DOVALUE SPA (DOV.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:DOV - IT0005610958 - Common Stock
2.66 EUR
-0.06 (-2.28%)
We assign a fundamental rating of 4 out of 10 to DOV. DOV was compared to 44 industry peers in the Commercial Services & Supplies industry. DOV has a medium profitability rating, but doesn't score so well on its financial health evaluation. DOV is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year DOV has reported negative net income.
- DOV had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: DOV reported negative net income in multiple years.
- In the past 5 years DOV always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of DOV (-1.36%) is comparable to the rest of the industry.
- Looking at the Return On Equity, with a value of -8.92%, DOV is in line with its industry, outperforming 40.91% of the companies in the same industry.
- With a decent Return On Invested Capital value of 7.23%, DOV is doing good in the industry, outperforming 65.91% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for DOV is in line with the industry average of 8.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.36% | ||
| ROE | -8.92% | ||
| ROIC | 7.23% |
ROA(3y)-0.06%
ROA(5y)-0.18%
ROE(3y)-7.29%
ROE(5y)-5.12%
ROIC(3y)7.83%
ROIC(5y)7.47%
1.3 Margins
- In the last couple of years the Profit Margin of DOV has declined.
- DOV has a Operating Margin of 18.06%. This is amongst the best in the industry. DOV outperforms 90.91% of its industry peers.
- DOV's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 95.25%, DOV belongs to the top of the industry, outperforming 97.73% of the companies in the same industry.
- In the last couple of years the Gross Margin of DOV has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.06% | ||
| PM (TTM) | N/A | ||
| GM | 95.25% |
OM growth 3Y-4.69%
OM growth 5Y-7.74%
PM growth 3Y-54.6%
PM growth 5Y-48.13%
GM growth 3Y1.94%
GM growth 5Y1.12%
2. Health
2.1 Basic Checks
- DOV has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for DOV has been increased compared to 1 year ago.
- The number of shares outstanding for DOV has been increased compared to 5 years ago.
- The debt/assets ratio for DOV has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.23, we must say that DOV is in the distress zone and has some risk of bankruptcy.
- DOV has a Altman-Z score of 1.23. This is in the lower half of the industry: DOV underperforms 65.91% of its industry peers.
- DOV has a debt to FCF ratio of 7.47. This is a slightly negative value and a sign of low solvency as DOV would need 7.47 years to pay back of all of its debts.
- DOV has a Debt to FCF ratio of 7.47. This is comparable to the rest of the industry: DOV outperforms 59.09% of its industry peers.
- DOV has a Debt/Equity ratio of 2.98. This is a high value indicating a heavy dependency on external financing.
- DOV's Debt to Equity ratio of 2.98 is on the low side compared to the rest of the industry. DOV is outperformed by 79.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.98 | ||
| Debt/FCF | 7.47 | ||
| Altman-Z | 1.23 |
ROIC/WACC1.26
WACC5.75%
2.3 Liquidity
- A Current Ratio of 1.72 indicates that DOV should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.72, DOV is in the better half of the industry, outperforming 79.55% of the companies in the same industry.
- A Quick Ratio of 1.72 indicates that DOV should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.72, DOV belongs to the top of the industry, outperforming 84.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 63.90% over the past year.
- The earnings per share for DOV have been decreasing by -30.90% on average. This is quite bad
- The Revenue has grown by 16.16% in the past year. This is quite good.
- Measured over the past years, DOV shows a small growth in Revenue. The Revenue has been growing by 5.72% on average per year.
EPS 1Y (TTM)63.9%
EPS 3Y-36.84%
EPS 5Y-30.9%
EPS Q2Q%-103.22%
Revenue 1Y (TTM)16.16%
Revenue growth 3Y-5.03%
Revenue growth 5Y5.72%
Sales Q2Q%21.28%
3.2 Future
- Based on estimates for the next years, DOV will show a very strong growth in Earnings Per Share. The EPS will grow by 29.65% on average per year.
- Based on estimates for the next years, DOV will show a quite strong growth in Revenue. The Revenue will grow by 10.18% on average per year.
EPS Next Y0.9%
EPS Next 2Y29.75%
EPS Next 3Y29.65%
EPS Next 5YN/A
Revenue Next Year26.73%
Revenue Next 2Y29.94%
Revenue Next 3Y20.08%
Revenue Next 5Y10.18%
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 accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- DOV reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- The Price/Forward Earnings ratio is 9.34, which indicates a very decent valuation of DOV.
- DOV's Price/Forward Earnings ratio is rather cheap when compared to the industry. DOV is cheaper than 88.64% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of DOV to the average of the S&P500 Index (25.96), we can say DOV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.34 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DOV is valued a bit cheaper than 77.27% of the companies in the same industry.
- 86.36% of the companies in the same industry are more expensive than DOV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.71 | ||
| EV/EBITDA | 5.66 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- A more expensive valuation may be justified as DOV's earnings are expected to grow with 29.65% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y29.75%
EPS Next 3Y29.65%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 19.87%, DOV is a good candidate for dividend investing.
- DOV's Dividend Yield is rather good when compared to the industry average which is at 2.60. DOV pays more dividend than 100.00% of the companies in the same industry.
- DOV's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 19.87% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- DOV has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-43.62%
EPS Next 2Y29.75%
EPS Next 3Y29.65%
DOVALUE SPA / DOV.MI FAQ
What is the fundamental rating for DOV stock?
ChartMill assigns a fundamental rating of 4 / 10 to DOV.MI.
What is the valuation status of DOVALUE SPA (DOV.MI) stock?
ChartMill assigns a valuation rating of 5 / 10 to DOVALUE SPA (DOV.MI). This can be considered as Fairly Valued.
What is the profitability of DOV stock?
DOVALUE SPA (DOV.MI) has a profitability rating of 4 / 10.
Is the dividend of DOVALUE SPA sustainable?
The dividend rating of DOVALUE SPA (DOV.MI) is 5 / 10 and the dividend payout ratio is -43.62%.