IVECO GROUP NV (IVG.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:IVG - NL0015000LU4 - Common Stock
18.81 EUR
+0.01 (+0.05%)
IVG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 111 industry peers in the Machinery industry. There are concerns on the financial health of IVG while its profitability can be described as average. IVG is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- IVG had positive earnings in the past year.
- IVG had a positive operating cash flow in the past year.
- IVG had positive earnings in 4 of the past 5 years.
- In the past 5 years IVG always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 1.73%, IVG is doing worse than 60.36% of the companies in the same industry.
- With a decent Return On Equity value of 12.39%, IVG is doing good in the industry, outperforming 72.07% of the companies in the same industry.
- IVG has a Return On Invested Capital of 4.53%. This is comparable to the rest of the industry: IVG outperforms 40.54% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for IVG is significantly below the industry average of 9.21%.
- The 3 year average ROIC (3.91%) for IVG is below the current ROIC(4.53%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.73% | ||
| ROE | 12.39% | ||
| ROIC | 4.53% |
ROA(3y)1.3%
ROA(5y)0.32%
ROE(3y)9.48%
ROE(5y)2.54%
ROIC(3y)3.91%
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of IVG (2.17%) is worse than 62.16% of its industry peers.
- In the last couple of years the Profit Margin of IVG has grown nicely.
- IVG has a Operating Margin of 5.00%. This is in the lower half of the industry: IVG underperforms 60.36% of its industry peers.
- In the last couple of years the Operating Margin of IVG has grown nicely.
- IVG has a worse Gross Margin (16.49%) than 90.99% of its industry peers.
- In the last couple of years the Gross Margin of IVG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5% | ||
| PM (TTM) | 2.17% | ||
| GM | 16.49% |
OM growth 3Y29.77%
OM growth 5Y9.99%
PM growth 3Y77.09%
PM growth 5Y26.56%
GM growth 3Y7.43%
GM growth 5Y4.66%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), IVG is destroying value.
- The number of shares outstanding for IVG has been reduced compared to 1 year ago.
- The number of shares outstanding for IVG has been increased compared to 5 years ago.
- Compared to 1 year ago, IVG has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.77, we must say that IVG is in the distress zone and has some risk of bankruptcy.
- IVG has a Altman-Z score of 1.77. This is comparable to the rest of the industry: IVG outperforms 41.44% of its industry peers.
- IVG has a debt to FCF ratio of 14.82. This is a negative value and a sign of low solvency as IVG would need 14.82 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 14.82, IVG is not doing good in the industry: 67.57% of the companies in the same industry are doing better.
- IVG has a Debt/Equity ratio of 1.35. This is a high value indicating a heavy dependency on external financing.
- IVG has a Debt to Equity ratio of 1.35. This is amonst the worse of the industry: IVG underperforms 82.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 14.82 | ||
| Altman-Z | 1.77 |
ROIC/WACC0.61
WACC7.43%
2.3 Liquidity
- A Current Ratio of 1.98 indicates that IVG should not have too much problems paying its short term obligations.
- The Current ratio of IVG (1.98) is better than 74.77% of its industry peers.
- A Quick Ratio of 1.40 indicates that IVG should not have too much problems paying its short term obligations.
- With a decent Quick ratio value of 1.40, IVG is doing good in the industry, outperforming 78.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
- The earnings per share for IVG have decreased strongly by -23.43% in the last year.
- IVG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.82% yearly.
- Looking at the last year, IVG shows a decrease in Revenue. The Revenue has decreased by -7.24% in the last year.
- IVG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.06% yearly.
EPS 1Y (TTM)-23.43%
EPS 3Y88.31%
EPS 5Y32.82%
EPS Q2Q%-61.54%
Revenue 1Y (TTM)-7.24%
Revenue growth 3Y6.52%
Revenue growth 5Y5.06%
Sales Q2Q%-9.61%
3.2 Future
- IVG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.81% yearly.
- Based on estimates for the next years, IVG will show a small growth in Revenue. The Revenue will grow by 4.30% on average per year.
EPS Next Y-25.28%
EPS Next 2Y1.11%
EPS Next 3Y8.02%
EPS Next 5Y10.81%
Revenue Next Year-5.37%
Revenue Next 2Y0.91%
Revenue Next 3Y2.67%
Revenue Next 5Y4.3%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 14.04, which indicates a correct valuation of IVG.
- Compared to the rest of the industry, the Price/Earnings ratio of IVG indicates a rather cheap valuation: IVG is cheaper than 85.59% of the companies listed in the same industry.
- IVG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.87.
- Based on the Price/Forward Earnings ratio of 8.85, the valuation of IVG can be described as reasonable.
- Based on the Price/Forward Earnings ratio, IVG is valued cheaply inside the industry as 90.09% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of IVG to the average of the S&P500 Index (25.96), we can say IVG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.04 | ||
| Fwd PE | 8.85 |
4.2 Price Multiples
- 81.08% of the companies in the same industry are more expensive than IVG, based on the Enterprise Value to EBITDA ratio.
- IVG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. IVG is cheaper than 70.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.75 | ||
| EV/EBITDA | 5.57 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.43
EPS Next 2Y1.11%
EPS Next 3Y8.02%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.75%, IVG has a reasonable but not impressive dividend return.
- IVG's Dividend Yield is a higher than the industry average which is at 1.48.
- IVG's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- IVG pays out 27.33% of its income as dividend. This is a sustainable payout ratio.
DP27.33%
EPS Next 2Y1.11%
EPS Next 3Y8.02%
IVECO GROUP NV / IVG.MI FAQ
Can you provide the ChartMill fundamental rating for IVECO GROUP NV?
ChartMill assigns a fundamental rating of 4 / 10 to IVG.MI.
What is the valuation status for IVG stock?
ChartMill assigns a valuation rating of 6 / 10 to IVECO GROUP NV (IVG.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for IVECO GROUP NV?
IVECO GROUP NV (IVG.MI) has a profitability rating of 5 / 10.
How financially healthy is IVECO GROUP NV?
The financial health rating of IVECO GROUP NV (IVG.MI) is 3 / 10.
Can you provide the expected EPS growth for IVG stock?
The Earnings per Share (EPS) of IVECO GROUP NV (IVG.MI) is expected to decline by -25.28% in the next year.