MARR SPA (MARR.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:MARR - IT0003428445 - Common Stock
9.01 EUR
-0.03 (-0.33%)
We assign a fundamental rating of 4 out of 10 to MARR. MARR was compared to 24 industry peers in the Consumer Staples Distribution & Retail industry. Both the profitability and the financial health of MARR get a neutral evaluation. Nothing too spectacular is happening here. MARR has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year MARR was profitable.
- MARR had a positive operating cash flow in the past year.
- MARR had positive earnings in 4 of the past 5 years.
- Of the past 5 years MARR 4 years had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 3.98%, MARR perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- MARR has a better Return On Equity (17.04%) than 75.00% of its industry peers.
- MARR's Return On Invested Capital of 9.46% is fine compared to the rest of the industry. MARR outperforms 66.67% of its industry peers.
- MARR had an Average Return On Invested Capital over the past 3 years of 6.59%. This is below the industry average of 9.20%.
- The 3 year average ROIC (6.59%) for MARR is below the current ROIC(9.46%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.98% | ||
| ROE | 17.04% | ||
| ROIC | 9.46% |
ROA(3y)3.25%
ROA(5y)2.51%
ROE(3y)11.13%
ROE(5y)8.54%
ROIC(3y)6.59%
ROIC(5y)5.15%
1.3 Margins
- MARR has a Profit Margin of 1.76%. This is comparable to the rest of the industry: MARR outperforms 45.83% of its industry peers.
- MARR's Profit Margin has declined in the last couple of years.
- MARR has a worse Operating Margin (3.09%) than 62.50% of its industry peers.
- In the last couple of years the Operating Margin of MARR has declined.
- MARR has a worse Gross Margin (7.74%) than 91.67% of its industry peers.
- MARR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.09% | ||
| PM (TTM) | 1.76% | ||
| GM | 7.74% |
OM growth 3Y-4.69%
OM growth 5Y-10.77%
PM growth 3Y-5.22%
PM growth 5Y-12.22%
GM growth 3Y2.34%
GM growth 5Y1.72%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MARR is still creating some value.
- The number of shares outstanding for MARR has been reduced compared to 1 year ago.
- Compared to 5 years ago, MARR has less shares outstanding
- The debt/assets ratio for MARR has remained at the same level compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.35 indicates that MARR is not in any danger for bankruptcy at the moment.
- MARR's Altman-Z score of 3.35 is fine compared to the rest of the industry. MARR outperforms 75.00% of its industry peers.
- MARR has a debt to FCF ratio of 27.61. This is a negative value and a sign of low solvency as MARR would need 27.61 years to pay back of all of its debts.
- MARR has a worse Debt to FCF ratio (27.61) than 83.33% of its industry peers.
- A Debt/Equity ratio of 1.14 is on the high side and indicates that MARR has dependencies on debt financing.
- MARR has a Debt to Equity ratio of 1.14. This is in the lower half of the industry: MARR underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 27.61 | ||
| Altman-Z | 3.35 |
ROIC/WACC1.52
WACC6.22%
2.3 Liquidity
- MARR has a Current Ratio of 1.44. This is a normal value and indicates that MARR is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.44, MARR belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
- MARR has a Quick Ratio of 1.02. This is a normal value and indicates that MARR is financially healthy and should not expect problems in meeting its short term obligations.
- MARR has a Quick ratio of 1.02. This is amongst the best in the industry. MARR outperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
- The earnings per share for MARR have decreased strongly by -21.35% in the last year.
- The Earnings Per Share has been decreasing by -8.05% on average over the past years.
- The Revenue has been growing slightly by 0.56% in the past year.
- MARR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.24% yearly.
EPS 1Y (TTM)-21.35%
EPS 3Y7.67%
EPS 5Y-8.05%
EPS Q2Q%-27.17%
Revenue 1Y (TTM)0.56%
Revenue growth 3Y12.68%
Revenue growth 5Y4.24%
Sales Q2Q%0.97%
3.2 Future
- Based on estimates for the next years, MARR will show a small growth in Earnings Per Share. The EPS will grow by 7.60% on average per year.
- MARR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.62% yearly.
EPS Next Y-10.47%
EPS Next 2Y4.5%
EPS Next 3Y7.6%
EPS Next 5YN/A
Revenue Next Year2.63%
Revenue Next 2Y2.85%
Revenue Next 3Y3.18%
Revenue Next 5Y3.62%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 10.86, the valuation of MARR can be described as very reasonable.
- Based on the Price/Earnings ratio, MARR is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
- MARR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.87.
- MARR is valuated correctly with a Price/Forward Earnings ratio of 12.64.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of MARR is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 25.96. MARR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.86 | ||
| Fwd PE | 12.64 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MARR is on the same level as its industry peers.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of MARR indicates a slightly more expensive valuation: MARR is more expensive than 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.04 | ||
| EV/EBITDA | 7.67 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.5%
EPS Next 3Y7.6%
5. Dividend
5.1 Amount
- MARR has a Yearly Dividend Yield of 6.53%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.82, MARR pays a better dividend. On top of this MARR pays more dividend than 91.67% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, MARR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.53% |
5.2 History
- The dividend of MARR decreases each year by -5.06%.
Dividend Growth(5Y)-5.06%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 71.68% of the earnings are spent on dividend by MARR. This is not a sustainable payout ratio.
DP71.68%
EPS Next 2Y4.5%
EPS Next 3Y7.6%
MARR SPA / MARR.MI FAQ
What is the ChartMill fundamental rating of MARR SPA (MARR.MI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to MARR.MI.
What is the valuation status of MARR SPA (MARR.MI) stock?
ChartMill assigns a valuation rating of 4 / 10 to MARR SPA (MARR.MI). This can be considered as Fairly Valued.
How profitable is MARR SPA (MARR.MI) stock?
MARR SPA (MARR.MI) has a profitability rating of 4 / 10.
What is the earnings growth outlook for MARR SPA?
The Earnings per Share (EPS) of MARR SPA (MARR.MI) is expected to decline by -10.47% in the next year.
Can you provide the dividend sustainability for MARR stock?
The dividend rating of MARR SPA (MARR.MI) is 6 / 10 and the dividend payout ratio is 71.68%.