UBISOFT ENTERTAINMENT (UBI.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:UBI - FR0000054470 - Common Stock
4.059 EUR
-0.13 (-3.15%)
UBI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 48 industry peers in the Entertainment industry. UBI scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. UBI is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- UBI had negative earnings in the past year.
- In the past year UBI had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: UBI reported negative net income in multiple years.
- UBI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of -1.71%, UBI perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- UBI has a Return On Equity (-4.71%) which is in line with its industry peers.
- The Return On Invested Capital of UBI (2.04%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.71% | ||
| ROE | -4.71% | ||
| ROIC | 2.04% |
ROA(3y)-3.63%
ROA(5y)-1.44%
ROE(3y)-11.29%
ROE(5y)-4.65%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- Looking at the Operating Margin, with a value of 5.87%, UBI is in the better half of the industry, outperforming 64.58% of the companies in the same industry.
- UBI's Gross Margin of 89.78% is fine compared to the rest of the industry. UBI outperforms 79.17% of its industry peers.
- In the last couple of years the Gross Margin of UBI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.87% | ||
| PM (TTM) | N/A | ||
| GM | 89.78% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.76%
GM growth 5Y1.21%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), UBI is destroying value.
- The number of shares outstanding for UBI has been increased compared to 1 year ago.
- The number of shares outstanding for UBI has been increased compared to 5 years ago.
- Compared to 1 year ago, UBI has an improved debt to assets ratio.
2.2 Solvency
- UBI has an Altman-Z score of 0.96. This is a bad value and indicates that UBI is not financially healthy and even has some risk of bankruptcy.
- UBI's Altman-Z score of 0.96 is in line compared to the rest of the industry. UBI outperforms 52.08% of its industry peers.
- UBI has a debt to FCF ratio of 2.65. This is a good value and a sign of high solvency as UBI would need 2.65 years to pay back of all of its debts.
- The Debt to FCF ratio of UBI (2.65) is better than 62.50% of its industry peers.
- UBI has a Debt/Equity ratio of 1.11. This is a high value indicating a heavy dependency on external financing.
- UBI's Debt to Equity ratio of 1.11 is on the low side compared to the rest of the industry. UBI is outperformed by 60.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 2.65 | ||
| Altman-Z | 0.96 |
ROIC/WACC0.38
WACC5.39%
2.3 Liquidity
- A Current Ratio of 1.18 indicates that UBI should not have too much problems paying its short term obligations.
- UBI has a Current ratio of 1.18. This is in the better half of the industry: UBI outperforms 70.83% of its industry peers.
- UBI has a Quick Ratio of 1.17. This is a normal value and indicates that UBI is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.17, UBI is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
- The earnings per share for UBI have decreased strongly by -131.28% in the last year.
- UBI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.78%.
- Measured over the past years, UBI shows a small growth in Revenue. The Revenue has been growing by 3.56% on average per year.
EPS 1Y (TTM)-131.28%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%36.68%
Revenue 1Y (TTM)-11.78%
Revenue growth 3Y-3.68%
Revenue growth 5Y3.56%
Sales Q2Q%2.41%
3.2 Future
- UBI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.97% yearly.
- The Revenue is expected to grow by 3.55% on average over the next years.
EPS Next Y1.39%
EPS Next 2Y78.39%
EPS Next 3Y55.72%
EPS Next 5Y29.97%
Revenue Next Year-4.24%
Revenue Next 2Y3.67%
Revenue Next 3Y4.45%
Revenue Next 5Y3.55%
3.3 Evolution
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- UBI reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- Based on the Price/Forward Earnings ratio of 6.13, the valuation of UBI can be described as very cheap.
- Based on the Price/Forward Earnings ratio, UBI is valued cheaply inside the industry as 95.83% of the companies are valued more expensively.
- UBI is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 6.13 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UBI indicates a rather cheap valuation: UBI is cheaper than 91.67% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, UBI is valued cheaper than 97.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.69 | ||
| EV/EBITDA | 3.39 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- UBI's earnings are expected to grow with 55.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y78.39%
EPS Next 3Y55.72%
5. Dividend
5.1 Amount
- UBI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
UBISOFT ENTERTAINMENT / UBI.PA FAQ
Can you provide the ChartMill fundamental rating for UBISOFT ENTERTAINMENT?
ChartMill assigns a fundamental rating of 4 / 10 to UBI.PA.
What is the valuation status for UBI stock?
ChartMill assigns a valuation rating of 6 / 10 to UBISOFT ENTERTAINMENT (UBI.PA). This can be considered as Fairly Valued.
How profitable is UBISOFT ENTERTAINMENT (UBI.PA) stock?
UBISOFT ENTERTAINMENT (UBI.PA) has a profitability rating of 3 / 10.