TALANX AG (TLX.DE) Stock Fundamental Analysis
FRA:TLX - Deutsche Boerse Ag - DE000TLX1005 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to TLX. TLX was compared to 33 industry peers in the Insurance industry. There are concerns on the financial health of TLX while its profitability can be described as average. TLX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
TLX had positive earnings in the past year.
In the past year TLX had a positive cash flow from operations.
In the past 5 years TLX has always been profitable.
Each year in the past 5 years TLX had a positive operating cash flow.
1.2 Ratios
TLX's Return On Assets of 0.91% is in line compared to the rest of the industry. TLX outperforms 41.67% of its industry peers.
TLX has a Return On Equity (14.33%) which is in line with its industry peers.
TLX has a Return On Invested Capital of 1.78%. This is in the better half of the industry: TLX outperforms 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TLX is in line with the industry average of 2.25%.
The 3 year average ROIC (1.55%) for TLX is below the current ROIC(1.78%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.91% | ||
| ROE | 14.33% | ||
| ROIC | 1.78% |
ROA(3y)0.63%
ROA(5y)0.55%
ROE(3y)10.9%
ROE(5y)9.61%
ROIC(3y)1.55%
ROIC(5y)1.3%
1.3 Margins
With a Profit Margin value of 3.74%, TLX is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of TLX has grown nicely.
TLX has a Operating Margin (9.00%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TLX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9% | ||
| PM (TTM) | 3.74% | ||
| GM | N/A |
OM growth 3Y29%
OM growth 5Y8.49%
PM growth 3Y30.44%
PM growth 5Y12.17%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
TLX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
TLX has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TLX has more shares outstanding
TLX has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of TLX is 1.12, which is an excellent value as it means it would take TLX, only 1.12 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.12, TLX belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
A Debt/Equity ratio of 0.78 indicates that TLX is somewhat dependend on debt financing.
The Debt to Equity ratio of TLX (0.78) is worse than 72.22% of its industry peers.
Although TLX does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 1.12 | ||
| Altman-Z | N/A |
ROIC/WACC0.27
WACC6.63%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
TLX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 122.56%, which is quite impressive.
The Earnings Per Share has been growing by 17.42% on average over the past years. This is quite good.
TLX shows a small growth in Revenue. In the last year, the Revenue has grown by 7.40%.
TLX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.84% yearly.
EPS 1Y (TTM)122.56%
EPS 3Y34.29%
EPS 5Y17.42%
EPS Q2Q%29.31%
Revenue 1Y (TTM)7.4%
Revenue growth 3Y3.2%
Revenue growth 5Y4.84%
Sales Q2Q%9.18%
3.2 Future
The Earnings Per Share is expected to grow by 7.89% on average over the next years.
TLX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.04% yearly.
EPS Next Y24.33%
EPS Next 2Y17.17%
EPS Next 3Y13.4%
EPS Next 5Y7.89%
Revenue Next Year10.77%
Revenue Next 2Y8.65%
Revenue Next 3Y7.63%
Revenue Next 5Y10.04%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.73, which indicates a correct valuation of TLX.
The rest of the industry has a similar Price/Earnings ratio as TLX.
The average S&P500 Price/Earnings ratio is at 29.35. TLX is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 10.76, the valuation of TLX can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TLX is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.10. TLX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.73 | ||
| Fwd PE | 10.76 |
4.2 Price Multiples
TLX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TLX is cheaper than 97.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.07 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as TLX's earnings are expected to grow with 13.40% in the coming years.
PEG (NY)0.61
PEG (5Y)0.85
EPS Next 2Y17.17%
EPS Next 3Y13.4%
5. Dividend
5.1 Amount
TLX has a Yearly Dividend Yield of 2.92%.
TLX's Dividend Yield is slightly below the industry average, which is at 4.64.
Compared to an average S&P500 Dividend Yield of 2.33, TLX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.92% |
5.2 History
The dividend of TLX has a limited annual growth rate of 4.80%.
Dividend Growth(5Y)4.8%
Div Incr Years2
Div Non Decr Years5
5.3 Sustainability
TLX pays out 71.85% of its income as dividend. This is not a sustainable payout ratio.
TLX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP71.85%
EPS Next 2Y17.17%
EPS Next 3Y13.4%
FRA:TLX (3/7/2025, 7:00:00 PM)
91.5
-0.9 (-0.97%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners8.49%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap23.63B
Analysts70.91
Price Target88.49 (-3.29%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.92% |
Yearly Dividend3.67
Dividend Growth(5Y)4.8%
DP71.85%
Div Incr Years2
Div Non Decr Years5
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)7.95%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.15%
EPS NY rev (3m)3.43%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)4.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.73 | ||
| Fwd PE | 10.76 | ||
| P/S | 0.56 | ||
| P/FCF | 3.07 | ||
| P/OCF | 3.07 | ||
| P/B | 2.14 | ||
| P/tB | 2.74 | ||
| EV/EBITDA | N/A |
EPS(TTM)6.21
EY6.79%
EPS(NY)8.5
Fwd EY9.29%
FCF(TTM)29.81
FCFY32.58%
OCF(TTM)29.81
OCFY32.58%
SpS163.87
BVpS42.74
TBVpS33.4
PEG (NY)0.61
PEG (5Y)0.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.91% | ||
| ROE | 14.33% | ||
| ROCE | 2.26% | ||
| ROIC | 1.78% | ||
| ROICexc | 1.83% | ||
| ROICexgc | 2.2% | ||
| OM | 9% | ||
| PM (TTM) | 3.74% | ||
| GM | N/A | ||
| FCFM | 18.19% |
ROA(3y)0.63%
ROA(5y)0.55%
ROE(3y)10.9%
ROE(5y)9.61%
ROIC(3y)1.55%
ROIC(5y)1.3%
ROICexc(3y)1.59%
ROICexc(5y)1.33%
ROICexgc(3y)1.89%
ROICexgc(5y)1.6%
ROCE(3y)1.95%
ROCE(5y)1.64%
ROICexcg growth 3Y34.99%
ROICexcg growth 5Y11.49%
ROICexc growth 3Y36.46%
ROICexc growth 5Y12.85%
OM growth 3Y29%
OM growth 5Y8.49%
PM growth 3Y30.44%
PM growth 5Y12.17%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 1.12 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 6.73 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 486.91% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC6.63%
ROIC/WACC0.27
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)764.44%
Profit Quality(5y)789.44%
High Growth Momentum
Growth
EPS 1Y (TTM)122.56%
EPS 3Y34.29%
EPS 5Y17.42%
EPS Q2Q%29.31%
EPS Next Y24.33%
EPS Next 2Y17.17%
EPS Next 3Y13.4%
EPS Next 5Y7.89%
Revenue 1Y (TTM)7.4%
Revenue growth 3Y3.2%
Revenue growth 5Y4.84%
Sales Q2Q%9.18%
Revenue Next Year10.77%
Revenue Next 2Y8.65%
Revenue Next 3Y7.63%
Revenue Next 5Y10.04%
EBIT growth 1Y6.69%
EBIT growth 3Y33.14%
EBIT growth 5Y13.74%
EBIT Next Year27.23%
EBIT Next 3Y14.59%
EBIT Next 5YN/A
FCF growth 1Y7.86%
FCF growth 3Y10.88%
FCF growth 5Y17.11%
OCF growth 1Y8.01%
OCF growth 3Y9.92%
OCF growth 5Y16.19%