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. The financial health of NETI is average, but there are quite some concerns on its profitability. NETI is valied quite expensively at the moment, while it does show a decent growth rate.
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 worse Return On Assets (-4.76%) than 81.58% of its industry peers.
- NETI has a Return On Equity of -5.43%. This is in the lower half of the industry: NETI underperforms 73.68% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 1.17%, NETI is doing worse than 68.42% of the companies in the same industry.
| 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.
- With an excellent Gross Margin value of 48.34%, NETI belongs to the best of the industry, outperforming 86.84% of the companies in the same industry.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NETI is destroying value.
- NETI has less shares outstanding than it did 1 year ago.
- NETI has a better debt/assets ratio than last year.
2.2 Solvency
- NETI has an Altman-Z score of 0.65. This is a bad value and indicates that NETI is not financially healthy and even 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.
- The Debt to FCF ratio of NETI is 47.41, which is on the high side as it means it would take NETI, 47.41 years of fcf income to pay off all of its debts.
- NETI has a Debt to FCF ratio (47.41) which is comparable to the rest of the industry.
- NETI has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
- NETI has a better Debt to Equity ratio (0.06) 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.
- NETI has a Current ratio of 3.64. This is amongst the best in the industry. NETI outperforms 94.74% of its industry peers.
- NETI has a Quick Ratio of 3.50. This indicates that NETI is financially healthy and has no problem in meeting 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
- The earnings per share for NETI have decreased strongly by -170.27% in the last year.
- NETI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -24.37% yearly.
- The Revenue has decreased by -7.55% in the past year.
- Measured over the past years, NETI shows a small growth in Revenue. The Revenue has been growing by 4.21% on average per year.
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.
- NETI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.98, 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
- 63.16% of the companies in the same industry are more expensive than NETI, based on the Enterprise Value to EBITDA ratio.
- NETI's Price/Free Cash Flow ratio is in line with 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.
- Compared to an average S&P500 Dividend Yield of 1.81, 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.
- 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.
- NETI's earnings and Dividend Rate are 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.