VINCI SA (SQU.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:SQU - FR0000125486 - Common Stock
119.55 EUR
+0.75 (+0.63%)
Overall SQU gets a fundamental rating of 4 out of 10. We evaluated SQU against 45 industry peers in the Construction & Engineering industry. There are concerns on the financial health of SQU while its profitability can be described as average. SQU is not valued too expensively and it also shows a decent growth rate. SQU also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year SQU was profitable.
- In the past year SQU had a positive cash flow from operations.
- Each year in the past 5 years SQU has been profitable.
- In the past 5 years SQU always reported a positive cash flow from operatings.
1.2 Ratios
- SQU has a Return On Assets (3.65%) which is comparable to the rest of the industry.
- SQU has a Return On Equity of 16.65%. This is comparable to the rest of the industry: SQU outperforms 51.11% of its industry peers.
- The Return On Invested Capital of SQU (8.34%) is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for SQU is below the industry average of 11.32%.
- The 3 year average ROIC (7.75%) for SQU is below the current ROIC(8.34%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 16.65% | ||
| ROIC | 8.34% |
ROA(3y)3.84%
ROA(5y)3.09%
ROE(3y)16.46%
ROE(5y)13.34%
ROIC(3y)7.75%
ROIC(5y)6.34%
1.3 Margins
- SQU has a Profit Margin of 6.49%. This is in the better half of the industry: SQU outperforms 64.44% of its industry peers.
- In the last couple of years the Profit Margin of SQU has remained more or less at the same level.
- With an excellent Operating Margin value of 12.00%, SQU belongs to the best of the industry, outperforming 82.22% of the companies in the same industry.
- In the last couple of years the Operating Margin of SQU has remained more or less at the same level.
- Looking at the Gross Margin, with a value of 78.92%, SQU belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
- In the last couple of years the Gross Margin of SQU has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12% | ||
| PM (TTM) | 6.49% | ||
| GM | 78.92% |
OM growth 3Y10.35%
OM growth 5Y1.22%
PM growth 3Y8.91%
PM growth 5Y0.07%
GM growth 3Y-0.11%
GM growth 5Y-0.08%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SQU is creating some value.
- Compared to 1 year ago, SQU has less shares outstanding
- SQU has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for SQU is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.28, we must say that SQU is in the distress zone and has some risk of bankruptcy.
- SQU's Altman-Z score of 1.28 is on the low side compared to the rest of the industry. SQU is outperformed by 73.33% of its industry peers.
- The Debt to FCF ratio of SQU is 5.37, which is a neutral value as it means it would take SQU, 5.37 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 5.37, SQU is doing good in the industry, outperforming 64.44% of the companies in the same industry.
- SQU has a Debt/Equity ratio of 1.19. This is a high value indicating a heavy dependency on external financing.
- SQU has a Debt to Equity ratio of 1.19. This is in the lower half of the industry: SQU underperforms 64.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 5.37 | ||
| Altman-Z | 1.28 |
ROIC/WACC1.31
WACC6.35%
2.3 Liquidity
- SQU has a Current Ratio of 0.83. This is a bad value and indicates that SQU is not financially healthy enough and could expect problems in meeting its short term obligations.
- SQU's Current ratio of 0.83 is on the low side compared to the rest of the industry. SQU is outperformed by 86.67% of its industry peers.
- SQU has a Quick Ratio of 0.83. This is a bad value and indicates that SQU is not financially healthy enough and could expect problems in meeting its short term obligations.
- SQU has a worse Quick ratio (0.80) than 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 45.79% over the past year.
- Measured over the past 5 years, SQU shows a small growth in Earnings Per Share. The EPS has been growing by 7.69% on average per year.
- SQU shows a small growth in Revenue. In the last year, the Revenue has grown by 3.21%.
- SQU shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.25% yearly.
EPS 1Y (TTM)45.79%
EPS 3Y23.18%
EPS 5Y7.69%
EPS Q2Q%-3.47%
Revenue 1Y (TTM)3.21%
Revenue growth 3Y13.18%
Revenue growth 5Y8.25%
Sales Q2Q%3.19%
3.2 Future
- SQU is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.42% yearly.
- Based on estimates for the next years, SQU will show a small growth in Revenue. The Revenue will grow by 3.67% on average per year.
EPS Next Y4.28%
EPS Next 2Y7.7%
EPS Next 3Y7.73%
EPS Next 5Y5.42%
Revenue Next Year3.93%
Revenue Next 2Y3.34%
Revenue Next 3Y3.26%
Revenue Next 5Y3.67%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 14.39, the valuation of SQU can be described as correct.
- Compared to the rest of the industry, the Price/Earnings ratio of SQU is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, SQU is valued a bit cheaper.
- SQU is valuated correctly with a Price/Forward Earnings ratio of 12.23.
- 62.22% of the companies in the same industry are more expensive than SQU, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. SQU is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.39 | ||
| Fwd PE | 12.23 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SQU is valued a bit cheaper than the industry average as 64.44% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of SQU indicates a somewhat cheap valuation: SQU is cheaper than 73.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.57 | ||
| EV/EBITDA | 7 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SQU does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of SQU may justify a higher PE ratio.
PEG (NY)3.36
PEG (5Y)1.87
EPS Next 2Y7.7%
EPS Next 3Y7.73%
5. Dividend
5.1 Amount
- SQU has a Yearly Dividend Yield of 4.04%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.33, SQU pays a bit more dividend than its industry peers.
- SQU's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.04% |
5.2 History
- The dividend of SQU is nicely growing with an annual growth rate of 10.84%!
Dividend Growth(5Y)10.84%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- SQU pays out 56.13% of its income as dividend. This is a bit on the high side, but may be sustainable.
- SQU's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP56.13%
EPS Next 2Y7.7%
EPS Next 3Y7.73%
VINCI SA / SQU.DE FAQ
Can you provide the ChartMill fundamental rating for VINCI SA?
ChartMill assigns a fundamental rating of 4 / 10 to SQU.DE.
What is the valuation status for SQU stock?
ChartMill assigns a valuation rating of 5 / 10 to VINCI SA (SQU.DE). This can be considered as Fairly Valued.
What is the profitability of SQU stock?
VINCI SA (SQU.DE) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for SQU stock?
The Price/Earnings (PE) ratio for VINCI SA (SQU.DE) is 14.39 and the Price/Book (PB) ratio is 2.45.
Can you provide the expected EPS growth for SQU stock?
The Earnings per Share (EPS) of VINCI SA (SQU.DE) is expected to grow by 4.28% in the next year.