VERVE GROUP SE (M8G.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:M8G - SE0018538068 - Common Stock
3.772 EUR
+0.21 (+5.9%)
M8G gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 69 industry peers in the Media industry. While M8G is still in line with the averages on profitability rating, there are concerns on its financial health. M8G is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
- M8G had positive earnings in the past year.
- M8G had a positive operating cash flow in the past year.
- Of the past 5 years M8G 4 years were profitable.
- M8G had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.30%, M8G is in line with its industry, outperforming 50.70% of the companies in the same industry.
- M8G has a Return On Equity (6.39%) which is in line with its industry peers.
- The Return On Invested Capital of M8G (6.61%) is better than 63.38% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for M8G is below the industry average of 8.04%.
- The 3 year average ROIC (5.86%) for M8G is below the current ROIC(6.61%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.3% | ||
| ROE | 6.39% | ||
| ROIC | 6.61% |
ROA(3y)1.66%
ROA(5y)1.5%
ROE(3y)4.45%
ROE(5y)4.06%
ROIC(3y)5.86%
ROIC(5y)4.68%
1.3 Margins
- M8G has a better Profit Margin (6.59%) than 69.01% of its industry peers.
- In the last couple of years the Profit Margin of M8G has remained more or less at the same level.
- M8G's Operating Margin of 21.46% is amongst the best of the industry. M8G outperforms 98.59% of its industry peers.
- M8G's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 105.70%, M8G belongs to the top of the industry, outperforming 94.37% of the companies in the same industry.
- In the last couple of years the Gross Margin of M8G has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.46% | ||
| PM (TTM) | 6.59% | ||
| GM | 105.71% |
OM growth 3Y22.31%
OM growth 5Y30.2%
PM growth 3Y1.14%
PM growth 5YN/A
GM growth 3Y-1.75%
GM growth 5Y-14.4%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so M8G is destroying value.
- The number of shares outstanding for M8G has been increased compared to 1 year ago.
- The number of shares outstanding for M8G has been increased compared to 5 years ago.
- The debt/assets ratio for M8G has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.37, we must say that M8G is in the distress zone and has some risk of bankruptcy.
- M8G's Altman-Z score of 1.37 is in line compared to the rest of the industry. M8G outperforms 46.48% of its industry peers.
- The Debt to FCF ratio of M8G is 5.26, which is a neutral value as it means it would take M8G, 5.26 years of fcf income to pay off all of its debts.
- M8G has a Debt to FCF ratio (5.26) which is comparable to the rest of the industry.
- M8G has a Debt/Equity ratio of 1.10. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.10, M8G is in line with its industry, outperforming 43.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 5.26 | ||
| Altman-Z | 1.37 |
ROIC/WACC0.83
WACC7.94%
2.3 Liquidity
- A Current Ratio of 0.79 indicates that M8G may have some problems paying its short term obligations.
- M8G has a worse Current ratio (0.79) than 61.97% of its industry peers.
- M8G has a Quick Ratio of 0.79. This is a bad value and indicates that M8G is not financially healthy enough and could expect problems in meeting its short term obligations.
- M8G has a Quick ratio (0.79) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
- The earnings per share for M8G have decreased strongly by -39.31% in the last year.
- Measured over the past years, M8G shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.52% on average per year.
- The Revenue has grown by 35.72% in the past year. This is a very strong growth!
- Measured over the past years, M8G shows a very strong growth in Revenue. The Revenue has been growing by 39.11% on average per year.
EPS 1Y (TTM)-39.31%
EPS 3Y10.52%
EPS 5YN/A
EPS Q2Q%125%
Revenue 1Y (TTM)35.72%
Revenue growth 3Y20.12%
Revenue growth 5Y39.11%
Sales Q2Q%46.11%
3.2 Future
- Based on estimates for the next years, M8G will show a very strong growth in Earnings Per Share. The EPS will grow by 40.10% on average per year.
- The Revenue is expected to grow by 13.98% on average over the next years. This is quite good.
EPS Next Y100%
EPS Next 2Y57.48%
EPS Next 3Y40.1%
EPS Next 5YN/A
Revenue Next Year24.8%
Revenue Next 2Y16.8%
Revenue Next 3Y13.98%
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 accelerating.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 18.86 indicates a rather expensive valuation of M8G.
- M8G's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 27.21. M8G is valued slightly cheaper when compared to this.
- The Price/Forward Earnings ratio is 9.34, which indicates a very decent valuation of M8G.
- M8G's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. M8G is cheaper than 77.46% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of M8G to the average of the S&P500 Index (24.26), we can say M8G is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.86 | ||
| Fwd PE | 9.34 |
4.2 Price Multiples
- M8G's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, M8G is valued a bit cheaper than the industry average as 69.01% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.48 | ||
| EV/EBITDA | 7.34 |
4.3 Compensation for Growth
- M8G's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of M8G may justify a higher PE ratio.
- M8G's earnings are expected to grow with 40.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y57.48%
EPS Next 3Y40.1%
5. Dividend
5.1 Amount
- M8G does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
VERVE GROUP SE / M8G.DE FAQ
What is the fundamental rating for M8G stock?
ChartMill assigns a fundamental rating of 5 / 10 to M8G.DE.
What is the valuation status of VERVE GROUP SE (M8G.DE) stock?
ChartMill assigns a valuation rating of 6 / 10 to VERVE GROUP SE (M8G.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for VERVE GROUP SE?
VERVE GROUP SE (M8G.DE) has a profitability rating of 6 / 10.
What is the financial health of VERVE GROUP SE (M8G.DE) stock?
The financial health rating of VERVE GROUP SE (M8G.DE) is 2 / 10.