EMAK SPA (EM.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:EM - IT0001237053 - Common Stock
0.937 EUR
-0.01 (-1.06%)
EM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 33 industry peers in the Household Durables industry. EM has an average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on EM. 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.
- EM had a positive operating cash flow in the past year.
- 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
- EM has a better Return On Assets (3.03%) 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.
- With a decent Return On Invested Capital value of 8.07%, EM is doing good in the industry, outperforming 78.79% of the companies in the same industry.
- 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
- Looking at the Profit Margin, with a value of 2.31%, EM is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- EM's Profit Margin has declined in the last couple of years.
- EM has a Operating Margin of 6.26%. This is in the better half of the industry: EM outperforms 63.64% of its industry peers.
- EM's Operating Margin has declined in the last couple of years.
- EM has a Gross Margin of 48.73%. This is in the better half of the industry: EM outperforms 66.67% of its industry peers.
- 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
- 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.
- Compared to 5 years ago, EM has less shares outstanding
- Compared to 1 year ago, EM has about the same debt to assets ratio.
2.2 Solvency
- EM has an Altman-Z score of 2.64. 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's Altman-Z score of 2.64 is fine compared to the rest of the industry. EM outperforms 72.73% of its industry peers.
- 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.
- EM has a Debt to FCF ratio (102.66) which 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.
- With a Debt to Equity ratio value of 0.75, EM is not doing good in the industry: 60.61% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 102.66 | ||
| Altman-Z | 2.64 |
ROIC/WACC1.34
WACC6.04%
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.
- With a decent Quick ratio value of 1.19, EM is doing good in the industry, outperforming 78.79% 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.
- The Revenue has grown by 8.92% in the past year. This is quite good.
- EM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.76% yearly.
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
- Based on estimates for the next years, EM will show a small growth in Revenue. The Revenue will grow by 2.91% on average per year.
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 7.21.
- Compared to the rest of the industry, the Price/Earnings ratio of EM indicates a rather cheap valuation: EM is cheaper than 100.00% of the companies listed in the same industry.
- EM is valuated cheaply when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 7.22, the valuation of EM can be described as very cheap.
- Based on the Price/Forward Earnings ratio, EM is valued cheaply inside the industry as 84.85% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. EM is valued rather cheaply when compared to this.
| 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.
- The rest of the industry has a similar Price/Free Cash Flow ratio as EM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.41 | ||
| EV/EBITDA | 4.03 |
4.3 Compensation for Growth
- EM's 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.
- EM's earnings are expected to grow with 29.78% in the coming years. This may justify a more expensive valuation.
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.
- Compared to an average industry Dividend Yield of 2.64, EM pays a bit more dividend than its industry peers.
- 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
- 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%.