ARNOLDO MONDADORI EDITORE (MN.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:MN - IT0001469383 - Common Stock
2.105 EUR
+0.04 (+1.69%)
Taking everything into account, MN scores 6 out of 10 in our fundamental rating. MN was compared to 68 industry peers in the Media industry. While MN belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. MN is valued quite cheap, but it does not seem to be growing. Finally MN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year MN was profitable.
- In the past year MN had a positive cash flow from operations.
- MN had positive earnings in each of the past 5 years.
- Each year in the past 5 years MN had a positive operating cash flow.
1.2 Ratios
- MN's Return On Assets of 8.78% is amongst the best of the industry. MN outperforms 97.01% of its industry peers.
- MN has a Return On Equity of 34.27%. This is amongst the best in the industry. MN outperforms 94.03% of its industry peers.
- MN's Return On Invested Capital of 19.38% is amongst the best of the industry. MN outperforms 98.51% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for MN is above the industry average of 7.53%.
- The last Return On Invested Capital (19.38%) for MN is above the 3 year average (11.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.78% | ||
| ROE | 34.27% | ||
| ROIC | 19.38% |
ROA(3y)5.5%
ROA(5y)4.27%
ROE(3y)20.26%
ROE(5y)16.7%
ROIC(3y)11.34%
ROIC(5y)9.78%
1.3 Margins
- MN has a better Profit Margin (6.75%) than 76.12% of its industry peers.
- MN's Profit Margin has improved in the last couple of years.
- With a decent Operating Margin value of 10.52%, MN is doing good in the industry, outperforming 70.15% of the companies in the same industry.
- MN's Operating Margin has improved in the last couple of years.
- MN's Gross Margin of 34.59% is on the low side compared to the rest of the industry. MN is outperformed by 64.18% of its industry peers.
- MN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.52% | ||
| PM (TTM) | 6.75% | ||
| GM | 34.59% |
OM growth 3Y15.27%
OM growth 5Y6.2%
PM growth 3Y5.57%
PM growth 5Y15.11%
GM growth 3Y3.82%
GM growth 5Y3.22%
2. Health
2.1 Basic Checks
- MN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for MN remains at a similar level compared to 1 year ago.
- The number of shares outstanding for MN has been increased compared to 5 years ago.
- The debt/assets ratio for MN is higher compared to a year ago.
2.2 Solvency
- MN has an Altman-Z score of 2.14. This is not the best score and indicates that MN is in the grey zone with still only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.14, MN is in the better half of the industry, outperforming 71.64% of the companies in the same industry.
- The Debt to FCF ratio of MN is 3.46, which is a good value as it means it would take MN, 3.46 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 3.46, MN is doing good in the industry, outperforming 68.66% of the companies in the same industry.
- A Debt/Equity ratio of 0.69 indicates that MN is somewhat dependend on debt financing.
- The Debt to Equity ratio of MN (0.69) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 3.46 | ||
| Altman-Z | 2.14 |
ROIC/WACC3.18
WACC6.09%
2.3 Liquidity
- A Current Ratio of 0.97 indicates that MN may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.97, MN is in line with its industry, outperforming 53.73% of the companies in the same industry.
- A Quick Ratio of 0.62 indicates that MN may have some problems paying its short term obligations.
- MN has a worse Quick ratio (0.62) than 71.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
- The earnings per share for MN have decreased by -8.79% in the last year.
- The Earnings Per Share has been growing by 15.47% on average over the past years. This is quite good.
- MN shows a small growth in Revenue. In the last year, the Revenue has grown by 0.49%.
- The Revenue has been growing slightly by 1.10% on average over the past years.
EPS 1Y (TTM)-8.79%
EPS 3Y10.66%
EPS 5Y15.47%
EPS Q2Q%-50.74%
Revenue 1Y (TTM)0.49%
Revenue growth 3Y5%
Revenue growth 5Y1.1%
Sales Q2Q%0.6%
3.2 Future
- The Earnings Per Share is expected to grow by 1.31% on average over the next years.
- The Revenue is expected to grow by 0.71% on average over the next years.
EPS Next Y0.81%
EPS Next 2Y1.62%
EPS Next 3Y1.31%
EPS Next 5YN/A
Revenue Next Year0.67%
Revenue Next 2Y1.17%
Revenue Next 3Y1.25%
Revenue Next 5Y0.71%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 5.85, the valuation of MN can be described as very cheap.
- MN's Price/Earnings ratio is rather cheap when compared to the industry. MN is cheaper than 89.55% of the companies in the same industry.
- MN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.39.
- The Price/Forward Earnings ratio is 8.06, which indicates a very decent valuation of MN.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of MN indicates a somewhat cheap valuation: MN is cheaper than 79.10% of the companies listed in the same industry.
- MN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.85 | ||
| Fwd PE | 8.06 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MN is valued cheaply inside the industry as 86.57% of the companies are valued more expensively.
- MN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MN is cheaper than 76.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.54 | ||
| EV/EBITDA | 3.79 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MN does not grow enough to justify the current Price/Earnings ratio.
- The excellent profitability rating of MN may justify a higher PE ratio.
PEG (NY)7.18
PEG (5Y)0.38
EPS Next 2Y1.62%
EPS Next 3Y1.31%
5. Dividend
5.1 Amount
- MN has a Yearly Dividend Yield of 6.65%, which is a nice return.
- MN's Dividend Yield is rather good when compared to the industry average which is at 3.08. MN pays more dividend than 92.54% of the companies in the same industry.
- MN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.65% |
5.2 History
- The dividend of MN decreases each year by -6.82%.
Dividend Growth(5Y)-6.82%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 19.05% of the earnings are spent on dividend by MN. This is a low number and sustainable payout ratio.
DP19.05%
EPS Next 2Y1.62%
EPS Next 3Y1.31%
ARNOLDO MONDADORI EDITORE / MN.MI FAQ
Can you provide the ChartMill fundamental rating for ARNOLDO MONDADORI EDITORE?
ChartMill assigns a fundamental rating of 6 / 10 to MN.MI.
What is the valuation status for MN stock?
ChartMill assigns a valuation rating of 7 / 10 to ARNOLDO MONDADORI EDITORE (MN.MI). This can be considered as Undervalued.
What is the profitability of MN stock?
ARNOLDO MONDADORI EDITORE (MN.MI) has a profitability rating of 8 / 10.
What are the PE and PB ratios of ARNOLDO MONDADORI EDITORE (MN.MI) stock?
The Price/Earnings (PE) ratio for ARNOLDO MONDADORI EDITORE (MN.MI) is 5.85 and the Price/Book (PB) ratio is 1.97.
Can you provide the expected EPS growth for MN stock?
The Earnings per Share (EPS) of ARNOLDO MONDADORI EDITORE (MN.MI) is expected to grow by 0.81% in the next year.