CEMBRE SPA (CMB.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:CMB - IT0001128047 - Common Stock
67.15 EUR
-0.55 (-0.81%)
Taking everything into account, CMB scores 7 out of 10 in our fundamental rating. CMB was compared to 75 industry peers in the Electrical Equipment industry. CMB gets an excellent profitability rating and is at the same time showing great financial health properties. CMB has a decent growth rate and is not valued too expensively. This makes CMB very considerable for quality investing!
1. Profitability
1.1 Basic Checks
- CMB had positive earnings in the past year.
- CMB had a positive operating cash flow in the past year.
- Each year in the past 5 years CMB has been profitable.
- In the past 5 years CMB always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 22.19%, CMB belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- The Return On Equity of CMB (30.90%) is better than 98.63% of its industry peers.
- The Return On Invested Capital of CMB (29.30%) is better than 98.63% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for CMB is significantly above the industry average of 9.57%.
- The last Return On Invested Capital (29.30%) for CMB is above the 3 year average (18.10%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.19% | ||
| ROE | 30.9% | ||
| ROIC | 29.3% |
ROA(3y)15.11%
ROA(5y)12.91%
ROE(3y)18.73%
ROE(5y)16.43%
ROIC(3y)18.1%
ROIC(5y)16.11%
1.3 Margins
- CMB has a better Profit Margin (18.65%) than 97.26% of its industry peers.
- In the last couple of years the Profit Margin of CMB has grown nicely.
- CMB's Operating Margin of 24.09% is amongst the best of the industry. CMB outperforms 97.26% of its industry peers.
- In the last couple of years the Operating Margin of CMB has grown nicely.
- CMB has a Gross Margin of 70.10%. This is amongst the best in the industry. CMB outperforms 91.78% of its industry peers.
- In the last couple of years the Gross Margin of CMB has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.09% | ||
| PM (TTM) | 18.65% | ||
| GM | 70.1% |
OM growth 3Y3.91%
OM growth 5Y4.36%
PM growth 3Y6.9%
PM growth 5Y4.57%
GM growth 3Y0.43%
GM growth 5Y0.07%
2. Health
2.1 Basic Checks
- CMB has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- CMB has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, CMB has more shares outstanding
- The debt/assets ratio for CMB is higher compared to a year ago.
2.2 Solvency
- CMB has an Altman-Z score of 11.76. This indicates that CMB is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 11.76, CMB belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- CMB has a debt to FCF ratio of 2.23. This is a good value and a sign of high solvency as CMB would need 2.23 years to pay back of all of its debts.
- The Debt to FCF ratio of CMB (2.23) is better than 78.08% of its industry peers.
- CMB has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of CMB (0.04) is better than 91.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 2.23 | ||
| Altman-Z | 11.76 |
ROIC/WACC3.42
WACC8.56%
2.3 Liquidity
- A Current Ratio of 2.21 indicates that CMB has no problem at all paying its short term obligations.
- CMB has a Current ratio of 2.21. This is in the better half of the industry: CMB outperforms 78.08% of its industry peers.
- A Quick Ratio of 1.09 indicates that CMB should not have too much problems paying its short term obligations.
- CMB has a better Quick ratio (1.09) than 69.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
- CMB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.86%, which is quite good.
- CMB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.46% yearly.
- The Revenue has been growing slightly by 3.52% in the past year.
- The Revenue has been growing by 9.44% on average over the past years. This is quite good.
EPS 1Y (TTM)15.86%
EPS 3Y18.82%
EPS 5Y14.46%
EPS Q2Q%8.44%
Revenue 1Y (TTM)3.52%
Revenue growth 3Y11.25%
Revenue growth 5Y9.44%
Sales Q2Q%3.98%
3.2 Future
- The Earnings Per Share is expected to grow by 11.01% on average over the next years. This is quite good.
- Based on estimates for the next years, CMB will show a small growth in Revenue. The Revenue will grow by 6.99% on average per year.
EPS Next Y12.08%
EPS Next 2Y10.8%
EPS Next 3Y11.01%
EPS Next 5YN/A
Revenue Next Year6.06%
Revenue Next 2Y6.78%
Revenue Next 3Y6.99%
Revenue Next 5YN/A
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 17.49, which indicates a rather expensive current valuation of CMB.
- Based on the Price/Earnings ratio, CMB is valued cheaper than 86.30% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. CMB is valued slightly cheaper when compared to this.
- The Price/Forward Earnings ratio is 23.49, which indicates a rather expensive current valuation of CMB.
- The rest of the industry has a similar Price/Forward Earnings ratio as CMB.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, CMB is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.49 | ||
| Fwd PE | 23.49 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CMB is valued a bit cheaper than 76.71% of the companies in the same industry.
- CMB's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 63.36 | ||
| EV/EBITDA | 11.96 |
4.3 Compensation for Growth
- CMB's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- CMB has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.45
PEG (5Y)1.21
EPS Next 2Y10.8%
EPS Next 3Y11.01%
5. Dividend
5.1 Amount
- CMB has a Yearly Dividend Yield of 2.78%.
- Compared to an average industry Dividend Yield of 0.79, CMB pays a better dividend. On top of this CMB pays more dividend than 93.15% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, CMB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
5.2 History
- On average, the dividend of CMB grows each year by 14.86%, which is quite nice.
Dividend Growth(5Y)14.86%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- CMB pays out 48.95% of its income as dividend. This is a bit on the high side, but may be sustainable.
- CMB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP48.95%
EPS Next 2Y10.8%
EPS Next 3Y11.01%
CEMBRE SPA / CMB.MI FAQ
Can you provide the ChartMill fundamental rating for CEMBRE SPA?
ChartMill assigns a fundamental rating of 7 / 10 to CMB.MI.
What is the valuation status of CEMBRE SPA (CMB.MI) stock?
ChartMill assigns a valuation rating of 4 / 10 to CEMBRE SPA (CMB.MI). This can be considered as Fairly Valued.
How profitable is CEMBRE SPA (CMB.MI) stock?
CEMBRE SPA (CMB.MI) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for CMB stock?
The Price/Earnings (PE) ratio for CEMBRE SPA (CMB.MI) is 17.49 and the Price/Book (PB) ratio is 5.46.
What is the expected EPS growth for CEMBRE SPA (CMB.MI) stock?
The Earnings per Share (EPS) of CEMBRE SPA (CMB.MI) is expected to grow by 12.08% in the next year.