AVIO SPA (AVIO.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:AVIO - IT0005119810 - Common Stock
33.65 EUR
-0.35 (-1.03%)
We assign a fundamental rating of 3 out of 10 to AVIO. AVIO was compared to 53 industry peers in the Aerospace & Defense industry. While AVIO seems to be doing ok healthwise, there are quite some concerns on its profitability. AVIO is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year AVIO was profitable.
- In the past year AVIO had a positive cash flow from operations.
- AVIO had positive earnings in 4 of the past 5 years.
- AVIO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- AVIO has a worse Return On Assets (0.55%) than 71.70% of its industry peers.
- With a Return On Equity value of 1.91%, AVIO is not doing good in the industry: 69.81% of the companies in the same industry are doing better.
- AVIO's Return On Invested Capital of 1.41% is on the low side compared to the rest of the industry. AVIO is outperformed by 79.25% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for AVIO is significantly below the industry average of 9.24%.
- The 3 year average ROIC (0.66%) for AVIO is below the current ROIC(1.41%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.55% | ||
| ROE | 1.91% | ||
| ROIC | 1.41% |
ROA(3y)0.38%
ROA(5y)0.62%
ROE(3y)1.34%
ROE(5y)2.3%
ROIC(3y)0.66%
ROIC(5y)0.97%
1.3 Margins
- The Profit Margin of AVIO (1.12%) is worse than 71.70% of its industry peers.
- AVIO's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 1.32%, AVIO is not doing good in the industry: 81.13% of the companies in the same industry are doing better.
- In the last couple of years the Operating Margin of AVIO has declined.
- AVIO's Gross Margin of 70.43% is amongst the best of the industry. AVIO outperforms 92.45% of its industry peers.
- AVIO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.32% | ||
| PM (TTM) | 1.12% | ||
| GM | 70.43% |
OM growth 3Y-11.34%
OM growth 5Y-26.45%
PM growth 3Y-21.8%
PM growth 5Y-28.33%
GM growth 3Y-3.07%
GM growth 5Y-0.75%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AVIO is destroying value.
- Compared to 1 year ago, AVIO has about the same amount of shares outstanding.
- The number of shares outstanding for AVIO has been increased compared to 5 years ago.
- AVIO has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.73, we must say that AVIO is in the distress zone and has some risk of bankruptcy.
- AVIO has a Altman-Z score of 1.73. This is in the lower half of the industry: AVIO underperforms 75.47% of its industry peers.
- AVIO has a debt to FCF ratio of 0.21. This is a very positive value and a sign of high solvency as it would only need 0.21 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 0.21, AVIO belongs to the best of the industry, outperforming 98.11% of the companies in the same industry.
- AVIO has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.03, AVIO belongs to the top of the industry, outperforming 98.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.21 | ||
| Altman-Z | 1.73 |
ROIC/WACC0.15
WACC9.26%
2.3 Liquidity
- AVIO has a Current Ratio of 0.83. This is a bad value and indicates that AVIO is not financially healthy enough and could expect problems in meeting its short term obligations.
- AVIO's Current ratio of 0.83 is on the low side compared to the rest of the industry. AVIO is outperformed by 90.57% of its industry peers.
- A Quick Ratio of 0.36 indicates that AVIO may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.36, AVIO is doing worse than 94.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
- The earnings per share for AVIO have decreased strongly by -50.78% in the last year.
- AVIO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -28.46% yearly.
- AVIO shows a strong growth in Revenue. In the last year, the Revenue has grown by 33.69%.
- Measured over the past years, AVIO shows a small growth in Revenue. The Revenue has been growing by 4.20% on average per year.
EPS 1Y (TTM)-50.78%
EPS 3Y-16.74%
EPS 5Y-28.46%
EPS Q2Q%-3.73%
Revenue 1Y (TTM)33.69%
Revenue growth 3Y14.49%
Revenue growth 5Y4.2%
Sales Q2Q%23.63%
3.2 Future
- AVIO is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -10.93% yearly.
- Based on estimates for the next years, AVIO will show a quite strong growth in Revenue. The Revenue will grow by 13.95% on average per year.
EPS Next Y3.41%
EPS Next 2Y-12.34%
EPS Next 3Y-10.93%
EPS Next 5YN/A
Revenue Next Year33.3%
Revenue Next 2Y22.97%
Revenue Next 3Y19.69%
Revenue Next 5Y13.95%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- AVIO is valuated quite expensively with a Price/Earnings ratio of 186.94.
- Compared to the rest of the industry, the Price/Earnings ratio of AVIO indicates a slightly more expensive valuation: AVIO is more expensive than 71.70% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. AVIO is valued rather expensively when compared to this.
- Based on the Price/Forward Earnings ratio of 142.61, the valuation of AVIO can be described as expensive.
- Based on the Price/Forward Earnings ratio, AVIO is valued expensively inside the industry as 84.91% of the companies are valued cheaper.
- AVIO is valuated expensively when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 186.94 | ||
| Fwd PE | 142.61 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AVIO indicates a slightly more expensive valuation: AVIO is more expensive than 75.47% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of AVIO indicates a rather cheap valuation: AVIO is cheaper than 81.13% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.34 | ||
| EV/EBITDA | 58.45 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AVIO does not grow enough to justify the current Price/Earnings ratio.
- AVIO's earnings are expected to decrease with -10.93% in the coming years. This may justify a cheaper valuation.
PEG (NY)54.86
PEG (5Y)N/A
EPS Next 2Y-12.34%
EPS Next 3Y-10.93%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.41%, AVIO is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.74, AVIO has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, AVIO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
5.2 History
- The dividend of AVIO decreases each year by -12.86%.
Dividend Growth(5Y)-12.86%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 63.08% of the earnings are spent on dividend by AVIO. This is not a sustainable payout ratio.
- AVIO's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP63.08%
EPS Next 2Y-12.34%
EPS Next 3Y-10.93%
AVIO SPA / AVIO.MI FAQ
What is the ChartMill fundamental rating of AVIO SPA (AVIO.MI) stock?
ChartMill assigns a fundamental rating of 3 / 10 to AVIO.MI.
What is the valuation status of AVIO SPA (AVIO.MI) stock?
ChartMill assigns a valuation rating of 2 / 10 to AVIO SPA (AVIO.MI). This can be considered as Overvalued.
How profitable is AVIO SPA (AVIO.MI) stock?
AVIO SPA (AVIO.MI) has a profitability rating of 3 / 10.
How financially healthy is AVIO SPA?
The financial health rating of AVIO SPA (AVIO.MI) is 4 / 10.
What is the expected EPS growth for AVIO SPA (AVIO.MI) stock?
The Earnings per Share (EPS) of AVIO SPA (AVIO.MI) is expected to grow by 3.41% in the next year.