CONVERGENZE SPA SOCIETA BENE (CVG.MI) Stock Fundamental Analysis
Europe - BIT:CVG - IT0005426215 - Common Stock
1.9 EUR
-0.02 (-1.04%)
CVG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 31 industry peers in the Diversified Telecommunication Services industry. CVG has an average financial health and profitability rating. 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.
In the past year CVG had a positive cash flow from operations.
Of the past 5 years CVG 4 years were profitable.
CVG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
CVG has a better Return On Assets (5.98%) than 89.66% of its industry peers.
CVG has a Return On Equity of 19.01%. This is in the better half of the industry: CVG outperforms 79.31% of its industry peers.
CVG's Return On Invested Capital of 14.69% is amongst the best of the industry. CVG outperforms 96.55% 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
The Profit Margin of CVG (4.75%) is comparable to the rest of the 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 62.07% of its industry peers.
CVG's Operating Margin has improved in the last couple of years.
The Gross Margin of CVG (33.23%) is worse than 72.41% of its industry peers.
CVG's Gross Margin has improved in the last couple of years.
| 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.
Compared to 1 year ago, CVG has less shares outstanding
The number of shares outstanding for CVG has been increased compared to 5 years ago.
CVG has a better debt/assets ratio than last year.
2.2 Solvency
CVG has an Altman-Z score of 2.20. 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.
Looking at the Altman-Z score, with a value of 2.20, CVG belongs to the top of the industry, outperforming 93.10% 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 Debt to FCF ratio of 6.18. This is in the better half of the industry: CVG outperforms 72.41% of its industry peers.
CVG has a Debt/Equity ratio of 0.58. This is a neutral value indicating CVG is somewhat dependend on debt financing.
CVG has a Debt to Equity ratio of 0.58. This is amongst the best in the industry. CVG outperforms 86.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 6.18 | ||
| Altman-Z | 2.2 |
ROIC/WACC2.12
WACC6.93%
2.3 Liquidity
A Current Ratio of 0.62 indicates that CVG may have some problems paying its short term obligations.
With a Current ratio value of 0.62, CVG is not doing good in the industry: 72.41% of the companies in the same industry are doing better.
A Quick Ratio of 0.58 indicates that CVG may have some problems paying its short term obligations.
CVG has a Quick ratio of 0.58. This is in the lower half of the industry: CVG underperforms 72.41% 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.
The Revenue has grown by 16.56% in the past year. This is quite good.
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
CVG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.80% yearly.
Based on estimates for the next years, CVG will show a quite strong growth in Revenue. The Revenue will grow by 9.10% on average per year.
EPS Next Y16.67%
EPS Next 2Y22.47%
EPS Next 3Y16.8%
EPS Next 5YN/A
Revenue Next Year7.92%
Revenue Next 2Y9.72%
Revenue Next 3Y9.1%
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
Based on the Price/Earnings ratio of 11.18, the valuation of CVG can be described as reasonable.
82.76% of the companies in the same industry are more expensive than CVG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.89, CVG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.96, the valuation of CVG can be described as reasonable.
Based on the Price/Forward Earnings ratio, CVG is valued a bit cheaper than 79.31% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CVG to the average of the S&P500 Index (34.59), we can say CVG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.18 | ||
| Fwd PE | 8.96 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CVG indicates a rather cheap valuation: CVG is cheaper than 89.66% of the companies listed in the same industry.
CVG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.56 | ||
| EV/EBITDA | 4.45 |
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.
The decent profitability rating of CVG may justify a higher PE ratio.
CVG's earnings are expected to grow with 16.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.67
PEG (5Y)0.58
EPS Next 2Y22.47%
EPS Next 3Y16.8%
5. Dividend
5.1 Amount
CVG has a Yearly Dividend Yield of 1.03%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.93, CVG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, CVG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
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 2Y22.47%
EPS Next 3Y16.8%
BIT:CVG (11/10/2025, 7:00:00 PM)
1.9
-0.02 (-1.04%)
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 | 1.03% |
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)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.18 | ||
| Fwd PE | 8.96 | ||
| P/S | 0.54 | ||
| P/FCF | 16.56 | ||
| P/OCF | 4.06 | ||
| P/B | 2.16 | ||
| P/tB | 2.37 | ||
| EV/EBITDA | 4.45 |
EPS(TTM)0.17
EY8.95%
EPS(NY)0.21
Fwd EY11.16%
FCF(TTM)0.11
FCFY6.04%
OCF(TTM)0.47
OCFY24.6%
SpS3.52
BVpS0.88
TBVpS0.8
PEG (NY)0.67
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 | 2.2 |
F-Score8
WACC6.93%
ROIC/WACC2.12
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 Y16.67%
EPS Next 2Y22.47%
EPS Next 3Y16.8%
EPS Next 5YN/A
Revenue 1Y (TTM)16.56%
Revenue growth 3Y12.84%
Revenue growth 5Y9.61%
Sales Q2Q%17.64%
Revenue Next Year7.92%
Revenue Next 2Y9.72%
Revenue Next 3Y9.1%
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 16.67% in the next year.