ENXTPA:SFPI

Stock Analysis Report

Executive Summary

GROUPE SFPI SA designs, manufactures, and markets equipment for the safety industry in Europe and internationally.

Rewards

Trading at 32.8% below its fair value

Earnings are forecast to grow 23.86% per year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Large one-off items impacting financial results

Profit margins (1.5%) are lower than last year (4.3%)

+ 1 more risk


Snowflake Analysis

Good value with adequate balance sheet.

Share Price & News

How has GROUPE SFPI's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SFPI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.3%

SFPI

-2.1%

FR Electronic

-1.4%

FR Market


1 Year Return

-27.2%

SFPI

80.1%

FR Electronic

21.1%

FR Market

Return vs Industry: SFPI underperformed the French Electronic industry which returned 68.7% over the past year.

Return vs Market: SFPI underperformed the French Market which returned 24.9% over the past year.


Shareholder returns

SFPIIndustryMarket
7 Day-3.3%-2.1%-1.4%
30 Day5.1%3.2%0.3%
90 Day2.4%7.7%5.8%
1 Year-25.5%-27.2%82.9%80.1%25.4%21.1%
3 Year-45.3%-48.4%23.3%17.1%43.2%29.6%
5 Yearn/a23.5%14.4%63.1%39.5%

Price Volatility Vs. Market

How volatile is GROUPE SFPI's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is GROUPE SFPI undervalued compared to its fair value and its price relative to the market?

34.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SFPI (€1.8) is trading below our estimate of fair value (€2.67)

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


Price To Earnings Ratio

PE vs Industry: SFPI is poor value based on its PE Ratio (19.9x) compared to the Electronic industry average (16.4x).

PE vs Market: SFPI is poor value based on its PE Ratio (19.9x) compared to the French market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: SFPI is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: SFPI is good value based on its PB Ratio (0.9x) compared to the FR Electronic industry average (1.5x).


Next Steps

Future Growth

How is GROUPE SFPI forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

23.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SFPI's forecast earnings growth (23.9% per year) is above the savings rate (-0.1%).

Earnings vs Market: SFPI's earnings (23.9% per year) are forecast to grow faster than the French market (11.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SFPI's revenue (1.9% per year) is forecast to grow slower than the French market (4.7% per year).

High Growth Revenue: SFPI's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SFPI's Return on Equity is forecast to be low in 3 years time (8.2%).


Next Steps

Past Performance

How has GROUPE SFPI performed over the past 5 years?

9.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SFPI has a large one-off loss of €5.1M impacting its June 30 2019 financial results.

Growing Profit Margin: SFPI's current net profit margins (1.5%) are lower than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: SFPI's earnings have grown by 9.3% per year over the past 5 years.

Accelerating Growth: SFPI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SFPI had negative earnings growth (-63.3%) over the past year, making it difficult to compare to the Electronic industry average (38.5%).


Return on Equity

High ROE: SFPI's Return on Equity (4.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is GROUPE SFPI's financial position?


Financial Position Analysis

Short Term Liabilities: SFPI's short term assets (€371.5M) exceed its short term liabilities (€202.6M).

Long Term Liabilities: SFPI's short term assets (€371.5M) exceed its long term liabilities (€154.3M).


Debt to Equity History and Analysis

Debt Level: SFPI's debt to equity ratio (50%) is considered high.

Reducing Debt: SFPI's debt to equity ratio has increased from 21.5% to 50% over the past 5 years.

Debt Coverage: SFPI's debt is well covered by operating cash flow (29.4%).

Interest Coverage: SFPI's interest payments on its debt are well covered by EBIT (30.1x coverage).


Balance Sheet

Inventory Level: SFPI has a high level of physical assets or inventory.

Debt Coverage by Assets: SFPI's debt is covered by short term assets (assets are 3.7x debt).


Next Steps

Dividend

What is GROUPE SFPI's current dividend yield, its reliability and sustainability?

2.87%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%1.5%markettop25%4.5%industryaverage1.3%forecastin3Years2.8%

Current dividend yield vs market & industry

Notable Dividend: SFPI's dividend (2.79%) is higher than the bottom 25% of dividend payers in the French market (1.46%).

High Dividend: SFPI's dividend (2.79%) is low compared to the top 25% of dividend payers in the French market (4.43%).


Stability and Growth of Payments

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

Growing Dividend: SFPI has only been paying a dividend for 4 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.5%), SFPI's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SFPI's dividends in 3 years are forecast to be well covered by earnings (24.3% payout ratio).


Next Steps

Management

What is the CEO of GROUPE SFPI's salary, the management and board of directors tenure and is there insider trading?

€320k

CEO Compensation


CEO

Henri Morel (62yo)

0yrs

Tenure

€320,290

Compensation

Mr. Henri Morel serves as Managing Director of DOM Sicherheitstechnik GmbH & Co. KG. Mr. Morel serves as the Chief Executive Officer and President of GROUPE SFPI SA. Mr. Morel serves as President of Deny F ...


CEO Compensation Analysis

Compensation vs Market: Henri's total compensation ($USD356.31K) is about average for companies of similar size in the French market ($USD414.25K).

Compensation vs Earnings: Henri's compensation has been consistent with company performance over the past year.


Insider Trading

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 been diluted in the past year, with total shares outstanding growing by 9.4%.


Management Team

  • Henri Morel (62yo)

    Chief Executive Officer

    • Compensation: €320.29k
  • Nicolas Loyau

    Chief Financial Officer

    • Damien Chauveinc

      Managing Director

      • Pierre-Paul Fini

        Head of Legal Affairs


        Board Members

        • Thierry Wendling

          Director

          • Compensation: €10.00k
        • Patrice Vandenbossche (55yo)

          Director

          • Henri Morel (62yo)

            Chief Executive Officer

            • Compensation: €320.29k
          • Jean-Bertrand Prot (74yo)

            Director

            • Sophie Morel (34yo)

              Arc Management Representative Director

              • Compensation: €68.31k
            • Valentine Laude (41yo)

              Director

              • Compensation: €10.00k
            • Hervé Houdart

              Director

              • Compensation: €10.00k
            • Marie-Cécile Matar

              Independent Director

              • Hélène Laplante

                Employees Representing Director

                • Tenure: 0.8yrs

              Company Information

              GROUPE SFPI SA's company bio, employee growth, exchange listings and data sources


              Key Information

              • Name: GROUPE SFPI SA
              • Ticker: SFPI
              • Exchange: ENXTPA
              • Founded: 1985
              • Industry: Electronic Equipment and Instruments
              • Sector: Tech
              • Market Cap: €169.162m
              • Shares outstanding: 97.22m
              • Website: https://www.groupe-sfpi.com

              Number of Employees


              Location

              • GROUPE SFPI SA
              • 20 rue de l'Arc de Triomphe
              • Paris
              • Ile-de-France
              • 75017
              • France

              Listings

              TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
              SFPIENXTPA (Euronext Paris)YesOrdinary SharesFREURApr 2015
              SFPIPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURApr 2015
              0N9PLSE (London Stock Exchange)YesOrdinary SharesGBEURApr 2015

              Biography

              GROUPE SFPI SA designs, manufactures, and markets equipment for the safety industry in Europe and internationally. The company operates through four divisions: DOM Security, MAC, MMD, and NEU-JKF. It offers opening and closure systems, such as windows and carpentry, blinds and shutters, awnings, front and garage doors, and industrial closures for housing and industrial buildings under the France Fermetures, Franciaflex, Faber, or SIPA Menuiseries brand names. The company also provides mechanical and digital locking solutions for home owners, small businesses, and large organizations; and locking equipment for industrial groups. In addition, it offers air treatment solutions, such as de-dusting systems, filtration and air conditioning, pneumatic conveying, industrial fans, etc. for food, agro-milling, wood, chemistry, cement, glass, minerals and metals, paperboard and paper, can, nuclear, plastic, aeronautics, and automotive industries. Further, the company provides thermal processing and sterilization solutions for food, chemistry, heavy, and other industries. GROUPE SFPI SA was founded in 1985 and is headquartered in Paris, France. 


              Company Analysis and Financial Data Status

              All financial data provided by Standard & Poor's Capital IQ.
              DataLast Updated (UTC time)
              Company Analysis2020/01/26 20:54
              End of Day Share Price2020/01/24 00:00
              Earnings2019/06/30
              Annual Earnings2018/12/31


              Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.