INTERPUMP GROUP SPA (IP.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:IP - IT0001078911 - Common Stock
47.56 EUR
+0.96 (+2.06%)
We assign a fundamental rating of 6 out of 10 to IP. IP was compared to 115 industry peers in the Machinery industry. IP is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. IP 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 IP was profitable.
- IP had a positive operating cash flow in the past year.
- Each year in the past 5 years IP has been profitable.
- IP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 6.35%, IP is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 10.70%, IP is in the better half of the industry, outperforming 66.09% of the companies in the same industry.
- IP has a Return On Invested Capital of 9.14%. This is in the better half of the industry: IP outperforms 75.65% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for IP is above the industry average of 8.97%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.35% | ||
| ROE | 10.7% | ||
| ROIC | 9.14% |
ROA(3y)7.89%
ROA(5y)7.73%
ROE(3y)14.58%
ROE(5y)14.7%
ROIC(3y)11.37%
ROIC(5y)10.67%
1.3 Margins
- IP has a Profit Margin of 10.41%. This is amongst the best in the industry. IP outperforms 81.74% of its industry peers.
- IP's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 16.05%, IP belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
- IP's Operating Margin has declined in the last couple of years.
- IP has a Gross Margin of 35.13%. This is in the lower half of the industry: IP underperforms 60.87% of its industry peers.
- In the last couple of years the Gross Margin of IP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.05% | ||
| PM (TTM) | 10.41% | ||
| GM | 35.13% |
OM growth 3Y-4.11%
OM growth 5Y-2.11%
PM growth 3Y-3.64%
PM growth 5Y-3.55%
GM growth 3Y-1.4%
GM growth 5Y-1.31%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so IP is still creating some value.
- IP has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for IP remains at a similar level compared to 5 years ago.
- The debt/assets ratio for IP has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 4.27 indicates that IP is not in any danger for bankruptcy at the moment.
- IP has a better Altman-Z score (4.27) than 82.61% of its industry peers.
- IP has a debt to FCF ratio of 3.77. This is a good value and a sign of high solvency as IP would need 3.77 years to pay back of all of its debts.
- IP has a better Debt to FCF ratio (3.77) than 64.35% of its industry peers.
- A Debt/Equity ratio of 0.26 indicates that IP is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.26, IP is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 3.77 | ||
| Altman-Z | 4.27 |
ROIC/WACC1.17
WACC7.82%
2.3 Liquidity
- IP has a Current Ratio of 2.21. This indicates that IP is financially healthy and has no problem in meeting its short term obligations.
- IP's Current ratio of 2.21 is amongst the best of the industry. IP outperforms 82.61% of its industry peers.
- IP has a Quick Ratio of 1.26. This is a normal value and indicates that IP is financially healthy and should not expect problems in meeting its short term obligations.
- IP has a better Quick ratio (1.26) than 70.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
- The earnings per share for IP have decreased by -9.38% in the last year.
- IP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.72% yearly.
- The Revenue has decreased by -4.26% in the past year.
- Measured over the past years, IP shows a quite strong growth in Revenue. The Revenue has been growing by 8.71% on average per year.
EPS 1Y (TTM)-9.38%
EPS 3Y5.36%
EPS 5Y4.72%
EPS Q2Q%-3.12%
Revenue 1Y (TTM)-4.26%
Revenue growth 3Y9.01%
Revenue growth 5Y8.71%
Sales Q2Q%1%
3.2 Future
- IP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.31% yearly.
- The Revenue is expected to grow by 3.06% on average over the next years.
EPS Next Y-1.16%
EPS Next 2Y4.74%
EPS Next 3Y6.31%
EPS Next 5YN/A
Revenue Next Year-0.23%
Revenue Next 2Y2.26%
Revenue Next 3Y3.06%
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.
- 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 23.66 indicates a rather expensive valuation of IP.
- Compared to the rest of the industry, the Price/Earnings ratio of IP is on the same level as its industry peers.
- IP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.32.
- A Price/Forward Earnings ratio of 19.20 indicates a rather expensive valuation of IP.
- IP's Price/Forward Earnings ratio is in line with the industry average.
- IP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.66 | ||
| Fwd PE | 19.2 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as IP.
- IP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.52 | ||
| EV/EBITDA | 12.2 |
4.3 Compensation for Growth
- IP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.01
EPS Next 2Y4.74%
EPS Next 3Y6.31%
5. Dividend
5.1 Amount
- IP has a yearly dividend return of 0.68%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.50, IP is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.83, IP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
5.2 History
- On average, the dividend of IP grows each year by 7.78%, which is quite nice.
Dividend Growth(5Y)7.78%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- IP pays out 16.62% of its income as dividend. This is a sustainable payout ratio.
- The dividend of IP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP16.62%
EPS Next 2Y4.74%
EPS Next 3Y6.31%
INTERPUMP GROUP SPA / IP.MI FAQ
Can you provide the ChartMill fundamental rating for INTERPUMP GROUP SPA?
ChartMill assigns a fundamental rating of 6 / 10 to IP.MI.
What is the valuation status for IP stock?
ChartMill assigns a valuation rating of 3 / 10 to INTERPUMP GROUP SPA (IP.MI). This can be considered as Overvalued.
Can you provide the profitability details for INTERPUMP GROUP SPA?
INTERPUMP GROUP SPA (IP.MI) has a profitability rating of 6 / 10.
What is the financial health of INTERPUMP GROUP SPA (IP.MI) stock?
The financial health rating of INTERPUMP GROUP SPA (IP.MI) is 8 / 10.
Can you provide the dividend sustainability for IP stock?
The dividend rating of INTERPUMP GROUP SPA (IP.MI) is 3 / 10 and the dividend payout ratio is 16.62%.