ESI SPA (ESIGM.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:ESIGM - IT0005421885 - Common Stock
1.475 EUR
+0.01 (+0.34%)
ESIGM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 43 industry peers in the Construction & Engineering industry. Both the profitability and the financial health of ESIGM get a neutral evaluation. Nothing too spectacular is happening here. ESIGM is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
- ESIGM had positive earnings in the past year.
- ESIGM had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: ESIGM reported negative net income in multiple years.
- In multiple years ESIGM reported negative operating cash flow during the last 5 years.
1.2 Ratios
- ESIGM has a Return On Assets (3.45%) which is comparable to the rest of the industry.
- With a decent Return On Equity value of 28.89%, ESIGM is doing good in the industry, outperforming 67.39% of the companies in the same industry.
- The Return On Invested Capital of ESIGM (21.87%) is better than 84.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.45% | ||
| ROE | 28.89% | ||
| ROIC | 21.87% |
ROA(3y)-1.53%
ROA(5y)2.18%
ROE(3y)-12.46%
ROE(5y)-1.13%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- With a decent Profit Margin value of 6.70%, ESIGM is doing good in the industry, outperforming 65.22% of the companies in the same industry.
- In the last couple of years the Profit Margin of ESIGM has declined.
- With a decent Operating Margin value of 11.88%, ESIGM is doing good in the industry, outperforming 76.09% of the companies in the same industry.
- In the last couple of years the Operating Margin of ESIGM has grown nicely.
- The Gross Margin of ESIGM (34.36%) is worse than 60.87% of its industry peers.
- ESIGM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.88% | ||
| PM (TTM) | 6.7% | ||
| GM | 34.36% |
OM growth 3Y21.12%
OM growth 5YN/A
PM growth 3Y-11.84%
PM growth 5YN/A
GM growth 3Y-3.75%
GM growth 5YN/A
2. Health
2.1 Basic Checks
- ESIGM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, ESIGM has more shares outstanding
- Compared to 1 year ago, ESIGM has an improved debt to assets ratio.
2.2 Solvency
- ESIGM has an Altman-Z score of 1.09. This is a bad value and indicates that ESIGM is not financially healthy and even has some risk of bankruptcy.
- ESIGM has a worse Altman-Z score (1.09) than 82.61% of its industry peers.
- ESIGM has a debt to FCF ratio of 2.20. This is a good value and a sign of high solvency as ESIGM would need 2.20 years to pay back of all of its debts.
- ESIGM has a Debt to FCF ratio of 2.20. This is in the better half of the industry: ESIGM outperforms 76.09% of its industry peers.
- A Debt/Equity ratio of 0.30 indicates that ESIGM is not too dependend on debt financing.
- ESIGM has a Debt to Equity ratio of 0.30. This is in the better half of the industry: ESIGM outperforms 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.2 | ||
| Altman-Z | 1.09 |
ROIC/WACC2.92
WACC7.48%
2.3 Liquidity
- ESIGM has a Current Ratio of 1.09. This is a normal value and indicates that ESIGM is financially healthy and should not expect problems in meeting its short term obligations.
- ESIGM has a Current ratio (1.09) which is comparable to the rest of the industry.
- ESIGM has a Quick Ratio of 1.09. This is a bad value and indicates that ESIGM is not financially healthy enough and could expect problems in meeting its short term obligations.
- ESIGM has a Quick ratio of 0.25. This is amonst the worse of the industry: ESIGM underperforms 95.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 464.58% over the past year.
- The Earnings Per Share has been growing by 115.72% on average over the past years. This is a very strong growth
- The Revenue for ESIGM has decreased by -50.38% in the past year. This is quite bad
- Measured over the past years, ESIGM shows a very strong growth in Revenue. The Revenue has been growing by 146.66% on average per year.
EPS 1Y (TTM)464.58%
EPS 3Y115.72%
EPS 5YN/A
EPS Q2Q%-45.97%
Revenue 1Y (TTM)-50.38%
Revenue growth 3Y146.66%
Revenue growth 5YN/A
Sales Q2Q%-25.86%
3.2 Future
- Based on estimates for the next years, ESIGM will show a decrease in Earnings Per Share. The EPS will decrease by -2.61% on average per year.
- Based on estimates for the next years, ESIGM will show a very strong growth in Revenue. The Revenue will grow by 22.71% on average per year.
EPS Next Y-17.5%
EPS Next 2Y-2.61%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.2%
Revenue Next 2Y25.09%
Revenue Next 3Y22.71%
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 decreasing.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 13.41, ESIGM is valued correctly.
- ESIGM's Price/Earnings ratio is a bit cheaper when compared to the industry. ESIGM is cheaper than 60.87% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.32, ESIGM is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 3.54, the valuation of ESIGM can be described as very cheap.
- Based on the Price/Forward Earnings ratio, ESIGM is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
- ESIGM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.41 | ||
| Fwd PE | 3.54 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ESIGM is valued cheaper than 86.96% of the companies in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as ESIGM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.64 | ||
| EV/EBITDA | 4.2 |
4.3 Compensation for Growth
- ESIGM's earnings are expected to decrease with -2.61% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.61%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- No dividends for ESIGM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ESI SPA / ESIGM.MI FAQ
Can you provide the ChartMill fundamental rating for ESI SPA?
ChartMill assigns a fundamental rating of 5 / 10 to ESIGM.MI.
Can you provide the valuation status for ESI SPA?
ChartMill assigns a valuation rating of 5 / 10 to ESI SPA (ESIGM.MI). This can be considered as Fairly Valued.
How profitable is ESI SPA (ESIGM.MI) stock?
ESI SPA (ESIGM.MI) has a profitability rating of 4 / 10.
What are the PE and PB ratios of ESI SPA (ESIGM.MI) stock?
The Price/Earnings (PE) ratio for ESI SPA (ESIGM.MI) is 13.41 and the Price/Book (PB) ratio is 2.73.
Can you provide the expected EPS growth for ESIGM stock?
The Earnings per Share (EPS) of ESI SPA (ESIGM.MI) is expected to decline by -17.5% in the next year.