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GM LEATHER SPA (GML.MI) Stock Fundamental Analysis

BIT:GML - Euronext Milan - IT0005498610 - Common Stock - Currency: EUR

1.03  -0.15 (-12.71%)

Fundamental Rating

4

Overall GML gets a fundamental rating of 4 out of 10. We evaluated GML against 42 industry peers in the Textiles, Apparel & Luxury Goods industry. GML may be in some trouble as it scores bad on both profitability and health. GML has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

GML had positive earnings in the past year.
GML had a positive operating cash flow in the past year.
GML.MI Yearly Net Income VS EBIT VS OCF VS FCFGML.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2020 2021 2022 2023 0 2M -2M -4M -6M -8M

1.2 Ratios

GML's Return On Assets of 2.14% is on the low side compared to the rest of the industry. GML is outperformed by 60.00% of its industry peers.
GML has a Return On Equity of 8.61%. This is comparable to the rest of the industry: GML outperforms 45.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.66%, GML is in line with its industry, outperforming 57.50% of the companies in the same industry.
GML had an Average Return On Invested Capital over the past 3 years of 14.43%. This is above the industry average of 10.98%.
Industry RankSector Rank
ROA 2.14%
ROE 8.61%
ROIC 10.66%
ROA(3y)5.47%
ROA(5y)N/A
ROE(3y)20.94%
ROE(5y)N/A
ROIC(3y)14.43%
ROIC(5y)N/A
GML.MI Yearly ROA, ROE, ROICGML.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2020 2021 2022 2023 10 20 30

1.3 Margins

With a Profit Margin value of 3.10%, GML perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
GML's Profit Margin has declined in the last couple of years.
GML has a Operating Margin of 8.99%. This is comparable to the rest of the industry: GML outperforms 52.50% of its industry peers.
In the last couple of years the Operating Margin of GML has grown nicely.
Looking at the Gross Margin, with a value of 33.17%, GML is doing worse than 92.50% of the companies in the same industry.
GML's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 8.99%
PM (TTM) 3.1%
GM 33.17%
OM growth 3Y3.09%
OM growth 5YN/A
PM growth 3Y-4.01%
PM growth 5YN/A
GM growth 3Y9.34%
GM growth 5YN/A
GML.MI Yearly Profit, Operating, Gross MarginsGML.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2020 2021 2022 2023 5 10 15 20 25

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2

2. Health

2.1 Basic Checks

GML 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, GML has about the same amount of shares outstanding.
GML has a worse debt/assets ratio than last year.
GML.MI Yearly Shares OutstandingGML.MI Yearly Shares OutstandingYearly Shares Outstanding 2020 2021 2022 2023 2M 4M 6M 8M 10M
GML.MI Yearly Total Debt VS Total AssetsGML.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2020 2021 2022 2023 10M 20M 30M 40M 50M

2.2 Solvency

Based on the Altman-Z score of 1.62, we must say that GML is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.62, GML is doing worse than 75.00% of the companies in the same industry.
A Debt/Equity ratio of 0.76 indicates that GML is somewhat dependend on debt financing.
The Debt to Equity ratio of GML (0.76) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.76
Debt/FCF N/A
Altman-Z 1.62
ROIC/WACC1.39
WACC7.66%
GML.MI Yearly LT Debt VS Equity VS FCFGML.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2020 2021 2022 2023 0 5M -5M 10M

2.3 Liquidity

A Current Ratio of 1.44 indicates that GML should not have too much problems paying its short term obligations.
GML has a Current ratio (1.44) which is in line with its industry peers.
GML has a Quick Ratio of 1.44. This is a bad value and indicates that GML is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of GML (0.49) is worse than 80.00% of its industry peers.
Industry RankSector Rank
Current Ratio 1.44
Quick Ratio 0.49
GML.MI Yearly Current Assets VS Current LiabilitesGML.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2020 2021 2022 2023 10M 20M 30M 40M

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5

3. Growth

3.1 Past

GML shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -35.09%.
GML shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.79% yearly.
Looking at the last year, GML shows a decrease in Revenue. The Revenue has decreased by -6.97% in the last year.
The Revenue has been growing by 11.84% on average over the past years. This is quite good.
EPS 1Y (TTM)-35.09%
EPS 3Y6.79%
EPS 5YN/A
EPS Q2Q%-76.91%
Revenue 1Y (TTM)-6.97%
Revenue growth 3Y11.84%
Revenue growth 5YN/A
Sales Q2Q%-12.68%

3.2 Future

The Earnings Per Share is expected to grow by 40.76% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 8.46% on average over the next years. This is quite good.
EPS Next Y-42.11%
EPS Next 2Y46.9%
EPS Next 3Y44.23%
EPS Next 5Y40.76%
Revenue Next Year-2.11%
Revenue Next 2Y12.25%
Revenue Next 3Y9.65%
Revenue Next 5Y8.46%

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 accelerating.
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.
GML.MI Yearly Revenue VS EstimatesGML.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 10M 20M 30M 40M 50M
GML.MI Yearly EPS VS EstimatesGML.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 0.2 0.4 0.6

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6

4. Valuation

4.1 Price/Earnings Ratio

GML is valuated reasonably with a Price/Earnings ratio of 9.36.
97.50% of the companies in the same industry are more expensive than GML, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.35. GML is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 2.49, the valuation of GML can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GML indicates a rather cheap valuation: GML is cheaper than 97.50% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, GML is valued rather cheaply.
Industry RankSector Rank
PE 9.36
Fwd PE 2.49
GML.MI Price Earnings VS Forward Price EarningsGML.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, GML is valued a bit cheaper than the industry average as 72.50% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 6.52
GML.MI Per share dataGML.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 2 3

4.3 Compensation for Growth

GML's earnings are expected to grow with 44.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y46.9%
EPS Next 3Y44.23%

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2

5. Dividend

5.1 Amount

GML has a Yearly Dividend Yield of 1.48%. Purely for dividend investing, there may be better candidates out there.
GML's Dividend Yield is comparable with the industry average which is at 3.02.
Compared to the average S&P500 Dividend Yield of 2.33, GML is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.48%

5.2 History

Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

DP0%
EPS Next 2Y46.9%
EPS Next 3Y44.23%
GML.MI Yearly Income VS Free CF VS DividendGML.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2020 2021 2022 2023 0 2M -2M -4M -6M -8M

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GM LEATHER SPA

BIT:GML (3/3/2025, 7:00:00 PM)

1.03

-0.15 (-12.71%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)N/A N/A
Earnings (Next)N/A N/A
Inst Owners0.23%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap11.58M
Analysts80
Price Target4.98 (383.5%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.48%
Yearly Dividend0.02
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-2.3%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-54.17%
EPS NY rev (3m)-54.17%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-25.44%
Revenue NY rev (3m)-25.44%
Valuation
Industry RankSector Rank
PE 9.36
Fwd PE 2.49
P/S 0.3
P/FCF N/A
P/OCF 40.49
P/B 0.84
P/tB 1.38
EV/EBITDA 6.52
EPS(TTM)0.11
EY10.68%
EPS(NY)0.41
Fwd EY40.2%
FCF(TTM)-0.34
FCFYN/A
OCF(TTM)0.03
OCFY2.47%
SpS3.39
BVpS1.22
TBVpS0.75
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.14%
ROE 8.61%
ROCE 13.3%
ROIC 10.66%
ROICexc 11.39%
ROICexgc 14.6%
OM 8.99%
PM (TTM) 3.1%
GM 33.17%
FCFM N/A
ROA(3y)5.47%
ROA(5y)N/A
ROE(3y)20.94%
ROE(5y)N/A
ROIC(3y)14.43%
ROIC(5y)N/A
ROICexc(3y)15.31%
ROICexc(5y)N/A
ROICexgc(3y)18.31%
ROICexgc(5y)N/A
ROCE(3y)18.01%
ROCE(5y)N/A
ROICexcg growth 3Y-10.47%
ROICexcg growth 5YN/A
ROICexc growth 3Y-13.32%
ROICexc growth 5YN/A
OM growth 3Y3.09%
OM growth 5YN/A
PM growth 3Y-4.01%
PM growth 5YN/A
GM growth 3Y9.34%
GM growth 5YN/A
F-Score4
Asset Turnover0.69
Health
Industry RankSector Rank
Debt/Equity 0.76
Debt/FCF N/A
Debt/EBITDA 1.74
Cap/Depr 158.33%
Cap/Sales 10.65%
Interest Coverage 250
Cash Conversion 4.77%
Profit Quality N/A
Current Ratio 1.44
Quick Ratio 0.49
Altman-Z 1.62
F-Score4
WACC7.66%
ROIC/WACC1.39
Cap/Depr(3y)257.79%
Cap/Depr(5y)N/A
Cap/Sales(3y)10.41%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-35.09%
EPS 3Y6.79%
EPS 5YN/A
EPS Q2Q%-76.91%
EPS Next Y-42.11%
EPS Next 2Y46.9%
EPS Next 3Y44.23%
EPS Next 5Y40.76%
Revenue 1Y (TTM)-6.97%
Revenue growth 3Y11.84%
Revenue growth 5YN/A
Sales Q2Q%-12.68%
Revenue Next Year-2.11%
Revenue Next 2Y12.25%
Revenue Next 3Y9.65%
Revenue Next 5Y8.46%
EBIT growth 1Y2.11%
EBIT growth 3Y15.29%
EBIT growth 5YN/A
EBIT Next Year61.68%
EBIT Next 3Y45.04%
EBIT Next 5Y37.14%
FCF growth 1Y-112.92%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-34.81%
OCF growth 3YN/A
OCF growth 5YN/A