TELEPERFORMANCE (RCF.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:RCF - FR0000051807 - Common Stock
54.82 EUR
+0.78 (+1.44%)
We assign a fundamental rating of 5 out of 10 to RCF. RCF was compared to 70 industry peers in the IT Services industry. RCF has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on RCF. Finally RCF also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year RCF was profitable.
- In the past year RCF had a positive cash flow from operations.
- Each year in the past 5 years RCF has been profitable.
- Each year in the past 5 years RCF had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.32%, RCF is in line with its industry, outperforming 48.57% of the companies in the same industry.
- RCF's Return On Equity of 13.24% is in line compared to the rest of the industry. RCF outperforms 58.57% of its industry peers.
- RCF's Return On Invested Capital of 8.66% is in line compared to the rest of the industry. RCF outperforms 52.86% of its industry peers.
- RCF had an Average Return On Invested Capital over the past 3 years of 8.54%. This is significantly below the industry average of 26.75%.
- The 3 year average ROIC (8.54%) for RCF is below the current ROIC(8.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.32% | ||
| ROE | 13.24% | ||
| ROIC | 8.66% |
ROA(3y)5.5%
ROA(5y)5.56%
ROE(3y)14.36%
ROE(5y)14.83%
ROIC(3y)8.54%
ROIC(5y)8.48%
1.3 Margins
- RCF has a Profit Margin (5.09%) which is comparable to the rest of the industry.
- RCF's Profit Margin has declined in the last couple of years.
- The Operating Margin of RCF (10.80%) is better than 75.71% of its industry peers.
- In the last couple of years the Operating Margin of RCF has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.8% | ||
| PM (TTM) | 5.09% | ||
| GM | N/A |
OM growth 3Y-4.02%
OM growth 5Y-1.48%
PM growth 3Y-13.38%
PM growth 5Y-7.39%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- RCF has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, RCF has less shares outstanding
- The number of shares outstanding for RCF has been increased compared to 5 years ago.
- The debt/assets ratio for RCF has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 1.85 indicates that RCF is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 1.85, RCF is doing worse than 68.57% of the companies in the same industry.
- The Debt to FCF ratio of RCF is 4.14, which is a neutral value as it means it would take RCF, 4.14 years of fcf income to pay off all of its debts.
- RCF has a Debt to FCF ratio of 4.14. This is comparable to the rest of the industry: RCF outperforms 50.00% of its industry peers.
- A Debt/Equity ratio of 1.00 indicates that RCF is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.00, RCF is doing worse than 62.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 4.14 | ||
| Altman-Z | 1.85 |
ROIC/WACC1.43
WACC6.04%
2.3 Liquidity
- A Current Ratio of 1.10 indicates that RCF should not have too much problems paying its short term obligations.
- RCF has a Current ratio (1.10) which is comparable to the rest of the industry.
- A Quick Ratio of 1.10 indicates that RCF should not have too much problems paying its short term obligations.
- RCF has a Quick ratio of 1.10. This is comparable to the rest of the industry: RCF outperforms 45.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
- RCF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.99%.
- The Earnings Per Share has been growing slightly by 5.04% on average over the past years.
- RCF shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.19%.
- The Revenue has been growing by 13.93% on average over the past years. This is quite good.
EPS 1Y (TTM)-12.99%
EPS 3Y-2.37%
EPS 5Y5.04%
EPS Q2Q%-13.19%
Revenue 1Y (TTM)23.19%
Revenue growth 3Y13.05%
Revenue growth 5Y13.93%
Sales Q2Q%0.79%
3.2 Future
- The Earnings Per Share is expected to grow by 3.84% on average over the next years.
- Based on estimates for the next years, RCF will show a small growth in Revenue. The Revenue will grow by 2.04% on average per year.
EPS Next Y-19.17%
EPS Next 2Y-5.99%
EPS Next 3Y-1.77%
EPS Next 5Y3.84%
Revenue Next Year0.41%
Revenue Next 2Y0.91%
Revenue Next 3Y1.43%
Revenue Next 5Y2.04%
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.
- 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
- The Price/Earnings ratio is 6.29, which indicates a rather cheap valuation of RCF.
- Based on the Price/Earnings ratio, RCF is valued cheaper than 98.57% of the companies in the same industry.
- RCF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.87.
- The Price/Forward Earnings ratio is 4.00, which indicates a rather cheap valuation of RCF.
- 98.57% of the companies in the same industry are more expensive than RCF, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of RCF to the average of the S&P500 Index (25.96), we can say RCF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.29 | ||
| Fwd PE | 4 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RCF is valued cheaper than 92.86% of the companies in the same industry.
- RCF's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RCF is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.37 | ||
| EV/EBITDA | 4 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.25
EPS Next 2Y-5.99%
EPS Next 3Y-1.77%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.77%, RCF is a good candidate for dividend investing.
- RCF's Dividend Yield is rather good when compared to the industry average which is at 2.27. RCF pays more dividend than 91.43% of the companies in the same industry.
- RCF's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.77% |
5.2 History
- On average, the dividend of RCF grows each year by 15.06%, which is quite nice.
Dividend Growth(5Y)15.06%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
- RCF pays out 47.42% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of RCF is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP47.42%
EPS Next 2Y-5.99%
EPS Next 3Y-1.77%
TELEPERFORMANCE / RCF.DE FAQ
What is the ChartMill fundamental rating of TELEPERFORMANCE (RCF.DE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to RCF.DE.
What is the valuation status for RCF stock?
ChartMill assigns a valuation rating of 7 / 10 to TELEPERFORMANCE (RCF.DE). This can be considered as Undervalued.
What is the profitability of RCF stock?
TELEPERFORMANCE (RCF.DE) has a profitability rating of 4 / 10.
Can you provide the financial health for RCF stock?
The financial health rating of TELEPERFORMANCE (RCF.DE) is 4 / 10.
What is the earnings growth outlook for TELEPERFORMANCE?
The Earnings per Share (EPS) of TELEPERFORMANCE (RCF.DE) is expected to decline by -19.17% in the next year.