INFRASTRUTTURE WIRELESS ITAL (INW.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:INW - IT0005090300 - Common Stock
7.375 EUR
+0.01 (+0.14%)
INW gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 36 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 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.
- INW had positive earnings in each of the past 5 years.
- Each year in the past 5 years INW had a positive operating cash flow.
1.2 Ratios
- INW's Return On Assets of 3.80% is in line compared to the rest of the industry. INW outperforms 47.22% of its industry peers.
- INW has a Return On Equity of 9.79%. This is comparable to the rest of the industry: INW outperforms 47.22% of its industry peers.
- With a Return On Invested Capital value of 5.44%, INW perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for INW is below the industry average of 7.93%.
- The last Return On Invested Capital (5.44%) for INW is above the 3 year average (4.87%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.8% | ||
| ROE | 9.79% | ||
| ROIC | 5.44% |
ROA(3y)3.51%
ROA(5y)2.86%
ROE(3y)7.69%
ROE(5y)6.15%
ROIC(3y)4.87%
ROIC(5y)4.19%
1.3 Margins
- The Profit Margin of INW (33.99%) 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's Operating Margin of 54.69% is amongst the best of the industry. INW outperforms 100.00% of its industry peers.
- In the last couple of years the Operating Margin of INW has remained more or less at the same level.
- INW's Gross Margin of 95.93% is amongst the best of the industry. INW outperforms 97.22% of its industry peers.
- 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 | 54.69% | ||
| PM (TTM) | 33.99% | ||
| GM | 95.93% |
OM growth 3Y5.91%
OM growth 5Y-0.94%
PM growth 3Y11.91%
PM growth 5Y-0.62%
GM growth 3Y0.21%
GM growth 5Y0.24%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so INW 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 1.24. This is a bad value and indicates that INW is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of INW (1.24) is better than 61.11% of its industry peers.
- The Debt to FCF ratio of INW is 16.62, which is on the high side as it means it would take INW, 16.62 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 16.62, INW is not doing good in the industry: 63.89% of the companies in the same industry are doing better.
- A Debt/Equity ratio of 1.31 is on the high side and indicates that INW has dependencies on debt financing.
- The Debt to Equity ratio of INW (1.31) is worse than 69.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 16.62 | ||
| Altman-Z | 1.24 |
ROIC/WACC0.82
WACC6.63%
2.3 Liquidity
- A Current Ratio of 0.72 indicates that INW may have some problems paying its short term obligations.
- INW's Current ratio of 0.72 is on the low side compared to the rest of the industry. INW is outperformed by 61.11% of its industry peers.
- A Quick Ratio of 0.72 indicates that INW may have some problems paying its short term obligations.
- INW has a Quick ratio (0.72) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
- The earnings per share for INW have decreased by -1.59% in the last year.
- Measured over the past years, INW shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.07% on average per year.
- Looking at the last year, INW shows a small growth in Revenue. The Revenue has grown by 7.89% in the last year.
- The Revenue has been growing by 21.25% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-1.59%
EPS 3Y19.51%
EPS 5Y9.07%
EPS Q2Q%6.38%
Revenue 1Y (TTM)7.89%
Revenue growth 3Y9.68%
Revenue growth 5Y21.25%
Sales Q2Q%4.12%
3.2 Future
- The Earnings Per Share is expected to grow by 11.11% on average over the next years. This is quite good.
- Based on estimates for the next years, INW will show a small growth in Revenue. The Revenue will grow by 4.28% on average per year.
EPS Next Y20.8%
EPS Next 2Y15.01%
EPS Next 3Y9.42%
EPS Next 5Y11.11%
Revenue Next Year4.2%
Revenue Next 2Y4.71%
Revenue Next 3Y4.82%
Revenue Next 5Y4.28%
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
- Based on the Price/Earnings ratio of 19.93, the valuation of INW can be described as rather expensive.
- The rest of the industry has a similar Price/Earnings ratio as INW.
- INW's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- INW is valuated correctly with a Price/Forward Earnings ratio of 15.71.
- INW's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of INW to the average of the S&P500 Index (24.26), we can say INW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.93 | ||
| Fwd PE | 15.71 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, INW is valued a bit more expensive than the industry average as 77.78% of the companies are valued more cheaply.
- Based on the Price/Free Cash Flow ratio, INW is valued a bit more expensive than the industry average as 69.44% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.64 | ||
| EV/EBITDA | 12.05 |
4.3 Compensation for Growth
- INW's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- INW has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.96
PEG (5Y)2.2
EPS Next 2Y15.01%
EPS Next 3Y9.42%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 7.00%, INW is a good candidate for dividend investing.
- The stock price of INW dropped by -25.51% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- Compared to an average industry Dividend Yield of 3.26, INW pays a better dividend. On top of this INW pays more dividend than 88.89% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, INW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7% |
5.2 History
- The dividend of INW is nicely growing with an annual growth rate of 18.29%!
Dividend Growth(5Y)18.29%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 133.08% of the earnings are spent on dividend by INW. This is not a sustainable payout ratio.
- The dividend of INW is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP133.08%
EPS Next 2Y15.01%
EPS Next 3Y9.42%
INFRASTRUTTURE WIRELESS ITAL / INW.MI FAQ
What is the ChartMill fundamental rating of INFRASTRUTTURE WIRELESS ITAL (INW.MI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to INW.MI.
What is the valuation status for INW stock?
ChartMill assigns a valuation rating of 3 / 10 to INFRASTRUTTURE WIRELESS ITAL (INW.MI). This can be considered as Overvalued.
Can you provide the profitability details for INFRASTRUTTURE WIRELESS ITAL?
INFRASTRUTTURE WIRELESS ITAL (INW.MI) has a profitability rating of 7 / 10.
Can you provide the financial health for INW stock?
The financial health rating of INFRASTRUTTURE WIRELESS ITAL (INW.MI) is 1 / 10.
Is the dividend of INFRASTRUTTURE WIRELESS ITAL sustainable?
The dividend rating of INFRASTRUTTURE WIRELESS ITAL (INW.MI) is 6 / 10 and the dividend payout ratio is 133.08%.