GENERALI (G.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:G - IT0000062072 - Common Stock
33.41 EUR
-0.34 (-1.01%)
G gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 48 industry peers in the Insurance industry. G has a medium profitability rating, but doesn't score so well on its financial health evaluation. G is valued correctly, but it does not seem to be growing. G also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- G had positive earnings in the past year.
- In the past year G had a positive cash flow from operations.
- G had positive earnings in each of the past 5 years.
- Each year in the past 5 years G had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 0.71%, G is doing worse than 72.92% of the companies in the same industry.
- G's Return On Equity of 12.87% is in line compared to the rest of the industry. G outperforms 41.67% of its industry peers.
- G has a Return On Invested Capital of 0.93%. This is comparable to the rest of the industry: G outperforms 47.92% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for G is below the industry average of 2.74%.
- The last Return On Invested Capital (0.93%) for G is above the 3 year average (0.73%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.71% | ||
| ROE | 12.87% | ||
| ROIC | 0.93% |
ROA(3y)0.5%
ROA(5y)0.46%
ROE(3y)9.01%
ROE(5y)8.51%
ROIC(3y)0.73%
ROIC(5y)0.78%
1.3 Margins
- Looking at the Profit Margin, with a value of 7.79%, G is doing worse than 66.67% of the companies in the same industry.
- G's Profit Margin has improved in the last couple of years.
- G has a better Operating Margin (15.75%) than 75.00% of its industry peers.
- In the last couple of years the Operating Margin of G has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.75% | ||
| PM (TTM) | 7.79% | ||
| GM | N/A |
OM growth 3Y30.49%
OM growth 5Y21.29%
PM growth 3Y44.18%
PM growth 5Y24.82%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), G is destroying value.
- Compared to 1 year ago, G has less shares outstanding
- The number of shares outstanding for G has been reduced compared to 5 years ago.
- G has a worse debt/assets ratio than last year.
2.2 Solvency
- G has a debt to FCF ratio of 2.11. This is a good value and a sign of high solvency as G would need 2.11 years to pay back of all of its debts.
- G has a better Debt to FCF ratio (2.11) than 60.42% of its industry peers.
- G has a Debt/Equity ratio of 1.30. This is a high value indicating a heavy dependency on external financing.
- G has a Debt to Equity ratio of 1.30. This is amonst the worse of the industry: G underperforms 81.25% of its industry peers.
- Although G does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 2.11 | ||
| Altman-Z | N/A |
ROIC/WACC0.15
WACC6.29%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- G shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.60%.
- The Earnings Per Share has been growing slightly by 7.84% on average over the past years.
- Looking at the last year, G shows a decrease in Revenue. The Revenue has decreased by -9.82% in the last year.
- Measured over the past years, G shows a very negative growth in Revenue. The Revenue has been decreasing by -14.37% on average per year.
EPS 1Y (TTM)5.6%
EPS 3Y11.24%
EPS 5Y7.84%
EPS Q2Q%133.85%
Revenue 1Y (TTM)-9.82%
Revenue growth 3Y-24.15%
Revenue growth 5Y-14.37%
Sales Q2Q%-2.56%
3.2 Future
- The Earnings Per Share is expected to grow by 7.56% on average over the next years.
- G is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.93% yearly.
EPS Next Y16.28%
EPS Next 2Y13.24%
EPS Next 3Y11.54%
EPS Next 5Y7.56%
Revenue Next Year4.89%
Revenue Next 2Y4.77%
Revenue Next 3Y4.56%
Revenue Next 5Y3.93%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 13.64, which indicates a correct valuation of G.
- G's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, G is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 10.63, the valuation of G can be described as very reasonable.
- The rest of the industry has a similar Price/Forward Earnings ratio as G.
- G is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.64 | ||
| Fwd PE | 10.63 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, G is valued cheaply inside the industry as 97.92% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.82 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- G's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.84
PEG (5Y)1.74
EPS Next 2Y13.24%
EPS Next 3Y11.54%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.24%, G is a good candidate for dividend investing.
- G's Dividend Yield is comparable with the industry average which is at 4.17.
- Compared to an average S&P500 Dividend Yield of 1.81, G pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.24% |
5.2 History
- On average, the dividend of G grows each year by 7.30%, which is quite nice.
Dividend Growth(5Y)7.3%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 56.80% of the earnings are spent on dividend by G. This is a bit on the high side, but may be sustainable.
- The dividend of G is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP56.8%
EPS Next 2Y13.24%
EPS Next 3Y11.54%
GENERALI / G.MI FAQ
What is the fundamental rating for G stock?
ChartMill assigns a fundamental rating of 4 / 10 to G.MI.
What is the valuation status for G stock?
ChartMill assigns a valuation rating of 5 / 10 to GENERALI (G.MI). This can be considered as Fairly Valued.
What is the profitability of G stock?
GENERALI (G.MI) has a profitability rating of 5 / 10.
How financially healthy is GENERALI?
The financial health rating of GENERALI (G.MI) is 3 / 10.
Is the dividend of GENERALI sustainable?
The dividend rating of GENERALI (G.MI) is 7 / 10 and the dividend payout ratio is 56.8%.