CULTI MILANO SPA (CULT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:CULT - IT0005257347 - Common Stock
18.7 EUR
+3.2 (+20.65%)
Taking everything into account, CULT scores 8 out of 10 in our fundamental rating. CULT was compared to 69 industry peers in the Chemicals industry. CULT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. A decent growth rate in combination with a cheap valuation! Better keep an eye on CULT. These ratings would make CULT suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
- CULT had positive earnings in the past year.
- In the past year CULT had a positive cash flow from operations.
- CULT had positive earnings in each of the past 5 years.
- Each year in the past 5 years CULT had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 18.16%, CULT belongs to the best of the industry, outperforming 98.67% of the companies in the same industry.
- CULT's Return On Equity of 29.87% is amongst the best of the industry. CULT outperforms 97.33% of its industry peers.
- CULT has a Return On Invested Capital of 22.99%. This is amongst the best in the industry. CULT outperforms 100.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for CULT is significantly above the industry average of 6.70%.
- The last Return On Invested Capital (22.99%) for CULT is above the 3 year average (16.10%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.16% | ||
| ROE | 29.87% | ||
| ROIC | 22.99% |
ROA(3y)10.89%
ROA(5y)9.97%
ROE(3y)26.38%
ROE(5y)22.78%
ROIC(3y)16.1%
ROIC(5y)16.09%
1.3 Margins
- CULT has a Profit Margin of 16.01%. This is amongst the best in the industry. CULT outperforms 96.00% of its industry peers.
- CULT's Profit Margin has improved in the last couple of years.
- CULT's Operating Margin of 15.97% is amongst the best of the industry. CULT outperforms 86.67% of its industry peers.
- In the last couple of years the Operating Margin of CULT has grown nicely.
- CULT's Gross Margin of 54.57% is amongst the best of the industry. CULT outperforms 84.00% of its industry peers.
- In the last couple of years the Gross Margin of CULT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.97% | ||
| PM (TTM) | 16.01% | ||
| GM | 54.57% |
OM growth 3Y-3.91%
OM growth 5Y20.56%
PM growth 3Y13.22%
PM growth 5Y34.84%
GM growth 3Y-1.25%
GM growth 5Y3.36%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CULT is creating value.
- The number of shares outstanding for CULT remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, CULT has less shares outstanding
- The debt/assets ratio for CULT has been reduced compared to a year ago.
2.2 Solvency
- CULT has an Altman-Z score of 6.25. This indicates that CULT is financially healthy and has little risk of bankruptcy at the moment.
- CULT's Altman-Z score of 6.25 is amongst the best of the industry. CULT outperforms 92.00% of its industry peers.
- There is no outstanding debt for CULT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 2.56 | ||
| Altman-Z | 6.25 |
ROIC/WACC2.91
WACC7.9%
2.3 Liquidity
- A Current Ratio of 2.07 indicates that CULT has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 2.07, CULT is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- A Quick Ratio of 1.07 indicates that CULT should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.07, CULT is in line with its industry, outperforming 46.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.07 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 58.25% over the past year.
- Measured over the past years, CULT shows a very strong growth in Earnings Per Share. The EPS has been growing by 69.23% on average per year.
- The Revenue has decreased by -1.22% in the past year.
- Measured over the past years, CULT shows a very strong growth in Revenue. The Revenue has been growing by 22.35% on average per year.
EPS 1Y (TTM)58.25%
EPS 3Y24.79%
EPS 5Y69.23%
EPS Q2Q%-25.49%
Revenue 1Y (TTM)-1.22%
Revenue growth 3Y5.68%
Revenue growth 5Y22.35%
Sales Q2Q%-12.68%
3.2 Future
- CULT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.04% yearly.
- The Revenue is expected to grow by 4.01% on average over the next years.
EPS Next Y24.18%
EPS Next 2Y24.9%
EPS Next 3Y20.04%
EPS Next 5YN/A
Revenue Next Year8.27%
Revenue Next 2Y10.36%
Revenue Next 3Y4.01%
Revenue Next 5YN/A
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
- CULT is valuated correctly with a Price/Earnings ratio of 13.75.
- Based on the Price/Earnings ratio, CULT is valued cheaply inside the industry as 89.33% of the companies are valued more expensively.
- CULT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
- The Price/Forward Earnings ratio is 12.91, which indicates a correct valuation of CULT.
- CULT's Price/Forward Earnings ratio is rather cheap when compared to the industry. CULT is cheaper than 89.33% of the companies in the same industry.
- CULT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.75 | ||
| Fwd PE | 12.91 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CULT indicates a somewhat cheap valuation: CULT is cheaper than 62.67% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of CULT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 103.93 | ||
| EV/EBITDA | 8.96 |
4.3 Compensation for Growth
- CULT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- CULT has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as CULT's earnings are expected to grow with 20.04% in the coming years.
PEG (NY)0.57
PEG (5Y)0.2
EPS Next 2Y24.9%
EPS Next 3Y20.04%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.54%, CULT is not a good candidate for dividend investing.
- The stock price of CULT dropped by -30.05% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- CULT's Dividend Yield is slightly below the industry average, which is at 2.33.
- With a Dividend Yield of 0.54, CULT pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
5.2 History
- The dividend of CULT has a limited annual growth rate of 4.56%.
Dividend Growth(5Y)4.56%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- CULT pays out 7.33% of its income as dividend. This is a sustainable payout ratio.
- CULT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP7.33%
EPS Next 2Y24.9%
EPS Next 3Y20.04%
CULTI MILANO SPA / CULT.MI FAQ
What is the ChartMill fundamental rating of CULTI MILANO SPA (CULT.MI) stock?
ChartMill assigns a fundamental rating of 8 / 10 to CULT.MI.
What is the valuation status for CULT stock?
ChartMill assigns a valuation rating of 8 / 10 to CULTI MILANO SPA (CULT.MI). This can be considered as Undervalued.
How profitable is CULTI MILANO SPA (CULT.MI) stock?
CULTI MILANO SPA (CULT.MI) has a profitability rating of 10 / 10.
Can you provide the financial health for CULT stock?
The financial health rating of CULTI MILANO SPA (CULT.MI) is 8 / 10.
Can you provide the expected EPS growth for CULT stock?
The Earnings per Share (EPS) of CULTI MILANO SPA (CULT.MI) is expected to grow by 24.18% in the next year.