CONVERGENZE SPA SOCIETA BENE (CVG.MI) Stock Fundamental Analysis
Europe - BIT:CVG - IT0005426215 - Common Stock
1.9 EUR
-0.07 (-3.55%)
Taking everything into account, CVG scores 6 out of 10 in our fundamental rating. CVG was compared to 30 industry peers in the Diversified Telecommunication Services industry. Both the profitability and the financial health of CVG get a neutral evaluation. Nothing too spectacular is happening here. CVG is evaluated to be cheap and growing strongly. This does not happen too often!
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.
Of the past 5 years CVG 4 years were profitable.
Of the past 5 years CVG 4 years had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 5.98%, CVG belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
CVG's Return On Equity of 19.01% is fine compared to the rest of the industry. CVG outperforms 76.67% of its industry peers.
CVG's Return On Invested Capital of 14.69% is amongst the best of the industry. CVG outperforms 93.33% 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 56.67% 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 66.67% 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 73.33% 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
Compared to 5 years ago, CVG has more shares outstanding
Compared to 1 year ago, CVG has an improved debt to assets ratio.
2.2 Solvency
CVG has an Altman-Z score of 2.18. 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's Altman-Z score of 2.18 is amongst the best of the industry. CVG outperforms 90.00% 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.
Looking at the Debt to FCF ratio, with a value of 6.18, CVG is in the better half of the industry, outperforming 76.67% of the companies in the same industry.
CVG has a Debt/Equity ratio of 0.58. This is a neutral value indicating CVG is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.58, CVG belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
| 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.
Looking at the Current ratio, with a value of 0.62, CVG is doing worse than 73.33% of the companies in the same industry.
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'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
The EPS growth rate is stable: in the next years the growth will be about the same 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 stable.
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 86.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of CVG to the average of the S&P500 Index (25.07), we can say CVG is valued rather cheaply.
CVG is valuated reasonably with a Price/Forward Earnings ratio of 8.96.
Based on the Price/Forward Earnings ratio, CVG is valued a bit cheaper than 76.67% of the companies in the same industry.
CVG is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.18 | ||
| Fwd PE | 8.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CVG is valued cheaper than 90.00% of the companies 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 | 4.33 |
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 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 4.92, CVG is paying slightly less dividend.
With a Dividend Yield of 1.03, CVG pays less dividend than the S&P500 average, which is at 2.44.
| 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
-0.07 (-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 | 1.03% |
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 | 4.33 |
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 | 2.18 |
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 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.