ROCHE BOBOIS SA (RBO.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:RBO - FR0013344173 - Common Stock
26.9 EUR
+0.6 (+2.28%)
We assign a fundamental rating of 4 out of 10 to RBO. RBO was compared to 33 industry peers in the Household Durables industry. While RBO belongs to the best of the industry regarding profitability, there are concerns on its financial health. RBO is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year RBO was profitable.
- In the past year RBO had a positive cash flow from operations.
- Each year in the past 5 years RBO has been profitable.
- Each year in the past 5 years RBO had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of RBO (2.85%) is better than 72.73% of its industry peers.
- RBO has a better Return On Equity (15.29%) than 81.82% of its industry peers.
- RBO's Return On Invested Capital of 7.49% is fine compared to the rest of the industry. RBO outperforms 75.76% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for RBO is in line with the industry average of 9.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.85% | ||
| ROE | 15.29% | ||
| ROIC | 7.49% |
ROA(3y)5.86%
ROA(5y)5.01%
ROE(3y)26.86%
ROE(5y)23.78%
ROIC(3y)11.35%
ROIC(5y)9.98%
1.3 Margins
- RBO has a better Profit Margin (3.19%) than 69.70% of its industry peers.
- RBO's Profit Margin has improved in the last couple of years.
- The Operating Margin of RBO (6.10%) is better than 60.61% of its industry peers.
- In the last couple of years the Operating Margin of RBO has grown nicely.
- With an excellent Gross Margin value of 65.74%, RBO belongs to the best of the industry, outperforming 87.88% of the companies in the same industry.
- In the last couple of years the Gross Margin of RBO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.1% | ||
| PM (TTM) | 3.19% | ||
| GM | 65.74% |
OM growth 3Y-8.83%
OM growth 5Y2.02%
PM growth 3Y-12.41%
PM growth 5Y2.16%
GM growth 3Y0.33%
GM growth 5Y0.38%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RBO is creating value.
- The number of shares outstanding for RBO has been increased compared to 1 year ago.
- The number of shares outstanding for RBO has been increased compared to 5 years ago.
- The debt/assets ratio for RBO is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.56, we must say that RBO is in the distress zone and has some risk of bankruptcy.
- RBO's Altman-Z score of 1.56 is on the low side compared to the rest of the industry. RBO is outperformed by 63.64% of its industry peers.
- The Debt to FCF ratio of RBO is 3.92, which is a good value as it means it would take RBO, 3.92 years of fcf income to pay off all of its debts.
- RBO's Debt to FCF ratio of 3.92 is fine compared to the rest of the industry. RBO outperforms 75.76% of its industry peers.
- RBO has a Debt/Equity ratio of 1.72. This is a high value indicating a heavy dependency on external financing.
- RBO's Debt to Equity ratio of 1.72 is on the low side compared to the rest of the industry. RBO is outperformed by 84.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 3.92 | ||
| Altman-Z | 1.56 |
ROIC/WACC1.36
WACC5.5%
2.3 Liquidity
- RBO has a Current Ratio of 0.92. This is a bad value and indicates that RBO is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.92, RBO is doing worse than 81.82% of the companies in the same industry.
- A Quick Ratio of 0.45 indicates that RBO may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.45, RBO is doing worse than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
- RBO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.04%.
- The Earnings Per Share has been growing by 9.96% on average over the past years. This is quite good.
- Looking at the last year, RBO shows a small growth in Revenue. The Revenue has grown by 0.82% in the last year.
- The Revenue has been growing by 8.55% on average over the past years. This is quite good.
EPS 1Y (TTM)-33.04%
EPS 3Y-5.37%
EPS 5Y9.96%
EPS Q2Q%-28.86%
Revenue 1Y (TTM)0.82%
Revenue growth 3Y7.42%
Revenue growth 5Y8.55%
Sales Q2Q%0.87%
3.2 Future
- Based on estimates for the next years, RBO will show a decrease in Earnings Per Share. The EPS will decrease by -2.62% on average per year.
- Based on estimates for the next years, RBO will show a small growth in Revenue. The Revenue will grow by 3.33% on average per year.
EPS Next Y-32.21%
EPS Next 2Y-11.12%
EPS Next 3Y-2.62%
EPS Next 5YN/A
Revenue Next Year-1.63%
Revenue Next 2Y0.55%
Revenue Next 3Y1.55%
Revenue Next 5Y3.33%
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
- With a Price/Earnings ratio of 20.38, RBO is valued on the expensive side.
- Based on the Price/Earnings ratio, RBO is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, RBO is valued a bit cheaper.
- RBO is valuated rather expensively with a Price/Forward Earnings ratio of 18.00.
- 69.70% of the companies in the same industry are cheaper than RBO, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, RBO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.38 | ||
| Fwd PE | 18 |
4.2 Price Multiples
- 75.76% of the companies in the same industry are more expensive than RBO, based on the Enterprise Value to EBITDA ratio.
- RBO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RBO is cheaper than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.14 | ||
| EV/EBITDA | 5.59 |
4.3 Compensation for Growth
- The decent profitability rating of RBO may justify a higher PE ratio.
- A cheap valuation may be justified as RBO's earnings are expected to decrease with -2.62% in the coming years.
PEG (NY)N/A
PEG (5Y)2.05
EPS Next 2Y-11.12%
EPS Next 3Y-2.62%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.37%, RBO is a good candidate for dividend investing.
- In the last 3 months the price of RBO has falen by -27.35%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- RBO's Dividend Yield is a higher than the industry average which is at 2.64.
- RBO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.37% |
5.2 History
- The dividend of RBO is nicely growing with an annual growth rate of 35.01%!
Dividend Growth(5Y)35.01%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 98.11% of the earnings are spent on dividend by RBO. This is not a sustainable payout ratio.
- RBO's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP98.11%
EPS Next 2Y-11.12%
EPS Next 3Y-2.62%
ROCHE BOBOIS SA / RBO.PA FAQ
What is the ChartMill fundamental rating of ROCHE BOBOIS SA (RBO.PA) stock?
ChartMill assigns a fundamental rating of 4 / 10 to RBO.PA.
Can you provide the valuation status for ROCHE BOBOIS SA?
ChartMill assigns a valuation rating of 4 / 10 to ROCHE BOBOIS SA (RBO.PA). This can be considered as Fairly Valued.
Can you provide the profitability details for ROCHE BOBOIS SA?
ROCHE BOBOIS SA (RBO.PA) has a profitability rating of 7 / 10.
How financially healthy is ROCHE BOBOIS SA?
The financial health rating of ROCHE BOBOIS SA (RBO.PA) is 2 / 10.
Is the dividend of ROCHE BOBOIS SA sustainable?
The dividend rating of ROCHE BOBOIS SA (RBO.PA) is 6 / 10 and the dividend payout ratio is 98.11%.