SOFINA (SOF.BR) Stock Fundamental Analysis
Europe - Euronext Brussels - EBR:SOF - BE0003717312 - Common Stock
246 EUR
+2.6 (+1.07%)
We assign a fundamental rating of 4 out of 10 to SOF. SOF was compared to 59 industry peers in the Financial Services industry. SOF is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. SOF has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- SOF had positive earnings in the past year.
- In the past year SOF had a positive cash flow from operations.
- In multiple years SOF reported negative net income over the last 5 years.
- The reported operating cash flow has been mixed in the past 5 years: SOF reported negative operating cash flow in multiple years.
1.2 Ratios
- SOF has a Return On Assets of 3.94%. This is in the better half of the industry: SOF outperforms 67.80% of its industry peers.
- With a Return On Equity value of 4.23%, SOF perfoms like the industry average, outperforming 54.24% of the companies in the same industry.
- SOF has a Return On Invested Capital of 2.85%. This is comparable to the rest of the industry: SOF outperforms 49.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.94% | ||
| ROE | 4.23% | ||
| ROIC | 2.85% |
ROA(3y)-2.41%
ROA(5y)5.88%
ROE(3y)-2.68%
ROE(5y)6.06%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- SOF has a Profit Margin of 89.63%. This is amongst the best in the industry. SOF outperforms 100.00% of its industry peers.
- SOF's Profit Margin has been stable in the last couple of years.
- SOF has a better Operating Margin (86.24%) than 98.31% of its industry peers.
- SOF's Operating Margin has been stable in the last couple of years.
- SOF's Gross Margin of 98.12% is amongst the best of the industry. SOF outperforms 100.00% of its industry peers.
- SOF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 86.24% | ||
| PM (TTM) | 89.63% | ||
| GM | 98.12% |
OM growth 3Y-0.87%
OM growth 5Y-0.44%
PM growth 3Y-0.64%
PM growth 5Y-0.27%
GM growth 3Y-0.14%
GM growth 5Y-0.12%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SOF is destroying value.
- Compared to 1 year ago, SOF has less shares outstanding
- Compared to 5 years ago, SOF has less shares outstanding
- The debt/assets ratio for SOF has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 8.94 indicates that SOF is not in any danger for bankruptcy at the moment.
- SOF has a Altman-Z score of 8.94. This is amongst the best in the industry. SOF outperforms 89.83% of its industry peers.
- The Debt to FCF ratio of SOF is 11.13, which is on the high side as it means it would take SOF, 11.13 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 11.13, SOF perfoms like the industry average, outperforming 45.76% of the companies in the same industry.
- SOF has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
- With a decent Debt to Equity ratio value of 0.07, SOF is doing good in the industry, outperforming 79.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 11.13 | ||
| Altman-Z | 8.94 |
ROIC/WACC0.38
WACC7.44%
2.3 Liquidity
- A Current Ratio of 30.77 indicates that SOF has no problem at all paying its short term obligations.
- With an excellent Current ratio value of 30.77, SOF belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- SOF has a Quick Ratio of 30.77. This indicates that SOF is financially healthy and has no problem in meeting its short term obligations.
- With an excellent Quick ratio value of 30.77, SOF belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 30.77 | ||
| Quick Ratio | 30.77 |
3. Growth
3.1 Past
- The earnings per share for SOF have decreased strongly by -12.61% in the last year.
- The Earnings Per Share has been growing slightly by 2.67% on average over the past years.
- The Revenue has decreased by -1.29% in the past year.
- The Revenue has been growing slightly by 2.80% on average over the past years.
EPS 1Y (TTM)-12.61%
EPS 3Y-19.17%
EPS 5Y2.67%
EPS Q2Q%-171.4%
Revenue 1Y (TTM)-1.29%
Revenue growth 3Y-18.85%
Revenue growth 5Y2.8%
Sales Q2Q%-164.86%
3.2 Future
- No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 21.50, the valuation of SOF can be described as rather expensive.
- SOF's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of SOF to the average of the S&P500 Index (27.25), we can say SOF is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.5 | ||
| Fwd PE | N/A |
4.2 Price Multiples
- 69.49% of the companies in the same industry are cheaper than SOF, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 142.96 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)8.07
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a yearly dividend of 1.00%, SOF is not a good candidate for dividend investing.
- SOF's Dividend Yield is comparable with the industry average which is at 1.97.
- With a Dividend Yield of 1.00, SOF pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
5.2 History
- The dividend of SOF has a limited annual growth rate of 3.76%.
Dividend Growth(5Y)3.76%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
- SOF pays out 27.93% of its income as dividend. This is a sustainable payout ratio.
- SOF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP27.93%
EPS Next 2YN/A
EPS Next 3YN/A
SOFINA / SOF.BR FAQ
Can you provide the ChartMill fundamental rating for SOFINA?
ChartMill assigns a fundamental rating of 4 / 10 to SOF.BR.
What is the valuation status for SOF stock?
ChartMill assigns a valuation rating of 1 / 10 to SOFINA (SOF.BR). This can be considered as Overvalued.
Can you provide the profitability details for SOFINA?
SOFINA (SOF.BR) has a profitability rating of 5 / 10.
Is the dividend of SOFINA sustainable?
The dividend rating of SOFINA (SOF.BR) is 3 / 10 and the dividend payout ratio is 27.93%.