LU-VE SPA (LUVE.MI) Stock Fundamental Analysis
BIT:LUVE - Borsa Italiana Milan - IT0005107492 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to LUVE. LUVE was compared to 18 industry peers in the Building Products industry. While LUVE has a great profitability rating, there are some minor concerns on its financial health. LUVE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year LUVE was profitable.
In the past year LUVE had a positive cash flow from operations.
In the past 5 years LUVE has always been profitable.
In the past 5 years LUVE always reported a positive cash flow from operatings.
1.2 Ratios
LUVE has a better Return On Assets (5.87%) than 82.35% of its industry peers.
LUVE has a Return On Equity of 20.73%. This is amongst the best in the industry. LUVE outperforms 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 11.52%, LUVE belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LUVE is in line with the industry average of 7.00%.
The 3 year average ROIC (6.72%) for LUVE is below the current ROIC(11.52%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.87% | ||
| ROE | 20.73% | ||
| ROIC | 11.52% |
ROA(3y)4.29%
ROA(5y)3.53%
ROE(3y)16.85%
ROE(5y)13.71%
ROIC(3y)6.72%
ROIC(5y)6.07%
1.3 Margins
LUVE has a Profit Margin of 5.64%. This is comparable to the rest of the industry: LUVE outperforms 58.82% of its industry peers.
LUVE's Profit Margin has been stable in the last couple of years.
LUVE has a Operating Margin (8.18%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of LUVE has grown nicely.
Looking at the Gross Margin, with a value of 41.08%, LUVE is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
LUVE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.18% | ||
| PM (TTM) | 5.64% | ||
| GM | 41.08% |
OM growth 3Y21.32%
OM growth 5Y2.73%
PM growth 3Y25.06%
PM growth 5Y-0.83%
GM growth 3Y-1.36%
GM growth 5Y0.54%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LUVE is creating value.
LUVE has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, LUVE has more shares outstanding
Compared to 1 year ago, LUVE has an improved debt to assets ratio.
2.2 Solvency
LUVE has an Altman-Z score of 2.54. This is not the best score and indicates that LUVE is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of LUVE (2.54) is better than 70.59% of its industry peers.
The Debt to FCF ratio of LUVE is 6.43, which is on the high side as it means it would take LUVE, 6.43 years of fcf income to pay off all of its debts.
LUVE has a Debt to FCF ratio (6.43) which is comparable to the rest of the industry.
LUVE has a Debt/Equity ratio of 1.08. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.08, LUVE is doing worse than 76.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 6.43 | ||
| Altman-Z | 2.54 |
ROIC/WACC2.08
WACC5.54%
2.3 Liquidity
A Current Ratio of 1.69 indicates that LUVE should not have too much problems paying its short term obligations.
LUVE has a Current ratio (1.69) which is in line with its industry peers.
A Quick Ratio of 1.32 indicates that LUVE should not have too much problems paying its short term obligations.
LUVE's Quick ratio of 1.32 is fine compared to the rest of the industry. LUVE outperforms 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.69% over the past year.
LUVE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.94% yearly.
Looking at the last year, LUVE shows a decrease in Revenue. The Revenue has decreased by -4.33% in the last year.
Measured over the past years, LUVE shows a quite strong growth in Revenue. The Revenue has been growing by 15.02% on average per year.
EPS 1Y (TTM)1.69%
EPS 3Y44.18%
EPS 5Y13.94%
EPS Q2Q%-18.27%
Revenue 1Y (TTM)-4.33%
Revenue growth 3Y15.47%
Revenue growth 5Y15.02%
Sales Q2Q%-1.72%
3.2 Future
Based on estimates for the next years, LUVE will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.08% on average per year.
The Revenue is expected to grow by 6.34% on average over the next years.
EPS Next Y14.77%
EPS Next 2Y13.44%
EPS Next 3Y13.08%
EPS Next 5YN/A
Revenue Next Year-3.95%
Revenue Next 2Y1.15%
Revenue Next 3Y2.65%
Revenue Next 5Y6.34%
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.
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 13.10 indicates a correct valuation of LUVE.
LUVE's Price/Earnings ratio is a bit cheaper when compared to the industry. LUVE is cheaper than 70.59% of the companies in the same industry.
When comparing the Price/Earnings ratio of LUVE to the average of the S&P500 Index (28.47), we can say LUVE is valued rather cheaply.
With a Price/Forward Earnings ratio of 15.45, LUVE is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as LUVE.
LUVE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.1 | ||
| Fwd PE | 15.45 |
4.2 Price Multiples
LUVE's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LUVE indicates a somewhat cheap valuation: LUVE is cheaper than 64.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.49 | ||
| EV/EBITDA | 6.69 |
4.3 Compensation for Growth
LUVE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
LUVE has a very decent profitability rating, which may justify a higher PE ratio.
LUVE's earnings are expected to grow with 13.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.89
PEG (5Y)0.94
EPS Next 2Y13.44%
EPS Next 3Y13.08%
5. Dividend
5.1 Amount
LUVE has a Yearly Dividend Yield of 1.43%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.63, LUVE has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.28, LUVE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
5.2 History
The dividend of LUVE is nicely growing with an annual growth rate of 11.56%!
Dividend Growth(5Y)11.56%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
LUVE pays out 21.00% of its income as dividend. This is a sustainable payout ratio.
LUVE's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP21%
EPS Next 2Y13.44%
EPS Next 3Y13.08%
LU-VE SPA
BIT:LUVE (2/5/2025, 4:16:35 PM)
28.3
-0.35 (-1.22%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners20.73%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap629.11M
Analysts82.5
Price Target32.13 (13.53%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
Yearly Dividend0.41
Dividend Growth(5Y)11.56%
DP21%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)5.35%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)4.89%
EPS NY rev (3m)4.89%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.87%
Revenue NY rev (3m)-0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.1 | ||
| Fwd PE | 15.45 | ||
| P/S | 0.72 | ||
| P/FCF | 10.49 | ||
| P/OCF | 6.84 | ||
| P/B | 2.64 | ||
| P/tB | 4.27 | ||
| EV/EBITDA | 6.69 |
EPS(TTM)2.16
EY7.63%
EPS(NY)1.83
Fwd EY6.47%
FCF(TTM)2.7
FCFY9.53%
OCF(TTM)4.14
OCFY14.61%
SpS39.46
BVpS10.74
TBVpS6.63
PEG (NY)0.89
PEG (5Y)0.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.87% | ||
| ROE | 20.73% | ||
| ROCE | 13.6% | ||
| ROIC | 11.52% | ||
| ROICexc | 25.09% | ||
| ROICexgc | 40.25% | ||
| OM | 8.18% | ||
| PM (TTM) | 5.64% | ||
| GM | 41.08% | ||
| FCFM | 6.84% |
ROA(3y)4.29%
ROA(5y)3.53%
ROE(3y)16.85%
ROE(5y)13.71%
ROIC(3y)6.72%
ROIC(5y)6.07%
ROICexc(3y)14.72%
ROICexc(5y)12.61%
ROICexgc(3y)26.62%
ROICexgc(5y)23.36%
ROCE(3y)7.93%
ROCE(5y)7.17%
ROICexcg growth 3Y16.45%
ROICexcg growth 5Y7.75%
ROICexc growth 3Y26.21%
ROICexc growth 5Y9.21%
OM growth 3Y21.32%
OM growth 5Y2.73%
PM growth 3Y25.06%
PM growth 5Y-0.83%
GM growth 3Y-1.36%
GM growth 5Y0.54%
F-Score7
Asset Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 6.43 | ||
| Debt/EBITDA | 2.49 | ||
| Cap/Depr | 100.99% | ||
| Cap/Sales | 3.64% | ||
| Interest Coverage | 9.61 | ||
| Cash Conversion | 88.89% | ||
| Profit Quality | 121.24% | ||
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 2.54 |
F-Score7
WACC5.54%
ROIC/WACC2.08
Cap/Depr(3y)106.59%
Cap/Depr(5y)105.54%
Cap/Sales(3y)5.9%
Cap/Sales(5y)6.28%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.69%
EPS 3Y44.18%
EPS 5Y13.94%
EPS Q2Q%-18.27%
EPS Next Y14.77%
EPS Next 2Y13.44%
EPS Next 3Y13.08%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.33%
Revenue growth 3Y15.47%
Revenue growth 5Y15.02%
Sales Q2Q%-1.72%
Revenue Next Year-3.95%
Revenue Next 2Y1.15%
Revenue Next 3Y2.65%
Revenue Next 5Y6.34%
EBIT growth 1Y9.58%
EBIT growth 3Y40.08%
EBIT growth 5Y18.15%
EBIT Next Year81.66%
EBIT Next 3Y28.43%
EBIT Next 5Y20.36%
FCF growth 1Y291.65%
FCF growth 3Y17.94%
FCF growth 5YN/A
OCF growth 1Y2422.3%
OCF growth 3Y15.36%
OCF growth 5Y27.23%