SEMAPA-SOCIEDADE DE INVESTIM (SEM.LS) Stock Fundamental Analysis
Europe - Euronext Lisbon - ELI:SEM - PTSEM0AM0004 - Common Stock
21.95 EUR
+0.45 (+2.09%)
We assign a fundamental rating of 5 out of 10 to SEM. SEM was compared to 12 industry peers in the Paper & Forest Products industry. SEM scores excellent on profitability, but there are concerns on its financial health. SEM is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- SEM had positive earnings in the past year.
- SEM had a positive operating cash flow in the past year.
- In the past 5 years SEM has always been profitable.
- In the past 5 years SEM always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of SEM (3.60%) is better than 83.33% of its industry peers.
- SEM's Return On Equity of 11.35% is amongst the best of the industry. SEM outperforms 91.67% of its industry peers.
- SEM has a Return On Invested Capital of 7.61%. This is amongst the best in the industry. SEM outperforms 83.33% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for SEM is significantly above the industry average of 5.34%.
- The 3 year average ROIC (13.01%) for SEM is well above the current ROIC(7.61%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.6% | ||
| ROE | 11.35% | ||
| ROIC | 7.61% |
ROA(3y)5.44%
ROA(5y)4.85%
ROE(3y)18.01%
ROE(5y)16.68%
ROIC(3y)13.01%
ROIC(5y)10.48%
1.3 Margins
- SEM's Profit Margin of 6.69% is amongst the best of the industry. SEM outperforms 91.67% of its industry peers.
- SEM's Profit Margin has improved in the last couple of years.
- SEM has a Operating Margin of 12.52%. This is amongst the best in the industry. SEM outperforms 91.67% of its industry peers.
- SEM's Operating Margin has improved in the last couple of years.
- The Gross Margin of SEM (39.93%) is better than 66.67% of its industry peers.
- SEM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.52% | ||
| PM (TTM) | 6.69% | ||
| GM | 39.93% |
OM growth 3Y3.28%
OM growth 5Y6.17%
PM growth 3Y-4.22%
PM growth 5Y7.97%
GM growth 3Y-0.17%
GM growth 5Y2.52%
2. Health
2.1 Basic Checks
- SEM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for SEM remains at a similar level compared to 1 year ago.
- The number of shares outstanding for SEM has been reduced compared to 5 years ago.
- Compared to 1 year ago, SEM has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.55, we must say that SEM is in the distress zone and has some risk of bankruptcy.
- SEM's Altman-Z score of 1.55 is on the low side compared to the rest of the industry. SEM is outperformed by 66.67% of its industry peers.
- The Debt to FCF ratio of SEM is 8.31, which is on the high side as it means it would take SEM, 8.31 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 8.31, SEM is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- SEM has a Debt/Equity ratio of 0.82. This is a neutral value indicating SEM is somewhat dependend on debt financing.
- The Debt to Equity ratio of SEM (0.82) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 8.31 | ||
| Altman-Z | 1.55 |
ROIC/WACC1.25
WACC6.09%
2.3 Liquidity
- A Current Ratio of 1.07 indicates that SEM should not have too much problems paying its short term obligations.
- The Current ratio of SEM (1.07) is worse than 83.33% of its industry peers.
- A Quick Ratio of 0.74 indicates that SEM may have some problems paying its short term obligations.
- The Quick ratio of SEM (0.74) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
- The earnings per share for SEM have decreased strongly by -29.47% in the last year.
- SEM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.58% yearly.
- Looking at the last year, SEM shows a small growth in Revenue. The Revenue has grown by 1.71% in the last year.
- The Revenue has been growing slightly by 5.04% on average over the past years.
EPS 1Y (TTM)-29.47%
EPS 3Y5.48%
EPS 5Y13.58%
EPS Q2Q%-40.51%
Revenue 1Y (TTM)1.71%
Revenue growth 3Y10.16%
Revenue growth 5Y5.04%
Sales Q2Q%-1.92%
3.2 Future
- Based on estimates for the next years, SEM will show a small growth in Earnings Per Share. The EPS will grow by 1.04% on average per year.
- Based on estimates for the next years, SEM will show a small growth in Revenue. The Revenue will grow by 1.94% on average per year.
EPS Next Y-16.77%
EPS Next 2Y-5.91%
EPS Next 3Y1.31%
EPS Next 5Y1.04%
Revenue Next Year0.8%
Revenue Next 2Y2.24%
Revenue Next 3Y1.53%
Revenue Next 5Y1.94%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 9.22, the valuation of SEM can be described as reasonable.
- 83.33% of the companies in the same industry are more expensive than SEM, based on the Price/Earnings ratio.
- SEM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.32.
- With a Price/Forward Earnings ratio of 9.76, the valuation of SEM can be described as very reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SEM indicates a somewhat cheap valuation: SEM is cheaper than 75.00% of the companies listed in the same industry.
- SEM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.22 | ||
| Fwd PE | 9.76 |
4.2 Price Multiples
- SEM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SEM is cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.17 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- The excellent profitability rating of SEM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.68
EPS Next 2Y-5.91%
EPS Next 3Y1.31%
5. Dividend
5.1 Amount
- SEM has a Yearly Dividend Yield of 2.84%.
- Compared to an average industry Dividend Yield of 3.06, SEM has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, SEM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
5.2 History
- The dividend of SEM decreases each year by -1.85%.
Dividend Growth(5Y)-1.85%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- SEM pays out 42.15% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP42.15%
EPS Next 2Y-5.91%
EPS Next 3Y1.31%
SEMAPA-SOCIEDADE DE INVESTIM / SEM.LS FAQ
Can you provide the ChartMill fundamental rating for SEMAPA-SOCIEDADE DE INVESTIM?
ChartMill assigns a fundamental rating of 5 / 10 to SEM.LS.
What is the valuation status for SEM stock?
ChartMill assigns a valuation rating of 6 / 10 to SEMAPA-SOCIEDADE DE INVESTIM (SEM.LS). This can be considered as Fairly Valued.
Can you provide the profitability details for SEMAPA-SOCIEDADE DE INVESTIM?
SEMAPA-SOCIEDADE DE INVESTIM (SEM.LS) has a profitability rating of 9 / 10.
What are the PE and PB ratios of SEMAPA-SOCIEDADE DE INVESTIM (SEM.LS) stock?
The Price/Earnings (PE) ratio for SEMAPA-SOCIEDADE DE INVESTIM (SEM.LS) is 9.22 and the Price/Book (PB) ratio is 1.06.
Can you provide the financial health for SEM stock?
The financial health rating of SEMAPA-SOCIEDADE DE INVESTIM (SEM.LS) is 3 / 10.