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. Both the health and profitability get an excellent rating, making CULT a very profitable company, without any liquidiy or solvency issues. A decent growth rate in combination with a cheap valuation! Better keep an eye on CULT. This makes CULT very considerable for value and quality investing!
1. Profitability
1.1 Basic Checks
- In the past year CULT was profitable.
- In the past year CULT had a positive cash flow from operations.
- In the past 5 years CULT has always been profitable.
- Each year in the past 5 years CULT had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 18.16%, CULT belongs to the top of the industry, outperforming 98.67% of the companies in the same industry.
- The Return On Equity of CULT (29.87%) is better than 97.33% of its industry peers.
- The Return On Invested Capital of CULT (22.99%) is better than 100.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for CULT is significantly above the industry average of 6.70%.
- The 3 year average ROIC (16.10%) for CULT is below the current ROIC(22.99%), indicating increased profibility in the last year.
| 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
- The Profit Margin of CULT (16.01%) is better than 96.00% of its industry peers.
- In the last couple of years the Profit Margin of CULT has grown nicely.
- CULT has a Operating Margin of 15.97%. This is amongst the best in 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 has a better Gross Margin (54.57%) than 84.00% of its industry peers.
- CULT's Gross Margin has improved in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CULT is creating value.
- Compared to 1 year ago, CULT has about the same amount of shares outstanding.
- The number of shares outstanding for CULT has been reduced compared to 5 years ago.
- The debt/assets ratio for CULT has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 6.25 indicates that CULT is not in any danger for bankruptcy at the moment.
- CULT has a better Altman-Z score (6.25) than 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
- CULT has a Current Ratio of 2.07. This indicates that CULT is financially healthy and has no problem in meeting 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.
- CULT has a Quick Ratio of 1.07. This is a normal value and indicates that CULT is financially healthy and should not expect problems in meeting its short term obligations.
- CULT has a Quick ratio (1.07) which is in line with its industry peers.
| 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.
- The Earnings Per Share has been growing by 69.23% on average over the past years. This is a very strong growth
- 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.
- CULT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.01% yearly.
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
- 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 13.75, which indicates a correct valuation of CULT.
- Compared to the rest of the industry, the Price/Earnings ratio of CULT indicates a rather cheap valuation: CULT is cheaper than 89.33% of the companies listed in the same industry.
- CULT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 12.91, CULT is valued correctly.
- Based on the Price/Forward Earnings ratio, CULT is valued cheaply inside the industry as 89.33% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, CULT is valued a bit cheaper.
| 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.
- The rest of the industry has a similar Price/Free Cash Flow ratio as CULT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 103.93 | ||
| EV/EBITDA | 8.96 |
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.
- CULT has an outstanding profitability rating, which may justify a higher PE ratio.
- CULT's earnings are expected to grow with 20.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.57
PEG (5Y)0.2
EPS Next 2Y24.9%
EPS Next 3Y20.04%
5. Dividend
5.1 Amount
- CULT has a yearly dividend return of 0.54%, which is pretty low.
- 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.
- Compared to an average industry Dividend Yield of 2.33, CULT is paying slightly less dividend.
- With a Dividend Yield of 0.54, CULT pays less dividend than the S&P500 average, which is at 1.81.
| 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
- 7.33% of the earnings are spent on dividend by CULT. This is a low number and sustainable payout ratio.
- The dividend of CULT is growing, but earnings are growing more, so the dividend growth is 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.