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 32 industry peers in the Diversified Telecommunication Services industry. CVG has only an average score on both its financial health and profitability. CVG has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!
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
The Return On Assets of CVG (5.98%) is better than 87.10% of its industry peers.
Looking at the Return On Equity, with a value of 19.01%, CVG is in the better half of the industry, outperforming 77.42% of the companies in the same industry.
CVG's Return On Invested Capital of 14.69% is amongst the best of the industry. CVG outperforms 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
CVG's Profit Margin of 4.75% is in line compared to the rest of the industry. CVG outperforms 54.84% 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 67.74% of the companies in the same industry.
In the last couple of years the Operating Margin of CVG has grown nicely.
CVG has a Gross Margin of 33.23%. This is in the lower half of the industry: CVG underperforms 70.97% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
Compared to 1 year ago, CVG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.18 indicates that CVG is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CVG (2.18) is better than 90.32% of its industry peers.
The Debt to FCF ratio of CVG is 6.18, which is on the high side as it means it would take CVG, 6.18 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CVG (6.18) is better than 77.42% 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 better Debt to Equity ratio (0.58) than 83.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 6.18 | ||
| Altman-Z | 2.18 |
ROIC/WACC2.13
WACC6.89%
2.3 Liquidity
A Current Ratio of 0.62 indicates that CVG may have some problems paying its short term obligations.
The Current ratio of CVG (0.62) is worse than 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.
CVG has a worse Quick ratio (0.58) than 74.19% 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.
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.
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.
The Revenue is expected to grow by 9.61% on average over the next years. This is quite good.
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
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
With a Price/Earnings ratio of 11.18, the valuation of CVG can be described as very reasonable.
Based on the Price/Earnings ratio, CVG is valued cheaper than 87.10% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.54, CVG is valued rather cheaply.
A Price/Forward Earnings ratio of 7.24 indicates a rather cheap valuation of CVG.
CVG's Price/Forward Earnings ratio is rather cheap when compared to the industry. CVG is cheaper than 83.87% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, CVG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.18 | ||
| Fwd PE | 7.24 |
4.2 Price Multiples
CVG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CVG is cheaper than 90.32% 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 | 16.56 | ||
| 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.
The decent profitability rating of CVG 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
With a Yearly Dividend Yield of 1.14%, CVG has a reasonable but not impressive dividend return.
CVG's Dividend Yield is slightly below the industry average, which is at 4.63.
Compared to an average S&P500 Dividend Yield of 2.27, CVG's dividend is way lower than the S&P500 average.
| 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
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%
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.