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CONVERGENZE SPA SOCIETA BENE (CVG.MI) Stock Fundamental Analysis

BIT:CVG - Euronext Milan - IT0005426215 - Common Stock - Currency: EUR

1.69  -0.05 (-2.87%)

Fundamental Rating

6

Taking everything into account, CVG scores 6 out of 10 in our fundamental rating. CVG was compared to 29 industry peers in the Diversified Telecommunication Services industry. CVG has an average financial health and profitability rating. CVG is evaluated to be cheap and growing strongly. This does not happen too often! These ratings could make CVG a good candidate for value and growth investing.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

CVG had positive earnings in the past year.
In the past year CVG had a positive cash flow from operations.
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.
CVG.MI Yearly Net Income VS EBIT VS OCF VS FCFCVG.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 0 2M -2M -4M

1.2 Ratios

The Return On Assets of CVG (5.13%) is better than 80.00% of its industry peers.
The Return On Equity of CVG (17.86%) is better than 86.67% of its industry peers.
The Return On Invested Capital of CVG (14.17%) is better than 93.33% of its industry peers.
Industry RankSector Rank
ROA 5.13%
ROE 17.86%
ROIC 14.17%
ROA(3y)-0.12%
ROA(5y)2.24%
ROE(3y)-0.78%
ROE(5y)7.89%
ROIC(3y)N/A
ROIC(5y)N/A
CVG.MI Yearly ROA, ROE, ROICCVG.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20

1.3 Margins

CVG has a Profit Margin (4.42%) which is in line with its industry peers.
In the last couple of years the Profit Margin of CVG has grown nicely.
CVG has a Operating Margin of 8.50%. This is in the lower half of the industry: CVG underperforms 63.33% of its industry peers.
In the last couple of years the Operating Margin of CVG has grown nicely.
Looking at the Gross Margin, with a value of 31.55%, CVG is doing worse than 80.00% of the companies in the same industry.
CVG's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 8.5%
PM (TTM) 4.42%
GM 31.55%
OM growth 3Y-11.73%
OM growth 5Y7.11%
PM growth 3Y-18.87%
PM growth 5Y10.33%
GM growth 3Y0.91%
GM growth 5Y5%
CVG.MI Yearly Profit, Operating, Gross MarginsCVG.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 0 10 20

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5

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 about the same amount of shares outstanding.
The number of shares outstanding for CVG has been increased compared to 5 years ago.
The debt/assets ratio for CVG has been reduced compared to a year ago.
CVG.MI Yearly Shares OutstandingCVG.MI Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 2023 2M 4M 6M
CVG.MI Yearly Total Debt VS Total AssetsCVG.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M

2.2 Solvency

CVG has an Altman-Z score of 1.94. 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 better Altman-Z score (1.94) than 86.67% of its industry peers.
The Debt to FCF ratio of CVG is 2.81, which is a good value as it means it would take CVG, 2.81 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CVG (2.81) is better than 96.67% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that CVG is somewhat dependend on debt financing.
CVG has a better Debt to Equity ratio (0.74) than 73.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.74
Debt/FCF 2.81
Altman-Z 1.94
ROIC/WACC2.09
WACC6.79%
CVG.MI Yearly LT Debt VS Equity VS FCFCVG.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 0 2M -2M 4M -4M

2.3 Liquidity

A Current Ratio of 0.65 indicates that CVG may have some problems paying its short term obligations.
The Current ratio of CVG (0.65) is worse than 63.33% of its industry peers.
A Quick Ratio of 0.62 indicates that CVG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.62, CVG is in line with its industry, outperforming 43.33% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.65
Quick Ratio 0.62
CVG.MI Yearly Current Assets VS Current LiabilitesCVG.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2017 2018 2019 2020 2021 2022 2023 2M 4M 6M 8M

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8

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 433.95% 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 17.89% yearly.
The Revenue has decreased by -6.89% in the past year.
The Revenue has been growing by 10.51% on average over the past years. This is quite good.
EPS 1Y (TTM)433.95%
EPS 3Y-8.79%
EPS 5Y17.89%
EPS Q2Q%1195.24%
Revenue 1Y (TTM)-6.89%
Revenue growth 3Y11.59%
Revenue growth 5Y10.51%
Sales Q2Q%15.28%

3.2 Future

CVG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 56.83% yearly.
The Revenue is expected to grow by 22.19% on average over the next years. This is a very strong growth
EPS Next Y157.14%
EPS Next 2Y73.21%
EPS Next 3Y56.83%
EPS Next 5YN/A
Revenue Next Year51.56%
Revenue Next 2Y27.89%
Revenue Next 3Y22.19%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 accelerating.
CVG.MI Yearly Revenue VS EstimatesCVG.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10M 20M 30M
CVG.MI Yearly EPS VS EstimatesCVG.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.05 0.1 0.15 0.2 0.25

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9

4. Valuation

4.1 Price/Earnings Ratio

CVG is valuated correctly with a Price/Earnings ratio of 12.07.
CVG's Price/Earnings ratio is a bit cheaper when compared to the industry. CVG is cheaper than 63.33% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, CVG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.97, the valuation of CVG can be described as very cheap.
CVG's Price/Forward Earnings ratio is rather cheap when compared to the industry. CVG is cheaper than 90.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. CVG is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 12.07
Fwd PE 7.97
CVG.MI Price Earnings VS Forward Price EarningsCVG.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CVG indicates a somewhat cheap valuation: CVG is cheaper than 76.67% of the companies listed in the same industry.
CVG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CVG is cheaper than 83.33% of the companies in the same industry.
Industry RankSector Rank
P/FCF 6.29
EV/EBITDA 4.35
CVG.MI Per share dataCVG.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3

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.
The decent profitability rating of CVG may justify a higher PE ratio.
CVG's earnings are expected to grow with 56.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.08
PEG (5Y)0.67
EPS Next 2Y73.21%
EPS Next 3Y56.83%

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1

5. Dividend

5.1 Amount

CVG has a Yearly Dividend Yield of 1.17%.
CVG's Dividend Yield is slightly below the industry average, which is at 5.01.
Compared to an average S&P500 Dividend Yield of 2.33, CVG's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.17%

5.2 History

Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

DPN/A
EPS Next 2Y73.21%
EPS Next 3Y56.83%
CVG.MI Yearly Income VS Free CF VS DividendCVG.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2017 2018 2019 2020 2021 2022 2023 0 -1M -2M -3M -4M

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CONVERGENZE SPA SOCIETA BENE

BIT:CVG (3/5/2025, 7:00:00 PM)

1.69

-0.05 (-2.87%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)N/A N/A
Earnings (Next)N/A N/A
Inst Owners0.2%
Inst Owner ChangeN/A
Ins Owners48.08%
Ins Owner ChangeN/A
Market Cap12.68M
Analysts80
Price Target3.95 (133.73%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.17%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
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)3.72%
Revenue NY rev (3m)3.72%
Valuation
Industry RankSector Rank
PE 12.07
Fwd PE 7.97
P/S 0.52
P/FCF 6.29
P/OCF 3.04
P/B 2.11
P/tB 2.39
EV/EBITDA 4.35
EPS(TTM)0.14
EY8.28%
EPS(NY)0.21
Fwd EY12.55%
FCF(TTM)0.27
FCFY15.9%
OCF(TTM)0.56
OCFY32.92%
SpS3.23
BVpS0.8
TBVpS0.71
PEG (NY)0.08
PEG (5Y)0.67
Profitability
Industry RankSector Rank
ROA 5.13%
ROE 17.86%
ROCE 18.11%
ROIC 14.17%
ROICexc 15.26%
ROICexgc 16.31%
OM 8.5%
PM (TTM) 4.42%
GM 31.55%
FCFM 8.32%
ROA(3y)-0.12%
ROA(5y)2.24%
ROE(3y)-0.78%
ROE(5y)7.89%
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 3Y-13.41%
ROICexcg growth 5Y-9.44%
ROICexc growth 3Y-12.98%
ROICexc growth 5Y-10.29%
OM growth 3Y-11.73%
OM growth 5Y7.11%
PM growth 3Y-18.87%
PM growth 5Y10.33%
GM growth 3Y0.91%
GM growth 5Y5%
F-Score7
Asset Turnover1.16
Health
Industry RankSector Rank
Debt/Equity 0.74
Debt/FCF 2.81
Debt/EBITDA 1.1
Cap/Depr 109.38%
Cap/Sales 8.9%
Interest Coverage 250
Cash Conversion 103.48%
Profit Quality 188.3%
Current Ratio 0.65
Quick Ratio 0.62
Altman-Z 1.94
F-Score7
WACC6.79%
ROIC/WACC2.09
Cap/Depr(3y)236.32%
Cap/Depr(5y)252.46%
Cap/Sales(3y)16.45%
Cap/Sales(5y)15.14%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)433.95%
EPS 3Y-8.79%
EPS 5Y17.89%
EPS Q2Q%1195.24%
EPS Next Y157.14%
EPS Next 2Y73.21%
EPS Next 3Y56.83%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.89%
Revenue growth 3Y11.59%
Revenue growth 5Y10.51%
Sales Q2Q%15.28%
Revenue Next Year51.56%
Revenue Next 2Y27.89%
Revenue Next 3Y22.19%
Revenue Next 5YN/A
EBIT growth 1Y832.73%
EBIT growth 3Y-1.5%
EBIT growth 5Y18.37%
EBIT Next Year257.75%
EBIT Next 3Y70.04%
EBIT Next 5YN/A
FCF growth 1Y160.35%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y5329.57%
OCF growth 3Y44.97%
OCF growth 5Y29.1%