TESSENDERLO GROUP (TESB.BR) Stock Fundamental Analysis
EBR:TESB - Euronext Brussels - BE0003555639 - Common Stock - Currency: EUR
Overall TESB gets a fundamental rating of 5 out of 10. We evaluated TESB against 61 industry peers in the Chemicals industry. TESB has an excellent financial health rating, but there are some minor concerns on its profitability. TESB has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
Each year in the past 5 years TESB had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TESB (3.08%) is better than 66.67% of its industry peers.
The Return On Equity of TESB (4.63%) is better than 65.08% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.40%, TESB is in line with its industry, outperforming 55.56% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TESB is above the industry average of 6.72%.
The last Return On Invested Capital (2.40%) for TESB is well below the 3 year average (10.62%), which needs to be investigated, but indicates that TESB had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.08% | ||
| ROE | 4.63% | ||
| ROIC | 2.4% |
ROA(3y)7.38%
ROA(5y)6.44%
ROE(3y)12.83%
ROE(5y)12.23%
ROIC(3y)10.62%
ROIC(5y)9.86%
1.3 Margins
The Profit Margin of TESB (3.33%) is better than 63.49% of its industry peers.
In the last couple of years the Profit Margin of TESB has declined.
The Operating Margin of TESB (2.40%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TESB has declined.
TESB has a worse Gross Margin (18.76%) than 66.67% of its industry peers.
In the last couple of years the Gross Margin of TESB has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.4% | ||
| PM (TTM) | 3.33% | ||
| GM | 18.76% |
OM growth 3Y-27.56%
OM growth 5Y-7.93%
PM growth 3Y-13.13%
PM growth 5Y-7.95%
GM growth 3Y-11.73%
GM growth 5Y-4.32%
2. Health
2.1 Basic Checks
TESB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for TESB has been increased compared to 1 year ago.
The number of shares outstanding for TESB has been increased compared to 5 years ago.
Compared to 1 year ago, TESB has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.38 indicates that TESB is not a great score, but indicates only limited risk for bankruptcy at the moment.
TESB has a better Altman-Z score (2.38) than 63.49% of its industry peers.
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 95.24% of its industry peers.
A Debt/Equity ratio of 0.08 indicates that TESB is not too dependend on debt financing.
TESB has a better Debt to Equity ratio (0.08) than 90.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.69 | ||
| Altman-Z | 2.38 |
ROIC/WACC0.33
WACC7.26%
2.3 Liquidity
TESB has a Current Ratio of 2.40. This indicates that TESB is financially healthy and has no problem in meeting its short term obligations.
TESB has a better Current ratio (2.40) than 71.43% of its industry peers.
A Quick Ratio of 1.33 indicates that TESB should not have too much problems paying its short term obligations.
TESB has a better Quick ratio (1.33) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.4 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The earnings per share for TESB have decreased strongly by -47.43% in the last year.
Measured over the past years, TESB shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.96% on average per year.
The Revenue has decreased by -6.38% in the past year.
The Revenue has been growing by 12.56% on average over the past years. This is quite good.
EPS 1Y (TTM)-47.43%
EPS 3Y-8.92%
EPS 5Y-3.96%
EPS Q2Q%-23.17%
Revenue 1Y (TTM)-6.38%
Revenue growth 3Y19.01%
Revenue growth 5Y12.56%
Sales Q2Q%-14.6%
3.2 Future
TESB is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -13.33% yearly.
The Revenue is expected to grow by 0.26% on average over the next years.
EPS Next Y-59.86%
EPS Next 2Y-26.76%
EPS Next 3Y-13.33%
EPS Next 5YN/A
Revenue Next Year-12.04%
Revenue Next 2Y-4.5%
Revenue Next 3Y-1.84%
Revenue Next 5Y0.26%
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
The Price/Earnings ratio is 15.38, which indicates a correct valuation of TESB.
TESB's Price/Earnings ratio is rather cheap when compared to the industry. TESB is cheaper than 85.71% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, TESB is valued a bit cheaper.
A Price/Forward Earnings ratio of 14.51 indicates a correct valuation of TESB.
Based on the Price/Forward Earnings ratio, TESB is valued a bit cheaper than 69.84% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, TESB is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.38 | ||
| Fwd PE | 14.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TESB is valued a bit cheaper than 77.78% of the companies in the same industry.
TESB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TESB is cheaper than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.88 | ||
| EV/EBITDA | 7.3 |
4.3 Compensation for Growth
A cheap valuation may be justified as TESB's earnings are expected to decrease with -13.33% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-26.76%
EPS Next 3Y-13.33%
5. Dividend
5.1 Amount
TESB has a Yearly Dividend Yield of 2.40%. Purely for dividend investing, there may be better candidates out there.
TESB's Dividend Yield is a higher than the industry average which is at 2.89.
TESB's Dividend Yield is comparable with the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
5.2 History
The dividend of TESB has a limited annual growth rate of 2.41%.
Dividend Growth(5Y)2.41%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
TESB pays out 60.34% of its income as dividend. This is not a sustainable payout ratio.
TESB's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP60.34%
EPS Next 2Y-26.76%
EPS Next 3Y-13.33%
EBR:TESB (3/7/2025, 7:00:00 PM)
22.15
+0.25 (+1.14%)
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 Cap1.89B
Analysts78
Price Target27.54 (24.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
Yearly Dividend0.76
Dividend Growth(5Y)2.41%
DP60.34%
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)0%
PT rev (3m)-6.9%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.44%
EPS NY rev (3m)-14.83%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.94%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.38 | ||
| Fwd PE | 14.51 | ||
| P/S | 0.7 | ||
| P/FCF | 14.88 | ||
| P/OCF | 6.67 | ||
| P/B | 0.98 | ||
| P/tB | 1.15 | ||
| EV/EBITDA | 7.3 |
EPS(TTM)1.44
EY6.5%
EPS(NY)1.53
Fwd EY6.89%
FCF(TTM)1.49
FCFY6.72%
OCF(TTM)3.32
OCFY14.99%
SpS31.48
BVpS22.62
TBVpS19.2
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.08% | ||
| ROE | 4.63% | ||
| ROCE | 2.71% | ||
| ROIC | 2.4% | ||
| ROICexc | 2.59% | ||
| ROICexgc | 2.99% | ||
| OM | 2.4% | ||
| PM (TTM) | 3.33% | ||
| GM | 18.76% | ||
| FCFM | 4.73% |
ROA(3y)7.38%
ROA(5y)6.44%
ROE(3y)12.83%
ROE(5y)12.23%
ROIC(3y)10.62%
ROIC(5y)9.86%
ROICexc(3y)12.26%
ROICexc(5y)11.37%
ROICexgc(3y)13.65%
ROICexgc(5y)12.8%
ROCE(3y)12.02%
ROCE(5y)11.23%
ROICexcg growth 3Y-26.31%
ROICexcg growth 5Y-7.02%
ROICexc growth 3Y-26.84%
ROICexc growth 5Y-6.46%
OM growth 3Y-27.56%
OM growth 5Y-7.93%
PM growth 3Y-13.13%
PM growth 5Y-7.95%
GM growth 3Y-11.73%
GM growth 5Y-4.32%
F-Score6
Asset Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.69 | ||
| Debt/EBITDA | 0.58 | ||
| Cap/Depr | 78.46% | ||
| Cap/Sales | 5.82% | ||
| Interest Coverage | 6.6 | ||
| Cash Conversion | 107.38% | ||
| Profit Quality | 142.12% | ||
| Current Ratio | 2.4 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 2.38 |
F-Score6
WACC7.26%
ROIC/WACC0.33
Cap/Depr(3y)82.53%
Cap/Depr(5y)80.58%
Cap/Sales(3y)5.03%
Cap/Sales(5y)5.37%
Profit Quality(3y)52.08%
Profit Quality(5y)92.02%
High Growth Momentum
Growth
EPS 1Y (TTM)-47.43%
EPS 3Y-8.92%
EPS 5Y-3.96%
EPS Q2Q%-23.17%
EPS Next Y-59.86%
EPS Next 2Y-26.76%
EPS Next 3Y-13.33%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.38%
Revenue growth 3Y19.01%
Revenue growth 5Y12.56%
Sales Q2Q%-14.6%
Revenue Next Year-12.04%
Revenue Next 2Y-4.5%
Revenue Next 3Y-1.84%
Revenue Next 5Y0.26%
EBIT growth 1Y-71.18%
EBIT growth 3Y-13.79%
EBIT growth 5Y3.64%
EBIT Next Year51.42%
EBIT Next 3Y24.97%
EBIT Next 5Y18.68%
FCF growth 1Y64.55%
FCF growth 3Y-39.31%
FCF growth 5Y10.87%
OCF growth 1Y48.2%
OCF growth 3Y-8.09%
OCF growth 5Y15.29%