DHH SPA (DHH.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:DHH - IT0005203622 - Common Stock
24.6 EUR
0 (0%)
We assign a fundamental rating of 5 out of 10 to DHH. DHH was compared to 70 industry peers in the IT Services industry. DHH scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, DHH is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- DHH had positive earnings in the past year.
- DHH had a positive operating cash flow in the past year.
- In the past 5 years DHH has always been profitable.
- In the past 5 years DHH always reported a positive cash flow from operatings.
1.2 Ratios
- DHH has a Return On Assets of 5.26%. This is comparable to the rest of the industry: DHH outperforms 57.14% of its industry peers.
- DHH has a Return On Equity (12.73%) which is comparable to the rest of the industry.
- DHH has a Return On Invested Capital (8.08%) which is comparable to the rest of the industry.
- DHH had an Average Return On Invested Capital over the past 3 years of 8.73%. This is significantly below the industry average of 26.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.26% | ||
| ROE | 12.73% | ||
| ROIC | 8.08% |
ROA(3y)3.93%
ROA(5y)4.47%
ROE(3y)8.68%
ROE(5y)9.26%
ROIC(3y)8.73%
ROIC(5y)7.32%
1.3 Margins
- DHH has a better Profit Margin (10.05%) than 87.14% of its industry peers.
- In the last couple of years the Profit Margin of DHH has grown nicely.
- DHH's Operating Margin of 18.89% is amongst the best of the industry. DHH outperforms 94.29% of its industry peers.
- DHH's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 93.24%, DHH belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
- DHH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.89% | ||
| PM (TTM) | 10.05% | ||
| GM | 93.24% |
OM growth 3Y-2.06%
OM growth 5Y54.36%
PM growth 3Y-14.91%
PM growth 5Y46.79%
GM growth 3Y-0.79%
GM growth 5Y-1.44%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DHH is creating some value.
- Compared to 1 year ago, DHH has more shares outstanding
- The number of shares outstanding for DHH has been increased compared to 5 years ago.
- DHH has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.35 indicates that DHH is not in any danger for bankruptcy at the moment.
- DHH has a Altman-Z score of 3.35. This is in the better half of the industry: DHH outperforms 64.29% of its industry peers.
- The Debt to FCF ratio of DHH is 3.64, which is a good value as it means it would take DHH, 3.64 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of DHH (3.64) is comparable to the rest of the industry.
- DHH has a Debt/Equity ratio of 0.51. This is a neutral value indicating DHH is somewhat dependend on debt financing.
- DHH has a Debt to Equity ratio of 0.51. This is comparable to the rest of the industry: DHH outperforms 47.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.64 | ||
| Altman-Z | 3.35 |
ROIC/WACC1.06
WACC7.59%
2.3 Liquidity
- A Current Ratio of 1.29 indicates that DHH should not have too much problems paying its short term obligations.
- The Current ratio of DHH (1.29) is comparable to the rest of the industry.
- A Quick Ratio of 1.26 indicates that DHH should not have too much problems paying its short term obligations.
- The Quick ratio of DHH (1.26) is better than 62.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
- DHH shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.53%.
- Measured over the past years, DHH shows a very strong growth in Earnings Per Share. The EPS has been growing by 62.49% on average per year.
- Looking at the last year, DHH shows a small growth in Revenue. The Revenue has grown by 6.82% in the last year.
- Measured over the past years, DHH shows a very strong growth in Revenue. The Revenue has been growing by 39.65% on average per year.
EPS 1Y (TTM)-5.53%
EPS 3Y3.98%
EPS 5Y62.49%
EPS Q2Q%3.55%
Revenue 1Y (TTM)6.82%
Revenue growth 3Y22.43%
Revenue growth 5Y39.65%
Sales Q2Q%9.01%
3.2 Future
- Based on estimates for the next years, DHH will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.37% on average per year.
- Based on estimates for the next years, DHH will show a small growth in Revenue. The Revenue will grow by 7.02% on average per year.
EPS Next Y5.73%
EPS Next 2Y9.72%
EPS Next 3Y11.37%
EPS Next 5YN/A
Revenue Next Year15.35%
Revenue Next 2Y10.64%
Revenue Next 3Y9.18%
Revenue Next 5Y7.02%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 32.37, the valuation of DHH can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of DHH indicates a slightly more expensive valuation: DHH is more expensive than 62.86% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.82, DHH is valued at the same level.
- A Price/Forward Earnings ratio of 24.50 indicates a rather expensive valuation of DHH.
- Based on the Price/Forward Earnings ratio, DHH is valued a bit more expensive than the industry average as 62.86% of the companies are valued more cheaply.
- DHH's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.37 | ||
| Fwd PE | 24.5 |
4.2 Price Multiples
- DHH's Enterprise Value to EBITDA is on the same level as the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as DHH.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.15 | ||
| EV/EBITDA | 10.54 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of DHH may justify a higher PE ratio.
PEG (NY)5.65
PEG (5Y)0.52
EPS Next 2Y9.72%
EPS Next 3Y11.37%
5. Dividend
5.1 Amount
- No dividends for DHH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
DHH SPA / DHH.MI FAQ
What is the fundamental rating for DHH stock?
ChartMill assigns a fundamental rating of 5 / 10 to DHH.MI.
What is the valuation status for DHH stock?
ChartMill assigns a valuation rating of 2 / 10 to DHH SPA (DHH.MI). This can be considered as Overvalued.
How profitable is DHH SPA (DHH.MI) stock?
DHH SPA (DHH.MI) has a profitability rating of 7 / 10.
What is the financial health of DHH SPA (DHH.MI) stock?
The financial health rating of DHH SPA (DHH.MI) is 5 / 10.
What is the expected EPS growth for DHH SPA (DHH.MI) stock?
The Earnings per Share (EPS) of DHH SPA (DHH.MI) is expected to grow by 5.73% in the next year.