Eneti Inc (NETI) Stock Fundamental Analysis
NYSE:NETI - New York Stock Exchange, Inc. - MHY2294C1075 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to NETI. NETI was compared to 52 industry peers in the Construction & Engineering industry. NETI has only an average score on both its financial health and profitability. NETI is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year NETI has reported negative net income.
NETI had a positive operating cash flow in the past year.
In multiple years NETI reported negative net income over the last 5 years.
Of the past 5 years NETI 4 years had a positive operating cash flow.
1.2 Ratios
NETI has a worse Return On Assets (-4.76%) than 81.58% of its industry peers.
Looking at the Return On Equity, with a value of -5.43%, NETI is doing worse than 73.68% of the companies in the same industry.
NETI has a Return On Invested Capital of 1.17%. This is in the lower half of the industry: NETI underperforms 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.76% | ||
| ROE | -5.43% | ||
| ROIC | 1.17% |
ROA(3y)-20.64%
ROA(5y)-12%
ROE(3y)-76.16%
ROE(5y)-44.97%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
NETI's Profit Margin has improved in the last couple of years.
NETI has a better Operating Margin (7.08%) than 73.68% of its industry peers.
In the last couple of years the Operating Margin of NETI has grown nicely.
Looking at the Gross Margin, with a value of 48.34%, NETI belongs to the top of the industry, outperforming 86.84% of the companies in the same industry.
In the last couple of years the Gross Margin of NETI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.08% | ||
| PM (TTM) | N/A | ||
| GM | 48.34% |
OM growth 3Y56.95%
OM growth 5YN/A
PM growth 3Y38.64%
PM growth 5YN/A
GM growth 3Y4.27%
GM growth 5Y5.39%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NETI is destroying value.
Compared to 1 year ago, NETI has less shares outstanding
NETI has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.65, we must say that NETI is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.65, NETI is doing worse than 86.84% of the companies in the same industry.
NETI has a debt to FCF ratio of 47.41. This is a negative value and a sign of low solvency as NETI would need 47.41 years to pay back of all of its debts.
NETI's Debt to FCF ratio of 47.41 is in line compared to the rest of the industry. NETI outperforms 44.74% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that NETI is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.06, NETI belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 47.41 | ||
| Altman-Z | 0.65 |
ROIC/WACC0.15
WACC7.66%
2.3 Liquidity
NETI has a Current Ratio of 3.64. This indicates that NETI is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of NETI (3.64) is better than 94.74% of its industry peers.
A Quick Ratio of 3.50 indicates that NETI has no problem at all paying its short term obligations.
NETI has a Quick ratio of 3.50. This is amongst the best in the industry. NETI outperforms 94.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.64 | ||
| Quick Ratio | 3.5 |
3. Growth
3.1 Past
NETI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -170.27%.
Measured over the past years, NETI shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -24.37% on average per year.
NETI shows a decrease in Revenue. In the last year, the revenue decreased by -7.55%.
NETI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.21% yearly.
EPS 1Y (TTM)-170.27%
EPS 3Y-24.37%
EPS 5YN/A
EPS Q2Q%-49.47%
Revenue 1Y (TTM)-7.55%
Revenue growth 3Y-3.91%
Revenue growth 5Y4.21%
Sales Q2Q%-23.12%
3.2 Future
The Earnings Per Share is expected to decrease by -1.15% on average over the next years.
NETI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.96% yearly.
EPS Next Y-155.28%
EPS Next 2Y-61.65%
EPS Next 3Y-11.22%
EPS Next 5Y-1.15%
Revenue Next Year-27.92%
Revenue Next 2Y-14%
Revenue Next 3Y11.84%
Revenue Next 5Y11.96%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
NETI reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 28.12, the valuation of NETI can be described as expensive.
NETI's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. NETI is more expensive than 71.05% of the companies in the same industry.
NETI is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 28.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NETI is valued a bit cheaper than the industry average as 63.16% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NETI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 375.56 | ||
| EV/EBITDA | 12.51 |
4.3 Compensation for Growth
NETI's earnings are expected to decrease with -11.22% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-61.65%
EPS Next 3Y-11.22%
5. Dividend
5.1 Amount
With a yearly dividend of 0.35%, NETI is not a good candidate for dividend investing.
NETI's Dividend Yield is a higher than the industry average which is at 1.75.
Compared to an average S&P500 Dividend Yield of 2.42, NETI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
5.2 History
The dividend of NETI decreases each year by -27.26%.
NETI has been paying a dividend for over 5 years, so it has already some track record.
NETI has decreased its dividend recently.
Dividend Growth(5Y)-27.26%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
The earnings of NETI are negative and hence is the payout ratio. NETI will probably not be able to sustain this dividend level.
The Dividend Rate of NETI has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-4.27%
EPS Next 2Y-61.65%
EPS Next 3Y-11.22%
11.33
+0.01 (+0.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners0.19%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap437.90M
Analysts86.67
Price Target15.61 (37.78%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
Yearly Dividend0.04
Dividend Growth(5Y)-27.26%
DP-4.27%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1690.22%
Min EPS beat(2)-3454.3%
Max EPS beat(2)73.86%
EPS beat(4)3
Avg EPS beat(4)-757.58%
Min EPS beat(4)-3454.3%
Max EPS beat(4)304.52%
EPS beat(8)6
Avg EPS beat(8)-354.96%
EPS beat(12)8
Avg EPS beat(12)-24.71%
EPS beat(16)9
Avg EPS beat(16)496.23%
Revenue beat(2)1
Avg Revenue beat(2)3.24%
Min Revenue beat(2)-0.52%
Max Revenue beat(2)6.99%
Revenue beat(4)3
Avg Revenue beat(4)13.71%
Min Revenue beat(4)-0.52%
Max Revenue beat(4)38.26%
Revenue beat(8)6
Avg Revenue beat(8)7.17%
Revenue beat(12)9
Avg Revenue beat(12)17.95%
Revenue beat(16)9
Avg Revenue beat(16)12.09%
PT rev (1m)2.57%
PT rev (3m)5.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)347.04%
EPS NY rev (1m)0%
EPS NY rev (3m)6.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 28.12 | ||
| P/S | 2.87 | ||
| P/FCF | 375.56 | ||
| P/OCF | 11.49 | ||
| P/B | 0.65 | ||
| P/tB | 0.66 | ||
| EV/EBITDA | 12.51 |
EPS(TTM)-1.04
EYN/A
EPS(NY)0.4
Fwd EY3.56%
FCF(TTM)0.03
FCFY0.27%
OCF(TTM)0.99
OCFY8.7%
SpS3.94
BVpS17.37
TBVpS17.26
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.76% | ||
| ROE | -5.43% | ||
| ROCE | 1.48% | ||
| ROIC | 1.17% | ||
| ROICexc | 1.31% | ||
| ROICexgc | 1.32% | ||
| OM | 7.08% | ||
| PM (TTM) | N/A | ||
| GM | 48.34% | ||
| FCFM | 0.76% |
ROA(3y)-20.64%
ROA(5y)-12%
ROE(3y)-76.16%
ROE(5y)-44.97%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y99.78%
ROICexcg growth 5YN/A
ROICexc growth 3Y99.32%
ROICexc growth 5YN/A
OM growth 3Y56.95%
OM growth 5YN/A
PM growth 3Y38.64%
PM growth 5YN/A
GM growth 3Y4.27%
GM growth 5Y5.39%
F-Score3
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 47.41 | ||
| Debt/EBITDA | 1.3 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 115.16% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.64 | ||
| Quick Ratio | 3.5 | ||
| Altman-Z | 0.65 |
F-Score3
WACC7.66%
ROIC/WACC0.15
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-170.27%
EPS 3Y-24.37%
EPS 5YN/A
EPS Q2Q%-49.47%
EPS Next Y-155.28%
EPS Next 2Y-61.65%
EPS Next 3Y-11.22%
EPS Next 5Y-1.15%
Revenue 1Y (TTM)-7.55%
Revenue growth 3Y-3.91%
Revenue growth 5Y4.21%
Sales Q2Q%-23.12%
Revenue Next Year-27.92%
Revenue Next 2Y-14%
Revenue Next 3Y11.84%
Revenue Next 5Y11.96%
EBIT growth 1Y-43.33%
EBIT growth 3Y50.82%
EBIT growth 5YN/A
EBIT Next Year-20.87%
EBIT Next 3Y57.9%
EBIT Next 5Y44.83%
FCF growth 1Y1357.5%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y106.59%
OCF growth 3Y23.14%
OCF growth 5Y26.43%