INFRASTRUTTURE WIRELESS ITAL (INW.MI) Stock Fundamental Analysis
BIT:INW - Borsa Italiana Milan - IT0005090300 - Common Stock - Currency: EUR
Taking everything into account, INW scores 5 out of 10 in our fundamental rating. INW was compared to 31 industry peers in the Diversified Telecommunication Services industry. INW has an excellent profitability rating, but there are concerns on its financial health. INW is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year INW was profitable.
INW had a positive operating cash flow in the past year.
In the past 5 years INW has always been profitable.
Each year in the past 5 years INW had a positive operating cash flow.
1.2 Ratios
INW has a Return On Assets of 3.82%. This is in the better half of the industry: INW outperforms 71.43% of its industry peers.
INW has a Return On Equity (8.93%) which is in line with its industry peers.
INW's Return On Invested Capital of 5.64% is in line compared to the rest of the industry. INW outperforms 50.00% of its industry peers.
INW had an Average Return On Invested Capital over the past 3 years of 4.28%. This is below the industry average of 7.24%.
The 3 year average ROIC (4.28%) for INW is below the current ROIC(5.64%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.82% | ||
| ROE | 8.93% | ||
| ROIC | 5.64% |
ROA(3y)2.95%
ROA(5y)3.19%
ROE(3y)6.22%
ROE(5y)6.2%
ROIC(3y)4.28%
ROIC(5y)4.82%
1.3 Margins
The Profit Margin of INW (35.00%) is better than 100.00% of its industry peers.
In the last couple of years the Profit Margin of INW has remained more or less at the same level.
INW has a better Operating Margin (54.37%) than 100.00% of its industry peers.
INW's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 95.77%, INW belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
In the last couple of years the Gross Margin of INW has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 54.37% | ||
| PM (TTM) | 35% | ||
| GM | 95.77% |
OM growth 3Y6.16%
OM growth 5Y0.12%
PM growth 3Y14.4%
PM growth 5Y-1.01%
GM growth 3Y0.15%
GM growth 5Y0.2%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so INW is destroying value.
The number of shares outstanding for INW has been reduced compared to 1 year ago.
Compared to 5 years ago, INW has more shares outstanding
The debt/assets ratio for INW is higher compared to a year ago.
2.2 Solvency
INW has an Altman-Z score of 1.51. This is a bad value and indicates that INW is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.51, INW is doing good in the industry, outperforming 78.57% of the companies in the same industry.
The Debt to FCF ratio of INW is 10.88, which is on the high side as it means it would take INW, 10.88 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of INW (10.88) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.01 is on the high side and indicates that INW has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.01, INW is in the better half of the industry, outperforming 60.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 10.88 | ||
| Altman-Z | 1.51 |
ROIC/WACC0.83
WACC6.83%
2.3 Liquidity
INW has a Current Ratio of 0.34. This is a bad value and indicates that INW is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.34, INW is not doing good in the industry: 92.86% of the companies in the same industry are doing better.
INW has a Quick Ratio of 0.34. This is a bad value and indicates that INW is not financially healthy enough and could expect problems in meeting its short term obligations.
INW has a worse Quick ratio (0.34) than 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.34 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
INW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.17%, which is quite good.
The Earnings Per Share has been growing by 8.64% on average over the past years. This is quite good.
Looking at the last year, INW shows a quite strong growth in Revenue. The Revenue has grown by 9.16% in the last year.
Measured over the past years, INW shows a very strong growth in Revenue. The Revenue has been growing by 20.47% on average per year.
EPS 1Y (TTM)12.17%
EPS 3Y13.46%
EPS 5Y8.64%
EPS Q2Q%10.59%
Revenue 1Y (TTM)9.16%
Revenue growth 3Y13.12%
Revenue growth 5Y20.47%
Sales Q2Q%7.6%
3.2 Future
INW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.07% yearly.
The Revenue is expected to grow by 5.93% on average over the next years.
EPS Next Y16.03%
EPS Next 2Y14.26%
EPS Next 3Y12.52%
EPS Next 5Y12.07%
Revenue Next Year7.61%
Revenue Next 2Y6.71%
Revenue Next 3Y6.43%
Revenue Next 5Y5.93%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 26.62 indicates a quite expensive valuation of INW.
INW's Price/Earnings ratio is a bit more expensive when compared to the industry. INW is more expensive than 71.43% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.47, INW is valued at the same level.
INW is valuated rather expensively with a Price/Forward Earnings ratio of 22.01.
Based on the Price/Forward Earnings ratio, INW is valued a bit more expensive than the industry average as 78.57% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of INW to the average of the S&P500 Index (92.74), we can say INW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.62 | ||
| Fwd PE | 22.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, INW is valued expensively inside the industry as 82.14% of the companies are valued cheaper.
INW's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. INW is more expensive than 67.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.11 | ||
| EV/EBITDA | 14.94 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of INW may justify a higher PE ratio.
A more expensive valuation may be justified as INW's earnings are expected to grow with 12.52% in the coming years.
PEG (NY)1.66
PEG (5Y)3.08
EPS Next 2Y14.26%
EPS Next 3Y12.52%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.74%, INW is a good candidate for dividend investing.
INW's Dividend Yield is comparable with the industry average which is at 5.48.
INW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.74% |
5.2 History
On average, the dividend of INW grows each year by 13.16%, which is quite nice.
Dividend Growth(5Y)13.16%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
INW pays out 127.03% of its income as dividend. This is not a sustainable payout ratio.
INW's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP127.03%
EPS Next 2Y14.26%
EPS Next 3Y12.52%
INFRASTRUTTURE WIRELESS ITAL
BIT:INW (2/5/2025, 1:22:42 PM)
10.115
+0.06 (+0.65%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners19.49%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap9.43B
Analysts73.91
Price Target12.32 (21.8%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.74% |
Yearly Dividend0.35
Dividend Growth(5Y)13.16%
DP127.03%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.68%
Min EPS beat(2)-6.3%
Max EPS beat(2)-3.05%
EPS beat(4)0
Avg EPS beat(4)-7.71%
Min EPS beat(4)-13.71%
Max EPS beat(4)-3.05%
EPS beat(8)0
Avg EPS beat(8)-12.55%
EPS beat(12)2
Avg EPS beat(12)-11.6%
EPS beat(16)3
Avg EPS beat(16)-12.92%
Revenue beat(2)0
Avg Revenue beat(2)-1.63%
Min Revenue beat(2)-1.66%
Max Revenue beat(2)-1.6%
Revenue beat(4)0
Avg Revenue beat(4)-1.37%
Min Revenue beat(4)-1.66%
Max Revenue beat(4)-0.73%
Revenue beat(8)0
Avg Revenue beat(8)-1.52%
Revenue beat(12)0
Avg Revenue beat(12)-1.31%
Revenue beat(16)0
Avg Revenue beat(16)-1.23%
PT rev (1m)-1.32%
PT rev (3m)-4.02%
EPS NQ rev (1m)4.18%
EPS NQ rev (3m)1.89%
EPS NY rev (1m)-1.7%
EPS NY rev (3m)-1.31%
Revenue NQ rev (1m)-0.49%
Revenue NQ rev (3m)-2.19%
Revenue NY rev (1m)-0.76%
Revenue NY rev (3m)-0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.62 | ||
| Fwd PE | 22.01 | ||
| P/S | 9.25 | ||
| P/FCF | 22.11 | ||
| P/OCF | 11.42 | ||
| P/B | 2.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.94 |
EPS(TTM)0.38
EY3.76%
EPS(NY)0.46
Fwd EY4.54%
FCF(TTM)0.46
FCFY4.52%
OCF(TTM)0.89
OCFY8.76%
SpS1.09
BVpS4.29
TBVpS-2.76
PEG (NY)1.66
PEG (5Y)3.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.82% | ||
| ROE | 8.93% | ||
| ROCE | 6.5% | ||
| ROIC | 5.64% | ||
| ROICexc | 5.68% | ||
| ROICexgc | 25.39% | ||
| OM | 54.37% | ||
| PM (TTM) | 35% | ||
| GM | 95.77% | ||
| FCFM | 41.84% |
ROA(3y)2.95%
ROA(5y)3.19%
ROE(3y)6.22%
ROE(5y)6.2%
ROIC(3y)4.28%
ROIC(5y)4.82%
ROICexc(3y)4.33%
ROICexc(5y)4.92%
ROICexgc(3y)19.4%
ROICexgc(5y)19.17%
ROCE(3y)4.94%
ROCE(5y)5.57%
ROICexcg growth 3Y16.45%
ROICexcg growth 5Y-19.61%
ROICexc growth 3Y20.43%
ROICexc growth 5Y-12.64%
OM growth 3Y6.16%
OM growth 5Y0.12%
PM growth 3Y14.4%
PM growth 5Y-1.01%
GM growth 3Y0.15%
GM growth 5Y0.2%
F-Score6
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 10.88 | ||
| Debt/EBITDA | 4.34 | ||
| Cap/Depr | 105.28% | ||
| Cap/Sales | 39.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.46% | ||
| Profit Quality | 119.55% | ||
| Current Ratio | 0.34 | ||
| Quick Ratio | 0.34 | ||
| Altman-Z | 1.51 |
F-Score6
WACC6.83%
ROIC/WACC0.83
Cap/Depr(3y)119.56%
Cap/Depr(5y)117.57%
Cap/Sales(3y)50.31%
Cap/Sales(5y)47.18%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.17%
EPS 3Y13.46%
EPS 5Y8.64%
EPS Q2Q%10.59%
EPS Next Y16.03%
EPS Next 2Y14.26%
EPS Next 3Y12.52%
EPS Next 5Y12.07%
Revenue 1Y (TTM)9.16%
Revenue growth 3Y13.12%
Revenue growth 5Y20.47%
Sales Q2Q%7.6%
Revenue Next Year7.61%
Revenue Next 2Y6.71%
Revenue Next 3Y6.43%
Revenue Next 5Y5.93%
EBIT growth 1Y11.26%
EBIT growth 3Y20.09%
EBIT growth 5Y20.61%
EBIT Next Year91.14%
EBIT Next 3Y29.4%
EBIT Next 5Y18.13%
FCF growth 1Y323.26%
FCF growth 3Y4.07%
FCF growth 5Y25.61%
OCF growth 1Y44.1%
OCF growth 3Y18.57%
OCF growth 5Y38.02%