CONVERGENZE SPA SOCIETA BENE (CVG.MI) Stock Fundamental Analysis
Europe - BIT:CVG - IT0005426215 - Common Stock
2.02 EUR
-0.02 (-0.98%)
We assign a fundamental rating of 5 out of 10 to CVG. CVG was compared to 30 industry peers in the Diversified Telecommunication Services industry. CVG has an average financial health and profitability rating. CVG is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
CVG had positive earnings in the past year.
CVG had a positive operating cash flow in the past year.
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
The Return On Assets of CVG (5.98%) is better than 86.67% of its industry peers.
Looking at the Return On Equity, with a value of 19.01%, CVG belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
CVG has a better Return On Invested Capital (14.69%) than 96.67% 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
CVG's Profit Margin of 4.75% is in line compared to the rest of the industry. CVG outperforms 53.33% of its industry peers.
CVG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 8.69%, CVG is doing worse than 60.00% of the companies in the same industry.
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 73.33% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CVG is creating value.
Compared to 1 year ago, CVG has less shares outstanding
CVG has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CVG has been reduced compared to a year ago.
2.2 Solvency
CVG has an Altman-Z score of 2.22. 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.
CVG has a Altman-Z score of 2.22. This is amongst the best in the industry. CVG outperforms 90.00% 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 has a better Debt to FCF ratio (6.18) than 70.00% of its industry peers.
A Debt/Equity ratio of 0.58 indicates that CVG is somewhat dependend on debt financing.
CVG's Debt to Equity ratio of 0.58 is fine compared to the rest of the industry. CVG outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 6.18 | ||
| Altman-Z | 2.22 |
ROIC/WACC2.13
WACC6.91%
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 73.33% of its industry peers.
A Quick Ratio of 0.58 indicates that CVG may have some problems paying its short term obligations.
CVG's Quick ratio of 0.58 is on the low side compared to the rest of the industry. CVG is outperformed by 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
CVG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 148.90%, which is quite impressive.
The Earnings Per Share has been growing by 19.42% on average over the past years. This is quite good.
CVG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.56%.
Measured over the past years, CVG shows a quite strong growth in Revenue. The Revenue has been growing by 9.61% on average per year.
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 16.80% on average per year.
The Revenue is expected to grow by 9.10% on average over the next years. This is quite good.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 11.88.
Based on the Price/Earnings ratio, CVG is valued a bit cheaper than 80.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. CVG is valued rather cheaply when compared to this.
CVG is valuated reasonably with a Price/Forward Earnings ratio of 9.52.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CVG indicates a somewhat cheap valuation: CVG is cheaper than 80.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CVG to the average of the S&P500 Index (22.88), we can say CVG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.88 | ||
| Fwd PE | 9.52 |
4.2 Price Multiples
83.33% of the companies in the same industry are more expensive than CVG, based on the Enterprise Value to EBITDA ratio.
60.00% of the companies in the same industry are cheaper than CVG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.6 | ||
| EV/EBITDA | 4.53 |
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.
A more expensive valuation may be justified as CVG's earnings are expected to grow with 16.80% in the coming years.
PEG (NY)0.71
PEG (5Y)0.61
EPS Next 2Y22.47%
EPS Next 3Y16.8%
5. Dividend
5.1 Amount
CVG has a yearly dividend return of 0.98%, which is pretty low.
Compared to an average industry Dividend Yield of 4.57, CVG is paying slightly less dividend.
With a Dividend Yield of 0.98, CVG pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
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 (9/17/2025, 7:00:00 PM)
2.02
-0.02 (-0.98%)
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 Cap15.15M
Analysts80
Price Target3.98 (97.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
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 | 11.88 | ||
| Fwd PE | 9.52 | ||
| P/S | 0.57 | ||
| P/FCF | 17.6 | ||
| P/OCF | 4.32 | ||
| P/B | 2.3 | ||
| P/tB | 2.52 | ||
| EV/EBITDA | 4.53 |
EPS(TTM)0.17
EY8.42%
EPS(NY)0.21
Fwd EY10.5%
FCF(TTM)0.11
FCFY5.68%
OCF(TTM)0.47
OCFY23.14%
SpS3.52
BVpS0.88
TBVpS0.8
PEG (NY)0.71
PEG (5Y)0.61
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
ROICexcg growth 3Y46.34%
ROICexcg 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 | 2.22 |
F-Score8
WACC6.91%
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 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%