CONVERGENZE SPA SOCIETA BENE (CVG.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:CVG - IT0005426215 - Common Stock
1.9 EUR
-0.07 (-3.55%)
Overall CVG gets a fundamental rating of 6 out of 10. We evaluated CVG against 29 industry peers in the Diversified Telecommunication Services industry. Both the profitability and the financial health of CVG get a neutral evaluation. Nothing too spectacular is happening here. An interesting combination arises when we look at growth and value: CVG is growing strongly while it also seems undervalued.
1. Profitability
1.1 Basic Checks
In the past year CVG was profitable.
CVG had a positive operating cash flow in the past year.
CVG had positive earnings in 4 of the past 5 years.
Of the past 5 years CVG 4 years had a positive operating cash flow.
1.2 Ratios
CVG has a Return On Assets of 5.98%. This is amongst the best in the industry. CVG outperforms 87.10% of its industry peers.
CVG has a better Return On Equity (19.01%) than 77.42% of its industry peers.
CVG has a better Return On Invested Capital (14.69%) than 93.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.98% | ||
| ROE | 19.01% | ||
| ROIC | 14.69% |
ROA(3y)1.45%
ROA(5y)2.16%
ROE(3y)4.19%
ROE(5y)6.07%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 4.75%, CVG perfoms like the industry average, outperforming 54.84% of the companies in the same industry.
CVG's Profit Margin has improved in the last couple of years.
CVG has a worse Operating Margin (8.69%) than 67.74% of its industry peers.
CVG's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 33.23%, CVG is doing worse than 70.97% of the companies in the same industry.
In the last couple of years the Gross Margin of CVG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.69% | ||
| PM (TTM) | 4.75% | ||
| GM | 33.23% |
OM growth 3Y45.34%
OM growth 5Y7.93%
PM growth 3Y53.74%
PM growth 5Y8.77%
GM growth 3Y12.92%
GM growth 5Y8.95%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CVG is creating value.
CVG has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CVG has more shares outstanding
The debt/assets ratio for CVG has been reduced compared to a year ago.
2.2 Solvency
CVG has an Altman-Z score of 2.18. This is not the best score and indicates that CVG is in the grey zone with still only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.18, CVG belongs to the best of the industry, outperforming 90.32% of the companies in the same industry.
CVG has a debt to FCF ratio of 6.18. This is a slightly negative value and a sign of low solvency as CVG would need 6.18 years to pay back of all of its debts.
CVG has a better Debt to FCF ratio (6.18) than 77.42% of its industry peers.
A Debt/Equity ratio of 0.58 indicates that CVG is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.58, CVG belongs to the top of the industry, outperforming 83.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 6.18 | ||
| Altman-Z | 2.18 |
ROIC/WACC2.13
WACC6.89%
2.3 Liquidity
CVG has a Current Ratio of 0.62. This is a bad value and indicates that CVG is not financially healthy enough and could expect problems in meeting its short term obligations.
CVG has a Current ratio of 0.62. This is in the lower half of the industry: CVG underperforms 74.19% of its industry peers.
CVG has a Quick Ratio of 0.62. This is a bad value and indicates that CVG is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.58, CVG is not doing good in the industry: 74.19% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 148.90% over the past year.
The Earnings Per Share has been growing by 19.42% on average over the past years. This is quite good.
The Revenue has grown by 16.56% in the past year. This is quite good.
CVG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.61% yearly.
EPS 1Y (TTM)148.9%
EPS 3Y78.28%
EPS 5Y19.42%
EPS Q2Q%42.58%
Revenue 1Y (TTM)16.56%
Revenue growth 3Y12.84%
Revenue growth 5Y9.61%
Sales Q2Q%17.64%
3.2 Future
The Earnings Per Share is expected to grow by 17.23% on average over the next years. This is quite good.
CVG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.61% yearly.
EPS Next Y44.44%
EPS Next 2Y24.72%
EPS Next 3Y17.23%
EPS Next 5YN/A
Revenue Next Year12.45%
Revenue Next 2Y11.08%
Revenue Next 3Y9.61%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
CVG is valuated reasonably with a Price/Earnings ratio of 11.18.
CVG's Price/Earnings ratio is rather cheap when compared to the industry. CVG is cheaper than 87.10% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.41. CVG is valued rather cheaply when compared to this.
CVG is valuated cheaply with a Price/Forward Earnings ratio of 7.24.
83.87% of the companies in the same industry are more expensive than CVG, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CVG to the average of the S&P500 Index (35.40), we can say CVG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.18 | ||
| Fwd PE | 7.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CVG is valued cheaply inside the industry as 90.32% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as CVG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.56 | ||
| EV/EBITDA | 4.33 |
4.3 Compensation for Growth
CVG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CVG has a very decent profitability rating, which may justify a higher PE ratio.
CVG's earnings are expected to grow with 17.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.25
PEG (5Y)0.58
EPS Next 2Y24.72%
EPS Next 3Y17.23%
5. Dividend
5.1 Amount
CVG has a Yearly Dividend Yield of 1.14%.
CVG's Dividend Yield is slightly below the industry average, which is at 4.73.
With a Dividend Yield of 1.14, CVG pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
11.97% of the earnings are spent on dividend by CVG. This is a low number and sustainable payout ratio.
DP11.97%
EPS Next 2Y24.72%
EPS Next 3Y17.23%
BIT:CVG (11/10/2025, 7:00:00 PM)
1.9
-0.07 (-3.55%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners0.2%
Inst Owner ChangeN/A
Ins Owners48.08%
Ins Owner ChangeN/A
Market Cap14.25M
Revenue(TTM)26.40M
Net Income(TTM)1.25M
Analysts80
Price Target3.98 (109.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
Yearly Dividend0.02
Dividend Growth(5Y)N/A
DP11.97%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)23.81%
EPS NY rev (3m)23.81%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)4.2%
Revenue NY rev (3m)4.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.18 | ||
| Fwd PE | 7.24 | ||
| P/S | 0.54 | ||
| P/FCF | 16.56 | ||
| P/OCF | 4.06 | ||
| P/B | 2.16 | ||
| P/tB | 2.37 | ||
| EV/EBITDA | 4.33 |
EPS(TTM)0.17
EY8.95%
EPS(NY)0.26
Fwd EY13.82%
FCF(TTM)0.11
FCFY6.04%
OCF(TTM)0.47
OCFY24.6%
SpS3.52
BVpS0.88
TBVpS0.8
PEG (NY)0.25
PEG (5Y)0.58
Graham Number1.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.98% | ||
| ROE | 19.01% | ||
| ROCE | 20.06% | ||
| ROIC | 14.69% | ||
| ROICexc | 15.5% | ||
| ROICexgc | 16.37% | ||
| OM | 8.69% | ||
| PM (TTM) | 4.75% | ||
| GM | 33.23% | ||
| FCFM | 3.26% |
ROA(3y)1.45%
ROA(5y)2.16%
ROE(3y)4.19%
ROE(5y)6.07%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y46.34%
ROICexgc growth 5Y-11.83%
ROICexc growth 3Y49.44%
ROICexc growth 5Y-11.64%
OM growth 3Y45.34%
OM growth 5Y7.93%
PM growth 3Y53.74%
PM growth 5Y8.77%
GM growth 3Y12.92%
GM growth 5Y8.95%
F-Score8
Asset Turnover1.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 6.18 | ||
| Debt/EBITDA | 0.86 | ||
| Cap/Depr | 126.49% | ||
| Cap/Sales | 10.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.94% | ||
| Profit Quality | 68.68% | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 2.18 |
F-Score8
WACC6.89%
ROIC/WACC2.13
Cap/Depr(3y)151.19%
Cap/Depr(5y)233.68%
Cap/Sales(3y)10.99%
Cap/Sales(5y)15.59%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)148.9%
EPS 3Y78.28%
EPS 5Y19.42%
EPS Q2Q%42.58%
EPS Next Y44.44%
EPS Next 2Y24.72%
EPS Next 3Y17.23%
EPS Next 5YN/A
Revenue 1Y (TTM)16.56%
Revenue growth 3Y12.84%
Revenue growth 5Y9.61%
Sales Q2Q%17.64%
Revenue Next Year12.45%
Revenue Next 2Y11.08%
Revenue Next 3Y9.61%
Revenue Next 5YN/A
EBIT growth 1Y93.56%
EBIT growth 3Y64.01%
EBIT growth 5Y18.3%
EBIT Next Year108%
EBIT Next 3Y38.87%
EBIT Next 5YN/A
FCF growth 1Y30.25%
FCF growth 3YN/A
FCF growth 5Y6.1%
OCF growth 1Y1.83%
OCF growth 3Y22.87%
OCF growth 5Y12.56%
CONVERGENZE SPA SOCIETA BENE / CVG.MI FAQ
What is the ChartMill fundamental rating of CONVERGENZE SPA SOCIETA BENE (CVG.MI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to CVG.MI.
What is the valuation status of CONVERGENZE SPA SOCIETA BENE (CVG.MI) stock?
ChartMill assigns a valuation rating of 7 / 10 to CONVERGENZE SPA SOCIETA BENE (CVG.MI). This can be considered as Undervalued.
Can you provide the profitability details for CONVERGENZE SPA SOCIETA BENE?
CONVERGENZE SPA SOCIETA BENE (CVG.MI) has a profitability rating of 6 / 10.
Can you provide the financial health for CVG stock?
The financial health rating of CONVERGENZE SPA SOCIETA BENE (CVG.MI) is 4 / 10.
What is the earnings growth outlook for CONVERGENZE SPA SOCIETA BENE?
The Earnings per Share (EPS) of CONVERGENZE SPA SOCIETA BENE (CVG.MI) is expected to grow by 44.44% in the next year.