ASCOPIAVE SPA (ASC.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:ASC - IT0004093263 - Common Stock
3.39 EUR
0 (-0.15%)
ASC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 4 industry peers in the Gas Utilities industry. While ASC is still in line with the averages on profitability rating, there are concerns on its financial health. ASC is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
- ASC had positive earnings in the past year.
- ASC had a positive operating cash flow in the past year.
- Each year in the past 5 years ASC has been profitable.
- ASC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ASC's Return On Assets of 4.90% is in line compared to the rest of the industry. ASC outperforms 50.00% of its industry peers.
- Looking at the Return On Equity, with a value of 9.58%, ASC is doing worse than 75.00% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 3.57%, ASC is doing worse than 75.00% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ASC is below the industry average of 6.63%.
- The last Return On Invested Capital (3.57%) for ASC is above the 3 year average (2.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.9% | ||
| ROE | 9.58% | ||
| ROIC | 3.57% |
ROA(3y)2.31%
ROA(5y)2.91%
ROE(3y)4.09%
ROE(5y)4.87%
ROIC(3y)2.44%
ROIC(5y)2.43%
1.3 Margins
- ASC has a better Profit Margin (35.47%) than 75.00% of its industry peers.
- ASC's Profit Margin has declined in the last couple of years.
- ASC has a Operating Margin (26.94%) which is in line with its industry peers.
- ASC's Operating Margin has improved in the last couple of years.
- ASC's Gross Margin of 94.46% is amongst the best of the industry. ASC outperforms 100.00% of its industry peers.
- In the last couple of years the Gross Margin of ASC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.94% | ||
| PM (TTM) | 35.47% | ||
| GM | 94.46% |
OM growth 3Y-1.51%
OM growth 5Y6.84%
PM growth 3Y-19.1%
PM growth 5Y-46.2%
GM growth 3Y-2.25%
GM growth 5Y-1.44%
2. Health
2.1 Basic Checks
- ASC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for ASC remains at a similar level compared to 1 year ago.
- ASC has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, ASC has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.35, we must say that ASC is in the distress zone and has some risk of bankruptcy.
- ASC has a better Altman-Z score (1.35) than 75.00% of its industry peers.
- ASC has a Debt/Equity ratio of 0.57. This is a neutral value indicating ASC is somewhat dependend on debt financing.
- ASC has a better Debt to Equity ratio (0.57) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.35 |
ROIC/WACC0.53
WACC6.72%
2.3 Liquidity
- ASC has a Current Ratio of 0.81. This is a bad value and indicates that ASC is not financially healthy enough and could expect problems in meeting its short term obligations.
- ASC's Current ratio of 0.81 is in line compared to the rest of the industry. ASC outperforms 50.00% of its industry peers.
- A Quick Ratio of 0.76 indicates that ASC may have some problems paying its short term obligations.
- ASC has a Quick ratio of 0.76. This is comparable to the rest of the industry: ASC outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 75.86% over the past year.
- The earnings per share for ASC have been decreasing by -40.36% on average. This is quite bad
- The Revenue has grown by 20.11% in the past year. This is a very strong growth!
- ASC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.02% yearly.
EPS 1Y (TTM)75.86%
EPS 3Y-7.42%
EPS 5Y-40.36%
EPS Q2Q%37.09%
Revenue 1Y (TTM)20.11%
Revenue growth 3Y14.28%
Revenue growth 5Y10.02%
Sales Q2Q%60.87%
3.2 Future
- The Earnings Per Share is expected to grow by 9.43% on average over the next years. This is quite good.
- ASC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.04% yearly.
EPS Next Y24.14%
EPS Next 2Y10.38%
EPS Next 3Y9.43%
EPS Next 5YN/A
Revenue Next Year29.22%
Revenue Next 2Y16.65%
Revenue Next 3Y13.11%
Revenue Next 5Y9.04%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 8.47 indicates a reasonable valuation of ASC.
- 100.00% of the companies in the same industry are more expensive than ASC, based on the Price/Earnings ratio.
- ASC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
- A Price/Forward Earnings ratio of 19.00 indicates a rather expensive valuation of ASC.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ASC indicates a slightly more expensive valuation: ASC is more expensive than 75.00% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. ASC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.48 | ||
| Fwd PE | 19 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ASC is valued a bit more expensive than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.67 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.35
PEG (5Y)N/A
EPS Next 2Y10.38%
EPS Next 3Y9.43%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.42%, ASC is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 4.88, ASC has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, ASC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.42% |
5.2 History
- The dividend of ASC decreases each year by -16.09%.
Dividend Growth(5Y)-16.09%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 37.74% of the earnings are spent on dividend by ASC. This is a low number and sustainable payout ratio.
DP37.74%
EPS Next 2Y10.38%
EPS Next 3Y9.43%
ASCOPIAVE SPA / ASC.MI FAQ
What is the ChartMill fundamental rating of ASCOPIAVE SPA (ASC.MI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to ASC.MI.
Can you provide the valuation status for ASCOPIAVE SPA?
ChartMill assigns a valuation rating of 4 / 10 to ASCOPIAVE SPA (ASC.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for ASCOPIAVE SPA?
ASCOPIAVE SPA (ASC.MI) has a profitability rating of 5 / 10.
How financially healthy is ASCOPIAVE SPA?
The financial health rating of ASCOPIAVE SPA (ASC.MI) is 3 / 10.
Is the dividend of ASCOPIAVE SPA sustainable?
The dividend rating of ASCOPIAVE SPA (ASC.MI) is 6 / 10 and the dividend payout ratio is 37.74%.