CONVERGENZE SPA SOCIETA BENE (CVG.MI) Stock Fundamental Analysis
BIT:CVG - Euronext Milan - IT0005426215 - Common Stock - Currency: EUR
CVG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 28 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
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
CVG's Return On Assets of 5.13% is amongst the best of the industry. CVG outperforms 82.14% of its industry peers.
CVG has a better Return On Equity (17.86%) than 82.14% of its industry peers.
CVG has a better Return On Invested Capital (13.26%) than 96.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.13% | ||
| ROE | 17.86% | ||
| ROIC | 13.26% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CVG's Profit Margin of 4.42% is in line compared to the rest of the industry. CVG outperforms 46.43% of its industry peers.
In the last couple of years the Profit Margin of CVG has grown nicely.
Looking at the Operating Margin, with a value of 8.50%, CVG is doing worse than 60.71% of the companies in the same industry.
In the last couple of years the Operating Margin of CVG has grown nicely.
The Gross Margin of CVG (31.55%) is worse than 75.00% of its industry peers.
In the last couple of years the Gross Margin of CVG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.5% | ||
| PM (TTM) | 4.42% | ||
| GM | 31.55% |
OM growth 3Y45.34%
OM growth 5Y7.93%
PM growth 3Y53.74%
PM growth 5Y8.77%
GM growth 3Y16%
GM growth 5Y10.73%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CVG is creating some value.
CVG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 2.01 indicates that CVG is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.01, CVG belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
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.
CVG has a better Debt to FCF ratio (2.81) than 92.86% of its industry peers.
CVG has a Debt/Equity ratio of 0.74. This is a neutral value indicating CVG is somewhat dependend on debt financing.
CVG's Debt to Equity ratio of 0.74 is fine compared to the rest of the industry. CVG outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 2.81 | ||
| Altman-Z | 2.01 |
ROIC/WACC1.78
WACC7.46%
2.3 Liquidity
CVG has a Current Ratio of 0.65. 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 Current ratio (0.65) than 75.00% 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 doing worse than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 268.37% over the past year.
The Earnings Per Share has been growing by 19.42% on average over the past years. This is quite good.
Looking at the last year, CVG shows a very strong growth in Revenue. The Revenue has grown by 69.58%.
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)268.37%
EPS 3Y78.28%
EPS 5Y19.42%
EPS Q2Q%174.19%
Revenue 1Y (TTM)69.58%
Revenue growth 3Y12.84%
Revenue growth 5Y9.61%
Sales Q2Q%115.84%
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.
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
Based on the Price/Earnings ratio of 7.76, the valuation of CVG can be described as very cheap.
CVG's Price/Earnings ratio is rather cheap when compared to the industry. CVG is cheaper than 92.86% of the companies in the same industry.
CVG is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.15, which indicates a very decent valuation of CVG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CVG indicates a rather cheap valuation: CVG is cheaper than 82.14% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, CVG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.76 | ||
| Fwd PE | 9.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CVG is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CVG is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.22 | ||
| EV/EBITDA | 4.81 |
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)0.47
PEG (5Y)0.4
EPS Next 2Y22.47%
EPS Next 3Y16.8%
5. Dividend
5.1 Amount
CVG has a yearly dividend return of 1.00%, which is pretty low.
Compared to an average industry Dividend Yield of 4.61, CVG is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.35, CVG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y22.47%
EPS Next 3Y16.8%
BIT:CVG (7/3/2025, 7:00:00 PM)
1.94
-0.02 (-1.02%)
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 Cap14.55M
Analysts80
Price Target3.98 (105.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
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)0.65%
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 | 7.76 | ||
| Fwd PE | 9.15 | ||
| P/S | 0.6 | ||
| P/FCF | 7.22 | ||
| P/OCF | 3.49 | ||
| P/B | 2.43 | ||
| P/tB | 2.74 | ||
| EV/EBITDA | 4.81 |
EPS(TTM)0.25
EY12.89%
EPS(NY)0.21
Fwd EY10.93%
FCF(TTM)0.27
FCFY13.85%
OCF(TTM)0.56
OCFY28.68%
SpS3.23
BVpS0.8
TBVpS0.71
PEG (NY)0.47
PEG (5Y)0.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.13% | ||
| ROE | 17.86% | ||
| ROCE | 18.11% | ||
| ROIC | 13.26% | ||
| ROICexc | 14.27% | ||
| ROICexgc | 15.26% | ||
| OM | 8.5% | ||
| PM (TTM) | 4.42% | ||
| GM | 31.55% | ||
| FCFM | 8.32% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
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 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y45.34%
OM growth 5Y7.93%
PM growth 3Y53.74%
PM growth 5Y8.77%
GM growth 3Y16%
GM growth 5Y10.73%
F-Score7
Asset Turnover1.16
Health
| Industry Rank | Sector 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 | 2.01 |
F-Score7
WACC7.46%
ROIC/WACC1.78
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)268.37%
EPS 3Y78.28%
EPS 5Y19.42%
EPS Q2Q%174.19%
EPS Next Y16.67%
EPS Next 2Y22.47%
EPS Next 3Y16.8%
EPS Next 5YN/A
Revenue 1Y (TTM)69.58%
Revenue growth 3Y12.84%
Revenue growth 5Y9.61%
Sales Q2Q%115.84%
Revenue Next Year7.92%
Revenue Next 2Y9.72%
Revenue Next 3Y9.1%
Revenue Next 5YN/A
EBIT growth 1Y832.73%
EBIT growth 3Y64.01%
EBIT growth 5Y18.3%
EBIT Next Year108%
EBIT Next 3Y38.87%
EBIT Next 5YN/A
FCF growth 1Y212.18%
FCF growth 3YN/A
FCF growth 5Y6.1%
OCF growth 1Y332.46%
OCF growth 3Y22.87%
OCF growth 5Y12.56%