VINCI SA (SQU.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:SQU - FR0000125486 - Common Stock
117.65 EUR
+2.7 (+2.35%)
Overall SQU gets a fundamental rating of 4 out of 10. We evaluated SQU against 43 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 has a correct valuation and a medium 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.
- In the past 5 years SQU has always 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.
- SQU has a Return On Equity (16.65%) which is in line with its industry peers.
- SQU has a Return On Invested Capital of 8.34%. This is comparable to the rest of the industry: SQU outperforms 44.19% 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 11.17%.
- 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 60.47% of its industry peers.
- In the last couple of years the Profit Margin of SQU has remained more or less at the same level.
- The Operating Margin of SQU (12.00%) is better than 79.07% of its industry peers.
- 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 86.05% of the companies in the same industry.
- SQU's Gross Margin has been stable in the last couple of years.
| 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.
- Compared to 1 year ago, SQU has less shares outstanding
- Compared to 5 years ago, SQU has more shares outstanding
- The debt/assets ratio for SQU is higher compared to a year ago.
2.2 Solvency
- SQU has an Altman-Z score of 1.27. This is a bad value and indicates that SQU is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.27, SQU is doing worse than 72.09% of the companies in the same industry.
- 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.
- Looking at the Debt to FCF ratio, with a value of 5.37, SQU is in the better half of the industry, outperforming 60.47% of the companies in the same industry.
- A Debt/Equity ratio of 1.19 is on the high side and indicates that SQU has dependencies on debt financing.
- The Debt to Equity ratio of SQU (1.19) is worse than 67.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 5.37 | ||
| Altman-Z | 1.27 |
ROIC/WACC1.32
WACC6.33%
2.3 Liquidity
- A Current Ratio of 0.83 indicates that SQU may have some problems paying its short term obligations.
- SQU has a worse Current ratio (0.83) than 90.70% of its industry peers.
- A Quick Ratio of 0.80 indicates that SQU may have some problems paying its short term obligations.
- SQU has a worse Quick ratio (0.80) than 81.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
- SQU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 45.79%, which is quite impressive.
- SQU shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.69% yearly.
- The Revenue has been growing slightly by 3.21% in the past year.
- The Revenue has been growing by 8.25% on average over the past years. This is quite good.
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
- Based on estimates for the next years, SQU will show a small growth in Earnings Per Share. The EPS will grow by 5.42% on average per year.
- 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 Y4.4%
EPS Next 2Y8.11%
EPS Next 3Y7.9%
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
- With a Price/Earnings ratio of 14.16, SQU is valued correctly.
- Compared to the rest of the industry, the Price/Earnings ratio of SQU is on the same level as its industry peers.
- SQU's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- The Price/Forward Earnings ratio is 11.94, which indicates a very decent valuation of SQU.
- 60.47% of the companies in the same industry are more expensive than SQU, based on the Price/Forward Earnings ratio.
- SQU is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.16 | ||
| Fwd PE | 11.94 |
4.2 Price Multiples
- 62.79% of the companies in the same industry are more expensive than SQU, based on the Enterprise Value to EBITDA ratio.
- SQU's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SQU is cheaper than 72.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.42 | ||
| EV/EBITDA | 6.91 |
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)3.22
PEG (5Y)1.84
EPS Next 2Y8.11%
EPS Next 3Y7.9%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.09%, SQU is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.48, 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 | 4.09% |
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
- 56.13% of the earnings are spent on dividend by SQU. 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 2Y8.11%
EPS Next 3Y7.9%
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 14.16 and the Price/Book (PB) ratio is 2.41.
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 4.4% in the next year.