COMPAGNIE DE SAINT GOBAIN (SGO.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:SGO - FR0000125007 - Common Stock
83.5 EUR
-1.28 (-1.51%)
We assign a fundamental rating of 5 out of 10 to SGO. SGO was compared to 22 industry peers in the Building Products industry. SGO has only an average score on both its financial health and profitability. SGO has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- SGO had positive earnings in the past year.
- In the past year SGO had a positive cash flow from operations.
- SGO had positive earnings in each of the past 5 years.
- In the past 5 years SGO always reported a positive cash flow from operatings.
1.2 Ratios
- SGO has a Return On Assets (4.66%) which is in line with its industry peers.
- The Return On Equity of SGO (11.94%) is comparable to the rest of the industry.
- SGO has a Return On Invested Capital of 8.27%. This is comparable to the rest of the industry: SGO outperforms 59.09% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for SGO is in line with the industry average of 10.48%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.66% | ||
| ROE | 11.94% | ||
| ROIC | 8.27% |
ROA(3y)4.9%
ROA(5y)4.1%
ROE(3y)12%
ROE(5y)10.14%
ROIC(3y)8.78%
ROIC(5y)8.09%
1.3 Margins
- The Profit Margin of SGO (5.99%) is comparable to the rest of the industry.
- SGO's Profit Margin has improved in the last couple of years.
- The Operating Margin of SGO (10.69%) is better than 68.18% of its industry peers.
- SGO's Operating Margin has improved in the last couple of years.
- The Gross Margin of SGO (27.88%) is worse than 81.82% of its industry peers.
- In the last couple of years the Gross Margin of SGO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.69% | ||
| PM (TTM) | 5.99% | ||
| GM | 27.88% |
OM growth 3Y3.8%
OM growth 5Y6.83%
PM growth 3Y2.27%
PM growth 5Y13.08%
GM growth 3Y1.39%
GM growth 5Y1.64%
2. Health
2.1 Basic Checks
- SGO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- SGO has less shares outstanding than it did 1 year ago.
- SGO has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for SGO is higher compared to a year ago.
2.2 Solvency
- SGO has an Altman-Z score of 2.36. This is not the best score and indicates that SGO is in the grey zone with still only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.36, SGO is not doing good in the industry: 68.18% of the companies in the same industry are doing better.
- SGO has a debt to FCF ratio of 5.69. This is a neutral value as SGO would need 5.69 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 5.69, SGO is in line with its industry, outperforming 59.09% of the companies in the same industry.
- A Debt/Equity ratio of 0.69 indicates that SGO is somewhat dependend on debt financing.
- SGO's Debt to Equity ratio of 0.69 is in line compared to the rest of the industry. SGO outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 5.69 | ||
| Altman-Z | 2.36 |
ROIC/WACC1.09
WACC7.58%
2.3 Liquidity
- SGO has a Current Ratio of 1.31. This is a normal value and indicates that SGO is financially healthy and should not expect problems in meeting its short term obligations.
- SGO has a Current ratio (1.31) which is in line with its industry peers.
- SGO has a Quick Ratio of 1.31. This is a bad value and indicates that SGO is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.87, SGO perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
- SGO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.09%.
- SGO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.95% yearly.
- SGO shows a small growth in Revenue. In the last year, the Revenue has grown by 1.09%.
- Measured over the past years, SGO shows a small growth in Revenue. The Revenue has been growing by 1.81% on average per year.
EPS 1Y (TTM)-1.09%
EPS 3Y5.84%
EPS 5Y16.95%
EPS Q2Q%-0.55%
Revenue 1Y (TTM)1.09%
Revenue growth 3Y1.79%
Revenue growth 5Y1.81%
Sales Q2Q%1.65%
3.2 Future
- SGO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.63% yearly.
- Based on estimates for the next years, SGO will show a small growth in Revenue. The Revenue will grow by 2.89% on average per year.
EPS Next Y0.94%
EPS Next 2Y3.38%
EPS Next 3Y5.71%
EPS Next 5Y7.63%
Revenue Next Year0.44%
Revenue Next 2Y1.56%
Revenue Next 3Y2.45%
Revenue Next 5Y2.89%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- With a Price/Earnings ratio of 14.86, SGO is valued correctly.
- Based on the Price/Earnings ratio, SGO is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of SGO to the average of the S&P500 Index (28.60), we can say SGO is valued slightly cheaper.
- The Price/Forward Earnings ratio is 12.21, which indicates a correct valuation of SGO.
- 77.27% of the companies in the same industry are more expensive than SGO, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of SGO to the average of the S&P500 Index (25.83), we can say SGO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.86 | ||
| Fwd PE | 12.21 |
4.2 Price Multiples
- 68.18% of the companies in the same industry are more expensive than SGO, based on the Enterprise Value to EBITDA ratio.
- 77.27% of the companies in the same industry are more expensive than SGO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.74 | ||
| EV/EBITDA | 7.01 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SGO does not grow enough to justify the current Price/Earnings ratio.
- SGO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)15.81
PEG (5Y)0.88
EPS Next 2Y3.38%
EPS Next 3Y5.71%
5. Dividend
5.1 Amount
- SGO has a Yearly Dividend Yield of 2.59%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 3.43, SGO pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, SGO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
5.2 History
- The dividend of SGO is nicely growing with an annual growth rate of 9.28%!
Dividend Growth(5Y)9.28%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- 38.54% of the earnings are spent on dividend by SGO. This is a low number and sustainable payout ratio.
- SGO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP38.54%
EPS Next 2Y3.38%
EPS Next 3Y5.71%
COMPAGNIE DE SAINT GOBAIN / SGO.PA FAQ
What is the fundamental rating for SGO stock?
ChartMill assigns a fundamental rating of 5 / 10 to SGO.PA.
What is the valuation status for SGO stock?
ChartMill assigns a valuation rating of 5 / 10 to COMPAGNIE DE SAINT GOBAIN (SGO.PA). This can be considered as Fairly Valued.
What is the profitability of SGO stock?
COMPAGNIE DE SAINT GOBAIN (SGO.PA) has a profitability rating of 6 / 10.
What is the valuation of COMPAGNIE DE SAINT GOBAIN based on its PE and PB ratios?
The Price/Earnings (PE) ratio for COMPAGNIE DE SAINT GOBAIN (SGO.PA) is 14.86 and the Price/Book (PB) ratio is 1.77.
What is the earnings growth outlook for COMPAGNIE DE SAINT GOBAIN?
The Earnings per Share (EPS) of COMPAGNIE DE SAINT GOBAIN (SGO.PA) is expected to grow by 0.94% in the next year.