EMAK SPA (EM.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:EM - IT0001237053 - Common Stock
0.954 EUR
-0.02 (-1.65%)
Overall EM gets a fundamental rating of 6 out of 10. We evaluated EM against 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 is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, EM could be worth investigating further 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.
- In the past 5 years EM has always been profitable.
- Each year in the past 5 years EM had a positive operating cash flow.
1.2 Ratios
- EM has a Return On Assets of 3.03%. This is in the better half of the industry: EM outperforms 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.
- Looking at the Return On Invested Capital, with a value of 8.07%, EM is in the better half of the industry, outperforming 75.00% 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 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
- EM's Profit Margin of 2.31% is fine compared to the rest of the industry. EM outperforms 62.50% of its industry peers.
- EM's Profit Margin has declined in the last couple of years.
- EM has a Operating Margin of 6.26%. This is comparable to the rest of the industry: EM outperforms 59.38% of its industry peers.
- 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
- EM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- EM has about the same amout of shares outstanding than it did 1 year ago.
- EM has less shares outstanding than it did 5 years ago.
- EM has about the same debt/assets ratio as last year.
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 has a Altman-Z score of 2.65. This is in the better half of the industry: EM outperforms 68.75% 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 in line with its industry peers.
- 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
- A Current Ratio of 2.28 indicates that EM has no problem at all paying its short term obligations.
- EM has a Current ratio of 2.28. This is in the better half of the industry: EM outperforms 75.00% of its industry peers.
- 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.
- The Quick ratio of EM (1.19) is better than 78.13% 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.
- The Revenue has grown by 8.92% in the past year. This is quite good.
- 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.
- 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
- A Price/Earnings ratio of 7.34 indicates a rather cheap valuation of EM.
- Based on the Price/Earnings ratio, EM is valued cheaply inside the industry as 96.88% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.21. EM is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 7.35, which indicates a rather cheap valuation of EM.
- EM's Price/Forward Earnings ratio is rather cheap when compared to the industry. EM is cheaper than 84.38% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. EM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.34 | ||
| Fwd PE | 7.35 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, EM is valued 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 | 4.06 |
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.
- The decent profitability rating of EM 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 has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, 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.
- 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%.