INFRASTRUTTURE WIRELESS ITAL (INW.MI) Stock Fundamental Analysis
BIT:INW - Euronext Milan - IT0005090300 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to INW. INW was compared to 29 industry peers in the Diversified Telecommunication Services industry. While INW belongs to the best of the industry regarding profitability, there are concerns on its financial health. INW is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year INW was profitable.
In the past year INW had a positive cash flow from operations.
INW had positive earnings in each of the past 5 years.
INW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
INW has a better Return On Assets (3.82%) than 66.67% of its industry peers.
The Return On Equity of INW (8.93%) is comparable to the rest of the industry.
INW has a Return On Invested Capital (5.64%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for INW is below the industry average of 7.55%.
The last Return On Invested Capital (5.64%) for INW is above the 3 year average (4.28%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 35.00%, INW belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
INW's Profit Margin has been stable in the last couple of years.
INW has a Operating Margin of 54.37%. This is amongst the best in the industry. INW outperforms 100.00% of its industry peers.
INW's Operating Margin has been stable in the last couple of years.
INW has a Gross Margin of 95.77%. This is amongst the best in the industry. INW outperforms 96.67% of its industry peers.
INW's Gross Margin has been stable in the last couple of years.
| 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
INW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
INW has less shares outstanding than it did 1 year ago.
The number of shares outstanding for INW has been increased compared to 5 years ago.
Compared to 1 year ago, INW has a worse debt to assets ratio.
2.2 Solvency
INW has an Altman-Z score of 1.43. This is a bad value and indicates that INW is not financially healthy and even has some risk of bankruptcy.
INW has a better Altman-Z score (1.43) than 70.00% of its industry peers.
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.
INW's Debt to FCF ratio of 10.88 is in line compared to the rest of the industry. INW outperforms 46.67% of its industry peers.
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 line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 10.88 | ||
| Altman-Z | 1.43 |
ROIC/WACC0.8
WACC7.01%
2.3 Liquidity
A Current Ratio of 0.34 indicates that INW may have some problems paying its short term obligations.
INW has a worse Current ratio (0.34) than 83.33% of its industry peers.
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 Quick ratio of 0.34. This is amonst the worse of the industry: INW underperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.34 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.17% over the past year.
The Earnings Per Share has been growing by 8.63% 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 5Y8.63%
EPS Q2Q%10.59%
Revenue 1Y (TTM)9.16%
Revenue growth 3Y13.12%
Revenue growth 5Y20.47%
Sales Q2Q%7.6%
3.2 Future
The Earnings Per Share is expected to grow by 12.07% on average over the next years. This is quite good.
INW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.93% yearly.
EPS Next Y16.03%
EPS Next 2Y14.12%
EPS Next 3Y12.52%
EPS Next 5Y12.07%
Revenue Next Year7.71%
Revenue Next 2Y6.62%
Revenue Next 3Y6.37%
Revenue Next 5Y5.93%
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.
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
A Price/Earnings ratio of 24.38 indicates a rather expensive valuation of INW.
INW's Price/Earnings ratio is a bit more expensive when compared to the industry. INW is more expensive than 66.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.35. INW is around the same levels.
INW is valuated rather expensively with a Price/Forward Earnings ratio of 20.21.
Based on the Price/Forward Earnings ratio, INW is valued a bit more expensive than the industry average as 70.00% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 22.10. INW is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.38 | ||
| Fwd PE | 20.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, INW is valued a bit more expensive than 73.33% of the companies in the same industry.
INW's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. INW is more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.25 | ||
| EV/EBITDA | 14.16 |
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.
INW's earnings are expected to grow with 12.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.52
PEG (5Y)2.82
EPS Next 2Y14.12%
EPS Next 3Y12.52%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.61%, INW is a good candidate for dividend investing.
INW's Dividend Yield is a higher than the industry average which is at 5.01.
Compared to an average S&P500 Dividend Yield of 2.33, INW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.61% |
5.2 History
The dividend of INW is nicely growing with an annual growth rate of 13.16%!
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 2Y14.12%
EPS Next 3Y12.52%
BIT:INW (3/7/2025, 7:00:00 PM)
9.265
+0.08 (+0.87%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners19.55%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap8.63B
Analysts72.73
Price Target12.26 (32.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.61% |
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)-0.49%
PT rev (3m)-2.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.18%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.49%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.38 | ||
| Fwd PE | 20.21 | ||
| P/S | 8.47 | ||
| P/FCF | 20.25 | ||
| P/OCF | 10.46 | ||
| P/B | 2.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.16 |
EPS(TTM)0.38
EY4.1%
EPS(NY)0.46
Fwd EY4.95%
FCF(TTM)0.46
FCFY4.94%
OCF(TTM)0.89
OCFY9.56%
SpS1.09
BVpS4.29
TBVpS-2.76
PEG (NY)1.52
PEG (5Y)2.82
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 | 1.43 |
F-Score6
WACC7.01%
ROIC/WACC0.8
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 5Y8.63%
EPS Q2Q%10.59%
EPS Next Y16.03%
EPS Next 2Y14.12%
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 Year7.71%
Revenue Next 2Y6.62%
Revenue Next 3Y6.37%
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%