CONVERGENZE SPA SOCIETA BENE (CVG.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:CVG - IT0005426215 - Common Stock
1.85 EUR
+0.13 (+7.56%)
Overall CVG gets a fundamental rating of 6 out of 10. We evaluated CVG against 35 industry peers in the Diversified Telecommunication Services industry. CVG has only an average score on both its financial health and profitability. CVG is growing strongly while it also seems undervalued. This is an interesting combination
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 better Return On Assets (5.98%) than 83.78% of its industry peers.
- CVG has a better Return On Equity (19.01%) than 75.68% of its industry peers.
- The Return On Invested Capital of CVG (14.69%) is better than 91.89% 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 51.35% of the companies in the same industry.
- In the last couple of years the Profit Margin of CVG has grown nicely.
- CVG's Operating Margin of 8.69% is on the low side compared to the rest of the industry. CVG is outperformed by 72.97% of its industry peers.
- In the last couple of years the Operating Margin of CVG has grown nicely.
- With a Gross Margin value of 33.23%, CVG is not doing good in the industry: 72.97% of the companies in the same industry are doing better.
- 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
- CVG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- CVG has less shares outstanding than it did 1 year ago.
- CVG has more shares outstanding than it did 5 years ago.
- CVG has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.11 indicates that CVG is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of CVG (2.11) is better than 89.19% of its industry peers.
- 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's Debt to FCF ratio of 6.18 is fine compared to the rest of the industry. CVG outperforms 78.38% of its industry peers.
- A Debt/Equity ratio of 0.58 indicates that CVG is somewhat dependend on debt financing.
- The Debt to Equity ratio of CVG (0.58) is better than 81.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 6.18 | ||
| Altman-Z | 2.11 |
ROIC/WACC2.19
WACC6.71%
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.
- The Current ratio of CVG (0.62) is worse than 78.38% 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.
- CVG has a Quick ratio of 0.58. This is in the lower half of the industry: CVG underperforms 78.38% of its industry peers.
| 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.
- CVG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.42% yearly.
- CVG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.56%.
- The Revenue has been growing by 9.61% on average over the past years. This is quite good.
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
- Based on estimates for the next years, CVG will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.23% on average per year.
- 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
- With a Price/Earnings ratio of 10.88, the valuation of CVG can be described as very reasonable.
- Based on the Price/Earnings ratio, CVG is valued cheaply inside the industry as 86.49% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, CVG is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 7.04, the valuation of CVG can be described as very cheap.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CVG indicates a rather cheap valuation: CVG is cheaper than 94.59% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. CVG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.88 | ||
| Fwd PE | 7.04 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CVG is valued cheaper than 94.59% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of CVG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.12 | ||
| EV/EBITDA | 3.95 |
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)0.24
PEG (5Y)0.56
EPS Next 2Y24.72%
EPS Next 3Y17.23%
5. Dividend
5.1 Amount
- CVG has a Yearly Dividend Yield of 1.11%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 3.26, CVG is paying slightly less dividend.
- Compared to the average S&P500 Dividend Yield of 1.81, CVG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- CVG pays out 11.97% of its income as dividend. This is a sustainable payout ratio.
DP11.97%
EPS Next 2Y24.72%
EPS Next 3Y17.23%
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 for CVG stock?
ChartMill assigns a valuation rating of 8 / 10 to CONVERGENZE SPA SOCIETA BENE (CVG.MI). This can be considered as Undervalued.
How profitable is CONVERGENZE SPA SOCIETA BENE (CVG.MI) stock?
CONVERGENZE SPA SOCIETA BENE (CVG.MI) has a profitability rating of 6 / 10.
What is the valuation of CONVERGENZE SPA SOCIETA BENE based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CONVERGENZE SPA SOCIETA BENE (CVG.MI) is 10.88 and the Price/Book (PB) ratio is 2.1.
How sustainable is the dividend of CONVERGENZE SPA SOCIETA BENE (CVG.MI) stock?
The dividend rating of CONVERGENZE SPA SOCIETA BENE (CVG.MI) is 2 / 10 and the dividend payout ratio is 11.97%.