ALKEMY SPA (ALK.MI) Stock Fundamental Analysis
BIT:ALK - Euronext Milan - IT0005314635 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to ALK. ALK was compared to 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ALK had negative earnings in the past year.
In the past year ALK had a positive cash flow from operations.
Of the past 5 years ALK 4 years were profitable.
In the past 5 years ALK always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -0.57%, ALK is not doing good in the industry: 75.86% of the companies in the same industry are doing better.
With a Return On Equity value of -1.51%, ALK is not doing good in the industry: 75.86% of the companies in the same industry are doing better.
ALK's Return On Invested Capital of 4.65% is in line compared to the rest of the industry. ALK outperforms 41.38% of its industry peers.
ALK had an Average Return On Invested Capital over the past 3 years of 8.63%. This is below the industry average of 11.88%.
| 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.
ALK has a Operating Margin of 4.22%. This is comparable to the rest of the industry: ALK outperforms 48.28% of its industry peers.
In the last couple of years the Operating Margin of ALK has grown nicely.
ALK has a Gross Margin of 53.88%. This is comparable to the rest of the industry: ALK outperforms 44.83% of its industry peers.
ALK's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ALK 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.
The debt/assets ratio for ALK is higher compared to a year ago.
2.2 Solvency
ALK has an Altman-Z score of 2.23. This is not the best score and indicates that ALK is in the grey zone with still only limited risk for bankruptcy at the moment.
ALK's Altman-Z score of 2.23 is in line compared to the rest of the industry. ALK outperforms 48.28% of its industry peers.
The Debt to FCF ratio of ALK is 5.00, which is a neutral value as it means it would take ALK, 5.00 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.00, ALK is in line with its industry, outperforming 48.28% of the companies in the same industry.
ALK has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
ALK has a better Debt to Equity ratio (0.35) than 68.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 5 | ||
| Altman-Z | 2.23 |
ROIC/WACC0.71
WACC6.5%
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 of 1.24. This is in the better half of the industry: ALK outperforms 62.07% of its industry peers.
A Quick Ratio of 1.24 indicates that ALK should not have too much problems paying its short term obligations.
ALK has a Quick ratio of 1.24. This is in the better half of the industry: ALK outperforms 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The earnings per share for ALK have decreased strongly by -114.26% in the last year.
ALK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.95% yearly.
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)-114.26%
EPS 3Y24.46%
EPS 5Y0.95%
EPS Q2Q%-191.37%
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.
ALK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.83% yearly.
EPS Next Y-9.04%
EPS Next 2Y12.64%
EPS Next 3Y12.51%
EPS Next 5YN/A
Revenue Next Year-2.61%
Revenue Next 2Y5.71%
Revenue Next 3Y5.83%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
ALK reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 11.02, the valuation of ALK can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALK indicates a somewhat cheap valuation: ALK is cheaper than 79.31% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. ALK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.02 |
4.2 Price Multiples
ALK's Enterprise Value to EBITDA is on the same level as the industry average.
65.52% of the companies in the same industry are more expensive than ALK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.6 | ||
| EV/EBITDA | 9.44 |
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
No dividends for ALK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:ALK (3/5/2025, 7:00:00 PM)
11.8
0 (0%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners12.97%
Inst Owner ChangeN/A
Ins Owners27.28%
Ins Owner ChangeN/A
Market Cap67.14M
Analysts47.5
Price Target11.58 (-1.86%)
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)0%
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)-5.82%
Revenue NY rev (3m)-5.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.02 | ||
| P/S | 0.59 | ||
| P/FCF | 11.6 | ||
| P/OCF | 8.01 | ||
| P/B | 1.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.44 |
EPS(TTM)-0.11
EYN/A
EPS(NY)1.07
Fwd EY9.07%
FCF(TTM)1.02
FCFY8.62%
OCF(TTM)1.47
OCFY12.49%
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 | 2.23 |
F-Score5
WACC6.5%
ROIC/WACC0.71
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)-114.26%
EPS 3Y24.46%
EPS 5Y0.95%
EPS Q2Q%-191.37%
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 Year-2.61%
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