REMY COINTREAU (RCO.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:RCO - FR0000130395 - Common Stock
39.5 EUR
+0.32 (+0.82%)
RCO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 29 industry peers in the Beverages industry. RCO has an average financial health and profitability rating. RCO does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- In the past year RCO was profitable.
- In the past year RCO had a positive cash flow from operations.
- Each year in the past 5 years RCO has been profitable.
- In the past 5 years RCO always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 2.67%, RCO perfoms like the industry average, outperforming 41.38% of the companies in the same industry.
- RCO has a worse Return On Equity (4.80%) than 72.41% of its industry peers.
- RCO has a Return On Invested Capital of 4.97%. This is in the lower half of the industry: RCO underperforms 75.86% of its industry peers.
- RCO had an Average Return On Invested Capital over the past 3 years of 9.70%. This is in line with the industry average of 7.93%.
- The last Return On Invested Capital (4.97%) for RCO is well below the 3 year average (9.70%), which needs to be investigated, but indicates that RCO had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.67% | ||
| ROE | 4.8% | ||
| ROIC | 4.97% |
ROA(3y)6.08%
ROA(5y)6.11%
ROE(3y)11.01%
ROE(5y)11.03%
ROIC(3y)9.7%
ROIC(5y)9.64%
1.3 Margins
- RCO has a Profit Margin of 9.81%. This is in the better half of the industry: RCO outperforms 62.07% of its industry peers.
- In the last couple of years the Profit Margin of RCO has grown nicely.
- The Operating Margin of RCO (18.97%) is better than 62.07% of its industry peers.
- RCO's Operating Margin has been stable in the last couple of years.
- With an excellent Gross Margin value of 68.14%, RCO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- In the last couple of years the Gross Margin of RCO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.97% | ||
| PM (TTM) | 9.81% | ||
| GM | 68.14% |
OM growth 3Y-4.7%
OM growth 5Y1.06%
PM growth 3Y-8.72%
PM growth 5Y2.19%
GM growth 3Y0.93%
GM growth 5Y1.33%
2. Health
2.1 Basic Checks
- RCO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for RCO has been increased compared to 1 year ago.
- RCO has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for RCO is higher compared to a year ago.
2.2 Solvency
- RCO has an Altman-Z score of 2.18. This is not the best score and indicates that RCO is in the grey zone with still only limited risk for bankruptcy at the moment.
- The Altman-Z score of RCO (2.18) is comparable to the rest of the industry.
- RCO has a debt to FCF ratio of 71.24. This is a negative value and a sign of low solvency as RCO would need 71.24 years to pay back of all of its debts.
- The Debt to FCF ratio of RCO (71.24) is worse than 89.66% of its industry peers.
- RCO has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of RCO (0.30) is better than 82.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 71.24 | ||
| Altman-Z | 2.18 |
ROIC/WACC0.71
WACC7.01%
2.3 Liquidity
- A Current Ratio of 2.79 indicates that RCO has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 2.79, RCO belongs to the top of the industry, outperforming 96.55% of the companies in the same industry.
- RCO has a Quick Ratio of 2.79. This is a bad value and indicates that RCO is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.39, RCO is doing worse than 79.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.79 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
- The earnings per share for RCO have decreased strongly by -38.54% in the last year.
- RCO shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.83% yearly.
- Looking at the last year, RCO shows a very negative growth in Revenue. The Revenue has decreased by -13.80% in the last year.
- Measured over the past years, RCO shows a decrease in Revenue. The Revenue has been decreasing by -0.80% on average per year.
EPS 1Y (TTM)-38.54%
EPS 3Y-19.48%
EPS 5Y-0.83%
EPS Q2Q%-32.57%
Revenue 1Y (TTM)-13.8%
Revenue growth 3Y-9.15%
Revenue growth 5Y-0.8%
Sales Q2Q%-8.26%
3.2 Future
- The Earnings Per Share is expected to grow by 4.71% on average over the next years.
- The Revenue is expected to grow by 3.18% on average over the next years.
EPS Next Y-29.63%
EPS Next 2Y-11.21%
EPS Next 3Y-3.38%
EPS Next 5Y4.71%
Revenue Next Year-5.14%
Revenue Next 2Y-0.29%
Revenue Next 3Y1.48%
Revenue Next 5Y3.18%
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 accelerating.
- 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
- A Price/Earnings ratio of 16.74 indicates a correct valuation of RCO.
- Based on the Price/Earnings ratio, RCO is valued a bit cheaper than the industry average as 65.52% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 28.39. RCO is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 21.23, the valuation of RCO can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, RCO is valued a bit more expensive than the industry average as 68.97% of the companies are valued more cheaply.
- When comparing the Price/Forward Earnings ratio of RCO to the average of the S&P500 Index (25.72), we can say RCO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.74 | ||
| Fwd PE | 21.23 |
4.2 Price Multiples
- RCO's Enterprise Value to EBITDA is on the same level as the industry average.
- 89.66% of the companies in the same industry are cheaper than RCO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 197.84 | ||
| EV/EBITDA | 12.14 |
4.3 Compensation for Growth
- RCO has a very decent profitability rating, which may justify a higher PE ratio.
- RCO's earnings are expected to decrease with -3.38% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-11.21%
EPS Next 3Y-3.38%
5. Dividend
5.1 Amount
- RCO has a Yearly Dividend Yield of 3.67%. Purely for dividend investing, there may be better candidates out there.
- RCO's Dividend Yield is a higher than the industry average which is at 2.70.
- RCO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.67% |
5.2 History
- The dividend of RCO decreases each year by -21.35%.
Dividend Growth(5Y)-21.35%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
- 44.42% of the earnings are spent on dividend by RCO. This is a bit on the high side, but may be sustainable.
DP44.42%
EPS Next 2Y-11.21%
EPS Next 3Y-3.38%
REMY COINTREAU / RCO.PA FAQ
What is the ChartMill fundamental rating of REMY COINTREAU (RCO.PA) stock?
ChartMill assigns a fundamental rating of 4 / 10 to RCO.PA.
What is the valuation status of REMY COINTREAU (RCO.PA) stock?
ChartMill assigns a valuation rating of 2 / 10 to REMY COINTREAU (RCO.PA). This can be considered as Overvalued.
How profitable is REMY COINTREAU (RCO.PA) stock?
REMY COINTREAU (RCO.PA) has a profitability rating of 6 / 10.
What is the expected EPS growth for REMY COINTREAU (RCO.PA) stock?
The Earnings per Share (EPS) of REMY COINTREAU (RCO.PA) is expected to decline by -29.63% in the next year.
How sustainable is the dividend of REMY COINTREAU (RCO.PA) stock?
The dividend rating of REMY COINTREAU (RCO.PA) is 4 / 10 and the dividend payout ratio is 44.42%.