DE'LONGHI SPA (DLG.MI) Stock Fundamental Analysis
BIT:DLG - Euronext Milan - IT0003115950 - Common Stock - Currency: EUR
Overall DLG gets a fundamental rating of 6 out of 10. We evaluated DLG against 32 industry peers in the Household Durables industry. While DLG has a great profitability rating, there are some minor concerns on its financial health. DLG is growing strongly while it is still valued neutral. This is a good combination! These ratings would make DLG suitable for growth investing!
1. Profitability
1.1 Basic Checks
DLG had positive earnings in the past year.
DLG had a positive operating cash flow in the past year.
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 better Return On Assets (9.50%) than 88.57% of its industry peers.
DLG has a Return On Equity of 21.07%. This is amongst the best in the industry. DLG outperforms 85.71% of its industry peers.
The Return On Invested Capital of DLG (13.94%) is better than 82.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.5% | ||
| ROE | 21.07% | ||
| ROIC | 13.94% |
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
With an excellent Profit Margin value of 8.41%, DLG belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
DLG's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 11.31%, DLG belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
DLG's Operating Margin has declined in the last couple of years.
DLG has a Gross Margin of 55.24%. This is in the better half of the industry: DLG outperforms 77.14% of its industry peers.
DLG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.31% | ||
| PM (TTM) | 8.41% | ||
| GM | 55.24% |
OM growth 3Y-2.43%
OM growth 5Y-1.89%
PM growth 3Y-1.48%
PM growth 5Y-1.74%
GM growth 3Y-0.28%
GM growth 5Y0.22%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DLG is still creating some value.
There is no outstanding debt for DLG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 3.63 indicates that DLG is not in any danger for bankruptcy at the moment.
DLG's Altman-Z score of 3.63 is amongst the best of the industry. DLG outperforms 85.71% of its industry peers.
DLG has a debt to FCF ratio of 1.46. This is a very positive value and a sign of high solvency as it would only need 1.46 years to pay back of all of its debts.
DLG has a better Debt to FCF ratio (1.46) than 85.71% of its industry peers.
DLG has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
DLG has a Debt to Equity ratio of 0.21. This is in the better half of the industry: DLG outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.46 | ||
| Altman-Z | 3.63 |
ROIC/WACC1.76
WACC7.9%
2.3 Liquidity
DLG has a Current Ratio of 1.56. This is a normal value and indicates that DLG is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.56, DLG perfoms like the industry average, outperforming 48.57% of the companies in the same industry.
A Quick Ratio of 1.00 indicates that DLG may have some problems paying its short term obligations.
The Quick ratio of DLG (1.00) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 36.64% over the past year.
DLG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.36% yearly.
DLG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.33%.
The Revenue has been growing by 8.16% on average over the past years. This is quite good.
EPS 1Y (TTM)36.64%
EPS 3Y7.91%
EPS 5Y6.36%
EPS Q2Q%13.3%
Revenue 1Y (TTM)8.33%
Revenue growth 3Y9.37%
Revenue growth 5Y8.16%
Sales Q2Q%14%
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 14.09% yearly.
The Revenue is expected to grow by 8.53% on average over the next years. This is quite good.
EPS Next Y26.25%
EPS Next 2Y17.35%
EPS Next 3Y14.09%
EPS Next 5YN/A
Revenue Next Year14%
Revenue Next 2Y10.17%
Revenue Next 3Y8.53%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.79, the valuation of DLG can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of DLG is on the same level as its industry peers.
When comparing the Price/Earnings ratio of DLG to the average of the S&P500 Index (29.35), we can say DLG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 14.48, the valuation of DLG can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as DLG.
DLG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.79 | ||
| Fwd PE | 14.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DLG is valued a bit more expensive than 60.00% of the companies in the same industry.
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 | 11.62 | ||
| EV/EBITDA | 7.34 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of DLG may justify a higher PE ratio.
A more expensive valuation may be justified as DLG's earnings are expected to grow with 14.09% in the coming years.
PEG (NY)0.49
PEG (5Y)2.01
EPS Next 2Y17.35%
EPS Next 3Y14.09%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.01%, DLG has a reasonable but not impressive dividend return.
DLG's Dividend Yield is comparable with the industry average which is at 5.11.
DLG's Dividend Yield is comparable with the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
5.2 History
The dividend of DLG has a limited annual growth rate of 0.75%.
Dividend Growth(5Y)0.75%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
26.27% of the earnings are spent on dividend by DLG. This is a low number and sustainable payout ratio.
DLG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP26.27%
EPS Next 2Y17.35%
EPS Next 3Y14.09%
BIT:DLG (3/7/2025, 7:00:00 PM)
33.12
-0.22 (-0.66%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners22.48%
Inst Owner ChangeN/A
Ins Owners53.51%
Ins Owner ChangeN/A
Market Cap5.01B
Analysts81.54
Price Target40.09 (21.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
Yearly Dividend0.83
Dividend Growth(5Y)0.75%
DP26.27%
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)5.99%
PT rev (3m)5.99%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.93%
EPS NY rev (3m)7.05%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)2.03%
Revenue NY rev (3m)3.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.79 | ||
| Fwd PE | 14.48 | ||
| P/S | 1.1 | ||
| P/FCF | 11.62 | ||
| P/OCF | 9.46 | ||
| P/B | 2.75 | ||
| P/tB | 9.51 | ||
| EV/EBITDA | 7.34 |
EPS(TTM)2.59
EY7.82%
EPS(NY)2.29
Fwd EY6.91%
FCF(TTM)2.85
FCFY8.61%
OCF(TTM)3.5
OCFY10.58%
SpS30.23
BVpS12.06
TBVpS3.48
PEG (NY)0.49
PEG (5Y)2.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.5% | ||
| ROE | 21.07% | ||
| ROCE | 18.65% | ||
| ROIC | 13.94% | ||
| ROICexc | 20.44% | ||
| ROICexgc | 62.95% | ||
| OM | 11.31% | ||
| PM (TTM) | 8.41% | ||
| GM | 55.24% | ||
| FCFM | 9.43% |
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 3Y-2.43%
OM growth 5Y-1.89%
PM growth 3Y-1.48%
PM growth 5Y-1.74%
GM growth 3Y-0.28%
GM growth 5Y0.22%
F-Score6
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.46 | ||
| Debt/EBITDA | 0.62 | ||
| Cap/Depr | 86.97% | ||
| Cap/Sales | 2.15% | ||
| Interest Coverage | 21.58 | ||
| Cash Conversion | 84.06% | ||
| Profit Quality | 112.15% | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 3.63 |
F-Score6
WACC7.9%
ROIC/WACC1.76
Cap/Depr(3y)118.04%
Cap/Depr(5y)113.34%
Cap/Sales(3y)3.79%
Cap/Sales(5y)3.79%
Profit Quality(3y)108.8%
Profit Quality(5y)124.84%
High Growth Momentum
Growth
EPS 1Y (TTM)36.64%
EPS 3Y7.91%
EPS 5Y6.36%
EPS Q2Q%13.3%
EPS Next Y26.25%
EPS Next 2Y17.35%
EPS Next 3Y14.09%
EPS Next 5YN/A
Revenue 1Y (TTM)8.33%
Revenue growth 3Y9.37%
Revenue growth 5Y8.16%
Sales Q2Q%14%
Revenue Next Year14%
Revenue Next 2Y10.17%
Revenue Next 3Y8.53%
Revenue Next 5YN/A
EBIT growth 1Y46.44%
EBIT growth 3Y6.71%
EBIT growth 5Y6.11%
EBIT Next Year63.62%
EBIT Next 3Y23.96%
EBIT Next 5YN/A
FCF growth 1Y845.29%
FCF growth 3Y9.17%
FCF growth 5Y31.55%
OCF growth 1Y452.4%
OCF growth 3Y7.72%
OCF growth 5Y25.38%