SES (SESG.PA)
LU0088087324
SESG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 69 industry peers in the Media industry. While SESG has a great health rating, there are worries on its profitability. SESG scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year SESG was profitable.
SESG had a positive operating cash flow in the past year.
In multiple years SESG reported negative net income over the last 5 years.
SESG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SESG's Return On Assets of -10.27% is on the low side compared to the rest of the industry. SESG is outperformed by 89.39% of its industry peers.
With a Return On Equity value of -26.28%, SESG is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 3.20%, SESG is not doing good in the industry: 65.15% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for SESG is significantly below the industry average of 8.88%.
The last Return On Invested Capital (3.20%) for SESG is above the 3 year average (2.88%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.27% | ||
| ROE | -26.28% | ||
| ROIC | 3.2% |
ROA(3y)-2.2%
ROA(5y)-1.17%
ROE(3y)-6.47%
ROE(5y)-3.58%
ROIC(3y)2.88%
ROIC(5y)2.93%
1.3 Margins
SESG has a better Operating Margin (17.19%) than 92.42% of its industry peers.
In the last couple of years the Operating Margin of SESG has declined.
Looking at the Gross Margin, with a value of 78.62%, SESG is in the better half of the industry, outperforming 74.24% of the companies in the same industry.
SESG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.19% | ||
| PM (TTM) | N/A | ||
| GM | 78.62% |
OM growth 3Y-9.28%
OM growth 5Y-9.16%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.62%
GM growth 5Y-1.73%
2. Health
2.1 Basic Checks
SESG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
SESG has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SESG has been reduced compared to 5 years ago.
SESG has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.89, we must say that SESG is in the distress zone and has some risk of bankruptcy.
SESG's Altman-Z score of 0.89 is on the low side compared to the rest of the industry. SESG is outperformed by 69.70% of its industry peers.
The Debt to FCF ratio of SESG is 1.20, which is an excellent value as it means it would take SESG, only 1.20 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SESG (1.20) is better than 87.88% of its industry peers.
SESG has a Debt/Equity ratio of 0.97. This is a neutral value indicating SESG is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.97, SESG is doing worse than 63.64% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for SESG, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 1.2 | ||
| Altman-Z | 0.89 |
ROIC/WACC0.81
WACC3.95%
2.3 Liquidity
SESG has a Current Ratio of 2.57. This indicates that SESG is financially healthy and has no problem in meeting its short term obligations.
SESG has a better Current ratio (2.57) than 92.42% of its industry peers.
A Quick Ratio of 2.53 indicates that SESG has no problem at all paying its short term obligations.
SESG has a better Quick ratio (2.53) than 92.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.57 | ||
| Quick Ratio | 2.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 1337.50% over the past year.
The Earnings Per Share has been growing by 27.83% on average over the past years. This is a very strong growth
SESG shows a small growth in Revenue. In the last year, the Revenue has grown by 4.42%.
SESG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.20% yearly.
EPS 1Y (TTM)1337.5%
EPS 3YN/A
EPS 5Y27.83%
EPS Q2Q%-99.94%
Revenue 1Y (TTM)4.42%
Revenue growth 3Y2.66%
Revenue growth 5Y0.2%
Sales Q2Q%-1.97%
3.2 Future
Based on estimates for the next years, SESG will show a very negative growth in Earnings Per Share. The EPS will decrease by -30.39% on average per year.
The Revenue is expected to grow by 0.67% on average over the next years.
EPS Next Y-86.69%
EPS Next 2Y-59.11%
EPS Next 3Y-40.55%
EPS Next 5Y-30.39%
Revenue Next Year-0.64%
Revenue Next 2Y-0.54%
Revenue Next 3Y0.23%
Revenue Next 5Y0.67%
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.
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
Based on the Price/Earnings ratio of 1.48, the valuation of SESG can be described as very cheap.
Based on the Price/Earnings ratio, SESG is valued cheaply inside the industry as 98.48% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.54. SESG is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.88, the valuation of SESG can be described as very reasonable.
63.64% of the companies in the same industry are more expensive than SESG, based on the Price/Forward Earnings ratio.
SESG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.48 | ||
| Fwd PE | 8.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SESG is valued cheaper than 95.45% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SESG is valued cheaper than 98.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.45 | ||
| EV/EBITDA | 0.59 |
4.3 Compensation for Growth
A cheap valuation may be justified as SESG's earnings are expected to decrease with -40.55% in the coming years.
PEG (NY)N/A
PEG (5Y)0.05
EPS Next 2Y-59.11%
EPS Next 3Y-40.55%
5. Dividend
5.1 Amount
SESG has a Yearly Dividend Yield of 14.24%, which is a nice return.
In the last 3 months the price of SESG has falen by -35.38%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
SESG's Dividend Yield is rather good when compared to the industry average which is at 5.95. SESG pays more dividend than 98.48% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, SESG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.24% |
5.2 History
The dividend of SESG decreases each year by -8.86%.
Dividend Growth(5Y)-8.86%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of SESG are negative and hence is the payout ratio. SESG will probably not be able to sustain this dividend level.
The Dividend Rate of SESG has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-22.95%
EPS Next 2Y-59.11%
EPS Next 3Y-40.55%
SES
EPA:SESG (12/24/2024, 7:00:00 PM)
2.94
-0.01 (-0.41%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners44.44%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.31B
Analysts75.71
Price Target6.13 (108.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.24% |
Dividend Growth(5Y)-8.86%
DP-22.95%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.45%
Min Revenue beat(2)-0.82%
Max Revenue beat(2)1.72%
Revenue beat(4)3
Avg Revenue beat(4)1.6%
Min Revenue beat(4)-0.82%
Max Revenue beat(4)3.75%
Revenue beat(8)6
Avg Revenue beat(8)34.99%
Revenue beat(12)9
Avg Revenue beat(12)39.11%
Revenue beat(16)11
Avg Revenue beat(16)41.05%
PT rev (1m)-1.41%
PT rev (3m)-2.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-106.25%
EPS NY rev (1m)0%
EPS NY rev (3m)-17.48%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-1.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.48 | ||
| Fwd PE | 8.88 | ||
| P/S | 0.65 | ||
| P/FCF | 0.45 | ||
| P/OCF | 0.4 | ||
| P/B | 0.37 | ||
| P/tB | 0.5 | ||
| EV/EBITDA | 0.59 |
EPS(TTM)1.98
EY67.35%
EPS(NY)0.33
Fwd EY11.26%
FCF(TTM)6.6
FCFY224.34%
OCF(TTM)7.32
OCFY248.99%
SpS4.55
BVpS8.03
TBVpS5.91
PEG (NY)N/A
PEG (5Y)0.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.27% | ||
| ROE | -26.28% | ||
| ROCE | 4.36% | ||
| ROIC | 3.2% | ||
| ROICexc | 4.32% | ||
| ROICexgc | 5.13% | ||
| OM | 17.19% | ||
| PM (TTM) | N/A | ||
| GM | 78.62% | ||
| FCFM | 144.83% |
ROA(3y)-2.2%
ROA(5y)-1.17%
ROE(3y)-6.47%
ROE(5y)-3.58%
ROIC(3y)2.88%
ROIC(5y)2.93%
ROICexc(3y)3.65%
ROICexc(5y)3.53%
ROICexgc(3y)5.43%
ROICexgc(5y)5.66%
ROCE(3y)3.92%
ROCE(5y)3.98%
ROICexcg growth 3Y0.83%
ROICexcg growth 5Y-3.89%
ROICexc growth 3Y14.21%
ROICexc growth 5Y4.35%
OM growth 3Y-9.28%
OM growth 5Y-9.16%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.62%
GM growth 5Y-1.73%
F-Score5
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 1.2 | ||
| Debt/EBITDA | 0.74 | ||
| Cap/Depr | 7.39% | ||
| Cap/Sales | 15.91% | ||
| Interest Coverage | 2.22 | ||
| Cash Conversion | 69.18% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.57 | ||
| Quick Ratio | 2.53 | ||
| Altman-Z | 0.89 |
F-Score5
WACC3.95%
ROIC/WACC0.81
Cap/Depr(3y)50.74%
Cap/Depr(5y)41.83%
Cap/Sales(3y)35.1%
Cap/Sales(5y)26.38%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1337.5%
EPS 3YN/A
EPS 5Y27.83%
EPS Q2Q%-99.94%
EPS Next Y-86.69%
EPS Next 2Y-59.11%
EPS Next 3Y-40.55%
EPS Next 5Y-30.39%
Revenue 1Y (TTM)4.42%
Revenue growth 3Y2.66%
Revenue growth 5Y0.2%
Sales Q2Q%-1.97%
Revenue Next Year-0.64%
Revenue Next 2Y-0.54%
Revenue Next 3Y0.23%
Revenue Next 5Y0.67%
EBIT growth 1Y-9.35%
EBIT growth 3Y-6.86%
EBIT growth 5Y-8.98%
EBIT Next Year6891.94%
EBIT Next 3Y315.89%
EBIT Next 5Y134.58%
FCF growth 1Y223.43%
FCF growth 3Y54.16%
FCF growth 5Y28.92%
OCF growth 1Y94.69%
OCF growth 3Y49.13%
OCF growth 5Y23.9%