TECHNIP ENERGIES NV (TE.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:TE - NL0014559478 - Common Stock
32.2 EUR
-0.32 (-0.98%)
Taking everything into account, TE scores 5 out of 10 in our fundamental rating. TE was compared to 36 industry peers in the Energy Equipment & Services industry. TE has an average financial health and profitability rating. TE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year TE was profitable.
- TE had a positive operating cash flow in the past year.
- TE had positive earnings in each of the past 5 years.
- In the past 5 years TE always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of TE (6.31%) is better than 66.67% of its industry peers.
- Looking at the Return On Equity, with a value of 26.03%, TE belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- The Return On Invested Capital of TE (14.65%) is better than 86.11% of its industry peers.
- TE had an Average Return On Invested Capital over the past 3 years of 11.30%. This is in line with the industry average of 10.31%.
- The 3 year average ROIC (11.30%) for TE is below the current ROIC(14.65%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.31% | ||
| ROE | 26.03% | ||
| ROIC | 14.65% |
ROA(3y)3.7%
ROA(5y)3.33%
ROE(3y)17.35%
ROE(5y)16.01%
ROIC(3y)11.3%
ROIC(5y)13.66%
1.3 Margins
- TE has a Profit Margin (5.38%) which is in line with its industry peers.
- TE's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 6.51%, TE is doing worse than 63.89% of the companies in the same industry.
- TE's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 12.96%, TE is doing worse than 63.89% of the companies in the same industry.
- TE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.51% | ||
| PM (TTM) | 5.38% | ||
| GM | 12.96% |
OM growth 3Y-9.17%
OM growth 5Y-12.34%
PM growth 3Y15.22%
PM growth 5Y18.05%
GM growth 3Y-1.23%
GM growth 5Y-8.82%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TE is creating value.
- TE has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, TE has less shares outstanding
- Compared to 1 year ago, TE has an improved debt to assets ratio.
2.2 Solvency
- TE has a debt to FCF ratio of 1.06. This is a very positive value and a sign of high solvency as it would only need 1.06 years to pay back of all of its debts.
- TE has a better Debt to FCF ratio (1.06) than 86.11% of its industry peers.
- TE has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of TE (0.37) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.06 | ||
| Altman-Z | N/A |
ROIC/WACC1.94
WACC7.54%
2.3 Liquidity
- TE has a Current Ratio of 1.05. This is a normal value and indicates that TE is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.05, TE is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
- A Quick Ratio of 1.05 indicates that TE should not have too much problems paying its short term obligations.
- The Quick ratio of TE (1.05) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
- TE shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.88%.
- TE shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.62% yearly.
- TE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.06%.
- Measured over the past years, TE shows a small growth in Revenue. The Revenue has been growing by 3.10% on average per year.
EPS 1Y (TTM)7.88%
EPS 3Y18.44%
EPS 5Y21.62%
EPS Q2Q%0%
Revenue 1Y (TTM)15.06%
Revenue growth 3Y1.46%
Revenue growth 5Y3.1%
Sales Q2Q%-1.98%
3.2 Future
- Based on estimates for the next years, TE will show a small growth in Earnings Per Share. The EPS will grow by 7.70% on average per year.
- The Revenue is expected to grow by 6.41% on average over the next years.
EPS Next Y13.37%
EPS Next 2Y16.84%
EPS Next 3Y14.86%
EPS Next 5Y7.7%
Revenue Next Year8.51%
Revenue Next 2Y12.93%
Revenue Next 3Y10.55%
Revenue Next 5Y6.41%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 14.70, the valuation of TE can be described as correct.
- TE's Price/Earnings ratio is in line with the industry average.
- TE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 10.92, the valuation of TE can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, TE is valued a bit cheaper than 61.11% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, TE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.7 | ||
| Fwd PE | 10.92 |
4.2 Price Multiples
- TE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TE is cheaper than 75.00% of the companies in the same industry.
- 75.00% of the companies in the same industry are more expensive than TE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.16 | ||
| EV/EBITDA | 3.67 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of TE may justify a higher PE ratio.
- TE's earnings are expected to grow with 14.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.1
PEG (5Y)0.68
EPS Next 2Y16.84%
EPS Next 3Y14.86%
5. Dividend
5.1 Amount
- TE has a Yearly Dividend Yield of 2.65%. Purely for dividend investing, there may be better candidates out there.
- TE's Dividend Yield is comparable with the industry average which is at 3.63.
- Compared to an average S&P500 Dividend Yield of 1.81, TE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- 27.87% of the earnings are spent on dividend by TE. This is a low number and sustainable payout ratio.
DP27.87%
EPS Next 2Y16.84%
EPS Next 3Y14.86%
TECHNIP ENERGIES NV / TE.PA FAQ
Can you provide the ChartMill fundamental rating for TECHNIP ENERGIES NV?
ChartMill assigns a fundamental rating of 6 / 10 to TE.PA.
What is the valuation status for TE stock?
ChartMill assigns a valuation rating of 6 / 10 to TECHNIP ENERGIES NV (TE.PA). This can be considered as Fairly Valued.
How profitable is TECHNIP ENERGIES NV (TE.PA) stock?
TECHNIP ENERGIES NV (TE.PA) has a profitability rating of 6 / 10.
What is the valuation of TECHNIP ENERGIES NV based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TECHNIP ENERGIES NV (TE.PA) is 14.7 and the Price/Book (PB) ratio is 2.55.
How financially healthy is TECHNIP ENERGIES NV?
The financial health rating of TECHNIP ENERGIES NV (TE.PA) is 6 / 10.