GVS SPA (GVS.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:GVS - IT0005411209 - Common Stock
4.122 EUR
-0.01 (-0.31%)
Taking everything into account, GVS scores 4 out of 10 in our fundamental rating. GVS was compared to 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. GVS is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- GVS had positive earnings in the past year.
- GVS had a positive operating cash flow in the past year.
- Each year in the past 5 years GVS has been profitable.
- GVS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- GVS has a Return On Assets (1.65%) which is in line with its industry peers.
- GVS has a Return On Equity (3.41%) which is in line with its industry peers.
- The Return On Invested Capital of GVS (6.19%) is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for GVS is below the industry average of 9.95%.
- The last Return On Invested Capital (6.19%) for GVS is above the 3 year average (5.58%), which is a sign of increasing profitability.
| 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
- Looking at the Profit Margin, with a value of 3.58%, GVS is in line with its industry, outperforming 49.21% of the companies in the same industry.
- 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.
- Looking at the Gross Margin, with a value of 55.98%, GVS is in line with its industry, outperforming 49.21% of the companies in the same industry.
- GVS's Gross Margin has been stable in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GVS is destroying value.
- The number of shares outstanding for GVS has been increased compared to 1 year ago.
- GVS has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for GVS has been reduced compared to a year ago.
2.2 Solvency
- GVS has an Altman-Z score of 2.25. 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.
- GVS has a Altman-Z score (2.25) which is comparable to the rest of the industry.
- The Debt to FCF ratio of GVS is 149.75, which is on the high side as it means it would take GVS, 149.75 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of GVS (149.75) is worse than 63.49% of its industry peers.
- A Debt/Equity ratio of 0.58 indicates that 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 | 2.25 |
ROIC/WACC0.83
WACC7.46%
2.3 Liquidity
- GVS has a Current Ratio of 1.72. 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 Current ratio of 1.72 is in line compared to the rest of the industry. GVS outperforms 57.14% of its industry peers.
- A Quick Ratio of 1.25 indicates that GVS should not have too much problems paying 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
- GVS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -40.97%.
- GVS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.08% yearly.
- Looking at the last year, GVS shows a small growth in Revenue. The Revenue has grown by 0.73% in the last year.
- Measured over the past years, GVS shows a quite strong growth in Revenue. The Revenue has been growing by 13.51% on average per year.
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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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
- The Price/Earnings ratio is 45.80, which means the current valuation is very expensive for GVS.
- GVS's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 28.82. GVS is valued rather expensively when compared to this.
- A Price/Forward Earnings ratio of 13.70 indicates a correct valuation of GVS.
- 85.71% of the companies in the same industry are more expensive than GVS, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. GVS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.8 | ||
| Fwd PE | 13.7 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GVS is valued cheaper than 82.54% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, GVS is valued a bit more expensive than 63.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 358.86 | ||
| EV/EBITDA | 9.81 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as GVS's earnings are expected to grow with 12.14% in the coming years.
PEG (NY)N/A
PEG (5Y)542.21
EPS Next 2Y10.85%
EPS Next 3Y12.14%
5. Dividend
5.1 Amount
- No dividends for GVS!.
| 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.