LUCISANO MEDIA GROUP SPA (LMG.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:LMG - IT0004522162 - Common Stock
1.02 EUR
-0.02 (-1.92%)
LMG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 industry peers in the Entertainment industry. While LMG has a great profitability rating, there are some minor concerns on its financial health. LMG has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year LMG was profitable.
- LMG had a positive operating cash flow in the past year.
- Each year in the past 5 years LMG has been profitable.
- Each year in the past 5 years LMG had a positive operating cash flow.
1.2 Ratios
- LMG has a Return On Assets of 5.32%. This is in the better half of the industry: LMG outperforms 74.51% of its industry peers.
- LMG's Return On Equity of 10.75% is fine compared to the rest of the industry. LMG outperforms 66.67% of its industry peers.
- LMG's Return On Invested Capital of 8.99% is fine compared to the rest of the industry. LMG outperforms 74.51% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for LMG is below the industry average of 9.05%.
- The last Return On Invested Capital (8.99%) for LMG is above the 3 year average (6.82%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.32% | ||
| ROE | 10.75% | ||
| ROIC | 8.99% |
ROA(3y)3.19%
ROA(5y)2.67%
ROE(3y)7.71%
ROE(5y)6.53%
ROIC(3y)6.82%
ROIC(5y)4.68%
1.3 Margins
- The Profit Margin of LMG (11.87%) is better than 76.47% of its industry peers.
- In the last couple of years the Profit Margin of LMG has remained more or less at the same level.
- With an excellent Operating Margin value of 19.45%, LMG belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
- LMG's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 55.93%, LMG is in line with its industry, outperforming 50.98% of the companies in the same industry.
- In the last couple of years the Gross Margin of LMG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.45% | ||
| PM (TTM) | 11.87% | ||
| GM | 55.93% |
OM growth 3Y30.66%
OM growth 5Y11.99%
PM growth 3Y-7.07%
PM growth 5Y-0.34%
GM growth 3Y7.35%
GM growth 5Y10.35%
2. Health
2.1 Basic Checks
- LMG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, LMG has about the same amount of shares outstanding.
- Compared to 5 years ago, LMG has about the same amount of shares outstanding.
- The debt/assets ratio for LMG has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.70, we must say that LMG is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of LMG (1.70) is better than 60.78% of its industry peers.
- A Debt/Equity ratio of 0.63 indicates that LMG is somewhat dependend on debt financing.
- LMG's Debt to Equity ratio of 0.63 is in line compared to the rest of the industry. LMG outperforms 47.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.7 |
ROIC/WACC1.26
WACC7.11%
2.3 Liquidity
- A Current Ratio of 3.18 indicates that LMG has no problem at all paying its short term obligations.
- LMG's Current ratio of 3.18 is amongst the best of the industry. LMG outperforms 94.12% of its industry peers.
- A Quick Ratio of 3.18 indicates that LMG has no problem at all paying its short term obligations.
- With an excellent Quick ratio value of 3.18, LMG belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.18 | ||
| Quick Ratio | 3.18 |
3. Growth
3.1 Past
- LMG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 107.89%, which is quite impressive.
- The Earnings Per Share has been growing slightly by 2.50% on average over the past years.
- Looking at the last year, LMG shows a very strong growth in Revenue. The Revenue has grown by 34.96%.
- The Revenue has been growing slightly by 2.84% on average over the past years.
EPS 1Y (TTM)107.89%
EPS 3Y0.78%
EPS 5Y2.5%
EPS Q2Q%319.31%
Revenue 1Y (TTM)34.96%
Revenue growth 3Y8.44%
Revenue growth 5Y2.84%
Sales Q2Q%94.58%
3.2 Future
- The Earnings Per Share is expected to decrease by -1.40% on average over the next years.
- LMG is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.08% yearly.
EPS Next Y-8.33%
EPS Next 2Y-1.4%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-15.04%
Revenue Next 2Y-0.08%
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 decreasing.
- 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
- The Price/Earnings ratio is 2.68, which indicates a rather cheap valuation of LMG.
- Compared to the rest of the industry, the Price/Earnings ratio of LMG indicates a rather cheap valuation: LMG is cheaper than 98.04% of the companies listed in the same industry.
- LMG is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 2.89 indicates a rather cheap valuation of LMG.
- 98.04% of the companies in the same industry are more expensive than LMG, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, LMG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.68 | ||
| Fwd PE | 2.89 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LMG is valued cheaply inside the industry as 98.04% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 1.41 |
4.3 Compensation for Growth
- LMG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.07
EPS Next 2Y-1.4%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.00%, LMG has a reasonable but not impressive dividend return.
- The stock price of LMG dropped by -27.14% 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 0.82, LMG pays a better dividend. On top of this LMG pays more dividend than 96.08% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, LMG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
5.2 History
- The dividend of LMG decreases each year by -5.90%.
Dividend Growth(5Y)-5.9%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 10.49% of the earnings are spent on dividend by LMG. This is a low number and sustainable payout ratio.
- LMG's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP10.49%
EPS Next 2Y-1.4%
EPS Next 3YN/A
LUCISANO MEDIA GROUP SPA / LMG.MI FAQ
Can you provide the ChartMill fundamental rating for LUCISANO MEDIA GROUP SPA?
ChartMill assigns a fundamental rating of 5 / 10 to LMG.MI.
Can you provide the valuation status for LUCISANO MEDIA GROUP SPA?
ChartMill assigns a valuation rating of 6 / 10 to LUCISANO MEDIA GROUP SPA (LMG.MI). This can be considered as Fairly Valued.
What is the profitability of LMG stock?
LUCISANO MEDIA GROUP SPA (LMG.MI) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for LMG stock?
The Price/Earnings (PE) ratio for LUCISANO MEDIA GROUP SPA (LMG.MI) is 2.68 and the Price/Book (PB) ratio is 0.29.
Is the dividend of LUCISANO MEDIA GROUP SPA sustainable?
The dividend rating of LUCISANO MEDIA GROUP SPA (LMG.MI) is 6 / 10 and the dividend payout ratio is 10.49%.