BIFIRE SPA (FIRE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:FIRE - IT0005495335 - Common Stock
2.78 EUR
-0.04 (-1.42%)
We assign a fundamental rating of 7 out of 10 to FIRE. FIRE was compared to 23 industry peers in the Building Products industry. FIRE gets an excellent profitability rating and is at the same time showing great financial health properties. FIRE may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make FIRE suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
- FIRE had positive earnings in the past year.
- In the past year FIRE had a positive cash flow from operations.
1.2 Ratios
- FIRE has a Return On Assets of 12.31%. This is amongst the best in the industry. FIRE outperforms 100.00% of its industry peers.
- FIRE has a better Return On Equity (17.68%) than 94.74% of its industry peers.
- The Return On Invested Capital of FIRE (16.21%) is better than 100.00% of its industry peers.
- FIRE had an Average Return On Invested Capital over the past 3 years of 17.08%. This is significantly above the industry average of 10.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.31% | ||
| ROE | 17.68% | ||
| ROIC | 16.21% |
ROA(3y)12.8%
ROA(5y)N/A
ROE(3y)20.37%
ROE(5y)N/A
ROIC(3y)17.08%
ROIC(5y)N/A
1.3 Margins
- FIRE's Profit Margin of 15.56% is amongst the best of the industry. FIRE outperforms 100.00% of its industry peers.
- FIRE's Profit Margin has improved in the last couple of years.
- FIRE has a better Operating Margin (21.05%) than 100.00% of its industry peers.
- In the last couple of years the Operating Margin of FIRE has grown nicely.
- FIRE has a Gross Margin (36.19%) which is in line with its industry peers.
- FIRE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.05% | ||
| PM (TTM) | 15.56% | ||
| GM | 36.19% |
OM growth 3Y18.8%
OM growth 5YN/A
PM growth 3Y13.3%
PM growth 5YN/A
GM growth 3Y0.77%
GM growth 5YN/A
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), FIRE is creating value.
- FIRE has less shares outstanding than it did 1 year ago.
- FIRE has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.27 indicates that FIRE is not in any danger for bankruptcy at the moment.
- FIRE has a better Altman-Z score (4.27) than 94.74% of its industry peers.
- FIRE has a debt to FCF ratio of 0.91. This is a very positive value and a sign of high solvency as it would only need 0.91 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.91, FIRE belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- A Debt/Equity ratio of 0.11 indicates that FIRE is not too dependend on debt financing.
- The Debt to Equity ratio of FIRE (0.11) is better than 94.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.91 | ||
| Altman-Z | 4.27 |
ROIC/WACC2.02
WACC8.03%
2.3 Liquidity
- FIRE has a Current Ratio of 2.68. This indicates that FIRE is financially healthy and has no problem in meeting its short term obligations.
- FIRE has a better Current ratio (2.68) than 89.47% of its industry peers.
- A Quick Ratio of 2.15 indicates that FIRE has no problem at all paying its short term obligations.
- The Quick ratio of FIRE (2.15) is better than 89.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.68 | ||
| Quick Ratio | 2.15 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 19.95% over the past year.
- The Earnings Per Share has been growing by 51.60% on average over the past years. This is a very strong growth
- FIRE shows a small growth in Revenue. In the last year, the Revenue has grown by 6.99%.
- Measured over the past years, FIRE shows a very strong growth in Revenue. The Revenue has been growing by 33.17% on average per year.
EPS 1Y (TTM)19.95%
EPS 3Y51.6%
EPS 5YN/A
EPS Q2Q%-28.32%
Revenue 1Y (TTM)6.99%
Revenue growth 3Y33.17%
Revenue growth 5YN/A
Sales Q2Q%-9.61%
3.2 Future
- FIRE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.61% yearly.
- The Revenue is expected to grow by 7.17% on average over the next years.
EPS Next Y12.5%
EPS Next 2Y10.4%
EPS Next 3Y8.61%
EPS Next 5YN/A
Revenue Next Year8.08%
Revenue Next 2Y8.33%
Revenue Next 3Y7.17%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 6.95, the valuation of FIRE can be described as very cheap.
- Compared to the rest of the industry, the Price/Earnings ratio of FIRE indicates a rather cheap valuation: FIRE is cheaper than 94.74% of the companies listed in the same industry.
- FIRE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- FIRE is valuated cheaply with a Price/Forward Earnings ratio of 6.99.
- Based on the Price/Forward Earnings ratio, FIRE is valued cheaper than 89.47% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. FIRE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.95 | ||
| Fwd PE | 6.99 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FIRE indicates a somewhat cheap valuation: FIRE is cheaper than 73.68% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, FIRE is valued a bit cheaper than 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.68 | ||
| EV/EBITDA | 3.77 |
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 FIRE may justify a higher PE ratio.
PEG (NY)0.56
PEG (5Y)N/A
EPS Next 2Y10.4%
EPS Next 3Y8.61%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.10%, FIRE is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 3.28, FIRE pays a better dividend. On top of this FIRE pays more dividend than 94.74% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, FIRE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y10.4%
EPS Next 3Y8.61%
BIFIRE SPA / FIRE.MI FAQ
What is the fundamental rating for FIRE stock?
ChartMill assigns a fundamental rating of 7 / 10 to FIRE.MI.
What is the valuation status of BIFIRE SPA (FIRE.MI) stock?
ChartMill assigns a valuation rating of 8 / 10 to BIFIRE SPA (FIRE.MI). This can be considered as Undervalued.
Can you provide the profitability details for BIFIRE SPA?
BIFIRE SPA (FIRE.MI) has a profitability rating of 7 / 10.
What is the expected EPS growth for BIFIRE SPA (FIRE.MI) stock?
The Earnings per Share (EPS) of BIFIRE SPA (FIRE.MI) is expected to grow by 12.5% in the next year.