VINCI SA (SQU.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:SQU - FR0000125486 - Common Stock
118.8 EUR
+1.6 (+1.37%)
We assign a fundamental rating of 4 out of 10 to SQU. SQU was compared to 45 industry peers in the Construction & Engineering industry. SQU has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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
- SQU had positive earnings in the past year.
- SQU had a positive operating cash flow in the past year.
- Each year in the past 5 years SQU has been profitable.
- SQU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- SQU has a Return On Assets (3.65%) which is comparable to the rest of the industry.
- With a Return On Equity value of 16.65%, SQU perfoms like the industry average, outperforming 48.89% of the companies in the same industry.
- SQU has a Return On Invested Capital of 8.34%. This is comparable to the rest of the industry: SQU outperforms 46.67% of its industry peers.
- SQU had an Average Return On Invested Capital over the past 3 years of 7.75%. This 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 62.22% of its industry peers.
- In the last couple of years the Profit Margin of SQU has remained more or less at the same level.
- Looking at the Operating Margin, with a value of 12.00%, SQU is in the better half of the industry, outperforming 80.00% 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.
- SQU has a Gross Margin of 78.92%. This is amongst the best in the industry. SQU outperforms 86.67% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SQU is still creating some value.
- SQU has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for SQU has been increased compared to 5 years ago.
- The debt/assets ratio for SQU is higher compared to a year ago.
2.2 Solvency
- SQU has an Altman-Z score of 1.28. This is a bad value and indicates that SQU is not financially healthy and even 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 71.11% of its industry peers.
- SQU has a debt to FCF ratio of 5.37. This is a neutral value as SQU would need 5.37 years to pay back of all of its debts.
- SQU's Debt to FCF ratio of 5.37 is fine compared to the rest of the industry. SQU outperforms 62.22% of its industry peers.
- A Debt/Equity ratio of 1.19 is on the high side and indicates that SQU has dependencies on debt financing.
- SQU has a worse Debt to Equity ratio (1.19) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 5.37 | ||
| Altman-Z | 1.28 |
ROIC/WACC1.32
WACC6.34%
2.3 Liquidity
- A Current Ratio of 0.83 indicates that SQU may have some problems paying 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 88.89% 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.
- The Quick ratio of SQU (0.80) is worse than 75.56% 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.
- The Earnings Per Share has been growing slightly by 7.69% on average over the past years.
- The Revenue has been growing slightly by 3.21% in the past year.
- 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.
- The Revenue is expected to grow by 3.67% on average over the next years.
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
- 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.
- 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
- SQU is valuated correctly with a Price/Earnings ratio of 14.30.
- SQU's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of SQU to the average of the S&P500 Index (28.82), we can say SQU is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 12.15, the valuation of SQU can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SQU indicates a somewhat cheap valuation: SQU is cheaper than 62.22% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of SQU to the average of the S&P500 Index (25.95), we can say SQU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.3 | ||
| Fwd PE | 12.15 |
4.2 Price Multiples
- SQU's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SQU is cheaper than 62.22% of the companies in the same industry.
- SQU's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SQU is cheaper than 71.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.51 | ||
| EV/EBITDA | 6.96 |
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.
- SQU has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.34
PEG (5Y)1.86
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.
- The dividend of SQU is growing, but the earnings are growing slower. 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 14.3 and the Price/Book (PB) ratio is 2.44.
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.