VERVE GROUP SE (M8G.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:M8G • SE0018538068
3.772 EUR
+0.21 (+5.9%)
Last: May 7, 2025, 07:00 PM
M8G gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 68 industry peers in the Media industry. While M8G has a great profitability rating, there are quite some 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
- In the past year M8G was profitable.
- M8G had a positive operating cash flow in the past year.
- M8G had positive earnings in 4 of the past 5 years.
- In the past 5 years M8G always reported a positive cash flow from operatings.
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 of 6.39%. This is comparable to the rest of the industry: M8G outperforms 50.70% of its industry peers.
- 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.
- The Operating Margin of M8G (21.46%) is better than 98.59% of its industry peers.
- In the last couple of years the Operating Margin of M8G has grown nicely.
- With an excellent Gross Margin value of 105.70%, M8G belongs to the best of the industry, outperforming 94.37% of the companies in the same industry.
- 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
- 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.
- 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
- 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.
- The Altman-Z score of M8G (1.37) is comparable to the rest of the industry.
- M8G has a debt to FCF ratio of 5.26. This is a neutral value as M8G would need 5.26 years to pay back of all of its debts.
- M8G has a Debt to FCF ratio of 5.26. This is comparable to the rest of the industry: M8G outperforms 57.75% of its industry peers.
- 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
- 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.
- M8G's Current ratio of 0.79 is on the low side compared to the rest of the industry. M8G is outperformed by 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.
- With a Quick ratio value of 0.79, M8G perfoms like the industry average, 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.
- M8G shows a strong growth in Revenue. In the last year, the Revenue has grown by 35.72%.
- M8G shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 39.11% yearly.
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.
- Based on estimates for the next years, M8G will show a quite strong growth in Revenue. The Revenue will grow by 13.98% on average per year.
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.
- The rest of the industry has a similar Price/Earnings ratio as M8G.
- When comparing the Price/Earnings ratio of M8G to the average of the S&P500 Index (28.30), we can say M8G is valued slightly cheaper.
- The Price/Forward Earnings ratio is 9.34, which indicates a very decent valuation of M8G.
- 77.46% of the companies in the same industry are more expensive than M8G, based on the Price/Forward Earnings ratio.
- M8G is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.86 | ||
| Fwd PE | 9.34 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as M8G.
- 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.
- 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.