Is There An Opportunity With Bureau Veritas SA's (EPA:BVI) 24% Undervaluation?
Dec 01
French (CAC) Professional Services Industry Analysis
UpdatedDec 05, 2022
DataAggregated Company Financials
Companies16
- 7D3.0%
- 3M-8.9%
- 1Y-24.6%
- YTD-29.8%
The Professional Services industry is up 3.0% in the last week, with Teleperformance up 7.7%. However, the industry is down 25% over the past year. As for the next few years, earnings are expected to grow by 11% per annum.
Industry Valuation and Performance
Has the French Professional Services Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 05 Dec 2022 | €28.3b | €19.6b | €1.2b | 12.5x | 22.7x | 1.4x |
| Wed, 02 Nov 2022 | €30.2b | €19.6b | €1.2b | 11.9x | 24.3x | 1.5x |
| Fri, 30 Sep 2022 | €27.8b | €19.5b | €1.2b | 11.7x | 22.5x | 1.4x |
| Sun, 28 Aug 2022 | €31.8b | €19.1b | €1.2b | 16.3x | 26.4x | 1.7x |
| Tue, 26 Jul 2022 | €34.2b | €18.3b | €1.2b | 16.2x | 29.5x | 1.9x |
| Thu, 23 Jun 2022 | €31.0b | €18.3b | €1.2b | 15.4x | 26.8x | 1.7x |
| Sat, 21 May 2022 | €35.0b | €19.9b | €1.1b | 17.1x | 30.6x | 1.8x |
| Mon, 18 Apr 2022 | €36.5b | €19.8b | €1.1b | 18.3x | 31.9x | 1.8x |
| Wed, 16 Mar 2022 | €36.3b | €19.5b | €1.1b | 27.2x | 34.1x | 1.9x |
| Fri, 11 Feb 2022 | €36.1b | €18.6b | €822.0m | 26.9x | 43.9x | 1.9x |
| Sun, 09 Jan 2022 | €40.6b | €18.6b | €822.0m | 31.1x | 49.3x | 2.2x |
| Tue, 07 Dec 2021 | €39.3b | €18.7b | €822.0m | 24.9x | 47.8x | 2.1x |
| Thu, 04 Nov 2021 | €40.1b | €18.6b | €819.0m | 24.9x | 49x | 2.2x |
| Sat, 02 Oct 2021 | €37.1b | €18.5b | €817.1m | 32.7x | 45.4x | 2x |
| Mon, 30 Aug 2021 | €39.6b | €18.1b | €757.2m | 35.7x | 52.3x | 2.2x |
| Tue, 06 Jul 2021 | €35.9b | €18.1b | €757.2m | 37.4x | 47.4x | 2x |
| Fri, 09 Apr 2021 | €32.6b | €17.6b | €531.8m | 41.7x | 61.3x | 1.9x |
| Thu, 31 Dec 2020 | €29.0b | €17.1b | €306.3m | 31.4x | 94.8x | 1.7x |
| Sun, 04 Oct 2020 | €26.6b | €17.4b | €453.4m | 26.8x | 58.7x | 1.5x |
| Wed, 08 Jul 2020 | €24.3b | €17.7b | €564.2m | 25.4x | 43.1x | 1.4x |
| Tue, 31 Mar 2020 | €21.1b | €18.2b | €790.7m | 13.4x | 26.7x | 1.2x |
| Fri, 03 Jan 2020 | €27.0b | €18.8b | €1.0b | 17.1x | 26.5x | 1.4x |
Price to Earnings Ratio
26.5x
Current Industry PE
- Investors are pessimistic on the French Professional Services industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 22.7x which is lower than its 3-year average PE of 45.4x.
- The 3-year average PS ratio of 1.7x is higher than the industry's current PS ratio of 1.4x.
Past Earnings Growth
- The earnings for companies in the Professional Services industry have grown 6.9% per year over the last three years, while revenues have remained mostly flat.
- This means that companies overall are more efficiently conducting business since profits are increasing while sales have been flat.
Industry Trends
Which industries have driven the changes within the French Industrials industry?
| FR Market | 0.83% | |
| Industrials | -0.55% | |
| Professional Services | 3.01% | |
| Research and Consulting Services | 3.18% | |
| HR Services | 0.69% | |
Industry PE
- Investors are most optimistic about the Research and Consulting Services industry even though it's trading below its 3-year average PE ratio of 48.6x.
- Analysts are expecting annual earnings growth of 11.5%, which is lower than the prior year's growth of 26.1% per year.
- Investors are most pessimistic about the HR Services industry, which is trading below its 3-year average of 22.8x.
Forecasted Growth
- Analysts are most optimistic on the Research and Consulting Services industry, expecting annual earnings growth of 11% over the next 5 years.
- However this is lower than its past earnings growth rate of 26% per year.
- In contrast, the HR Services industry is expected to see its earnings grow by 9.1% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| TEP Teleperformance | €228.50 | 7.7% +€968.8m | -36.0% | PE23.4x | |
| SDG Synergie | €30.75 | 2.5% +€18.0m | -13.9% | PE9.6x | |
| ALMAR Mare Nostrum Société anonyme | €2.79 | 10.3% +€2.0m | -7.0% | PS0.1x | |
| ALGEC GECI International | €0.0029 | 26.1% +€574.4k | -56.7% | PS0.2x | |
| MLCIO Groupe CIOA | €1.94 | 0.5% +€50.0k | 14.1% | PE8.5x |
