ALKEMY SPA (ALK.MI) Stock Fundamental Analysis
BIT:ALK - Borsa Italiana Milan - IT0005314635 - Common Stock - Currency: EUR
ALK gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 30 industry peers in the Professional Services industry. The financial health of ALK is average, but there are quite some concerns on its profitability. ALK has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ALK has reported negative net income.
ALK had a positive operating cash flow in the past year.
Of the past 5 years ALK 4 years were profitable.
ALK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ALK's Return On Assets of -0.57% is on the low side compared to the rest of the industry. ALK is outperformed by 81.48% of its industry peers.
The Return On Equity of ALK (-1.51%) is worse than 81.48% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.65%, ALK is doing worse than 66.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ALK is below the industry average of 11.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.57% | ||
| ROE | -1.51% | ||
| ROIC | 4.65% |
ROA(3y)3.78%
ROA(5y)2.62%
ROE(3y)10.68%
ROE(5y)7.47%
ROIC(3y)8.63%
ROIC(5y)6.71%
1.3 Margins
ALK's Profit Margin has declined in the last couple of years.
The Operating Margin of ALK (4.22%) is comparable to the rest of the industry.
ALK's Operating Margin has improved in the last couple of years.
ALK has a Gross Margin of 53.88%. This is comparable to the rest of the industry: ALK outperforms 40.74% of its industry peers.
In the last couple of years the Gross Margin of ALK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.22% | ||
| PM (TTM) | N/A | ||
| GM | 53.88% |
OM growth 3Y14.18%
OM growth 5Y1.61%
PM growth 3Y7.49%
PM growth 5Y-9.08%
GM growth 3Y5.8%
GM growth 5Y8.18%
2. Health
2.1 Basic Checks
ALK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for ALK remains at a similar level compared to 1 year ago.
ALK has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ALK has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.20 indicates that ALK is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of ALK (2.20) is comparable to the rest of the industry.
ALK has a debt to FCF ratio of 5.00. This is a neutral value as ALK would need 5.00 years to pay back of all of its debts.
ALK has a Debt to FCF ratio (5.00) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.35 indicates that ALK is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.35, ALK is doing good in the industry, outperforming 70.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 5 | ||
| Altman-Z | 2.2 |
ROIC/WACC0.75
WACC6.19%
2.3 Liquidity
ALK has a Current Ratio of 1.24. This is a normal value and indicates that ALK is financially healthy and should not expect problems in meeting its short term obligations.
ALK has a Current ratio (1.24) which is comparable to the rest of the industry.
ALK has a Quick Ratio of 1.24. This is a normal value and indicates that ALK is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.24, ALK perfoms like the industry average, outperforming 59.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
ALK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -114.27%.
The Earnings Per Share has been growing slightly by 0.95% on average over the past years.
The Revenue has decreased by -0.55% in the past year.
ALK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.41% yearly.
EPS 1Y (TTM)-114.27%
EPS 3Y24.45%
EPS 5Y0.95%
EPS Q2Q%-191.38%
Revenue 1Y (TTM)-0.55%
Revenue growth 3Y15.88%
Revenue growth 5Y11.41%
Sales Q2Q%-7.09%
3.2 Future
ALK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.51% yearly.
The Revenue is expected to grow by 5.83% on average over the next years.
EPS Next Y-9.04%
EPS Next 2Y12.64%
EPS Next 3Y12.51%
EPS Next 5YN/A
Revenue Next Year3.41%
Revenue Next 2Y5.71%
Revenue Next 3Y5.83%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ALK reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 10.41 indicates a reasonable valuation of ALK.
Based on the Price/Forward Earnings ratio, ALK is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
ALK is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 10.41 |
4.2 Price Multiples
ALK's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, ALK is valued a bit cheaper than the industry average as 62.96% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.96 | ||
| EV/EBITDA | 9.05 |
4.3 Compensation for Growth
A more expensive valuation may be justified as ALK's earnings are expected to grow with 12.51% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y12.64%
EPS Next 3Y12.51%
5. Dividend
5.1 Amount
ALK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ALKEMY SPA
BIT:ALK (1/30/2025, 7:00:00 PM)
11.15
-0.45 (-3.88%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners19%
Inst Owner ChangeN/A
Ins Owners27.28%
Ins Owner ChangeN/A
Market Cap63.44M
Analysts47.5
Price Target11.58 (3.86%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-2.99%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 10.41 | ||
| P/S | 0.56 | ||
| P/FCF | 10.96 | ||
| P/OCF | 7.56 | ||
| P/B | 1.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.05 |
EPS(TTM)-0.11
EYN/A
EPS(NY)1.07
Fwd EY9.6%
FCF(TTM)1.02
FCFY9.12%
OCF(TTM)1.47
OCFY13.22%
SpS20.02
BVpS8.05
TBVpS-2.07
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.57% | ||
| ROE | -1.51% | ||
| ROCE | 6.11% | ||
| ROIC | 4.65% | ||
| ROICexc | 5.21% | ||
| ROICexgc | 28.88% | ||
| OM | 4.22% | ||
| PM (TTM) | N/A | ||
| GM | 53.88% | ||
| FCFM | 5.08% |
ROA(3y)3.78%
ROA(5y)2.62%
ROE(3y)10.68%
ROE(5y)7.47%
ROIC(3y)8.63%
ROIC(5y)6.71%
ROICexc(3y)10.1%
ROICexc(5y)8.25%
ROICexgc(3y)52.78%
ROICexgc(5y)56.33%
ROCE(3y)11.35%
ROCE(5y)8.82%
ROICexcg growth 3Y-20.45%
ROICexcg growth 5Y2.62%
ROICexc growth 3Y5.8%
ROICexc growth 5Y1.79%
OM growth 3Y14.18%
OM growth 5Y1.61%
PM growth 3Y7.49%
PM growth 5Y-9.08%
GM growth 3Y5.8%
GM growth 5Y8.18%
F-Score5
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 5 | ||
| Debt/EBITDA | 1.71 | ||
| Cap/Depr | 58.16% | ||
| Cap/Sales | 2.28% | ||
| Interest Coverage | 3.49 | ||
| Cash Conversion | 90.45% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 2.2 |
F-Score5
WACC6.19%
ROIC/WACC0.75
Cap/Depr(3y)68.85%
Cap/Depr(5y)51.7%
Cap/Sales(3y)2.07%
Cap/Sales(5y)1.47%
Profit Quality(3y)128.67%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-114.27%
EPS 3Y24.45%
EPS 5Y0.95%
EPS Q2Q%-191.38%
EPS Next Y-9.04%
EPS Next 2Y12.64%
EPS Next 3Y12.51%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.55%
Revenue growth 3Y15.88%
Revenue growth 5Y11.41%
Sales Q2Q%-7.09%
Revenue Next Year3.41%
Revenue Next 2Y5.71%
Revenue Next 3Y5.83%
Revenue Next 5YN/A
EBIT growth 1Y-44.36%
EBIT growth 3Y32.32%
EBIT growth 5Y13.2%
EBIT Next Year72.15%
EBIT Next 3Y23.83%
EBIT Next 5YN/A
FCF growth 1Y199.17%
FCF growth 3Y-7.92%
FCF growth 5YN/A
OCF growth 1Y85.84%
OCF growth 3Y-1.34%
OCF growth 5YN/A