EMAK SPA (EM.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:EM - IT0001237053 - Common Stock
0.947 EUR
0 (-0.32%)
Taking everything into account, EM scores 6 out of 10 in our fundamental rating. EM was compared to 33 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 This makes EM very considerable for value investing!
1. Profitability
1.1 Basic Checks
- In the past year EM was profitable.
- In the past year EM had a positive cash flow from operations.
- EM had positive earnings in each of the past 5 years.
- 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 78.79% of its industry peers.
- Looking at the Return On Equity, with a value of 7.77%, EM is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 8.07%, EM is in the better half of the industry, outperforming 78.79% of the companies in the same industry.
- EM had an Average Return On Invested Capital over the past 3 years of 5.51%. This is below the industry average of 9.57%.
- The 3 year average ROIC (5.51%) for EM is below the current ROIC(8.07%), indicating increased profibility in the last year.
| 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
- EM has a better Profit Margin (2.31%) than 66.67% of its industry peers.
- In the last couple of years the Profit Margin of EM has declined.
- EM has a better Operating Margin (6.26%) than 63.64% of its industry peers.
- EM's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 48.73%, EM is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- In the last couple of years the Gross Margin of EM has remained more or less at the same level.
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EM is still creating some value.
- EM has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, EM has less shares outstanding
- The debt/assets ratio for EM has remained at the same level compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.65 indicates that EM is not a great score, but indicates only limited risk for bankruptcy at the moment.
- EM's Altman-Z score of 2.65 is fine compared to the rest of the industry. EM outperforms 72.73% 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.
- The Debt to FCF ratio of EM (102.66) is comparable to the rest of the industry.
- EM has a Debt/Equity ratio of 0.75. This is a neutral value indicating EM is somewhat dependend on debt financing.
- The Debt to Equity ratio of EM (0.75) is worse than 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 102.66 | ||
| Altman-Z | 2.65 |
ROIC/WACC1.33
WACC6.05%
2.3 Liquidity
- A Current Ratio of 2.28 indicates that EM has no problem at all paying 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 75.76% of the companies in the same industry.
- A Quick Ratio of 1.19 indicates that EM should not have too much problems paying its short term obligations.
- EM has a Quick ratio of 1.19. This is in the better half of the industry: EM outperforms 78.79% of its industry peers.
| 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.
- The earnings per share for EM have been decreasing by -14.92% on average. This is quite bad
- Looking at the last year, EM shows a quite strong growth in Revenue. The Revenue has grown by 8.92% in the last year.
- 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
- Based on estimates for the next years, EM will show a very strong growth in Earnings Per Share. The EPS will grow by 29.78% on average per year.
- The Revenue is expected to grow by 2.91% on average over the next years.
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
- 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.
- 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 7.28.
- 96.97% of the companies in the same industry are more expensive than EM, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of EM to the average of the S&P500 Index (28.82), we can say EM is valued rather cheaply.
- EM is valuated cheaply with a Price/Forward Earnings ratio of 7.30.
- 81.82% of the companies in the same industry are more expensive than EM, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. EM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.28 | ||
| Fwd PE | 7.3 |
4.2 Price Multiples
- EM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EM is cheaper than 90.91% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of EM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.99 | ||
| EV/EBITDA | 4.04 |
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
- With a Yearly Dividend Yield of 2.58%, EM has a reasonable but not impressive dividend return.
- EM's Dividend Yield is a higher than the industry average which is at 2.64.
- Compared to an average S&P500 Dividend Yield of 1.82, EM pays a bit more dividend than the S&P500 average.
| 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
- EM pays out 19.96% of its income as dividend. This is a 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%.