VINCI SA (SQU.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:SQU - FR0000125486 - Common Stock
117.2 EUR
-0.3 (-0.26%)
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 has a decent growth rate and is not valued too expensively. Finally SQU also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year SQU was profitable.
- SQU had a positive operating cash flow in the past year.
- In the past 5 years SQU has always been profitable.
- In the past 5 years SQU always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 3.65%, SQU perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
- SQU has a Return On Equity of 16.65%. This is comparable to the rest of the industry: SQU outperforms 48.89% of its industry peers.
- SQU's Return On Invested Capital of 8.34% is in line compared to the rest of the industry. SQU outperforms 46.67% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for SQU is below the industry average of 11.32%.
- The last Return On Invested Capital (8.34%) for SQU is above the 3 year average (7.75%), which is a sign of increasing profitability.
| 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's Profit Margin of 6.49% is fine compared to the rest 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.
- SQU has a Operating Margin of 12.00%. This is in the better half of the industry: SQU outperforms 80.00% of its industry peers.
- In the last couple of years the Operating Margin of SQU has remained more or less at the same level.
- SQU has a better Gross Margin (78.92%) than 86.67% of its industry peers.
- 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.
- SQU has less shares outstanding than it did 1 year ago.
- SQU has more shares outstanding than it did 5 years ago.
- SQU has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.27, we must say that SQU is in the distress zone and has some risk of bankruptcy.
- SQU's Altman-Z score of 1.27 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.
- Looking at the Debt to FCF ratio, with a value of 5.37, SQU is in the better half of the industry, outperforming 62.22% 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.
- The Debt to Equity ratio of SQU (1.19) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 5.37 | ||
| Altman-Z | 1.27 |
ROIC/WACC1.32
WACC6.32%
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 88.89% of its industry peers.
- A Quick Ratio of 0.80 indicates that SQU may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.80, SQU is doing worse than 75.56% of the companies in the same industry.
| 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.
- SQU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.67% yearly.
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.
- 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
- The Price/Earnings ratio is 14.10, which indicates a correct valuation of SQU.
- 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 27.25, SQU is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 11.99, the valuation of SQU can be described as reasonable.
- SQU's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SQU is cheaper than 62.22% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. SQU is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.1 | ||
| Fwd PE | 11.99 |
4.2 Price Multiples
- 64.44% of the companies in the same industry are more expensive than SQU, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of SQU indicates a somewhat cheap valuation: SQU is cheaper than 71.11% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.38 | ||
| EV/EBITDA | 6.89 |
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)3.29
PEG (5Y)1.83
EPS Next 2Y7.7%
EPS Next 3Y7.73%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.04%, SQU is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.33, SQU pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, SQU pays a better dividend.
| 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 14.1 and the Price/Book (PB) ratio is 2.4.
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.