TESSENDERLO GROUP (TESB.BR) Stock Fundamental Analysis
EBR:TESB - Euronext Brussels - BE0003555639 - Common Stock - Currency: EUR
TESB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 62 industry peers in the Chemicals industry. TESB has an average financial health and profitability rating. TESB has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year TESB was profitable.
In the past year TESB had a positive cash flow from operations.
TESB had positive earnings in each of the past 5 years.
In the past 5 years TESB always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TESB (1.46%) is comparable to the rest of the industry.
TESB has a Return On Equity of 2.26%. This is comparable to the rest of the industry: TESB outperforms 54.84% of its industry peers.
TESB has a Return On Invested Capital of 2.05%. This is comparable to the rest of the industry: TESB outperforms 51.61% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TESB is in line with the industry average of 6.15%.
The last Return On Invested Capital (2.05%) for TESB is well below the 3 year average (6.25%), which needs to be investigated, but indicates that TESB had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.46% | ||
| ROE | 2.26% | ||
| ROIC | 2.05% |
ROA(3y)5.03%
ROA(5y)5.73%
ROE(3y)8.04%
ROE(5y)10.34%
ROIC(3y)6.25%
ROIC(5y)7.52%
1.3 Margins
Looking at the Profit Margin, with a value of 1.62%, TESB is in line with its industry, outperforming 54.84% of the companies in the same industry.
In the last couple of years the Profit Margin of TESB has declined.
TESB's Operating Margin of 2.41% is in line compared to the rest of the industry. TESB outperforms 46.77% of its industry peers.
TESB's Operating Margin has declined in the last couple of years.
TESB has a worse Gross Margin (19.38%) than 67.74% of its industry peers.
In the last couple of years the Gross Margin of TESB has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.41% | ||
| PM (TTM) | 1.62% | ||
| GM | 19.38% |
OM growth 3Y-39.29%
OM growth 5Y-20.88%
PM growth 3Y-43.63%
PM growth 5Y-21.76%
GM growth 3Y-9.65%
GM growth 5Y-5.01%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TESB is destroying value.
The number of shares outstanding for TESB has been reduced compared to 1 year ago.
TESB has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TESB is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.03 indicates that TESB is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.03, TESB is in line with its industry, outperforming 50.00% of the companies in the same industry.
TESB has a debt to FCF ratio of 1.69. This is a very positive value and a sign of high solvency as it would only need 1.69 years to pay back of all of its debts.
TESB has a better Debt to FCF ratio (1.69) than 95.16% of its industry peers.
TESB has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
TESB has a better Debt to Equity ratio (0.07) than 91.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 1.69 | ||
| Altman-Z | 2.03 |
ROIC/WACC0.28
WACC7.24%
2.3 Liquidity
TESB has a Current Ratio of 2.11. This indicates that TESB is financially healthy and has no problem in meeting its short term obligations.
TESB's Current ratio of 2.11 is fine compared to the rest of the industry. TESB outperforms 69.35% of its industry peers.
A Quick Ratio of 1.18 indicates that TESB should not have too much problems paying its short term obligations.
TESB has a Quick ratio (1.18) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
TESB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -60.46%.
The earnings per share for TESB have been decreasing by -20.75% on average. This is quite bad
The Revenue has decreased by -9.58% in the past year.
TESB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.72% yearly.
EPS 1Y (TTM)-60.46%
EPS 3Y-45.77%
EPS 5Y-20.75%
EPS Q2Q%-162.24%
Revenue 1Y (TTM)-9.58%
Revenue growth 3Y8.35%
Revenue growth 5Y8.72%
Sales Q2Q%-3.32%
3.2 Future
TESB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.03% yearly.
TESB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.57% yearly.
EPS Next Y39.56%
EPS Next 2Y33.42%
EPS Next 3Y11.03%
EPS Next 5YN/A
Revenue Next Year7.68%
Revenue Next 2Y5.78%
Revenue Next 3Y2.57%
Revenue Next 5YN/A
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 accelerating.
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
The Price/Earnings ratio is 37.87, which means the current valuation is very expensive for TESB.
TESB's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.87, TESB is valued a bit more expensive.
With a Price/Forward Earnings ratio of 16.08, TESB is valued correctly.
66.13% of the companies in the same industry are more expensive than TESB, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.38. TESB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.87 | ||
| Fwd PE | 16.08 |
4.2 Price Multiples
TESB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TESB is cheaper than 87.10% of the companies in the same industry.
87.10% of the companies in the same industry are more expensive than TESB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.15 | ||
| EV/EBITDA | 5.35 |
4.3 Compensation for Growth
TESB's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.96
PEG (5Y)N/A
EPS Next 2Y33.42%
EPS Next 3Y11.03%
5. Dividend
5.1 Amount
TESB has a Yearly Dividend Yield of 2.08%.
TESB's Dividend Yield is comparable with the industry average which is at 3.07.
Compared to an average S&P500 Dividend Yield of 2.46, TESB has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
5.2 History
On average, the dividend of TESB grows each year by 6.16%, which is quite nice.
Dividend Growth(5Y)6.16%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
TESB pays out 126.17% of its income as dividend. This is not a sustainable payout ratio.
TESB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP126.17%
EPS Next 2Y33.42%
EPS Next 3Y11.03%
EBR:TESB (4/28/2025, 7:00:00 PM)
25.75
+0.2 (+0.78%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners4.44%
Inst Owner ChangeN/A
Ins Owners47.46%
Ins Owner ChangeN/A
Market Cap1.55B
Analysts78
Price Target28.56 (10.91%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
Yearly Dividend0.88
Dividend Growth(5Y)6.16%
DP126.17%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)3.7%
PT rev (3m)3.7%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)4.9%
EPS NY rev (3m)-13.85%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)2.89%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.87 | ||
| Fwd PE | 16.08 | ||
| P/S | 0.59 | ||
| P/FCF | 10.15 | ||
| P/OCF | 4.65 | ||
| P/B | 0.82 | ||
| P/tB | 0.98 | ||
| EV/EBITDA | 5.35 |
EPS(TTM)0.68
EY2.64%
EPS(NY)1.6
Fwd EY6.22%
FCF(TTM)2.54
FCFY9.85%
OCF(TTM)5.54
OCFY21.51%
SpS44.01
BVpS31.52
TBVpS26.21
PEG (NY)0.96
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.46% | ||
| ROE | 2.26% | ||
| ROCE | 2.73% | ||
| ROIC | 2.05% | ||
| ROICexc | 2.3% | ||
| ROICexgc | 2.71% | ||
| OM | 2.41% | ||
| PM (TTM) | 1.62% | ||
| GM | 19.38% | ||
| FCFM | 5.76% |
ROA(3y)5.03%
ROA(5y)5.73%
ROE(3y)8.04%
ROE(5y)10.34%
ROIC(3y)6.25%
ROIC(5y)7.52%
ROICexc(3y)6.83%
ROICexc(5y)8.71%
ROICexgc(3y)7.61%
ROICexgc(5y)9.79%
ROCE(3y)8.33%
ROCE(5y)10.06%
ROICexcg growth 3Y-43.17%
ROICexcg growth 5Y-19.86%
ROICexc growth 3Y-44.09%
ROICexc growth 5Y-20.16%
OM growth 3Y-39.29%
OM growth 5Y-20.88%
PM growth 3Y-43.63%
PM growth 5Y-21.76%
GM growth 3Y-9.65%
GM growth 5Y-5.01%
F-Score6
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 1.69 | ||
| Debt/EBITDA | 0.49 | ||
| Cap/Depr | 85.39% | ||
| Cap/Sales | 6.82% | ||
| Interest Coverage | 7.01 | ||
| Cash Conversion | 121.03% | ||
| Profit Quality | 356.54% | ||
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 2.03 |
F-Score6
WACC7.24%
ROIC/WACC0.28
Cap/Depr(3y)86.45%
Cap/Depr(5y)81.94%
Cap/Sales(3y)5.77%
Cap/Sales(5y)5.54%
Profit Quality(3y)143.93%
Profit Quality(5y)139.31%
High Growth Momentum
Growth
EPS 1Y (TTM)-60.46%
EPS 3Y-45.77%
EPS 5Y-20.75%
EPS Q2Q%-162.24%
EPS Next Y39.56%
EPS Next 2Y33.42%
EPS Next 3Y11.03%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.58%
Revenue growth 3Y8.35%
Revenue growth 5Y8.72%
Sales Q2Q%-3.32%
Revenue Next Year7.68%
Revenue Next 2Y5.78%
Revenue Next 3Y2.57%
Revenue Next 5YN/A
EBIT growth 1Y-46.88%
EBIT growth 3Y-34.22%
EBIT growth 5Y-13.98%
EBIT Next Year303.65%
EBIT Next 3Y60.06%
EBIT Next 5YN/A
FCF growth 1Y274.94%
FCF growth 3Y0.11%
FCF growth 5Y5.75%
OCF growth 1Y52.01%
OCF growth 3Y10.33%
OCF growth 5Y8.69%