IRCE SPA (IRC.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:IRC - IT0001077780 - Common Stock
2.2 EUR
+0.01 (+0.46%)
IRC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 73 industry peers in the Electrical Equipment industry. Both the profitability and the financial health of IRC get a neutral evaluation. Nothing too spectacular is happening here. IRC scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
- IRC had positive earnings in the past year.
- In the past year IRC had a positive cash flow from operations.
- In the past 5 years IRC has always been profitable.
- Of the past 5 years IRC 4 years had a positive operating cash flow.
1.2 Ratios
- IRC has a Return On Assets (1.99%) which is comparable to the rest of the industry.
- IRC has a Return On Equity of 3.83%. This is comparable to the rest of the industry: IRC outperforms 52.05% of its industry peers.
- IRC has a Return On Invested Capital (3.64%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.99% | ||
| ROE | 3.83% | ||
| ROIC | 3.64% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- IRC has a Profit Margin (1.49%) which is in line with its industry peers.
- IRC's Profit Margin has improved in the last couple of years.
- IRC has a Operating Margin (3.52%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of IRC has grown nicely.
- The Gross Margin of IRC (23.57%) is worse than 71.23% of its industry peers.
- In the last couple of years the Gross Margin of IRC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.52% | ||
| PM (TTM) | 1.49% | ||
| GM | 23.57% |
OM growth 3Y4.32%
OM growth 5Y94.95%
PM growth 3Y-5.42%
PM growth 5Y22.75%
GM growth 3Y5.8%
GM growth 5Y2.2%
2. Health
2.1 Basic Checks
- IRC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- There is no outstanding debt for IRC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- An Altman-Z score of 2.70 indicates that IRC is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of IRC (2.70) is better than 63.01% of its industry peers.
- A Debt/Equity ratio of 0.46 indicates that IRC is not too dependend on debt financing.
- IRC has a Debt to Equity ratio (0.46) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.7 |
ROIC/WACC0.42
WACC8.56%
2.3 Liquidity
- IRC has a Current Ratio of 2.04. This indicates that IRC is financially healthy and has no problem in meeting its short term obligations.
- IRC has a Current ratio of 2.04. This is in the better half of the industry: IRC outperforms 75.34% of its industry peers.
- A Quick Ratio of 0.85 indicates that IRC may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.85, IRC is in line with its industry, outperforming 52.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
- The earnings per share for IRC have decreased strongly by -27.68% in the last year.
- The Earnings Per Share has been growing by 28.98% on average over the past years. This is a very strong growth
- The Revenue has been growing slightly by 0.28% in the past year.
- Measured over the past years, IRC shows a small growth in Revenue. The Revenue has been growing by 4.98% on average per year.
EPS 1Y (TTM)-27.68%
EPS 3Y-9.64%
EPS 5Y28.98%
EPS Q2Q%-28.41%
Revenue 1Y (TTM)0.28%
Revenue growth 3Y-4.54%
Revenue growth 5Y4.98%
Sales Q2Q%-6.39%
3.2 Future
- IRC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.53% yearly.
- The Revenue is expected to grow by 5.65% on average over the next years.
EPS Next Y7.41%
EPS Next 2Y30.53%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.07%
Revenue Next 2Y5.65%
Revenue Next 3YN/A
Revenue Next 5YN/A
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 stable.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 10.00 indicates a reasonable valuation of IRC.
- 94.52% of the companies in the same industry are more expensive than IRC, based on the Price/Earnings ratio.
- IRC is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- IRC is valuated cheaply with a Price/Forward Earnings ratio of 4.74.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of IRC indicates a rather cheap valuation: IRC is cheaper than 95.89% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of IRC to the average of the S&P500 Index (24.26), we can say IRC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10 | ||
| Fwd PE | 4.74 |
4.2 Price Multiples
- IRC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. IRC is cheaper than 94.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.85 |
4.3 Compensation for Growth
- IRC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- IRC's earnings are expected to grow with 30.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.35
PEG (5Y)0.35
EPS Next 2Y30.53%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- IRC has a Yearly Dividend Yield of 2.78%.
- IRC's Dividend Yield is rather good when compared to the industry average which is at 0.82. IRC pays more dividend than 91.78% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, IRC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- IRC pays out 27.03% of its income as dividend. This is a sustainable payout ratio.
DP27.03%
EPS Next 2Y30.53%
EPS Next 3YN/A
IRCE SPA / IRC.MI FAQ
What is the ChartMill fundamental rating of IRCE SPA (IRC.MI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to IRC.MI.
What is the valuation status for IRC stock?
ChartMill assigns a valuation rating of 7 / 10 to IRCE SPA (IRC.MI). This can be considered as Undervalued.
What is the profitability of IRC stock?
IRCE SPA (IRC.MI) has a profitability rating of 5 / 10.
How financially healthy is IRCE SPA?
The financial health rating of IRCE SPA (IRC.MI) is 4 / 10.
How sustainable is the dividend of IRCE SPA (IRC.MI) stock?
The dividend rating of IRCE SPA (IRC.MI) is 6 / 10 and the dividend payout ratio is 27.03%.