VERVE GROUP SE (M8G.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:M8G - SE0018538068 - Common Stock
3.772 EUR
+0.21 (+5.9%)
Taking everything into account, M8G scores 5 out of 10 in our fundamental rating. M8G was compared to 68 industry peers in the Media industry. M8G has an excellent profitability rating, but there are concerns on its financial health. M8G is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
- M8G had positive earnings in the past year.
- In the past year M8G had a positive cash flow from operations.
- Of the past 5 years M8G 4 years were profitable.
- In the past 5 years M8G always reported a positive cash flow from operatings.
1.2 Ratios
- M8G has a Return On Assets (2.30%) which is comparable to the rest of the industry.
- Looking at the Return On Equity, with a value of 6.39%, M8G is in line with its industry, outperforming 50.70% of the companies in the same industry.
- With a decent Return On Invested Capital value of 6.61%, M8G is doing good in the industry, outperforming 63.38% of the companies in the same industry.
- M8G had an Average Return On Invested Capital over the past 3 years of 5.86%. This is in line with the industry average of 7.53%.
- 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 has a Operating Margin of 21.46%. This is amongst the best in the industry. M8G outperforms 98.59% of its industry peers.
- 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.
- M8G's Gross Margin has declined in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), M8G is destroying value.
- Compared to 1 year ago, M8G has more shares outstanding
- 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'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.
- Looking at the Debt to FCF ratio, with a value of 5.26, M8G is in line with its industry, outperforming 57.75% of the companies in the same industry.
- M8G has a Debt/Equity ratio of 1.10. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of M8G (1.10) is comparable to the rest of the 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.
- 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.
- A Quick Ratio of 0.79 indicates that M8G may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.79, M8G is in line with its industry, outperforming 40.85% of the companies in the same 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.
- 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
- The Earnings Per Share is expected to grow by 40.10% on average over the next years. This is a very strong growth
- 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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- M8G is valuated rather expensively with a Price/Earnings ratio of 18.86.
- The rest of the industry has a similar Price/Earnings ratio as M8G.
- M8G is valuated rather cheaply when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 9.34 indicates a reasonable 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.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.95, 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.