CONVERGENZE SPA SOCIETA BENE (CVG.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:CVG - IT0005426215 - Common Stock
1.72 EUR
-0.25 (-12.69%)
We assign a fundamental rating of 6 out of 10 to CVG. CVG was compared to 31 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.
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 has a Return On Assets of 5.98%. This is amongst the best in the industry. CVG outperforms 87.10% of its industry peers.
CVG's Return On Equity of 19.01% is fine compared to the rest of the industry. CVG outperforms 77.42% of its industry peers.
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 has a Profit Margin (4.75%) which is in line with 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.
CVG's Operating Margin has improved in the last couple of years.
CVG has a worse Gross Margin (33.23%) than 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
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 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.
CVG has a better Altman-Z score (2.18) 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.
CVG's Debt to FCF ratio of 6.18 is fine compared to the rest of the industry. CVG outperforms 77.42% of its industry peers.
A Debt/Equity ratio of 0.58 indicates that CVG is somewhat dependend on debt financing.
The Debt to Equity ratio of CVG (0.58) is better 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
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.
CVG has a worse Current ratio (0.62) than 74.19% of its industry peers.
A Quick Ratio of 0.58 indicates that CVG may have some problems paying its short term obligations.
With a Quick ratio value of 0.58, CVG is not doing good in the industry: 74.19% of the companies in the same industry are doing better.
| 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.
Measured over the past years, CVG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.42% on average per year.
Looking at the last year, CVG shows a quite strong growth in Revenue. The Revenue has grown by 16.56% in the last year.
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
The Earnings Per Share is expected to grow by 17.23% on average over the next years. This is quite good.
CVG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.61% yearly.
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.
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
The Price/Earnings ratio is 10.12, which indicates a very decent valuation of CVG.
CVG's Price/Earnings ratio is rather cheap when compared to the industry. CVG is cheaper than 87.10% of the companies in the same industry.
CVG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.59.
CVG is valuated cheaply with a Price/Forward Earnings ratio of 6.55.
Based on the Price/Forward Earnings ratio, CVG is valued cheaply inside the industry as 83.87% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.03, CVG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.12 | ||
| Fwd PE | 6.55 |
4.2 Price Multiples
90.32% of the companies in the same industry are more expensive than CVG, based on the Enterprise Value to EBITDA ratio.
CVG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.99 | ||
| 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.
CVG has a very decent profitability rating, which 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)0.23
PEG (5Y)0.52
EPS Next 2Y24.72%
EPS Next 3Y17.23%
5. Dividend
5.1 Amount
CVG has a Yearly Dividend Yield of 1.14%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.36, CVG is paying slightly less dividend.
CVG's Dividend Yield is slightly below the S&P500 average, which is at 1.88.
| 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
11.97% of the earnings are spent on dividend by CVG. This is a low number and sustainable payout ratio.
DP11.97%
EPS Next 2Y24.72%
EPS Next 3Y17.23%
BIT:CVG (12/23/2025, 7:00:00 PM)
1.72
-0.25 (-12.69%)
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 Cap12.90M
Revenue(TTM)26.40M
Net Income(TTM)1.25M
Analysts80
Price Target3.98 (131.4%)
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 | 10.12 | ||
| Fwd PE | 6.55 | ||
| P/S | 0.49 | ||
| P/FCF | 14.99 | ||
| P/OCF | 3.68 | ||
| P/B | 1.96 | ||
| P/tB | 2.14 | ||
| EV/EBITDA | 4.33 |
EPS(TTM)0.17
EY9.88%
EPS(NY)0.26
Fwd EY15.27%
FCF(TTM)0.11
FCFY6.67%
OCF(TTM)0.47
OCFY27.18%
SpS3.52
BVpS0.88
TBVpS0.8
PEG (NY)0.23
PEG (5Y)0.52
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.