BREMBO N.V. (BRE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:BRE - NL0015001KT6 - Common Stock
10.1 EUR
-0.02 (-0.2%)
BRE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 31 industry peers in the Automobile Components industry. BRE has an excellent profitability rating, but there are some minor concerns on its financial health. BRE has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year BRE was profitable.
- In the past year BRE had a positive cash flow from operations.
- In the past 5 years BRE has always been profitable.
- In the past 5 years BRE always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 6.39%, BRE belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- The Return On Equity of BRE (13.66%) is better than 96.88% of its industry peers.
- BRE's Return On Invested Capital of 10.44% is amongst the best of the industry. BRE outperforms 87.50% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for BRE is above the industry average of 6.49%.
- The 3 year average ROIC (9.44%) for BRE is below the current ROIC(10.44%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.39% | ||
| ROE | 13.66% | ||
| ROIC | 10.44% |
ROA(3y)6.87%
ROA(5y)6.15%
ROE(3y)13.83%
ROE(5y)12.63%
ROIC(3y)9.44%
ROIC(5y)8.25%
1.3 Margins
- BRE has a better Profit Margin (5.29%) than 90.63% of its industry peers.
- BRE's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 8.65%, BRE belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
- BRE's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 55.70%, BRE belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
- BRE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.65% | ||
| PM (TTM) | 5.29% | ||
| GM | 55.7% |
OM growth 3Y0.2%
OM growth 5Y-3.41%
PM growth 3Y-4.13%
PM growth 5Y-5.19%
GM growth 3Y0.85%
GM growth 5Y0.32%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BRE is still creating some value.
- BRE has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, BRE has more shares outstanding
- BRE has a worse debt/assets ratio than last year.
2.2 Solvency
- BRE has an Altman-Z score of 3.20. This indicates that BRE is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of BRE (3.20) is better than 90.63% of its industry peers.
- BRE has a Debt/Equity ratio of 0.55. This is a neutral value indicating BRE is somewhat dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.55, BRE is doing good in the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.2 |
ROIC/WACC1.47
WACC7.09%
2.3 Liquidity
- BRE has a Current Ratio of 1.36. This is a normal value and indicates that BRE is financially healthy and should not expect problems in meeting its short term obligations.
- BRE has a better Current ratio (1.36) than 62.50% of its industry peers.
- A Quick Ratio of 0.89 indicates that BRE may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.89, BRE is in the better half of the industry, outperforming 65.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 44.53% over the past year.
- BRE shows a decrease in Revenue. In the last year, the revenue decreased by -4.27%.
EPS 1Y (TTM)44.53%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%53.85%
Revenue 1Y (TTM)-4.27%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-1.52%
3.2 Future
- Based on estimates for the next years, BRE will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.41% on average per year.
- Based on estimates for the next years, BRE will show a small growth in Revenue. The Revenue will grow by 7.69% on average per year.
EPS Next Y30.58%
EPS Next 2Y34.35%
EPS Next 3Y29.69%
EPS Next 5Y12.41%
Revenue Next Year14.97%
Revenue Next 2Y13.14%
Revenue Next 3Y10.93%
Revenue Next 5Y7.69%
3.3 Evolution
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 14.23, which indicates a correct valuation of BRE.
- BRE's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of BRE to the average of the S&P500 Index (27.21), we can say BRE is valued slightly cheaper.
- BRE is valuated correctly with a Price/Forward Earnings ratio of 14.13.
- Based on the Price/Forward Earnings ratio, BRE is valued a bit more expensive than 68.75% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. BRE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.23 | ||
| Fwd PE | 14.13 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BRE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.3 |
4.3 Compensation for Growth
- BRE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- BRE has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as BRE's earnings are expected to grow with 29.69% in the coming years.
PEG (NY)0.47
PEG (5Y)N/A
EPS Next 2Y34.35%
EPS Next 3Y29.69%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.96%, BRE has a reasonable but not impressive dividend return.
- BRE's Dividend Yield is comparable with the industry average which is at 2.91.
- BRE's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
5.2 History
- The dividend of BRE has a limited annual growth rate of 1.06%.
Dividend Growth(5Y)1.06%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- BRE pays out 32.26% of its income as dividend. This is a sustainable payout ratio.
- BRE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP32.26%
EPS Next 2Y34.35%
EPS Next 3Y29.69%
BREMBO N.V. / BRE.MI FAQ
What is the ChartMill fundamental rating of BREMBO N.V. (BRE.MI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to BRE.MI.
What is the valuation status for BRE stock?
ChartMill assigns a valuation rating of 5 / 10 to BREMBO N.V. (BRE.MI). This can be considered as Fairly Valued.
What is the profitability of BRE stock?
BREMBO N.V. (BRE.MI) has a profitability rating of 8 / 10.
What is the financial health of BREMBO N.V. (BRE.MI) stock?
The financial health rating of BREMBO N.V. (BRE.MI) is 4 / 10.
Can you provide the dividend sustainability for BRE stock?
The dividend rating of BREMBO N.V. (BRE.MI) is 6 / 10 and the dividend payout ratio is 32.26%.