GM LEATHER SPA (GML.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:GML - IT0005498610 - Common Stock
0.86 EUR
-0.08 (-8.02%)
We assign a fundamental rating of 4 out of 10 to GML. GML was compared to 51 industry peers in the Textiles, Apparel & Luxury Goods industry. Both the profitability and financial health of GML have multiple concerns. GML has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year GML was profitable.
- GML had a positive operating cash flow in the past year.
- Each year in the past 5 years GML has been profitable.
- In the past 5 years GML reported 4 times negative operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 0.37%, GML is doing worse than 73.08% of the companies in the same industry.
- GML has a worse Return On Equity (1.59%) than 73.08% of its industry peers.
- GML has a Return On Invested Capital of 7.88%. This is comparable to the rest of the industry: GML outperforms 46.15% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for GML is below the industry average of 12.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.37% | ||
| ROE | 1.59% | ||
| ROIC | 7.88% |
ROA(3y)3.22%
ROA(5y)4.65%
ROE(3y)11.59%
ROE(5y)18.27%
ROIC(3y)8.32%
ROIC(5y)9.87%
1.3 Margins
- With a Profit Margin value of 0.51%, GML is not doing good in the industry: 73.08% of the companies in the same industry are doing better.
- In the last couple of years the Profit Margin of GML has declined.
- GML's Operating Margin of 8.17% is in line compared to the rest of the industry. GML outperforms 48.08% of its industry peers.
- GML's Operating Margin has improved in the last couple of years.
- The Gross Margin of GML (34.21%) is worse than 92.31% of its industry peers.
- GML's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.17% | ||
| PM (TTM) | 0.51% | ||
| GM | 34.21% |
OM growth 3Y5.28%
OM growth 5YN/A
PM growth 3Y-45.3%
PM growth 5YN/A
GM growth 3Y27.63%
GM growth 5YN/A
2. Health
2.1 Basic Checks
- GML has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, GML has about the same amount of shares outstanding.
- Compared to 1 year ago, GML has an improved debt to assets ratio.
2.2 Solvency
- GML has an Altman-Z score of 1.51. This is a bad value and indicates that GML is not financially healthy and even has some risk of bankruptcy.
- GML has a Altman-Z score of 1.51. This is in the lower half of the industry: GML underperforms 78.85% of its industry peers.
- The Debt to FCF ratio of GML is 19.48, which is on the high side as it means it would take GML, 19.48 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 19.48, GML is not doing good in the industry: 76.92% of the companies in the same industry are doing better.
- GML has a Debt/Equity ratio of 0.66. This is a neutral value indicating GML is somewhat dependend on debt financing.
- GML has a Debt to Equity ratio (0.66) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 19.48 | ||
| Altman-Z | 1.51 |
ROIC/WACC1.07
WACC7.37%
2.3 Liquidity
- A Current Ratio of 1.32 indicates that GML should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.32, GML is doing worse than 61.54% of the companies in the same industry.
- GML has a Quick Ratio of 1.32. This is a bad value and indicates that GML is not financially healthy enough and could expect problems in meeting its short term obligations.
- GML has a worse Quick ratio (0.56) than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
- The earnings per share for GML have decreased strongly by -81.56% in the last year.
- GML shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -49.19% yearly.
- Looking at the last year, GML shows a quite strong growth in Revenue. The Revenue has grown by 11.87% in the last year.
- The Revenue has been decreasing by -6.61% on average over the past years.
EPS 1Y (TTM)-81.56%
EPS 3Y-49.19%
EPS 5YN/A
EPS Q2Q%-42.17%
Revenue 1Y (TTM)11.87%
Revenue growth 3Y-6.61%
Revenue growth 5YN/A
Sales Q2Q%11.64%
3.2 Future
- The Earnings Per Share is expected to grow by 39.11% on average over the next years. This is a very strong growth
- Based on estimates for the next years, GML will show a quite strong growth in Revenue. The Revenue will grow by 9.31% on average per year.
EPS Next Y-9.09%
EPS Next 2Y31.43%
EPS Next 3Y36.54%
EPS Next 5Y39.11%
Revenue Next Year8.85%
Revenue Next 2Y10.24%
Revenue Next 3Y9.71%
Revenue Next 5Y9.31%
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.
- 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
- GML is valuated quite expensively with a Price/Earnings ratio of 43.00.
- Compared to the rest of the industry, the Price/Earnings ratio of GML indicates a slightly more expensive valuation: GML is more expensive than 63.46% of the companies listed in the same industry.
- GML is valuated expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 4.48, which indicates a rather cheap valuation of GML.
- Based on the Price/Forward Earnings ratio, GML is valued cheaper than 100.00% of the companies in the same industry.
- GML is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43 | ||
| Fwd PE | 4.48 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GML indicates a rather cheap valuation: GML is cheaper than 82.69% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of GML indicates a rather cheap valuation: GML is cheaper than 84.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.08 | ||
| EV/EBITDA | 5.1 |
4.3 Compensation for Growth
- GML's earnings are expected to grow with 36.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y31.43%
EPS Next 3Y36.54%
5. Dividend
5.1 Amount
- GML has a Yearly Dividend Yield of 1.48%.
- Compared to an average industry Dividend Yield of 1.98, GML has a dividend in line with its industry peers.
- GML's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector 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 2Y31.43%
EPS Next 3Y36.54%
GM LEATHER SPA / GML.MI FAQ
Can you provide the ChartMill fundamental rating for GM LEATHER SPA?
ChartMill assigns a fundamental rating of 4 / 10 to GML.MI.
What is the valuation status of GM LEATHER SPA (GML.MI) stock?
ChartMill assigns a valuation rating of 6 / 10 to GM LEATHER SPA (GML.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for GM LEATHER SPA?
GM LEATHER SPA (GML.MI) has a profitability rating of 3 / 10.
What is the valuation of GM LEATHER SPA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for GM LEATHER SPA (GML.MI) is 43 and the Price/Book (PB) ratio is 0.7.
How sustainable is the dividend of GM LEATHER SPA (GML.MI) stock?
The dividend rating of GM LEATHER SPA (GML.MI) is 2 / 10 and the dividend payout ratio is 0%.