DOVALUE SPA (DOV.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:DOV - IT0005610958 - Common Stock
2.664 EUR
-0.06 (-2.13%)
Taking everything into account, DOV scores 4 out of 10 in our fundamental rating. DOV was compared to 44 industry peers in the Commercial Services & Supplies industry. While DOV is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
- In the past year DOV had a positive cash flow from operations.
- In multiple years DOV reported negative net income over the last 5 years.
- In the past 5 years DOV always reported a positive cash flow from operatings.
1.2 Ratios
- DOV has a Return On Assets of -1.36%. This is comparable to the rest of the industry: DOV outperforms 40.91% of its industry peers.
- DOV's Return On Equity of -8.92% is in line compared to the rest of the industry. DOV outperforms 40.91% of its industry peers.
- DOV has a Return On Invested Capital of 7.23%. This is in the better half of the industry: DOV outperforms 65.91% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital 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 better Operating Margin (18.06%) than 90.91% of its industry peers.
- In the last couple of years the Operating Margin of DOV has declined.
- DOV has a Gross Margin of 95.25%. This is amongst the best in the industry. DOV outperforms 97.73% of its industry peers.
- DOV's Gross Margin has been stable in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DOV is still creating some value.
- DOV has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, DOV has more shares outstanding
- Compared to 1 year ago, DOV has an improved debt to assets ratio.
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.
- Looking at the Altman-Z score, with a value of 1.23, DOV is doing worse than 65.91% of the companies in the same industry.
- The Debt to FCF ratio of DOV is 7.47, which is on the high side as it means it would take DOV, 7.47 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of DOV (7.47) is comparable to the rest of the industry.
- A Debt/Equity ratio of 2.98 is on the high side and indicates that DOV has dependencies on debt 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
WACC5.74%
2.3 Liquidity
- DOV has a Current Ratio of 1.72. This is a normal value and indicates that DOV is financially healthy and should not expect problems in meeting 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.
- DOV has a Quick ratio of 1.72. This is amongst the best in the industry. DOV outperforms 84.09% of its industry peers.
| 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.
- Measured over the past years, DOV shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -30.90% on average per year.
- DOV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.16%.
- 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
- The Earnings Per Share is expected to grow by 29.65% on average over the next years. This is a very strong growth
- DOV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.18% yearly.
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
- The Price/Earnings Ratio is negative for DOV. In the last year negative earnings were reported.
- With a Price/Forward Earnings ratio of 9.35, the valuation of DOV can be described as very reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of DOV indicates a rather cheap valuation: DOV is cheaper than 88.64% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of DOV to the average of the S&P500 Index (25.98), we can say DOV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.35 |
4.2 Price Multiples
- DOV's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DOV is cheaper than 77.27% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, DOV is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
| 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
- DOV has a Yearly Dividend Yield of 19.87%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.60, DOV pays a better dividend. On top of this DOV pays more dividend than 100.00% of the companies listed 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%.