Revenue in 2014 = Euro48.4Bn ;Rev in 2018 = Euro50.982 ------> Growth 5.3% (1.3% annualised).
OK This is difficult because business units have been added and some sold off so not like for like – but it is still a business, right, so it needs to grow?
Profit after Tax (forget EBITDA which is bullshit) in 2014 = Euro5.15Bn; and in 2018=Euro9.808BN ----> Growth 90% – pretty good yes?
So this would have implied that they sold off less profitable units and added better ones and/or improved organic margins - a bit of both maybe?
Borrowings in 2014=Euro7.186Bn and in 2018=Euro21.65Bn -------> 3X or 201.3% growth – more than double the profit growth and dwarfs the revenue growth.
Net cash applied to finances :
In 2014=Euro5.19Bn and in 2018=Euro11.548BN ---------> 2.22X or 122% growth in commitments
In 2014=231% and in 2018=379%
I’m not convinved this company is actually growing other than at the expense of extraneous finances.
I’m also not sure it deserves a P/E of 21 when it is set to grow between 5 and 7%?
Most of the growth seems to have come from price increases, not volume, is that sustainable?
The stock price has recentlly fallen from 53XX to 4781 as I type.
Does it have further to fall – would a P/E below 15 be more appropriate?
OK these are simplistic figures in themselves, but the yawning gap between the growth in debt and cash compared to revenue and profit is there for all to see.