REMY COINTREAU (RCO.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:RCO - FR0000130395 - Common Stock
39.8 EUR
-0.6 (-1.49%)
Overall RCO gets a fundamental rating of 4 out of 10. We evaluated RCO 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.
- RCO had a positive operating cash flow in the past year.
- RCO had positive earnings in each of the past 5 years.
- RCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- RCO has a Return On Assets of 2.67%. This is comparable to the rest of the industry: RCO outperforms 41.38% of its industry peers.
- RCO has a Return On Equity of 4.80%. This is in the lower half of the industry: RCO underperforms 72.41% of its industry peers.
- RCO has a worse Return On Invested Capital (4.97%) than 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.
- RCO's Profit Margin has improved in the last couple of years.
- RCO has a Operating Margin of 18.97%. This is in the better half of the industry: RCO outperforms 62.07% of its industry peers.
- In the last couple of years the Operating Margin of RCO has remained more or less at the same level.
- The Gross Margin of RCO (68.14%) is better than 100.00% of its industry peers.
- 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RCO is creating some value.
- The number of shares outstanding for RCO has been increased compared to 1 year ago.
- Compared to 5 years ago, RCO has more shares outstanding
- The debt/assets ratio for RCO is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.20 indicates that RCO is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of RCO (2.20) is comparable to the rest of the industry.
- The Debt to FCF ratio of RCO is 71.24, which is on the high side as it means it would take RCO, 71.24 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 71.24, RCO is not doing good in the industry: 89.66% of the companies in the same industry are doing better.
- RCO has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.30, RCO belongs to the top of the industry, outperforming 82.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 71.24 | ||
| Altman-Z | 2.2 |
ROIC/WACC0.71
WACC7.02%
2.3 Liquidity
- A Current Ratio of 2.79 indicates that RCO has no problem at all paying its short term obligations.
- RCO has a Current ratio of 2.79. This is amongst the best in the industry. RCO outperforms 96.55% of its industry peers.
- A Quick Ratio of 0.39 indicates that RCO may have some problems paying its short term obligations.
- The Quick ratio of RCO (0.39) is worse than 79.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.79 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
- RCO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -38.54%.
- The Earnings Per Share has been decreasing by -0.83% on average over the past years.
- Looking at the last year, RCO shows a very negative growth in Revenue. The Revenue has decreased by -13.80% in the last year.
- The Revenue has been decreasing by -0.80% on average over the past years.
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 16.86, which 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.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, RCO is valued a bit cheaper.
- RCO is valuated rather expensively with a Price/Forward Earnings ratio of 21.39.
- Based on the Price/Forward Earnings ratio, RCO is valued a bit more expensive than the industry average as 75.86% of the companies are valued more cheaply.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. RCO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.86 | ||
| Fwd PE | 21.39 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as RCO.
- 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 | 199.34 | ||
| EV/EBITDA | 12.43 |
4.3 Compensation for Growth
- The decent profitability rating of RCO 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.
- Compared to an average S&P500 Dividend Yield of 1.81, RCO pays a better dividend.
| 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%.