NOVABASE SGPS SA (NBA.LS) Stock Fundamental Analysis
ELI:NBA - Euronext Lisbon - PTNBA0AM0006 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to NBA. NBA was compared to 70 industry peers in the IT Services industry. NBA has an excellent financial health rating, but there are some minor concerns on its profitability. NBA is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year NBA was profitable.
In the past year NBA had a positive cash flow from operations.
Each year in the past 5 years NBA has been profitable.
In the past 5 years NBA always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of NBA (27.03%) is better than 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 64.72%, NBA belongs to the top of the industry, outperforming 96.00% of the companies in the same industry.
NBA has a worse Return On Invested Capital (2.46%) than 69.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NBA is significantly below the industry average of 11.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 27.03% | ||
| ROE | 64.72% | ||
| ROIC | 2.46% |
ROA(3y)12.62%
ROA(5y)10.58%
ROE(3y)30.47%
ROE(5y)26.79%
ROIC(3y)4.82%
ROIC(5y)4.27%
1.3 Margins
NBA has a better Profit Margin (41.77%) than 98.67% of its industry peers.
NBA's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 3.91%, NBA is in line with its industry, outperforming 42.67% of the companies in the same industry.
NBA's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 78.68%, NBA is in the better half of the industry, outperforming 70.67% of the companies in the same industry.
NBA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.91% | ||
| PM (TTM) | 41.77% | ||
| GM | 78.68% |
OM growth 3Y-2.06%
OM growth 5Y9.05%
PM growth 3Y81.02%
PM growth 5Y52.49%
GM growth 3Y-2.59%
GM growth 5Y-1.71%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NBA is destroying value.
Compared to 1 year ago, NBA has less shares outstanding
NBA has less shares outstanding than it did 5 years ago.
NBA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.01 indicates that NBA is not in any danger for bankruptcy at the moment.
The Altman-Z score of NBA (3.01) is better than 69.33% of its industry peers.
NBA has a debt to FCF ratio of 2.44. This is a good value and a sign of high solvency as NBA would need 2.44 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.44, NBA is doing good in the industry, outperforming 73.33% of the companies in the same industry.
A Debt/Equity ratio of 0.23 indicates that NBA is not too dependend on debt financing.
NBA's Debt to Equity ratio of 0.23 is fine compared to the rest of the industry. NBA outperforms 74.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 2.44 | ||
| Altman-Z | 3.01 |
ROIC/WACC0.34
WACC7.27%
2.3 Liquidity
A Current Ratio of 2.00 indicates that NBA should not have too much problems paying its short term obligations.
NBA's Current ratio of 2.00 is amongst the best of the industry. NBA outperforms 86.67% of its industry peers.
NBA has a Quick Ratio of 2.00. This is a normal value and indicates that NBA is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 2.00, NBA belongs to the best of the industry, outperforming 88.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 2 |
3. Growth
3.1 Past
NBA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 461.23%, which is quite impressive.
Measured over the past years, NBA shows a very strong growth in Earnings Per Share. The EPS has been growing by 62.51% on average per year.
NBA shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -37.85%.
NBA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.80% yearly.
EPS 1Y (TTM)461.23%
EPS 3Y92.05%
EPS 5Y62.51%
EPS Q2Q%-46.46%
Revenue 1Y (TTM)-37.85%
Revenue growth 3Y1.95%
Revenue growth 5Y3.8%
Sales Q2Q%-25.89%
3.2 Future
NBA is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.74% yearly.
NBA is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.96% yearly.
EPS Next Y-17.24%
EPS Next 2Y-1.74%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-18.62%
Revenue Next 2Y-4.96%
Revenue Next 3YN/A
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 4.29, the valuation of NBA can be described as very cheap.
Based on the Price/Earnings ratio, NBA is valued cheaply inside the industry as 98.67% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.35. NBA is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 25.64 indicates a quite expensive valuation of NBA.
NBA's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, NBA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.29 | ||
| Fwd PE | 25.64 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NBA indicates a slightly more expensive valuation: NBA is more expensive than 61.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.21 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
NBA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.07
EPS Next 2Y-1.74%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NBA has a Yearly Dividend Yield of 24.86%, which is a nice return.
Compared to an average industry Dividend Yield of 4.29, NBA pays a better dividend. On top of this NBA pays more dividend than 100.00% of the companies listed in the same industry.
NBA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 24.86% |
5.2 History
The dividend of NBA is nicely growing with an annual growth rate of 17.72%!
Dividend Growth(5Y)17.72%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
101.62% of the earnings are spent on dividend by NBA. This is not a sustainable payout ratio.
The Dividend Rate of NBA has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP101.62%
EPS Next 2Y-1.74%
EPS Next 3YN/A
ELI:NBA (3/7/2025, 7:00:00 PM)
7.25
+0.05 (+0.69%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners4.25%
Inst Owner ChangeN/A
Ins Owners33.19%
Ins Owner ChangeN/A
Market Cap259.26M
Analysts45.71
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 24.86% |
Yearly Dividend0.4
Dividend Growth(5Y)17.72%
DP101.62%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.29 | ||
| Fwd PE | 25.64 | ||
| P/S | 2.37 | ||
| P/FCF | 26.21 | ||
| P/OCF | 21.32 | ||
| P/B | 3.67 | ||
| P/tB | 4.28 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.69
EY23.31%
EPS(NY)0.28
Fwd EY3.9%
FCF(TTM)0.28
FCFY3.82%
OCF(TTM)0.34
OCFY4.69%
SpS3.06
BVpS1.98
TBVpS1.69
PEG (NY)N/A
PEG (5Y)0.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 27.03% | ||
| ROE | 64.72% | ||
| ROCE | 4% | ||
| ROIC | 2.46% | ||
| ROICexc | 6.81% | ||
| ROICexgc | 9.24% | ||
| OM | 3.91% | ||
| PM (TTM) | 41.77% | ||
| GM | 78.68% | ||
| FCFM | 9.03% |
ROA(3y)12.62%
ROA(5y)10.58%
ROE(3y)30.47%
ROE(5y)26.79%
ROIC(3y)4.82%
ROIC(5y)4.27%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)7.82%
ROCE(5y)6.92%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-2.06%
OM growth 5Y9.05%
PM growth 3Y81.02%
PM growth 5Y52.49%
GM growth 3Y-2.59%
GM growth 5Y-1.71%
F-Score6
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 2.44 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 2.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 21.62% | ||
| Current Ratio | 2 | ||
| Quick Ratio | 2 | ||
| Altman-Z | 3.01 |
F-Score6
WACC7.27%
ROIC/WACC0.34
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)0.83%
Cap/Sales(5y)1.02%
Profit Quality(3y)44.7%
Profit Quality(5y)35.8%
High Growth Momentum
Growth
EPS 1Y (TTM)461.23%
EPS 3Y92.05%
EPS 5Y62.51%
EPS Q2Q%-46.46%
EPS Next Y-17.24%
EPS Next 2Y-1.74%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-37.85%
Revenue growth 3Y1.95%
Revenue growth 5Y3.8%
Sales Q2Q%-25.89%
Revenue Next Year-18.62%
Revenue Next 2Y-4.96%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-61.38%
EBIT growth 3Y-0.15%
EBIT growth 5Y13.19%
EBIT Next Year8.33%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y64.84%
FCF growth 3Y75.38%
FCF growth 5Y5.64%
OCF growth 1Y76.02%
OCF growth 3Y65.29%
OCF growth 5Y5.53%