Eneti Inc (NETI) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:NETI • MHY2294C1075

11.33 USD
+0.01 (+0.09%)
At close: Dec 28, 2023
11.33 USD
0 (0%)
After Hours: 12/28/2023, 8:04:01 PM
Fundamental Rating

4

Overall NETI gets a fundamental rating of 4 out of 10. We evaluated NETI against 56 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.


Dividend Valuation Growth Profitability Health

3

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.
NETI Yearly Net Income VS EBIT VS OCF VS FCFNETI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 -200M -400M -600M

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 worse Return On Invested Capital (1.17%) than 68.42% of its industry peers.
Industry RankSector 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
NETI Yearly ROA, ROE, ROICNETI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 -50 -100 -150 -200

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.
  • NETI's Operating Margin has improved in the last couple of years.
  • 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 RankSector 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%
NETI Yearly Profit, Operating, Gross MarginsNETI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 -100 -200 -300 -400

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6

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
  • Compared to 1 year ago, NETI has an improved debt to assets ratio.
NETI Yearly Shares OutstandingNETI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 10M 20M 30M
NETI Yearly Total Debt VS Total AssetsNETI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B

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.
  • NETI has a worse Altman-Z score (0.65) 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.
  • NETI has a Debt to FCF ratio (47.41) which 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.
  • NETI has a better Debt to Equity ratio (0.06) than 84.21% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 47.41
Altman-Z 0.65
ROIC/WACC0.15
WACC7.66%
NETI Yearly LT Debt VS Equity VS FCFNETI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 500M

2.3 Liquidity

  • A Current Ratio of 3.64 indicates that NETI has no problem at all paying its short term obligations.
  • The Current ratio of NETI (3.64) is better than 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.
  • The Quick ratio of NETI (3.50) is better than 94.74% of its industry peers.
Industry RankSector Rank
Current Ratio 3.64
Quick Ratio 3.5
NETI Yearly Current Assets VS Current LiabilitesNETI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 50M 100M 150M

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4

3. Growth

3.1 Past

  • The earnings per share for NETI have decreased strongly by -170.27% in the last year.
  • The earnings per share for NETI have been decreasing by -24.37% on average. This is quite bad
  • NETI shows a decrease in Revenue. In the last year, the revenue decreased by -7.55%.
  • 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

  • The Earnings Per Share is expected to decrease by -1.15% on average over the next years.
  • The Revenue is expected to grow by 11.96% on average over the next years. This is quite good.
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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
NETI Yearly Revenue VS EstimatesNETI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 50M 100M 150M 200M 250M
NETI Yearly EPS VS EstimatesNETI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 -20 -40 -60

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1

4. Valuation

4.1 Price/Earnings Ratio

  • NETI reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
  • With a Price/Forward Earnings ratio of 28.12, NETI can be considered very expensive at the moment.
  • 71.05% of the companies in the same industry are cheaper than NETI, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 25.57. NETI is around the same levels.
Industry RankSector Rank
PE N/A
Fwd PE 28.12
NETI Price Earnings VS Forward Price EarningsNETI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40 60 80 100

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.
  • NETI's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 375.56
EV/EBITDA 12.51
NETI Per share dataNETI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

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%

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2

5. Dividend

5.1 Amount

  • NETI has a yearly dividend return of 0.35%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.13, 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 1.83.
Industry RankSector 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
NETI Yearly Dividends per shareNETI Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 2023 0.05 0.1 0.15

5.3 Sustainability

  • NETI has negative earnings and hence a negative payout ratio. The dividend may be in danger.
  • 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%
NETI Yearly Income VS Free CF VS DividendNETI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 0 -200M -400M -600M

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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.