STINGRAY GROUP -VARIABLE S (RAY-B.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:RAY-B - CA86084H2090 - Common Stock
15.75 CAD
+0.03 (+0.19%)
RAY-B gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 15 industry peers in the Media industry. RAY-B has an excellent profitability rating, but there are some minor concerns on its financial health. RAY-B scores decently on growth, while it is valued quite cheap. This could make an interesting combination. RAY-B also has an excellent dividend rating. These ratings would make RAY-B suitable for value and dividend investing!
1. Profitability
1.1 Basic Checks
- In the past year RAY-B was profitable.
- RAY-B had a positive operating cash flow in the past year.
- RAY-B had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years RAY-B had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 6.12%, RAY-B is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
- RAY-B has a better Return On Equity (17.96%) than 93.33% of its industry peers.
- RAY-B has a Return On Invested Capital of 10.36%. This is in the better half of the industry: RAY-B outperforms 80.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for RAY-B is in line with the industry average of 9.55%.
- The last Return On Invested Capital (10.36%) for RAY-B is above the 3 year average (8.88%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.12% | ||
| ROE | 17.96% | ||
| ROIC | 10.36% |
ROA(3y)2.04%
ROA(5y)3.08%
ROE(3y)6.22%
ROE(5y)9.45%
ROIC(3y)8.88%
ROIC(5y)7.97%
1.3 Margins
- RAY-B has a better Profit Margin (12.56%) than 100.00% of its industry peers.
- In the last couple of years the Profit Margin of RAY-B has grown nicely.
- The Operating Margin of RAY-B (25.10%) is better than 100.00% of its industry peers.
- RAY-B's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.1% | ||
| PM (TTM) | 12.56% | ||
| GM | N/A |
OM growth 3Y3.72%
OM growth 5Y1.04%
PM growth 3Y-7.18%
PM growth 5Y15.64%
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), RAY-B is creating some value.
- RAY-B has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for RAY-B has been reduced compared to 5 years ago.
- The debt/assets ratio for RAY-B has been reduced compared to a year ago.
2.2 Solvency
- RAY-B has an Altman-Z score of 1.80. This is a bad value and indicates that RAY-B is not financially healthy and even has some risk of bankruptcy.
- RAY-B has a better Altman-Z score (1.80) than 80.00% of its industry peers.
- The Debt to FCF ratio of RAY-B is 3.50, which is a good value as it means it would take RAY-B, 3.50 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of RAY-B (3.50) is better than 73.33% of its industry peers.
- RAY-B has a Debt/Equity ratio of 1.23. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.23, RAY-B perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 3.5 | ||
| Altman-Z | 1.8 |
ROIC/WACC1.48
WACC6.99%
2.3 Liquidity
- RAY-B has a Current Ratio of 1.11. This is a normal value and indicates that RAY-B is financially healthy and should not expect problems in meeting its short term obligations.
- RAY-B has a better Current ratio (1.11) than 73.33% of its industry peers.
- A Quick Ratio of 1.04 indicates that RAY-B should not have too much problems paying its short term obligations.
- The Quick ratio of RAY-B (1.04) is better than 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 33.33% over the past year.
- The Earnings Per Share has been growing slightly by 7.84% on average over the past years.
- RAY-B shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.69%.
- RAY-B shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.75% yearly.
EPS 1Y (TTM)33.33%
EPS 3Y9.49%
EPS 5Y7.84%
EPS Q2Q%33.33%
Revenue 1Y (TTM)12.69%
Revenue growth 3Y11.03%
Revenue growth 5Y4.75%
Sales Q2Q%21.03%
3.2 Future
- RAY-B is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.96% yearly.
- RAY-B is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.02% yearly.
EPS Next Y35.21%
EPS Next 2Y31.15%
EPS Next 3Y19.96%
EPS Next 5YN/A
Revenue Next Year23.85%
Revenue Next 2Y28.97%
Revenue Next 3Y17.02%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- RAY-B is valuated correctly with a Price/Earnings ratio of 12.70.
- Based on the Price/Earnings ratio, RAY-B is valued cheaper than 86.67% of the companies in the same industry.
- RAY-B is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 8.72 indicates a reasonable valuation of RAY-B.
- Based on the Price/Forward Earnings ratio, RAY-B is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
- RAY-B's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.7 | ||
| Fwd PE | 8.72 |
4.2 Price Multiples
- RAY-B's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RAY-B is cheaper than 73.33% of the companies in the same industry.
- RAY-B's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RAY-B is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.47 | ||
| EV/EBITDA | 8.97 |
4.3 Compensation for Growth
- RAY-B's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- RAY-B has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as RAY-B's earnings are expected to grow with 19.96% in the coming years.
PEG (NY)0.36
PEG (5Y)1.62
EPS Next 2Y31.15%
EPS Next 3Y19.96%
5. Dividend
5.1 Amount
- RAY-B has a Yearly Dividend Yield of 2.15%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.31, RAY-B pays a better dividend. On top of this RAY-B pays more dividend than 93.33% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, RAY-B has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
5.2 History
- The dividend of RAY-B has a limited annual growth rate of 1.15%.
- RAY-B has paid a dividend for at least 10 years, which is a reliable track record.
- As RAY-B did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)1.15%
Div Incr Years0
Div Non Decr Years9
5.3 Sustainability
- RAY-B pays out 39.32% of its income as dividend. This is a sustainable payout ratio.
- RAY-B's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP39.32%
EPS Next 2Y31.15%
EPS Next 3Y19.96%
STINGRAY GROUP -VARIABLE S / RAY-B.CA FAQ
Can you provide the ChartMill fundamental rating for STINGRAY GROUP -VARIABLE S?
ChartMill assigns a fundamental rating of 6 / 10 to RAY-B.CA.
What is the valuation status of STINGRAY GROUP -VARIABLE S (RAY-B.CA) stock?
ChartMill assigns a valuation rating of 8 / 10 to STINGRAY GROUP -VARIABLE S (RAY-B.CA). This can be considered as Undervalued.
How profitable is STINGRAY GROUP -VARIABLE S (RAY-B.CA) stock?
STINGRAY GROUP -VARIABLE S (RAY-B.CA) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for RAY-B stock?
The Price/Earnings (PE) ratio for STINGRAY GROUP -VARIABLE S (RAY-B.CA) is 12.7 and the Price/Book (PB) ratio is 3.
What is the expected EPS growth for STINGRAY GROUP -VARIABLE S (RAY-B.CA) stock?
The Earnings per Share (EPS) of STINGRAY GROUP -VARIABLE S (RAY-B.CA) is expected to grow by 35.21% in the next year.