WORLDLINE SA (WLN.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:WLN - FR0011981968 - Common Stock
1.508 EUR
+0.01 (+0.73%)
Overall WLN gets a fundamental rating of 3 out of 10. We evaluated WLN against 60 industry peers in the Financial Services industry. WLN has a bad profitability rating. Also its financial health evaluation is rather negative. WLN has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
- WLN had positive earnings in the past year.
- In the past year WLN had a positive cash flow from operations.
- In multiple years WLN reported negative net income over the last 5 years.
- Each year in the past 5 years WLN had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of WLN (-28.16%) is worse than 85.00% of its industry peers.
- WLN's Return On Equity of -112.71% is on the low side compared to the rest of the industry. WLN is outperformed by 81.67% of its industry peers.
- WLN's Return On Invested Capital of 2.44% is in line compared to the rest of the industry. WLN outperforms 48.33% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for WLN is significantly below the industry average of 10.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -28.16% | ||
| ROE | -112.71% | ||
| ROIC | 2.44% |
ROA(3y)-1.31%
ROA(5y)-1.37%
ROE(3y)-3.31%
ROE(5y)-3.31%
ROIC(3y)2.59%
ROIC(5y)2.28%
1.3 Margins
- WLN's Operating Margin of 6.40% is on the low side compared to the rest of the industry. WLN is outperformed by 60.00% of its industry peers.
- WLN's Operating Margin has declined in the last couple of years.
- The Gross Margin of WLN (84.73%) is better than 83.33% of its industry peers.
- In the last couple of years the Gross Margin of WLN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.4% | ||
| PM (TTM) | N/A | ||
| GM | 84.73% |
OM growth 3Y-7.61%
OM growth 5Y-8.43%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.13%
GM growth 5Y-1.58%
2. Health
2.1 Basic Checks
- WLN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- WLN has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for WLN has been increased compared to 5 years ago.
- WLN has a worse debt/assets ratio than last year.
2.2 Solvency
- WLN has an Altman-Z score of 0.24. This is a bad value and indicates that WLN is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of WLN (0.24) is worse than 70.00% of its industry peers.
- The Debt to FCF ratio of WLN is 13.46, which is on the high side as it means it would take WLN, 13.46 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 13.46, WLN perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
- WLN has a Debt/Equity ratio of 0.83. This is a neutral value indicating WLN is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.83, WLN is doing worse than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 13.46 | ||
| Altman-Z | 0.24 |
ROIC/WACC1.43
WACC1.7%
2.3 Liquidity
- WLN has a Current Ratio of 1.06. This is a normal value and indicates that WLN is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.06, WLN is not doing good in the industry: 61.67% of the companies in the same industry are doing better.
- WLN has a Quick Ratio of 1.06. This is a normal value and indicates that WLN is financially healthy and should not expect problems in meeting its short term obligations.
- With a Quick ratio value of 1.06, WLN is not doing good in the industry: 61.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
- The earnings per share for WLN have decreased strongly by -30.29% in the last year.
- Looking at the last year, WLN shows a decrease in Revenue. The Revenue has decreased by -2.35% in the last year.
- WLN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.23% yearly.
EPS 1Y (TTM)-30.29%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-41.89%
Revenue 1Y (TTM)-2.35%
Revenue growth 3Y7.88%
Revenue growth 5Y14.23%
Sales Q2Q%-3.67%
3.2 Future
- The Earnings Per Share is expected to decrease by -6.24% on average over the next years.
- WLN is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.20% yearly.
EPS Next Y-47.2%
EPS Next 2Y-28.84%
EPS Next 3Y-16.09%
EPS Next 5Y-6.24%
Revenue Next Year-1.74%
Revenue Next 2Y-2.59%
Revenue Next 3Y-1.32%
Revenue Next 5Y-0.2%
3.3 Evolution
- 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 1.24, the valuation of WLN can be described as very cheap.
- 96.67% of the companies in the same industry are more expensive than WLN, based on the Price/Earnings ratio.
- WLN is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 1.95 indicates a rather cheap valuation of WLN.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of WLN indicates a rather cheap valuation: WLN is cheaper than 96.67% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. WLN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.24 | ||
| Fwd PE | 1.95 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WLN is valued cheaply inside the industry as 96.67% of the companies are valued more expensively.
- 96.67% of the companies in the same industry are more expensive than WLN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.45 | ||
| EV/EBITDA | 0.44 |
4.3 Compensation for Growth
- WLN's earnings are expected to decrease with -16.09% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-28.84%
EPS Next 3Y-16.09%
5. Dividend
5.1 Amount
- WLN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
WORLDLINE SA / WLN.PA FAQ
Can you provide the ChartMill fundamental rating for WORLDLINE SA?
ChartMill assigns a fundamental rating of 3 / 10 to WLN.PA.
What is the valuation status of WORLDLINE SA (WLN.PA) stock?
ChartMill assigns a valuation rating of 7 / 10 to WORLDLINE SA (WLN.PA). This can be considered as Undervalued.
What is the profitability of WLN stock?
WORLDLINE SA (WLN.PA) has a profitability rating of 3 / 10.
Can you provide the financial health for WLN stock?
The financial health rating of WORLDLINE SA (WLN.PA) is 2 / 10.
Can you provide the expected EPS growth for WLN stock?
The Earnings per Share (EPS) of WORLDLINE SA (WLN.PA) is expected to decline by -47.2% in the next year.