BREMBO N.V. (BRE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:BRE - NL0015001KT6 - Common Stock
9.94 EUR
-0.04 (-0.45%)
BRE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 31 industry peers in the Automobile Components industry. While BRE has a great profitability rating, 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
- BRE had positive earnings in the past year.
- BRE had a positive operating cash flow in the past year.
- Each year in the past 5 years BRE has been profitable.
- In the past 5 years BRE always reported a positive cash flow from operatings.
1.2 Ratios
- BRE has a better Return On Assets (6.39%) than 100.00% of its industry peers.
- With an excellent Return On Equity value of 13.66%, BRE belongs to the best of the industry, outperforming 96.77% of the companies in the same industry.
- BRE's Return On Invested Capital of 10.44% is amongst the best of the industry. BRE outperforms 87.10% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for BRE is above the industry average of 6.49%.
- The last Return On Invested Capital (10.44%) for BRE is above the 3 year average (9.44%), which is a sign of increasing profitability.
| 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
- With an excellent Profit Margin value of 5.29%, BRE belongs to the best of the industry, outperforming 90.32% of the companies in the same industry.
- BRE's Profit Margin has declined in the last couple of years.
- The Operating Margin of BRE (8.65%) is better than 90.32% of its industry peers.
- BRE's Operating Margin has declined in the last couple of years.
- BRE has a better Gross Margin (55.70%) than 87.10% of its industry peers.
- 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BRE is creating some value.
- Compared to 1 year ago, BRE has more shares outstanding
- BRE has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, BRE has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.19 indicates that BRE is not in any danger for bankruptcy at the moment.
- The Altman-Z score of BRE (3.19) is better than 90.32% 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.
- Looking at the Debt to Equity ratio, with a value of 0.55, BRE is in the better half of the industry, outperforming 64.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.19 |
ROIC/WACC1.47
WACC7.08%
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 Current ratio of 1.36. This is in the better half of the industry: BRE outperforms 61.29% 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 67.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
- BRE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 44.53%, which is quite impressive.
- 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
- The Earnings Per Share is expected to grow by 12.41% on average over the next years. This is quite good.
- The Revenue is expected to grow by 7.69% on average over the next years.
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
- A Price/Earnings ratio of 14.00 indicates a correct valuation of BRE.
- Compared to the rest of the industry, the Price/Earnings ratio of BRE is on the same level as its industry peers.
- When comparing the Price/Earnings ratio of BRE to the average of the S&P500 Index (27.25), we can say BRE is valued slightly cheaper.
- BRE is valuated correctly with a Price/Forward Earnings ratio of 13.91.
- BRE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. BRE is more expensive than 67.74% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of BRE to the average of the S&P500 Index (25.98), we can say BRE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14 | ||
| Fwd PE | 13.91 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as BRE.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.25 |
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.
- 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)0.46
PEG (5Y)N/A
EPS Next 2Y34.35%
EPS Next 3Y29.69%
5. Dividend
5.1 Amount
- BRE has a Yearly Dividend Yield of 2.96%.
- Compared to an average industry Dividend Yield of 2.91, BRE has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, BRE pays a better dividend.
| 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
- 32.26% of the earnings are spent on dividend by BRE. This is a low number and sustainable payout ratio.
- The dividend of BRE is growing, but earnings are growing more, so the dividend growth is 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%.