SergeFerrari Group (ENXTPA:SEFER) - Share price, News & Analysis

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

SEFER (€13.86) is trading below our estimate of [[fair value]] (€36.99)

SEFER fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	3/6
Past Performance	5/6
Financial Health	5/6
Dividends	3/6

SEFER Stock Overview

SergeFerrari Group SA designs, manufactures, and distributes flexible composite materials in France and internationally.

Rewards

Trading at 62.5% below our estimate of its fair value

Earnings are forecast to grow 17.54% per year

Earnings grew by 2767% over the past year

Risk Analysis

Unstable dividend track record

SergeFerrari Group Competitors

Baikowski

ENXTPA:ALBKK

€96.1m

Orapi

ENXTPA:ORAP

€34.0m

Robertet

ENXTPA:RBT

€2.1b

METabolic EXplorer

ENXTPA:METEX

€118.3m

Price History & Performance

Summary of all time highs, changes and price drops for SergeFerrari Group
Historical stock prices
Current Share Price	€13.86
52 Week High	€19.78
52 Week Low	€7.40
Beta	1.11
1 Month Change	12.68%
3 Month Change	-5.07%
1 Year Change	76.11%
3 Year Change	141.04%
5 Year Change	11.59%
Change since IPO	14.36%

Recent News & Updates

May 08

Returns Are Gaining Momentum At SergeFerrari Group (EPA:SEFER)

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Shareholder Returns

	SEFER	FR Chemicals	FR Market
7D	5.8%	-0.5%	0.2%
1Y	76.1%	-2.3%	-6.7%

Return vs Industry: SEFER exceeded the French Chemicals industry which returned -2.3% over the past year.

Return vs Market: SEFER exceeded the French Market which returned -6.7% over the past year.

Price Volatility

Is SEFER's price volatile compared to industry and market?
SEFER volatility
SEFER Average Weekly Movement	6.5%
Chemicals Industry Average Movement	5.5%
Market Average Movement	5.0%
10% most volatile stocks in FR Market	9.0%
10% least volatile stocks in FR Market	2.9%

Stable Share Price: SEFER is not significantly more volatile than the rest of French stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: SEFER's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1973	1,043	n/a	https://www.sergeferrari.com

SergeFerrari Group SA designs, manufactures, and distributes flexible composite materials in France and internationally. The company offers solutions for indoor and outdoor blind, and terrace blind and awning; tensile roof, shading structure, and big top; indoor and outdoor acoustic treatment; bioclimatic facade; building construction and renovation; and waterproof breathable membrane applications. It also provides products and solutions for modular structure, visual communication for printed advertisement, protection and environment, and yachting applications.

SergeFerrari Group Fundamentals Summary

How do SergeFerrari Group's earnings and revenue compare to its market cap?
SEFER fundamental statistics
Market Cap	€166.83m
Earnings (TTM)	€10.18m
Revenue (TTM)	€285.88m

16.4x

P/E Ratio

0.6x

P/S Ratio

Is SEFER overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SEFER income statement (TTM)
Revenue	€285.88m
Cost of Revenue	€130.74m
Gross Profit	€155.14m
Other Expenses	€144.96m
Earnings	€10.18m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Sep 05, 2022

Earnings per share (EPS)	0.85
Gross Margin	54.27%
Net Profit Margin	3.56%
Debt/Equity Ratio	61.1%

How did SEFER perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

34%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SEFER. This is calculated by dividing SEFER's market cap by their current preferred multiple.
What is SEFER's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€166.83m

SEFER 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	0.8x
Enterprise Value/EBITDA	8.7x
PEG Ratio	0.9x

Price to Earnings Ratio vs Peers

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

SEFER PE Ratio vs Peers

The above table shows the PE ratio for SEFER vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	54.8x
ALBKK Baikowski	14.2x	n/a	€96.1m
ORAP Orapi	174.4x	52.1%	€34.0m
RBT Robertet	29.1x	4.4%	€2.1b
METEX METabolic EXplorer	1.4x	-79.5%	€118.3m
SEFER SergeFerrari Group	16.4x	17.5%	€166.8m

Price-To-Earnings vs Peers: SEFER is good value based on its Price-To-Earnings Ratio (16.4x) compared to the peer average (57.3x).

Price to Earnings Ratio vs Industry

How does SEFER's PE Ratio compare vs other companies in the European Chemicals Industry?

Price-To-Earnings vs Industry: SEFER is good value based on its Price-To-Earnings Ratio (16.4x) compared to the French Chemicals industry average (22.6x)

Price to Earnings Ratio vs Fair Ratio

What is SEFER'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.

SEFER PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	16.4x
Fair PE Ratio	16.2x

Price-To-Earnings vs Fair Ratio: SEFER is expensive based on its Price-To-Earnings Ratio (16.4x) compared to the estimated Fair Price-To-Earnings Ratio (16.2x).

Share Price vs Fair Value

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

Below Fair Value: SEFER (€13.86) is trading below our estimate of fair value (€36.99)

Significantly Below Fair Value: SEFER is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

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

17.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SEFER's forecast earnings growth (17.5% per year) is above the savings rate (0.3%).

Earnings vs Market: SEFER's earnings (17.5% per year) are forecast to grow faster than the French market (11.5% per year).

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

Revenue vs Market: SEFER's revenue (5.8% per year) is forecast to grow faster than the French market (5.3% per year).

High Growth Revenue: SEFER's revenue (5.8% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SEFER's Return on Equity is forecast to be low in 3 years time (14%).

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Past Performance

How has SergeFerrari Group performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

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

16.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SEFER has high quality earnings.

Growing Profit Margin: SEFER's current net profit margins (3.6%) are higher than last year (0.2%).

Past Earnings Growth Analysis

Earnings Trend: SEFER's earnings have grown by 16.9% per year over the past 5 years.

Accelerating Growth: SEFER's earnings growth over the past year (2767%) exceeds its 5-year average (16.9% per year).

Earnings vs Industry: SEFER earnings growth over the past year (2767%) exceeded the Chemicals industry 2%.

Return on Equity

High ROE: SEFER's Return on Equity (9.6%) is considered low.

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Financial Health

How is SergeFerrari Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

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

Financial Position Analysis

Short Term Liabilities: SEFER's short term assets (€191.5M) exceed its short term liabilities (€95.4M).

Long Term Liabilities: SEFER's short term assets (€191.5M) exceed its long term liabilities (€104.2M).

Debt to Equity History and Analysis

Debt Level: SEFER's net debt to equity ratio (21.1%) is considered satisfactory.

Reducing Debt: SEFER's debt to equity ratio has increased from 28% to 61.1% over the past 5 years.

Debt Coverage: SEFER's debt is well covered by operating cash flow (52.2%).

Interest Coverage: SEFER's interest payments on its debt are well covered by EBIT (7.1x coverage).

Balance Sheet

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Dividend

What is SergeFerrari Group current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

2.09%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SEFER's dividend (2.09%) is higher than the bottom 25% of dividend payers in the French market (1.68%).

High Dividend: SEFER's dividend (2.09%) is low compared to the top 25% of dividend payers in the French market (5.27%).

Stability and Growth of Payments

Stable Dividend: SEFER has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SEFER's dividend payments have increased, but the company has only paid a dividend for 7 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (33.7%), SEFER's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (12.3%), SEFER's dividend payments are thoroughly covered by cash flows.

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Management

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

0.6yrs

Average board tenure

CEO

SergeFerrari Group has no CEO, or we have no data on them.

Board Members

Experienced Board: SEFER's board of directors are not considered experienced ( 0.6 years average tenure), which suggests a new board.

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	2022/08/07 00:00
End of Day Share Price	2022/08/05 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31