Eneti Inc (NETI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NETI - MHY2294C1075 - Common Stock
11.33 USD
+0.01 (+0.09%)
11.33 USD
0 (0%)
NETI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 55 industry peers in the Construction & Engineering industry. While NETI seems to be doing ok healthwise, there are quite some concerns on its profitability. While showing a medium growth rate, NETI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- NETI had negative earnings in the past year.
- NETI had a positive operating cash flow in the past year.
1.2 Ratios
- NETI has a Return On Assets of -4.76%. This is amonst the worse of the industry: NETI underperforms 81.58% of its industry peers.
- With a Return On Equity value of -5.43%, NETI is not doing good in the industry: 73.68% of the companies in the same industry are doing better.
- The Return On Invested Capital of NETI (1.17%) is worse than 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
- In the last couple of years the Profit Margin of NETI has grown nicely.
- With a decent Operating Margin value of 7.08%, NETI is doing good in the industry, outperforming 73.68% of the companies in the same industry.
- In the last couple of years the Operating Margin of NETI has grown nicely.
- NETI has a better Gross Margin (48.34%) than 86.84% of its industry peers.
- NETI's Gross Margin has improved in the last couple of years.
| 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
- NETI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for NETI has been reduced compared to 1 year ago.
- 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.
- The Altman-Z score of NETI (0.65) is worse than 86.84% of its industry peers.
- 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.
- The Debt to FCF ratio of NETI (47.41) is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.06 indicates that NETI is not too dependend on debt financing.
- The Debt to Equity ratio of NETI (0.06) is better than 84.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 47.41 | ||
| Altman-Z | 0.65 |
ROIC/WACC0.15
WACC7.66%
2.3 Liquidity
- A Current Ratio of 3.64 indicates that NETI has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 3.64, NETI belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
- A Quick Ratio of 3.50 indicates that NETI has no problem at all paying its short term obligations.
- NETI has a better Quick ratio (3.50) than 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%.
- The earnings per share for NETI have been decreasing by -24.37% on average. This is quite bad
- The Revenue has decreased by -7.55% in the past year.
- 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
- NETI is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.15% yearly.
- 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
- 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 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
- The Price/Earnings Ratio is negative for NETI. In the last year negative earnings were reported.
- With a Price/Forward Earnings ratio of 28.12, NETI can be considered very expensive at the moment.
- 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.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, NETI is valued at the same level.
| 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 63.16% of the companies in the same industry.
- NETI's Price/Free Cash Flow is on the same level as the industry average.
| 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.
- Compared to an average industry Dividend Yield of 0.44, NETI pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.35, NETI pays less dividend than the S&P500 average, which is at 1.82.
| 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.
- The dividend of NETI decreased 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%
Eneti Inc / NETI FAQ
Can you provide the ChartMill fundamental rating for Eneti Inc?
ChartMill assigns a fundamental rating of 4 / 10 to NETI.
Can you provide the valuation status for Eneti Inc?
ChartMill assigns a valuation rating of 1 / 10 to Eneti Inc (NETI). This can be considered as Overvalued.
What is the profitability of NETI stock?
Eneti Inc (NETI) has a profitability rating of 4 / 10.
Can you provide the financial health for NETI stock?
The financial health rating of Eneti Inc (NETI) is 6 / 10.