IVECO GROUP NV (IVG.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:IVG - NL0015000LU4 - Common Stock
18.82 EUR
-0.02 (-0.13%)
We assign a fundamental rating of 4 out of 10 to IVG. IVG was compared to 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 has a decent growth rate and is not valued too expensively.
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.
- Of the past 5 years IVG 4 years were profitable.
- Each year in the past 5 years IVG had a positive operating cash flow.
1.2 Ratios
- IVG's Return On Assets of 1.73% is on the low side compared to the rest of the industry. IVG is outperformed by 60.00% of its industry peers.
- Looking at the Return On Equity, with a value of 12.39%, IVG is in the better half of the industry, outperforming 73.91% 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 42.61% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for IVG is significantly below the industry average of 9.21%.
- The last Return On Invested Capital (4.53%) for IVG is above the 3 year average (3.91%), which is a sign of increasing profitability.
| 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 60.87% of its industry peers.
- In the last couple of years the Profit Margin of IVG has grown nicely.
- The Operating Margin of IVG (5.00%) is comparable to the rest of the industry.
- IVG's Operating Margin has improved in the last couple of years.
- The Gross Margin of IVG (16.49%) is worse than 90.43% of its industry peers.
- IVG's Gross Margin has improved in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
- IVG has an Altman-Z score of 1.77. This is a bad value and indicates that IVG is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 1.77, IVG perfoms like the industry average, outperforming 43.48% of the companies in the same industry.
- 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.
- IVG's Debt to FCF ratio of 14.82 is on the low side compared to the rest of the industry. IVG is outperformed by 66.96% of its industry peers.
- IVG has a Debt/Equity ratio of 1.35. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.35, IVG is not doing good in the industry: 81.74% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 14.82 | ||
| Altman-Z | 1.77 |
ROIC/WACC0.6
WACC7.51%
2.3 Liquidity
- IVG has a Current Ratio of 1.98. This is a normal value and indicates that IVG is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of IVG (1.98) is better than 73.91% of its industry peers.
- IVG has a Quick Ratio of 1.40. This is a normal value and indicates that IVG is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of IVG (1.40) is better than 78.26% of its industry peers.
| 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.
- The Revenue has decreased by -7.24% in the past 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
- The Earnings Per Share is expected to grow by 10.81% on average over the next years. This is quite good.
- IVG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.30% yearly.
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
- A Price/Earnings ratio of 14.04 indicates a correct valuation of IVG.
- IVG's Price/Earnings ratio is rather cheap when compared to the industry. IVG is cheaper than 87.83% of the companies in the same industry.
- IVG is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- IVG is valuated reasonably with a Price/Forward Earnings ratio of 8.85.
- IVG's Price/Forward Earnings ratio is rather cheap when compared to the industry. IVG is cheaper than 92.17% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of IVG to the average of the S&P500 Index (25.98), we can say IVG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.04 | ||
| Fwd PE | 8.85 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, IVG is valued cheaper than 81.74% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, IVG is valued a bit cheaper than 70.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.76 | ||
| EV/EBITDA | 5.58 |
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
- IVG has a Yearly Dividend Yield of 1.75%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.48, IVG pays a bit more dividend than its industry peers.
- IVG's Dividend Yield is comparable with the S&P500 average which is at 1.81.
| 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.