EMAK SPA (EM.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:EM - IT0001237053 - Common Stock
0.954 EUR
-0.02 (-1.65%)
Taking everything into account, EM scores 6 out of 10 in our fundamental rating. EM was compared to 32 industry peers in the Household Durables industry. Both the profitability and the financial health of EM get a neutral evaluation. Nothing too spectacular is happening here. EM may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make EM a good candidate for value investing.
1. Profitability
1.1 Basic Checks
- EM had positive earnings in the past year.
- In the past year EM had a positive cash flow from operations.
- In the past 5 years EM has always been profitable.
- EM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of EM (3.03%) is better than 75.00% of its industry peers.
- EM has a Return On Equity of 7.77%. This is in the better half of the industry: EM outperforms 68.75% of its industry peers.
- EM has a Return On Invested Capital of 8.07%. This is in the better half of the industry: EM outperforms 75.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for EM is below the industry average of 9.71%.
- The last Return On Invested Capital (8.07%) for EM is above the 3 year average (5.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.03% | ||
| ROE | 7.77% | ||
| ROIC | 8.07% |
ROA(3y)2.68%
ROA(5y)3.25%
ROE(3y)6.67%
ROE(5y)8.32%
ROIC(3y)5.51%
ROIC(5y)6.18%
1.3 Margins
- Looking at the Profit Margin, with a value of 2.31%, EM is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
- EM's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 6.26%, EM is in line with its industry, outperforming 59.38% of the companies in the same industry.
- EM's Operating Margin has declined in the last couple of years.
- With a decent Gross Margin value of 48.73%, EM is doing good in the industry, outperforming 62.50% of the companies in the same industry.
- EM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.26% | ||
| PM (TTM) | 2.31% | ||
| GM | 48.73% |
OM growth 3Y-19.36%
OM growth 5Y-3.12%
PM growth 3Y-44.28%
PM growth 5Y-20.36%
GM growth 3Y0.43%
GM growth 5Y0.61%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EM is creating some value.
- The number of shares outstanding for EM remains at a similar level compared to 1 year ago.
- EM has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, EM has about the same debt to assets ratio.
2.2 Solvency
- EM has an Altman-Z score of 2.65. This is not the best score and indicates that EM is in the grey zone with still only limited risk for bankruptcy at the moment.
- EM has a better Altman-Z score (2.65) than 68.75% of its industry peers.
- EM has a debt to FCF ratio of 102.66. This is a negative value and a sign of low solvency as EM would need 102.66 years to pay back of all of its debts.
- EM has a Debt to FCF ratio (102.66) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.75 indicates that EM is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.75, EM perfoms like the industry average, outperforming 40.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 102.66 | ||
| Altman-Z | 2.65 |
ROIC/WACC1.37
WACC5.88%
2.3 Liquidity
- EM has a Current Ratio of 2.28. This indicates that EM is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 2.28, EM is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- EM has a Quick Ratio of 1.19. This is a normal value and indicates that EM is financially healthy and should not expect problems in meeting its short term obligations.
- With a decent Quick ratio value of 1.19, EM is doing good in the industry, outperforming 78.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.28 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
- EM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.98%, which is quite good.
- Measured over the past years, EM shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -14.92% on average per year.
- EM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.92%.
- The Revenue has been growing slightly by 6.76% on average over the past years.
EPS 1Y (TTM)11.98%
EPS 3Y-43.79%
EPS 5Y-14.92%
EPS Q2Q%40.84%
Revenue 1Y (TTM)8.92%
Revenue growth 3Y0.77%
Revenue growth 5Y6.76%
Sales Q2Q%6.94%
3.2 Future
- The Earnings Per Share is expected to grow by 29.78% on average over the next years. This is a very strong growth
- EM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.91% yearly.
EPS Next Y24.29%
EPS Next 2Y34.16%
EPS Next 3Y29.78%
EPS Next 5YN/A
Revenue Next Year2.67%
Revenue Next 2Y2.88%
Revenue Next 3Y2.91%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- EM is valuated cheaply with a Price/Earnings ratio of 7.34.
- Based on the Price/Earnings ratio, EM is valued cheaper than 96.88% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. EM is valued rather cheaply when compared to this.
- EM is valuated cheaply with a Price/Forward Earnings ratio of 7.35.
- 75.00% of the companies in the same industry are more expensive than EM, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of EM to the average of the S&P500 Index (24.26), we can say EM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.34 | ||
| Fwd PE | 7.35 |
4.2 Price Multiples
- EM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EM is cheaper than 90.63% of the companies in the same industry.
- EM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.4 | ||
| EV/EBITDA | 4.09 |
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 EM may justify a higher PE ratio.
- A more expensive valuation may be justified as EM's earnings are expected to grow with 29.78% in the coming years.
PEG (NY)0.3
PEG (5Y)N/A
EPS Next 2Y34.16%
EPS Next 3Y29.78%
5. Dividend
5.1 Amount
- EM has a Yearly Dividend Yield of 2.58%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.84, EM has a dividend in line with its industry peers.
- EM's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
5.2 History
- The dividend of EM has a limited annual growth rate of 0.17%.
Dividend Growth(5Y)0.17%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 19.96% of the earnings are spent on dividend by EM. This is a low number and sustainable payout ratio.
- The dividend of EM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP19.96%
EPS Next 2Y34.16%
EPS Next 3Y29.78%
EMAK SPA / EM.MI FAQ
Can you provide the ChartMill fundamental rating for EMAK SPA?
ChartMill assigns a fundamental rating of 6 / 10 to EM.MI.
What is the valuation status for EM stock?
ChartMill assigns a valuation rating of 8 / 10 to EMAK SPA (EM.MI). This can be considered as Undervalued.
How profitable is EMAK SPA (EM.MI) stock?
EMAK SPA (EM.MI) has a profitability rating of 6 / 10.
What is the financial health of EMAK SPA (EM.MI) stock?
The financial health rating of EMAK SPA (EM.MI) is 5 / 10.
How sustainable is the dividend of EMAK SPA (EM.MI) stock?
The dividend rating of EMAK SPA (EM.MI) is 6 / 10 and the dividend payout ratio is 19.96%.