GVS SPA (GVS.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:GVS - IT0005411209 - Common Stock
4.122 EUR
-0.06 (-1.51%)
GVS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 63 industry peers in the Health Care Equipment & Supplies industry. While GVS is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, GVS is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year GVS was profitable.
- In the past year GVS had a positive cash flow from operations.
- In the past 5 years GVS has always been profitable.
- GVS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- GVS's Return On Assets of 1.65% is in line compared to the rest of the industry. GVS outperforms 44.44% of its industry peers.
- GVS has a Return On Equity of 3.41%. This is comparable to the rest of the industry: GVS outperforms 44.44% of its industry peers.
- GVS has a Return On Invested Capital (6.19%) which is comparable to the rest of the industry.
- GVS had an Average Return On Invested Capital over the past 3 years of 5.58%. This is below the industry average of 9.95%.
- The 3 year average ROIC (5.58%) for GVS is below the current ROIC(6.19%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.65% | ||
| ROE | 3.41% | ||
| ROIC | 6.19% |
ROA(3y)2.47%
ROA(5y)7.49%
ROE(3y)6.28%
ROE(5y)14.78%
ROIC(3y)5.58%
ROIC(5y)11.73%
1.3 Margins
- GVS has a Profit Margin of 3.58%. This is comparable to the rest of the industry: GVS outperforms 49.21% of its industry peers.
- GVS's Profit Margin has declined in the last couple of years.
- The Operating Margin of GVS (14.40%) is better than 69.84% of its industry peers.
- GVS's Operating Margin has declined in the last couple of years.
- GVS has a Gross Margin (55.98%) which is in line with its industry peers.
- In the last couple of years the Gross Margin of GVS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.4% | ||
| PM (TTM) | 3.58% | ||
| GM | 55.98% |
OM growth 3Y-17.84%
OM growth 5Y-7.16%
PM growth 3Y-26.97%
PM growth 5Y-11.75%
GM growth 3Y-3.53%
GM growth 5Y-1.47%
2. Health
2.1 Basic Checks
- GVS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, GVS has more shares outstanding
- The number of shares outstanding for GVS has been increased compared to 5 years ago.
- Compared to 1 year ago, GVS has an improved debt to assets ratio.
2.2 Solvency
- GVS has an Altman-Z score of 2.26. This is not the best score and indicates that GVS is in the grey zone with still only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.26, GVS is in line with its industry, outperforming 47.62% of the companies in the same industry.
- GVS has a debt to FCF ratio of 149.75. This is a negative value and a sign of low solvency as GVS would need 149.75 years to pay back of all of its debts.
- GVS's Debt to FCF ratio of 149.75 is on the low side compared to the rest of the industry. GVS is outperformed by 63.49% of its industry peers.
- GVS has a Debt/Equity ratio of 0.58. This is a neutral value indicating GVS is somewhat dependend on debt financing.
- GVS's Debt to Equity ratio of 0.58 is on the low side compared to the rest of the industry. GVS is outperformed by 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 149.75 | ||
| Altman-Z | 2.26 |
ROIC/WACC0.83
WACC7.46%
2.3 Liquidity
- A Current Ratio of 1.72 indicates that GVS should not have too much problems paying its short term obligations.
- The Current ratio of GVS (1.72) is comparable to the rest of the industry.
- GVS has a Quick Ratio of 1.25. This is a normal value and indicates that GVS is financially healthy and should not expect problems in meeting its short term obligations.
- GVS's Quick ratio of 1.25 is fine compared to the rest of the industry. GVS outperforms 60.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
- The earnings per share for GVS have decreased strongly by -40.97% in the last year.
- The Earnings Per Share has been growing slightly by 0.08% on average over the past years.
- Looking at the last year, GVS shows a small growth in Revenue. The Revenue has grown by 0.73% in the last year.
- GVS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.51% yearly.
EPS 1Y (TTM)-40.97%
EPS 3Y-21.12%
EPS 5Y0.08%
EPS Q2Q%-20%
Revenue 1Y (TTM)0.73%
Revenue growth 3Y8.22%
Revenue growth 5Y13.51%
Sales Q2Q%1.05%
3.2 Future
- GVS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.14% yearly.
- GVS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.42% yearly.
EPS Next Y-5.98%
EPS Next 2Y10.85%
EPS Next 3Y12.14%
EPS Next 5YN/A
Revenue Next Year-0.68%
Revenue Next 2Y2.26%
Revenue Next 3Y3.42%
Revenue Next 5YN/A
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- GVS is valuated quite expensively with a Price/Earnings ratio of 45.80.
- Compared to the rest of the industry, the Price/Earnings ratio of GVS is on the same level as its industry peers.
- GVS is valuated expensively when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- GVS is valuated correctly with a Price/Forward Earnings ratio of 13.70.
- Based on the Price/Forward Earnings ratio, GVS is valued cheaper than 84.13% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of GVS to the average of the S&P500 Index (25.98), we can say GVS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.8 | ||
| Fwd PE | 13.7 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GVS indicates a rather cheap valuation: GVS is cheaper than 82.54% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, GVS is valued a bit more expensive than the industry average as 63.49% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 358.86 | ||
| EV/EBITDA | 9.9 |
4.3 Compensation for Growth
- GVS's earnings are expected to grow with 12.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)542.21
EPS Next 2Y10.85%
EPS Next 3Y12.14%
5. Dividend
5.1 Amount
- GVS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
GVS SPA / GVS.MI FAQ
What is the fundamental rating for GVS stock?
ChartMill assigns a fundamental rating of 4 / 10 to GVS.MI.
What is the valuation status of GVS SPA (GVS.MI) stock?
ChartMill assigns a valuation rating of 3 / 10 to GVS SPA (GVS.MI). This can be considered as Overvalued.
Can you provide the profitability details for GVS SPA?
GVS SPA (GVS.MI) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for GVS stock?
The Price/Earnings (PE) ratio for GVS SPA (GVS.MI) is 45.8 and the Price/Book (PB) ratio is 1.73.
What is the earnings growth outlook for GVS SPA?
The Earnings per Share (EPS) of GVS SPA (GVS.MI) is expected to decline by -5.98% in the next year.