BRUNELLO CUCINELLI SPA (BC.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:BC - IT0004764699 - Common Stock
82 EUR
-0.96 (-1.16%)
BC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 52 industry peers in the Textiles, Apparel & Luxury Goods industry. BC has a medium profitability rating, but doesn't score so well on its financial health evaluation. BC is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year BC was profitable.
- In the past year BC had a positive cash flow from operations.
- BC had positive earnings in each of the past 5 years.
- Of the past 5 years BC 4 years had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 6.58%, BC is in the better half of the industry, outperforming 60.78% of the companies in the same industry.
- BC has a better Return On Equity (26.80%) than 80.39% of its industry peers.
- The Return On Invested Capital of BC (10.30%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.58% | ||
| ROE | 26.8% | ||
| ROIC | 10.3% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- BC has a better Profit Margin (9.82%) than 64.71% of its industry peers.
- In the last couple of years the Profit Margin of BC has grown nicely.
- BC has a Operating Margin of 16.48%. This is in the better half of the industry: BC outperforms 60.78% of its industry peers.
- BC's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 91.17%, BC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.48% | ||
| PM (TTM) | 9.82% | ||
| GM | 91.17% |
OM growth 3Y89.79%
OM growth 5YN/A
PM growth 3Y125.13%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BC is creating some value.
- BC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- An Altman-Z score of 3.69 indicates that BC is not in any danger for bankruptcy at the moment.
- BC has a Altman-Z score of 3.69. This is in the better half of the industry: BC outperforms 60.78% of its industry peers.
- The Debt to FCF ratio of BC is 17.50, which is on the high side as it means it would take BC, 17.50 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of BC (17.50) is worse than 72.55% of its industry peers.
- A Debt/Equity ratio of 2.05 is on the high side and indicates that BC has dependencies on debt financing.
- With a Debt to Equity ratio value of 2.05, BC is not doing good in the industry: 82.35% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.05 | ||
| Debt/FCF | 17.5 | ||
| Altman-Z | 3.69 |
ROIC/WACC1.38
WACC7.49%
2.3 Liquidity
- A Current Ratio of 1.47 indicates that BC should not have too much problems paying its short term obligations.
- BC's Current ratio of 1.47 is on the low side compared to the rest of the industry. BC is outperformed by 62.75% of its industry peers.
- BC has a Quick Ratio of 1.47. This is a bad value and indicates that BC is not financially healthy enough and could expect problems in meeting its short term obligations.
- BC has a Quick ratio (0.77) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
- BC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.37%, which is quite good.
- The Revenue has grown by 10.35% in the past year. This is quite good.
- Measured over the past years, BC shows a very strong growth in Revenue. The Revenue has been growing by 20.94% on average per year.
EPS 1Y (TTM)15.37%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%19.8%
Revenue 1Y (TTM)10.35%
Revenue growth 3Y15.25%
Revenue growth 5Y20.94%
Sales Q2Q%9.93%
3.2 Future
- The Earnings Per Share is expected to grow by 14.23% on average over the next years. This is quite good.
- Based on estimates for the next years, BC will show a quite strong growth in Revenue. The Revenue will grow by 10.24% on average per year.
EPS Next Y12.15%
EPS Next 2Y13.42%
EPS Next 3Y17.98%
EPS Next 5Y14.23%
Revenue Next Year9.73%
Revenue Next 2Y10.02%
Revenue Next 3Y10.22%
Revenue Next 5Y10.24%
3.3 Evolution
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 42.27 indicates a quite expensive valuation of BC.
- Based on the Price/Earnings ratio, BC is valued a bit more expensive than the industry average as 62.75% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, BC is valued quite expensively.
- Based on the Price/Forward Earnings ratio of 35.21, the valuation of BC can be described as expensive.
- 66.67% of the companies in the same industry are cheaper than BC, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of BC to the average of the S&P500 Index (25.98), we can say BC is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.27 | ||
| Fwd PE | 35.21 |
4.2 Price Multiples
- 66.67% of the companies in the same industry are cheaper than BC, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, BC is valued a bit more expensive than the industry average as 78.43% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 79.32 | ||
| EV/EBITDA | 16.74 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of BC may justify a higher PE ratio.
- A more expensive valuation may be justified as BC's earnings are expected to grow with 17.98% in the coming years.
PEG (NY)3.48
PEG (5Y)N/A
EPS Next 2Y13.42%
EPS Next 3Y17.98%
5. Dividend
5.1 Amount
- BC has a Yearly Dividend Yield of 1.13%.
- BC's Dividend Yield is slightly below the industry average, which is at 1.99.
- BC's Dividend Yield is slightly below the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
5.2 History
- On average, the dividend of BC grows each year by 26.43%, which is quite nice.
Dividend Growth(5Y)26.43%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 52.19% of the earnings are spent on dividend by BC. This is a bit on the high side, but may be sustainable.
- BC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP52.19%
EPS Next 2Y13.42%
EPS Next 3Y17.98%
BRUNELLO CUCINELLI SPA / BC.MI FAQ
What is the fundamental rating for BC stock?
ChartMill assigns a fundamental rating of 4 / 10 to BC.MI.
What is the valuation status of BRUNELLO CUCINELLI SPA (BC.MI) stock?
ChartMill assigns a valuation rating of 1 / 10 to BRUNELLO CUCINELLI SPA (BC.MI). This can be considered as Overvalued.
How profitable is BRUNELLO CUCINELLI SPA (BC.MI) stock?
BRUNELLO CUCINELLI SPA (BC.MI) has a profitability rating of 6 / 10.
What is the valuation of BRUNELLO CUCINELLI SPA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for BRUNELLO CUCINELLI SPA (BC.MI) is 42.27 and the Price/Book (PB) ratio is 11.34.
What is the financial health of BRUNELLO CUCINELLI SPA (BC.MI) stock?
The financial health rating of BRUNELLO CUCINELLI SPA (BC.MI) is 3 / 10.