Somfy (ENXTPA:SO) - Share price, News & Analysis

Q: What is the Fair Price of SO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

SO (€124.6) is trading below our estimate of [[fair value]] (€137.9)

SO fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	2/6
Past Performance	4/6
Financial Health	6/6
Dividends	4/6

SO Stock Overview

Somfy SA manufactures and sells automatic controls for openings and closures in homes and buildings.

Rewards

Trading at 9.6% below our estimate of its fair value

Earnings are forecast to grow 3.68% per year

Earnings have grown 15% per year over the past 5 years

Risk Analysis

No risks detected for SO from our risk checks.

Somfy Competitors

Nexans

ENXTPA:NEX

€3.5b

Legrand

ENXTPA:LR

€19.2b

Mersen

ENXTPA:MRN

€626.7m

Gérard Perrier Industrie

ENXTPA:PERR

€308.8m

Price History & Performance

Summary of all time highs, changes and price drops for Somfy
Historical stock prices
Current Share Price	€124.60
52 Week High	€180.40
52 Week Low	€116.40
Beta	0.76
1 Month Change	-9.32%
3 Month Change	-14.66%
1 Year Change	-14.66%
3 Year Change	48.33%
5 Year Change	35.79%
Change since IPO	1,743.00%

Recent News & Updates

Jun 01

Here's What Somfy's (EPA:SO) Strong Returns On Capital Mean

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Firstly, we'd want to identify a...

May 17

Is Somfy (EPA:SO) A Risky Investment?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

May 02

Somfy's (EPA:SO) Dividend Will Be Increased To €2.15

Somfy SA ( EPA:SO ) has announced that it will be increasing its dividend on the 14th of June to €2.15. Based on the...

Shareholder Returns

	SO	FR Electrical	FR Market
7D	-1.4%	1.9%	2.7%
1Y	-14.7%	-14.4%	-11.0%

Return vs Industry: SO matched the French Electrical industry which returned -14.4% over the past year.

Return vs Market: SO underperformed the French Market which returned -11% over the past year.

Price Volatility

Is SO's price volatile compared to industry and market?
SO volatility
SO Average Weekly Movement	6.0%
Electrical Industry Average Movement	5.4%
Market Average Movement	5.0%
10% most volatile stocks in FR Market	9.2%
10% least volatile stocks in FR Market	2.9%

Stable Share Price: SO is not significantly more volatile than the rest of French stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SO's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1969	6,131	Pierre Ribeiro	https://www.somfy-group.com/fr-fr

Somfy SA manufactures and sells automatic controls for openings and closures in homes and buildings. The company offers shutters, solar protection, curtains, gates, garage doors, cameras, alarms, locks, sensors, control points, etc. applications under the Somfy brand; roller shutters, awnings, garage doors, and industrial and commercial closures under the Simu brand; and automatic solutions for homes, businesses, and manufacturers under the BFT brand. It also provides automatic solutions for awnings and rolling shutters under the Asa brand; and automatic controls for windows, domes, dormers, and blinds for use in natural ventilation and smoke extraction applications under the Mingardi brand.

Somfy Fundamentals Summary

How do Somfy's earnings and revenue compare to its market cap?
SO fundamental statistics
Market Cap	€4.16b
Earnings (TTM)	€258.05m
Revenue (TTM)	€1.48b

16.6x

P/E Ratio

2.9x

P/S Ratio

Is SO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SO income statement (TTM)
Revenue	€1.48b
Cost of Revenue	€549.37m
Gross Profit	€928.46m
Other Expenses	€670.41m
Earnings	€258.05m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Sep 07, 2022

Earnings per share (EPS)	7.49
Gross Margin	62.83%
Net Profit Margin	17.46%
Debt/Equity Ratio	3.0%

How did SO perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

29%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is SO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SO?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SO. This is calculated by dividing SO's market cap by their current preferred multiple.
What is SO's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€4.16b

SO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.4x
Enterprise Value/EBITDA	10.5x
PEG Ratio	4.5x

Price to Earnings Ratio vs Peers

How does SO's PE Ratio compare to its peers?

SO PE Ratio vs Peers

The above table shows the PE ratio for SO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	18.3x
NEX Nexans	20.9x	15.4%	€3.5b
LR Legrand	20.5x	8.1%	€19.2b
MRN Mersen	11.6x	11.9%	€626.7m
PERR Gérard Perrier Industrie	20.4x	16.1%	€308.8m
SO Somfy	16.6x	3.7%	€4.2b

Forward PE

Price-To-Earnings vs Peers: SO is good value based on its Price-To-Earnings Ratio (16.6x) compared to the peer average (18.3x).

Price to Earnings Ratio vs Industry

How does SO's PE Ratio compare vs other companies in the European Electrical Industry?

Price-To-Earnings vs Industry: SO is good value based on its Price-To-Earnings Ratio (16.6x) compared to the French Electrical industry average (20.4x)

Price to Earnings Ratio vs Fair Ratio

What is SO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	16.6x
Fair PE Ratio	16.2x

Price-To-Earnings vs Fair Ratio: SO is expensive based on its Price-To-Earnings Ratio (16.6x) compared to the estimated Fair Price-To-Earnings Ratio (16.2x).

Share Price vs Fair Value

What is the Fair Price of SO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SO (€124.6) is trading below our estimate of fair value (€137.9)

Significantly Below Fair Value: SO is trading below fair value, but not by a significant amount.

Price to Earnings Growth Ratio

PEG Ratio: SO is poor value based on its PEG Ratio (4.5x)

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Future Growth

How is Somfy forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

3.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SO's forecast earnings growth (3.7% per year) is above the savings rate (0.3%).

Earnings vs Market: SO's earnings (3.7% per year) are forecast to grow slower than the French market (11.7% per year).

High Growth Earnings: SO's earnings are forecast to grow, but not significantly.

Revenue vs Market: SO's revenue (6.7% per year) is forecast to grow faster than the French market (5.9% per year).

High Growth Revenue: SO's revenue (6.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SO's Return on Equity is forecast to be low in 3 years time (16%).

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Past Performance

How has Somfy performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

15.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SO has high quality earnings.

Growing Profit Margin: SO's current net profit margins (17.5%) are higher than last year (16.9%).

Past Earnings Growth Analysis

Earnings Trend: SO's earnings have grown by 15% per year over the past 5 years.

Accelerating Growth: SO's earnings growth over the past year (21.1%) exceeds its 5-year average (15% per year).

Earnings vs Industry: SO earnings growth over the past year (21.1%) underperformed the Electrical industry 30.4%.

Return on Equity

High ROE: SO's Return on Equity (18.9%) is considered low.

Discover strong past performing companies

Financial Health

How is Somfy's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SO's short term assets (€1.1B) exceed its short term liabilities (€303.0M).

Long Term Liabilities: SO's short term assets (€1.1B) exceed its long term liabilities (€127.6M).

Debt to Equity History and Analysis

Debt Level: SO has more cash than its total debt.

Reducing Debt: SO's debt to equity ratio has reduced from 16.8% to 3% over the past 5 years.

Debt Coverage: SO's debt is well covered by operating cash flow (743.6%).

Interest Coverage: SO's interest payments on its debt are well covered by EBIT (115.6x coverage).

Balance Sheet

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Dividend

What is Somfy current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.73%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SO's dividend (1.73%) isn’t notable compared to the bottom 25% of dividend payers in the French market (1.81%).

High Dividend: SO's dividend (1.73%) is low compared to the top 25% of dividend payers in the French market (5.43%).

Stability and Growth of Payments

Stable Dividend: SO's dividends per share have been stable in the past 10 years.

Growing Dividend: SO's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (28.7%), SO's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (29.5%), SO's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure

CEO

Pierre Ribeiro (54 yo)

1.42yrs

Tenure

€1,448,242

Compensation

Mr. Pierre Ribeiro was appointed as Chief Executive Officer in 2021. He served as the Group Chief Financial Officer of Somfy SA until 2021 and had been its Member of Management Board since November 6, 2014...

CEO Compensation Analysis

Compensation vs Market: Pierre's total compensation ($USD1.52M) is about average for companies of similar size in the French market ($USD1.92M).

Compensation vs Earnings: Pierre's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: SO's management team is considered experienced (2.4 years average tenure).

Board Members

Experienced Board: SO's board of directors are considered experienced (5.1 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/28 00:00
End of Day Share Price	2022/06/28 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31