BANCA SISTEMA SPA (BST.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:BST - IT0003173629 - Common Stock
1.621 EUR
-0.03 (-1.88%)
BST gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 114 industry peers in the Banks industry. While BST is still in line with the averages on profitability rating, there are concerns on its financial health. BST scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
- In the past year BST was profitable.
- In the past year BST has reported a negative cash flow from operations.
- Each year in the past 5 years BST has been profitable.
- In multiple years BST reported negative operating cash flow during the last 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 0.77%, BST is in line with its industry, outperforming 52.63% of the companies in the same industry.
- With a Return On Equity value of 10.61%, BST perfoms like the industry average, outperforming 48.25% of the companies in the same industry.
- BST has a better Return On Invested Capital (0.83%) than 99.12% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for BST is below the industry average of 3.68%.
- The 3 year average ROIC (0.48%) for BST is below the current ROIC(0.83%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.77% | ||
| ROE | 10.61% | ||
| ROIC | 0.83% |
ROA(3y)0.47%
ROA(5y)0.55%
ROE(3y)7.85%
ROE(5y)9.17%
ROIC(3y)0.48%
ROIC(5y)0.55%
1.3 Margins
- The Profit Margin of BST (22.05%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of BST has declined.
- BST has a Operating Margin of 36.10%. This is amongst the best in the industry. BST outperforms 99.12% of its industry peers.
- In the last couple of years the Operating Margin of BST has declined.
- Looking at the Gross Margin, with a value of 88.82%, BST belongs to the top of the industry, outperforming 99.12% of the companies in the same industry.
- In the last couple of years the Gross Margin of BST has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.1% | ||
| PM (TTM) | 22.05% | ||
| GM | 88.82% |
OM growth 3Y0.62%
OM growth 5Y-5.25%
PM growth 3Y-3.25%
PM growth 5Y-8.39%
GM growth 3Y-2.09%
GM growth 5Y-1.78%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BST is destroying value.
- BST has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, BST has about the same amount of shares outstanding.
- The debt/assets ratio for BST has been reduced compared to a year ago.
2.2 Solvency
- BST has an Altman-Z score of -0.79. This is a bad value and indicates that BST is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of BST (-0.79) is better than 99.12% of its industry peers.
- BST has a Debt/Equity ratio of 12.00. This is a high value indicating a heavy dependency on external financing.
- BST has a Debt to Equity ratio of 12.00. This is amonst the worse of the industry: BST underperforms 96.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 12 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.79 |
ROIC/WACC0.23
WACC3.62%
2.3 Liquidity
- A Current Ratio of 0.05 indicates that BST may have some problems paying its short term obligations.
- BST has a better Current ratio (0.05) than 99.12% of its industry peers.
- BST has a Quick Ratio of 0.05. This is a bad value and indicates that BST is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.05, BST belongs to the top of the industry, outperforming 99.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 125.20% over the past year.
- Measured over the past years, BST shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.89% on average per year.
- Looking at the last year, BST shows a quite strong growth in Revenue. The Revenue has grown by 18.18% in the last year.
- The Revenue has been growing slightly by 5.61% on average over the past years.
EPS 1Y (TTM)125.2%
EPS 3Y2.71%
EPS 5Y-2.89%
EPS Q2Q%64.16%
Revenue 1Y (TTM)18.18%
Revenue growth 3Y6.16%
Revenue growth 5Y5.61%
Sales Q2Q%-7.92%
3.2 Future
- The Earnings Per Share is expected to grow by 20.98% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 6.16% on average over the next years.
EPS Next Y77.52%
EPS Next 2Y23.61%
EPS Next 3Y20.98%
EPS Next 5YN/A
Revenue Next Year45.41%
Revenue Next 2Y8.98%
Revenue Next 3Y6.16%
Revenue Next 5YN/A
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 3.86, the valuation of BST can be described as very cheap.
- Based on the Price/Earnings ratio, BST is valued cheaper than 99.12% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.39. BST is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 4.75, the valuation of BST can be described as very cheap.
- Based on the Price/Forward Earnings ratio, BST is valued cheaply inside the industry as 99.12% of the companies are valued more expensively.
- BST's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.86 | ||
| Fwd PE | 4.75 |
4.2 Price Multiples
- BST's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BST is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.41 |
4.3 Compensation for Growth
- BST's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- BST's earnings are expected to grow with 20.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y23.61%
EPS Next 3Y20.98%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.54%, BST is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 3.93, BST pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, BST pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.54% |
5.2 History
- The dividend of BST decreases each year by -5.71%.
Dividend Growth(5Y)-5.71%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- BST pays out 15.44% of its income as dividend. This is a sustainable payout ratio.
DP15.44%
EPS Next 2Y23.61%
EPS Next 3Y20.98%
BANCA SISTEMA SPA / BST.MI FAQ
What is the ChartMill fundamental rating of BANCA SISTEMA SPA (BST.MI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to BST.MI.
What is the valuation status of BANCA SISTEMA SPA (BST.MI) stock?
ChartMill assigns a valuation rating of 7 / 10 to BANCA SISTEMA SPA (BST.MI). This can be considered as Undervalued.
Can you provide the profitability details for BANCA SISTEMA SPA?
BANCA SISTEMA SPA (BST.MI) has a profitability rating of 5 / 10.
What is the valuation of BANCA SISTEMA SPA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for BANCA SISTEMA SPA (BST.MI) is 3.86 and the Price/Book (PB) ratio is 0.41.
How financially healthy is BANCA SISTEMA SPA?
The financial health rating of BANCA SISTEMA SPA (BST.MI) is 3 / 10.