.85%
OM growth 5Y2.68%
PM growth 3Y5.78%
PM growth 5Y6.26%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.51 | ||
| Debt/EBITDA | 1.22 | ||
| Cap/Depr | 29.2% | ||
| Cap/Sales | 1.48% | ||
| Interest Coverage | 12.81 | ||
| Cash Conversion | 71.11% | ||
| Profit Quality | 124.28% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 1.29 |
F-Score7
WACC6.91%
ROIC/WACC1.68
Cap/Depr(3y)23.47%
Cap/Depr(5y)20.16%
Cap/Sales(3y)1.37%
Cap/Sales(5y)1.37%
Profit Quality(3y)149.41%
Profit Quality(5y)219.03%
High Growth Momentum
Growth
EPS 1Y (TTM)4.89%
EPS 3Y13.29%
EPS 5Y7.78%
EPS Q2Q%4.53%
EPS Next Y5.43%
EPS Next 2Y5.56%
EPS Next 3Y5.82%
EPS Next 5Y2.74%
Revenue 1Y (TTM)8.3%
Revenue growth 3Y10.95%
Revenue growth 5Y7.82%
Sales Q2Q%7.31%
Revenue Next Year4.91%
Revenue Next 2Y4.64%
Revenue Next 3Y4.94%
Revenue Next 5YN/A
EBIT growth 1Y28.23%
EBIT growth 3Y15.21%
EBIT growth 5Y10.7%
EBIT Next Year34.88%
EBIT Next 3Y13.94%
EBIT Next 5Y5.57%
FCF growth 1Y10.44%
FCF growth 3Y7.67%
FCF growth 5Y-0.45%
OCF growth 1Y12.35%
OCF growth 3Y8.69%
OCF growth 5Y-0.35%