GENERALI (G.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:G - IT0000062072 - Common Stock
33.23 EUR
-0.05 (-0.15%)
Taking everything into account, G scores 4 out of 10 in our fundamental rating. G was compared to 48 industry peers in the Insurance industry. While G is still in line with the averages on profitability rating, there are concerns on its financial health. G has a valuation in line with the averages, but it does not seem to be growing. Finally G also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year G was profitable.
- In the past year G had a positive cash flow from operations.
- Each year in the past 5 years G has been profitable.
- In the past 5 years G always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of G (0.71%) is worse than 70.83% of its industry peers.
- Looking at the Return On Equity, with a value of 12.87%, G is in line with its industry, outperforming 41.67% of the companies in the same industry.
- With a Return On Invested Capital value of 0.93%, G perfoms like the industry average, outperforming 47.92% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital 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 64.58% of the companies in the same industry.
- G's Profit Margin has improved in the last couple of years.
- G's Operating Margin of 15.75% is fine compared to the rest of the industry. G outperforms 70.83% 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.
- G has less shares outstanding than it did 1 year ago.
- G has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, G has a worse debt to assets ratio.
2.2 Solvency
- The Debt to FCF ratio of G is 2.11, which is a good value as it means it would take G, 2.11 years of fcf income to pay off all of its debts.
- G has a Debt to FCF ratio (2.11) which is in line with its industry peers.
- A Debt/Equity ratio of 1.30 is on the high side and indicates that G has dependencies on debt financing.
- G has a worse Debt to Equity ratio (1.30) than 81.25% of its industry peers.
- Even though the debt/equity ratio score it not favorable for G, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 2.11 | ||
| Altman-Z | N/A |
ROIC/WACC0.15
WACC6.28%
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%.
- G shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.84% yearly.
- Looking at the last year, G shows a decrease in Revenue. The Revenue has decreased by -9.82% in the last year.
- The Revenue for G have been decreasing by -14.37% on average. This is quite bad
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
- G is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.56% yearly.
- Based on estimates for the next years, G will show a small growth in Revenue. The Revenue will grow by 3.93% on average per year.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 13.56 indicates a correct valuation of G.
- The rest of the industry has a similar Price/Earnings ratio as G.
- G's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.25.
- A Price/Forward Earnings ratio of 10.58 indicates a reasonable valuation of G.
- The rest of the industry has a similar Price/Forward Earnings ratio as G.
- G's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.56 | ||
| Fwd PE | 10.58 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, G is valued cheaply inside the industry as 95.83% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.81 | ||
| EV/EBITDA | N/A |
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.
PEG (NY)0.83
PEG (5Y)1.73
EPS Next 2Y13.24%
EPS Next 3Y11.54%
5. Dividend
5.1 Amount
- G has a Yearly Dividend Yield of 4.24%, which is a nice return.
- G's Dividend Yield is comparable with the industry average which is at 4.17.
- Compared to an average S&P500 Dividend Yield of 1.82, 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
- G pays out 56.80% of its income as dividend. 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%.