GPI SPA (GPI.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:GPI - IT0005221517 - Common Stock
17.77 EUR
+0.69 (+4.04%)
GPI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 11 industry peers in the Health Care Technology industry. While GPI is still in line with the averages on profitability rating, there are concerns on its financial health. GPI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- GPI had positive earnings in the past year.
- GPI had a positive operating cash flow in the past year.
- Each year in the past 5 years GPI has been profitable.
- In the past 5 years GPI always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.06%, GPI is in line with its industry, outperforming 54.55% of the companies in the same industry.
- GPI has a better Return On Equity (7.45%) than 63.64% of its industry peers.
- GPI's Return On Invested Capital of 4.83% is in line compared to the rest of the industry. GPI outperforms 54.55% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for GPI is below the industry average of 8.41%.
- The 3 year average ROIC (3.61%) for GPI is below the current ROIC(4.83%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.06% | ||
| ROE | 7.45% | ||
| ROIC | 4.83% |
ROA(3y)4.3%
ROA(5y)3.67%
ROE(3y)13.36%
ROE(5y)13.06%
ROIC(3y)3.61%
ROIC(5y)4.65%
1.3 Margins
- The Profit Margin of GPI (4.22%) is better than 63.64% of its industry peers.
- GPI's Profit Margin has improved in the last couple of years.
- GPI has a Operating Margin of 8.80%. This is in the better half of the industry: GPI outperforms 63.64% of its industry peers.
- GPI's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 70.50%, GPI perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
- GPI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.8% | ||
| PM (TTM) | 4.22% | ||
| GM | 70.5% |
OM growth 3Y0.35%
OM growth 5Y3.23%
PM growth 3Y83.16%
PM growth 5Y39.62%
GM growth 3Y-0.12%
GM growth 5Y0.09%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GPI is destroying value.
- Compared to 1 year ago, GPI has more shares outstanding
- GPI has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for GPI has been reduced compared to a year ago.
2.2 Solvency
- GPI has an Altman-Z score of 1.37. This is a bad value and indicates that GPI is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.37, GPI is in line with its industry, outperforming 54.55% of the companies in the same industry.
- GPI has a debt to FCF ratio of 769.42. This is a negative value and a sign of low solvency as GPI would need 769.42 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 769.42, GPI is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
- GPI has a Debt/Equity ratio of 1.23. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.23, GPI is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 769.43 | ||
| Altman-Z | 1.37 |
ROIC/WACC0.76
WACC6.33%
2.3 Liquidity
- GPI has a Current Ratio of 1.63. This is a normal value and indicates that GPI is financially healthy and should not expect problems in meeting its short term obligations.
- With a decent Current ratio value of 1.63, GPI is doing good in the industry, outperforming 63.64% of the companies in the same industry.
- GPI has a Quick Ratio of 1.58. This is a normal value and indicates that GPI is financially healthy and should not expect problems in meeting its short term obligations.
- GPI's Quick ratio of 1.58 is fine compared to the rest of the industry. GPI outperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
- The earnings per share for GPI have decreased strongly by -76.60% in the last year.
- GPI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 43.78% yearly.
- The Revenue has grown by 9.60% in the past year. This is quite good.
- GPI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.94% yearly.
EPS 1Y (TTM)-76.6%
EPS 3Y80.87%
EPS 5Y43.78%
EPS Q2Q%-95.66%
Revenue 1Y (TTM)9.6%
Revenue growth 3Y15.3%
Revenue growth 5Y15.94%
Sales Q2Q%9.19%
3.2 Future
- Based on estimates for the next years, GPI will show a very strong growth in Earnings Per Share. The EPS will grow by 28.43% on average per year.
- Based on estimates for the next years, GPI will show a small growth in Revenue. The Revenue will grow by 6.27% on average per year.
EPS Next Y49.42%
EPS Next 2Y38.26%
EPS Next 3Y28.43%
EPS Next 5YN/A
Revenue Next Year8.94%
Revenue Next 2Y7.35%
Revenue Next 3Y6.27%
Revenue Next 5YN/A
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 23.69, the valuation of GPI can be described as rather expensive.
- Based on the Price/Earnings ratio, GPI is valued a bit cheaper than 72.73% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.82, GPI is valued at the same level.
- The Price/Forward Earnings ratio is 17.84, which indicates a rather expensive current valuation of GPI.
- Based on the Price/Forward Earnings ratio, GPI is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
- GPI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.69 | ||
| Fwd PE | 17.84 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GPI is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
- 63.64% of the companies in the same industry are cheaper than GPI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 771.37 | ||
| EV/EBITDA | 9 |
4.3 Compensation for Growth
- GPI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of GPI may justify a higher PE ratio.
- A more expensive valuation may be justified as GPI's earnings are expected to grow with 28.43% in the coming years.
PEG (NY)0.48
PEG (5Y)0.54
EPS Next 2Y38.26%
EPS Next 3Y28.43%
5. Dividend
5.1 Amount
- GPI has a Yearly Dividend Yield of 2.92%.
- Compared to an average industry Dividend Yield of 2.22, GPI has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, GPI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.92% |
5.2 History
- The dividend of GPI is nicely growing with an annual growth rate of 20.80%!
Dividend Growth(5Y)20.8%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 60.90% of the earnings are spent on dividend by GPI. This is not a sustainable payout ratio.
- GPI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP60.9%
EPS Next 2Y38.26%
EPS Next 3Y28.43%
GPI SPA / GPI.MI FAQ
Can you provide the ChartMill fundamental rating for GPI SPA?
ChartMill assigns a fundamental rating of 5 / 10 to GPI.MI.
Can you provide the valuation status for GPI SPA?
ChartMill assigns a valuation rating of 5 / 10 to GPI SPA (GPI.MI). This can be considered as Fairly Valued.
What is the profitability of GPI stock?
GPI SPA (GPI.MI) has a profitability rating of 6 / 10.
What are the PE and PB ratios of GPI SPA (GPI.MI) stock?
The Price/Earnings (PE) ratio for GPI SPA (GPI.MI) is 23.69 and the Price/Book (PB) ratio is 1.75.
How sustainable is the dividend of GPI SPA (GPI.MI) stock?
The dividend rating of GPI SPA (GPI.MI) is 6 / 10 and the dividend payout ratio is 60.9%.