EMAK SPA (EM.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:EM - IT0001237053 - Common Stock
0.937 EUR
-0.01 (-1.06%)
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. EM has only an average score on both its financial health and profitability. EM scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make EM a good candidate 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
- EM has a Return On Assets of 3.03%. This is in the better half of the industry: EM outperforms 78.79% of its industry peers.
- With a decent Return On Equity value of 7.77%, EM is doing good in the industry, outperforming 72.73% of the companies in the same industry.
- EM has a better Return On Invested Capital (8.07%) than 78.79% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for EM 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
- With a decent Profit Margin value of 2.31%, EM is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- In the last couple of years the Profit Margin of EM has declined.
- Looking at the Operating Margin, with a value of 6.26%, EM is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
- In the last couple of years the Operating Margin of EM has declined.
- EM's Gross Margin of 48.73% is fine compared to the rest of the industry. EM outperforms 66.67% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EM is still creating some value.
- Compared to 1 year ago, EM has about the same amount of shares outstanding.
- 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
- 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.
- With a decent Altman-Z score value of 2.65, EM is doing good in the industry, outperforming 72.73% of the companies in the same industry.
- The Debt to FCF ratio of EM is 102.66, which is on the high side as it means it would take EM, 102.66 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of EM (102.66) is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.75 indicates that EM is somewhat dependend on debt financing.
- EM has a Debt to Equity ratio of 0.75. This is in the lower half of the industry: EM underperforms 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 102.66 | ||
| Altman-Z | 2.65 |
ROIC/WACC1.34
WACC6.04%
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 75.76% 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's Quick ratio of 1.19 is fine compared to the rest 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.
- EM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -14.92% yearly.
- Looking at the last year, EM shows a quite strong growth in Revenue. The Revenue has grown by 8.92% in the last year.
- Measured over the past years, EM shows a small growth in Revenue. The Revenue has been growing by 6.76% on average per year.
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
- With a Price/Earnings ratio of 7.21, the valuation of EM can be described as very cheap.
- Compared to the rest of the industry, the Price/Earnings ratio of EM indicates a rather cheap valuation: EM is cheaper than 96.97% of the companies listed in the same industry.
- EM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.60.
- The Price/Forward Earnings ratio is 7.22, which indicates a rather cheap valuation of EM.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of EM indicates a rather cheap valuation: EM is cheaper than 81.82% of the companies listed in the same industry.
- EM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.21 | ||
| Fwd PE | 7.22 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EM indicates a rather cheap valuation: EM is cheaper than 90.91% of the companies listed 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 | 54.41 | ||
| 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.
- EM has a very decent profitability rating, which 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 2.64, EM pays a bit more dividend than 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.
- EM's earnings are growing more than its dividend. This makes the dividend growth 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%.