WACKER NEUSON SE (WAC.DE) Stock Fundamental Analysis
FRA:WAC - Deutsche Boerse Ag - DE000WACK012 - Common Stock - Currency: EUR
Overall WAC gets a fundamental rating of 4 out of 10. We evaluated WAC against 105 industry peers in the Machinery industry. The financial health of WAC is average, but there are quite some concerns on its profitability. WAC has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
WAC had positive earnings in the past year.
WAC had a positive operating cash flow in the past year.
In the past 5 years WAC has always been profitable.
The reported operating cash flow has been mixed in the past 5 years: WAC reported negative operating cash flow in multiple years.
1.2 Ratios
WAC has a Return On Assets (3.17%) which is in line with its industry peers.
WAC has a Return On Equity (5.48%) which is in line with its industry peers.
WAC has a Return On Invested Capital of 5.43%. This is comparable to the rest of the industry: WAC outperforms 50.96% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WAC is in line with the industry average of 8.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.17% | ||
| ROE | 5.48% | ||
| ROIC | 5.43% |
ROA(3y)6.37%
ROA(5y)4.76%
ROE(3y)11.11%
ROE(5y)8.35%
ROIC(3y)8.8%
ROIC(5y)7.22%
1.3 Margins
WAC has a Profit Margin (3.44%) which is in line with its industry peers.
In the last couple of years the Profit Margin of WAC has declined.
WAC has a Operating Margin of 5.98%. This is comparable to the rest of the industry: WAC outperforms 50.96% of its industry peers.
In the last couple of years the Operating Margin of WAC has remained more or less at the same level.
WAC's Gross Margin of 23.03% is on the low side compared to the rest of the industry. WAC is outperformed by 72.12% of its industry peers.
WAC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.98% | ||
| PM (TTM) | 3.44% | ||
| GM | 23.03% |
OM growth 3Y18.54%
OM growth 5Y0.45%
PM growth 3Y100.19%
PM growth 5Y-3.74%
GM growth 3Y-1.13%
GM growth 5Y-2.59%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WAC is still creating some value.
WAC has about the same amout of shares outstanding than it did 1 year ago.
WAC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for WAC is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.85 indicates that WAC is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of WAC (2.85) is better than 73.08% of its industry peers.
The Debt to FCF ratio of WAC is 4.63, which is a neutral value as it means it would take WAC, 4.63 years of fcf income to pay off all of its debts.
WAC has a better Debt to FCF ratio (4.63) than 63.46% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that WAC is not too dependend on debt financing.
WAC has a better Debt to Equity ratio (0.20) than 70.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 4.63 | ||
| Altman-Z | 2.85 |
ROIC/WACC0.88
WACC6.15%
2.3 Liquidity
A Current Ratio of 1.68 indicates that WAC should not have too much problems paying its short term obligations.
WAC has a Current ratio (1.68) which is in line with its industry peers.
WAC has a Quick Ratio of 1.68. This is a bad value and indicates that WAC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.65, WAC is doing worse than 79.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The earnings per share for WAC have decreased strongly by -61.59% in the last year.
WAC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.80% yearly.
WAC shows a decrease in Revenue. In the last year, the revenue decreased by -9.98%.
The Revenue has been growing by 9.24% on average over the past years. This is quite good.
EPS 1Y (TTM)-61.59%
EPS 3Y138.69%
EPS 5Y5.8%
EPS Q2Q%-77.78%
Revenue 1Y (TTM)-9.98%
Revenue growth 3Y18.01%
Revenue growth 5Y9.24%
Sales Q2Q%-20.12%
3.2 Future
Based on estimates for the next years, WAC will show a decrease in Earnings Per Share. The EPS will decrease by -8.40% on average per year.
Based on estimates for the next years, WAC will show a small growth in Revenue. The Revenue will grow by 1.32% on average per year.
EPS Next Y-39.76%
EPS Next 2Y-26.75%
EPS Next 3Y-8.4%
EPS Next 5YN/A
Revenue Next Year-17.25%
Revenue Next 2Y-7.89%
Revenue Next 3Y-2.06%
Revenue Next 5Y1.32%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.98, the valuation of WAC can be described as correct.
Based on the Price/Earnings ratio, WAC is valued a bit cheaper than the industry average as 67.31% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of WAC to the average of the S&P500 Index (29.35), we can say WAC is valued slightly cheaper.
WAC is valuated correctly with a Price/Forward Earnings ratio of 12.57.
Based on the Price/Forward Earnings ratio, WAC is valued a bit cheaper than 67.31% of the companies in the same industry.
WAC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.98 | ||
| Fwd PE | 12.57 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WAC is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WAC indicates a somewhat cheap valuation: WAC is cheaper than 71.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.21 | ||
| EV/EBITDA | 7.54 |
4.3 Compensation for Growth
WAC's earnings are expected to decrease with -8.40% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.75
EPS Next 2Y-26.75%
EPS Next 3Y-8.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.04%, WAC is a good candidate for dividend investing.
WAC's Dividend Yield is rather good when compared to the industry average which is at 3.07. WAC pays more dividend than 98.08% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, WAC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.04% |
5.2 History
On average, the dividend of WAC grows each year by 10.74%, which is quite nice.
Dividend Growth(5Y)10.74%
Div Incr Years2
Div Non Decr Years5
5.3 Sustainability
WAC pays out 96.19% of its income as dividend. This is not a sustainable payout ratio.
WAC's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP96.19%
EPS Next 2Y-26.75%
EPS Next 3Y-8.4%
FRA:WAC (3/7/2025, 7:00:00 PM)
19.02
-0.02 (-0.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners10.71%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.33B
Analysts71.11
Price Target16.52 (-13.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.04% |
Yearly Dividend1
Dividend Growth(5Y)10.74%
DP96.19%
Div Incr Years2
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-15.54%
Min EPS beat(2)-36.99%
Max EPS beat(2)5.92%
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)0
Avg Revenue beat(2)-1.12%
Min Revenue beat(2)-1.26%
Max Revenue beat(2)-0.99%
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)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)33.7%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.98 | ||
| Fwd PE | 12.57 | ||
| P/S | 0.56 | ||
| P/FCF | 11.21 | ||
| P/OCF | 5.49 | ||
| P/B | 0.9 | ||
| P/tB | 1.31 | ||
| EV/EBITDA | 7.54 |
EPS(TTM)1.19
EY6.26%
EPS(NY)1.51
Fwd EY7.95%
FCF(TTM)1.7
FCFY8.92%
OCF(TTM)3.47
OCFY18.22%
SpS33.7
BVpS21.16
TBVpS14.56
PEG (NY)N/A
PEG (5Y)2.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.17% | ||
| ROE | 5.48% | ||
| ROCE | 7.38% | ||
| ROIC | 5.43% | ||
| ROICexc | 5.63% | ||
| ROICexgc | 7.51% | ||
| OM | 5.98% | ||
| PM (TTM) | 3.44% | ||
| GM | 23.03% | ||
| FCFM | 5.04% |
ROA(3y)6.37%
ROA(5y)4.76%
ROE(3y)11.11%
ROE(5y)8.35%
ROIC(3y)8.8%
ROIC(5y)7.22%
ROICexc(3y)9.59%
ROICexc(5y)7.89%
ROICexgc(3y)13.15%
ROICexgc(5y)10.73%
ROCE(3y)11.96%
ROCE(5y)9.82%
ROICexcg growth 3Y31.78%
ROICexcg growth 5Y5.31%
ROICexc growth 3Y32.65%
ROICexc growth 5Y5.5%
OM growth 3Y18.54%
OM growth 5Y0.45%
PM growth 3Y100.19%
PM growth 5Y-3.74%
GM growth 3Y-1.13%
GM growth 5Y-2.59%
F-Score4
Asset Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 4.63 | ||
| Debt/EBITDA | 1.26 | ||
| Cap/Depr | 131.6% | ||
| Cap/Sales | 5.25% | ||
| Interest Coverage | 5.48 | ||
| Cash Conversion | 103.18% | ||
| Profit Quality | 146.37% | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 2.85 |
F-Score4
WACC6.15%
ROIC/WACC0.88
Cap/Depr(3y)145.9%
Cap/Depr(5y)135.4%
Cap/Sales(3y)5.06%
Cap/Sales(5y)5.05%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-61.59%
EPS 3Y138.69%
EPS 5Y5.8%
EPS Q2Q%-77.78%
EPS Next Y-39.76%
EPS Next 2Y-26.75%
EPS Next 3Y-8.4%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.98%
Revenue growth 3Y18.01%
Revenue growth 5Y9.24%
Sales Q2Q%-20.12%
Revenue Next Year-17.25%
Revenue Next 2Y-7.89%
Revenue Next 3Y-2.06%
Revenue Next 5Y1.32%
EBIT growth 1Y-52.52%
EBIT growth 3Y39.89%
EBIT growth 5Y9.73%
EBIT Next Year-8.62%
EBIT Next 3Y7.28%
EBIT Next 5YN/A
FCF growth 1Y310.25%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y461.43%
OCF growth 3Y-35.34%
OCF growth 5YN/A