PIRELLI & C SPA (PIRC.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:PIRC - IT0005278236 - Common Stock
6.19 EUR
-0.13 (-2.12%)
We assign a fundamental rating of 6 out of 10 to PIRC. PIRC was compared to 31 industry peers in the Automobile Components industry. While PIRC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PIRC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year PIRC was profitable.
- PIRC had a positive operating cash flow in the past year.
- PIRC had positive earnings in each of the past 5 years.
- PIRC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- PIRC has a Return On Assets of 5.68%. This is amongst the best in the industry. PIRC outperforms 96.77% of its industry peers.
- PIRC has a Return On Equity of 13.10%. This is amongst the best in the industry. PIRC outperforms 93.55% of its industry peers.
- PIRC has a better Return On Invested Capital (10.92%) than 90.32% of its industry peers.
- PIRC had an Average Return On Invested Capital over the past 3 years of 6.34%. This is in line with the industry average of 6.49%.
- The last Return On Invested Capital (10.92%) for PIRC is above the 3 year average (6.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.68% | ||
| ROE | 13.1% | ||
| ROIC | 10.92% |
ROA(3y)3.32%
ROA(5y)2.47%
ROE(3y)8.23%
ROE(5y)6.31%
ROIC(3y)6.34%
ROIC(5y)5.02%
1.3 Margins
- Looking at the Profit Margin, with a value of 7.26%, PIRC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- In the last couple of years the Profit Margin of PIRC has declined.
- With an excellent Operating Margin value of 13.48%, PIRC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- PIRC's Operating Margin has been stable in the last couple of years.
- PIRC has a Gross Margin of 64.00%. This is amongst the best in the industry. PIRC outperforms 93.55% of its industry peers.
- PIRC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.48% | ||
| PM (TTM) | 7.26% | ||
| GM | 64% |
OM growth 3Y6.63%
OM growth 5Y-1.41%
PM growth 3Y6.75%
PM growth 5Y-3.44%
GM growth 3Y15.15%
GM growth 5Y5.65%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PIRC is creating some value.
- Compared to 1 year ago, PIRC has about the same amount of shares outstanding.
- Compared to 5 years ago, PIRC has about the same amount of shares outstanding.
- PIRC has a better debt/assets ratio than last year.
2.2 Solvency
- PIRC has an Altman-Z score of 2.23. This is not the best score and indicates that PIRC is in the grey zone with still only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.23, PIRC is in the better half of the industry, outperforming 64.52% of the companies in the same industry.
- PIRC has a debt to FCF ratio of 4.12. This is a neutral value as PIRC would need 4.12 years to pay back of all of its debts.
- The Debt to FCF ratio of PIRC (4.12) is better than 90.32% of its industry peers.
- A Debt/Equity ratio of 0.48 indicates that PIRC is not too dependend on debt financing.
- The Debt to Equity ratio of PIRC (0.48) is better than 70.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 4.12 | ||
| Altman-Z | 2.23 |
ROIC/WACC1.68
WACC6.51%
2.3 Liquidity
- A Current Ratio of 1.21 indicates that PIRC should not have too much problems paying its short term obligations.
- The Current ratio of PIRC (1.21) is comparable to the rest of the industry.
- A Quick Ratio of 0.78 indicates that PIRC may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.78, PIRC is doing worse than 64.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 5.08% over the past year.
- Measured over the past 5 years, PIRC shows a small growth in Earnings Per Share. The EPS has been growing by 1.33% on average per year.
- PIRC shows a small growth in Revenue. In the last year, the Revenue has grown by 1.85%.
- The Revenue has been growing slightly by 4.94% on average over the past years.
EPS 1Y (TTM)5.08%
EPS 3Y9.65%
EPS 5Y1.33%
EPS Q2Q%12.5%
Revenue 1Y (TTM)1.85%
Revenue growth 3Y8.31%
Revenue growth 5Y4.94%
Sales Q2Q%-2.33%
3.2 Future
- The Earnings Per Share is expected to grow by 2.81% on average over the next years.
- The Revenue is expected to grow by 1.83% on average over the next years.
EPS Next Y-2.12%
EPS Next 2Y-0.47%
EPS Next 3Y2.81%
EPS Next 5YN/A
Revenue Next Year0.79%
Revenue Next 2Y0.69%
Revenue Next 3Y1.44%
Revenue Next 5Y1.83%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 9.98 indicates a reasonable valuation of PIRC.
- Based on the Price/Earnings ratio, PIRC is valued a bit cheaper than 74.19% of the companies in the same industry.
- PIRC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.60.
- With a Price/Forward Earnings ratio of 10.77, the valuation of PIRC can be described as very reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of PIRC is on the same level as its industry peers.
- PIRC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.98 | ||
| Fwd PE | 10.77 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as PIRC.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of PIRC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.79 | ||
| EV/EBITDA | 4.56 |
4.3 Compensation for Growth
- The excellent profitability rating of PIRC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)7.51
EPS Next 2Y-0.47%
EPS Next 3Y2.81%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.88%, PIRC has a reasonable but not impressive dividend return.
- PIRC's Dividend Yield is a higher than the industry average which is at 2.91.
- PIRC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
5.2 History
- The dividend of PIRC has a limited annual growth rate of 2.92%.
Dividend Growth(5Y)2.92%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 34.37% of the earnings are spent on dividend by PIRC. This is a low number and sustainable payout ratio.
- The dividend of PIRC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP34.37%
EPS Next 2Y-0.47%
EPS Next 3Y2.81%
PIRELLI & C SPA / PIRC.MI FAQ
What is the fundamental rating for PIRC stock?
ChartMill assigns a fundamental rating of 6 / 10 to PIRC.MI.
What is the valuation status of PIRELLI & C SPA (PIRC.MI) stock?
ChartMill assigns a valuation rating of 5 / 10 to PIRELLI & C SPA (PIRC.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for PIRELLI & C SPA?
PIRELLI & C SPA (PIRC.MI) has a profitability rating of 8 / 10.
What are the PE and PB ratios of PIRELLI & C SPA (PIRC.MI) stock?
The Price/Earnings (PE) ratio for PIRELLI & C SPA (PIRC.MI) is 9.98 and the Price/Book (PB) ratio is 1.09.
Can you provide the financial health for PIRC stock?
The financial health rating of PIRELLI & C SPA (PIRC.MI) is 5 / 10.