DE'LONGHI SPA (DLG.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:DLG - IT0003115950 - Common Stock
37.6 EUR
+0.42 (+1.13%)
We assign a fundamental rating of 7 out of 10 to DLG. DLG was compared to 32 industry peers in the Household Durables industry. Both the health and profitability get an excellent rating, making DLG a very profitable company, without any liquidiy or solvency issues. DLG has a correct valuation and a medium growth rate. This makes DLG very considerable for quality investing!
1. Profitability
1.1 Basic Checks
- DLG had positive earnings in the past year.
- In the past year DLG had a positive cash flow from operations.
- In the past 5 years DLG has always been profitable.
- Each year in the past 5 years DLG had a positive operating cash flow.
1.2 Ratios
- DLG has a Return On Assets of 11.14%. This is amongst the best in the industry. DLG outperforms 93.75% of its industry peers.
- With an excellent Return On Equity value of 24.57%, DLG belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
- DLG has a better Return On Invested Capital (18.23%) than 90.63% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for DLG is in line with the industry average of 9.71%.
- The last Return On Invested Capital (18.23%) for DLG is above the 3 year average (9.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.14% | ||
| ROE | 24.57% | ||
| ROIC | 18.23% |
ROA(3y)6.24%
ROA(5y)6.69%
ROE(3y)13.16%
ROE(5y)15.02%
ROIC(3y)9.29%
ROIC(5y)10.13%
1.3 Margins
- Looking at the Profit Margin, with a value of 8.55%, DLG belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
- DLG's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 12.34%, DLG belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
- In the last couple of years the Operating Margin of DLG has grown nicely.
- With a decent Gross Margin value of 57.40%, DLG is doing good in the industry, outperforming 78.13% of the companies in the same industry.
- In the last couple of years the Gross Margin of DLG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.34% | ||
| PM (TTM) | 8.55% | ||
| GM | 57.4% |
OM growth 3Y-1.37%
OM growth 5Y4.22%
PM growth 3Y-2.74%
PM growth 5Y3%
GM growth 3Y-0.27%
GM growth 5Y1.35%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DLG is creating value.
- Compared to 1 year ago, DLG has more shares outstanding
- The number of shares outstanding for DLG has been increased compared to 5 years ago.
- DLG has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.16 indicates that DLG is not in any danger for bankruptcy at the moment.
- DLG has a better Altman-Z score (4.16) than 93.75% of its industry peers.
- DLG has a debt to FCF ratio of 1.64. This is a very positive value and a sign of high solvency as it would only need 1.64 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.64, DLG belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
- DLG has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of DLG (0.24) is better than 78.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.64 | ||
| Altman-Z | 4.16 |
ROIC/WACC2.36
WACC7.74%
2.3 Liquidity
- A Current Ratio of 1.54 indicates that DLG should not have too much problems paying its short term obligations.
- DLG's Current ratio of 1.54 is in line compared to the rest of the industry. DLG outperforms 50.00% of its industry peers.
- A Quick Ratio of 0.93 indicates that DLG may have some problems paying its short term obligations.
- DLG has a Quick ratio (0.93) which is comparable to the rest of the industry.
- DLG does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
- DLG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.66%, which is quite good.
- The Earnings Per Share has been growing by 14.21% on average over the past years. This is quite good.
- Looking at the last year, DLG shows a quite strong growth in Revenue. The Revenue has grown by 13.22% in the last year.
- The Revenue has been growing by 10.73% on average over the past years. This is quite good.
EPS 1Y (TTM)15.66%
EPS 3Y0.49%
EPS 5Y14.21%
EPS Q2Q%6.9%
Revenue 1Y (TTM)13.22%
Revenue growth 3Y2.78%
Revenue growth 5Y10.73%
Sales Q2Q%8.9%
3.2 Future
- DLG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.12% yearly.
- DLG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.31% yearly.
EPS Next Y9.94%
EPS Next 2Y8.81%
EPS Next 3Y8.12%
EPS Next 5YN/A
Revenue Next Year7.97%
Revenue Next 2Y6.74%
Revenue Next 3Y6.31%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 12.58, the valuation of DLG can be described as correct.
- Based on the Price/Earnings ratio, DLG is valued a bit cheaper than 75.00% of the companies in the same industry.
- When comparing the Price/Earnings ratio of DLG to the average of the S&P500 Index (27.32), we can say DLG is valued rather cheaply.
- With a Price/Forward Earnings ratio of 15.14, DLG is valued correctly.
- Based on the Price/Forward Earnings ratio, DLG is valued a bit more expensive than the industry average as 68.75% of the companies are valued more cheaply.
- When comparing the Price/Forward Earnings ratio of DLG to the average of the S&P500 Index (24.32), we can say DLG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.58 | ||
| Fwd PE | 15.14 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as DLG.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of DLG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.2 | ||
| EV/EBITDA | 6.62 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- DLG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.26
PEG (5Y)0.88
EPS Next 2Y8.81%
EPS Next 3Y8.12%
5. Dividend
5.1 Amount
- DLG has a Yearly Dividend Yield of 2.15%.
- DLG's Dividend Yield is comparable with the industry average which is at 2.84.
- Compared to an average S&P500 Dividend Yield of 1.83, DLG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
5.2 History
- On average, the dividend of DLG grows each year by 12.60%, which is quite nice.
Dividend Growth(5Y)12.6%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- DLG pays out 27.40% of its income as dividend. This is a sustainable payout ratio.
- The dividend of DLG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP27.4%
EPS Next 2Y8.81%
EPS Next 3Y8.12%
DE'LONGHI SPA / DLG.MI FAQ
What is the fundamental rating for DLG stock?
ChartMill assigns a fundamental rating of 7 / 10 to DLG.MI.
Can you provide the valuation status for DE'LONGHI SPA?
ChartMill assigns a valuation rating of 5 / 10 to DE'LONGHI SPA (DLG.MI). This can be considered as Fairly Valued.
What is the profitability of DLG stock?
DE'LONGHI SPA (DLG.MI) has a profitability rating of 9 / 10.
What is the earnings growth outlook for DE'LONGHI SPA?
The Earnings per Share (EPS) of DE'LONGHI SPA (DLG.MI) is expected to grow by 9.94% in the next year.
Is the dividend of DE'LONGHI SPA sustainable?
The dividend rating of DE'LONGHI SPA (DLG.MI) is 4 / 10 and the dividend payout ratio is 27.4%.