VERVE GROUP SE (M8G.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:M8G - SE0018538068 - Common Stock
3.772 EUR
+0.21 (+5.9%)
Overall M8G gets a fundamental rating of 5 out of 10. We evaluated M8G against 68 industry peers in the Media industry. M8G scores excellent on profitability, but there are concerns on its financial health. M8G is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
- In the past year M8G was profitable.
- In the past year M8G had a positive cash flow from operations.
- M8G had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years M8G had a positive operating cash flow.
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.
- The Return On Equity of M8G (6.39%) is comparable to the rest of the industry.
- The Return On Invested Capital of M8G (6.61%) is better than 63.38% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for M8G is in line with the industry average of 7.53%.
- The last Return On Invested Capital (6.61%) for M8G is above the 3 year average (5.86%), which is a sign of increasing profitability.
| 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.
- Looking at the Operating Margin, with a value of 21.46%, M8G belongs to the top of the industry, outperforming 98.59% of the companies in the same industry.
- In the last couple of years the Operating Margin of M8G has grown nicely.
- M8G has a better Gross Margin (105.70%) than 94.37% of its industry peers.
- 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
- M8G has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for M8G has been increased compared to 1 year ago.
- M8G has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for M8G has been reduced compared to a year ago.
2.2 Solvency
- M8G has an Altman-Z score of 1.37. This is a bad value and indicates that M8G is not financially healthy and even has some risk of bankruptcy.
- M8G has a Altman-Z score (1.37) which is comparable to the rest of the industry.
- 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.
- With a Debt to FCF ratio value of 5.26, M8G perfoms like the industry average, outperforming 57.75% of the companies in the same industry.
- A Debt/Equity ratio of 1.10 is on the high side and indicates that M8G has dependencies on debt financing.
- M8G has a Debt to Equity ratio of 1.10. This is comparable to the rest of the industry: M8G outperforms 43.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 5.26 | ||
| Altman-Z | 1.37 |
ROIC/WACC0.83
WACC7.94%
2.3 Liquidity
- M8G has a Current 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.
- With a Current ratio value of 0.79, M8G is not doing good in the industry: 61.97% of the companies in the same industry are doing better.
- 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.
- The Quick ratio of M8G (0.79) is comparable to the rest of the industry.
| 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.
- M8G shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.52% yearly.
- Looking at the last year, M8G shows a very strong growth in Revenue. The Revenue has grown by 35.72%.
- The Revenue has been growing by 39.11% on average over the past years. This is a very strong growth!
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
- M8G is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 40.10% yearly.
- M8G is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.98% yearly.
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.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- M8G is valuated rather expensively with a Price/Earnings ratio of 18.86.
- Compared to the rest of the industry, the Price/Earnings ratio of M8G is on the same level as its industry peers.
- When comparing the Price/Earnings ratio of M8G to the average of the S&P500 Index (27.25), we can say M8G is valued slightly cheaper.
- M8G is valuated reasonably with a Price/Forward Earnings ratio of 9.34.
- Based on the Price/Forward Earnings ratio, M8G is valued a bit cheaper than the industry average as 77.46% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, M8G is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.86 | ||
| Fwd PE | 9.34 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of M8G is on the same level as its industry peers.
- M8G's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. M8G is cheaper than 69.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.48 | ||
| EV/EBITDA | 7.34 |
4.3 Compensation for Growth
- The 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.
- A more expensive valuation may be justified as M8G's earnings are expected to grow with 40.10% in the coming years.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y57.48%
EPS Next 3Y40.1%
5. Dividend
5.1 Amount
- No dividends for M8G!.
| 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.