PRYSMIAN SPA (PRY.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:PRY - IT0004176001 - Common Stock
99.22 EUR
+1.42 (+1.45%)
Taking everything into account, PRY scores 6 out of 10 in our fundamental rating. PRY was compared to 75 industry peers in the Electrical Equipment industry. PRY scores excellent on profitability, but there are concerns on its financial health. PRY is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
- PRY had positive earnings in the past year.
- PRY had a positive operating cash flow in the past year.
- PRY had positive earnings in each of the past 5 years.
- PRY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- PRY's Return On Assets of 5.99% is fine compared to the rest of the industry. PRY outperforms 80.00% of its industry peers.
- Looking at the Return On Equity, with a value of 18.66%, PRY belongs to the top of the industry, outperforming 81.33% of the companies in the same industry.
- PRY has a Return On Invested Capital of 11.33%. This is amongst the best in the industry. PRY outperforms 84.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for PRY is in line with the industry average of 9.57%.
- The last Return On Invested Capital (11.33%) for PRY is above the 3 year average (9.46%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.99% | ||
| ROE | 18.66% | ||
| ROIC | 11.33% |
ROA(3y)3.98%
ROA(5y)3.26%
ROE(3y)14.13%
ROE(5y)12.17%
ROIC(3y)9.46%
ROIC(5y)8.13%
1.3 Margins
- PRY's Profit Margin of 5.85% is fine compared to the rest of the industry. PRY outperforms 72.00% of its industry peers.
- PRY's Profit Margin has improved in the last couple of years.
- With a decent Operating Margin value of 9.58%, PRY is doing good in the industry, outperforming 73.33% of the companies in the same industry.
- PRY's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 37.36%, PRY is in line with its industry, outperforming 54.67% of the companies in the same industry.
- PRY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.58% | ||
| PM (TTM) | 5.85% | ||
| GM | 37.36% |
OM growth 3Y16.91%
OM growth 5Y6.08%
PM growth 3Y20.98%
PM growth 5Y11.05%
GM growth 3Y5.02%
GM growth 5Y-0.15%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PRY is creating some value.
- PRY has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for PRY has been increased compared to 5 years ago.
- PRY has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.29 indicates that PRY is not in any danger for bankruptcy at the moment.
- The Altman-Z score of PRY (3.29) is better than 66.67% of its industry peers.
- The Debt to FCF ratio of PRY is 4.86, which is a neutral value as it means it would take PRY, 4.86 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 4.86, PRY is in the better half of the industry, outperforming 65.33% of the companies in the same industry.
- A Debt/Equity ratio of 0.78 indicates that PRY is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.78, PRY is not doing good in the industry: 65.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 4.86 | ||
| Altman-Z | 3.29 |
ROIC/WACC1.26
WACC9%
2.3 Liquidity
- A Current Ratio of 1.20 indicates that PRY should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.20, PRY is doing worse than 66.67% of the companies in the same industry.
- PRY has a Quick Ratio of 1.20. This is a bad value and indicates that PRY is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of PRY (0.75) is worse than 65.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 106.42% over the past year.
- The Earnings Per Share has been growing by 11.50% on average over the past years. This is quite good.
- PRY shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.75%.
- The Revenue has been growing by 8.13% on average over the past years. This is quite good.
EPS 1Y (TTM)106.42%
EPS 3Y29.14%
EPS 5Y11.5%
EPS Q2Q%168%
Revenue 1Y (TTM)21.75%
Revenue growth 3Y10.16%
Revenue growth 5Y8.13%
Sales Q2Q%10.72%
3.2 Future
- PRY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.56% yearly.
- The Revenue is expected to grow by 7.92% on average over the next years.
EPS Next Y62.09%
EPS Next 2Y34.8%
EPS Next 3Y26.98%
EPS Next 5Y19.56%
Revenue Next Year17.18%
Revenue Next 2Y11.96%
Revenue Next 3Y9.96%
Revenue Next 5Y7.92%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 25.70, PRY can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of PRY indicates a somewhat cheap valuation: PRY is cheaper than 78.67% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, PRY is valued at the same level.
- Based on the Price/Forward Earnings ratio of 21.67, the valuation of PRY can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, PRY is valued a bit cheaper than 69.33% of the companies in the same industry.
- PRY's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.7 | ||
| Fwd PE | 21.67 |
4.2 Price Multiples
- 73.33% of the companies in the same industry are more expensive than PRY, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, PRY is valued a bit cheaper than the industry average as 74.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.83 | ||
| EV/EBITDA | 13.31 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- PRY has an outstanding profitability rating, which may justify a higher PE ratio.
- PRY's earnings are expected to grow with 26.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.41
PEG (5Y)2.23
EPS Next 2Y34.8%
EPS Next 3Y26.98%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.83%, PRY is not a good candidate for dividend investing.
- PRY's Dividend Yield is a higher than the industry average which is at 0.79.
- Compared to an average S&P500 Dividend Yield of 1.82, PRY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
5.2 History
- On average, the dividend of PRY grows each year by 9.79%, which is quite nice.
Dividend Growth(5Y)9.79%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- PRY pays out 21.11% of its income as dividend. This is a sustainable payout ratio.
- The dividend of PRY is growing, but earnings are growing more, so the dividend growth is sustainable.
DP21.11%
EPS Next 2Y34.8%
EPS Next 3Y26.98%
PRYSMIAN SPA / PRY.MI FAQ
Can you provide the ChartMill fundamental rating for PRYSMIAN SPA?
ChartMill assigns a fundamental rating of 5 / 10 to PRY.MI.
What is the valuation status of PRYSMIAN SPA (PRY.MI) stock?
ChartMill assigns a valuation rating of 5 / 10 to PRYSMIAN SPA (PRY.MI). This can be considered as Fairly Valued.
How profitable is PRYSMIAN SPA (PRY.MI) stock?
PRYSMIAN SPA (PRY.MI) has a profitability rating of 7 / 10.
What is the valuation of PRYSMIAN SPA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for PRYSMIAN SPA (PRY.MI) is 25.7 and the Price/Book (PB) ratio is 4.85.
What is the earnings growth outlook for PRYSMIAN SPA?
The Earnings per Share (EPS) of PRYSMIAN SPA (PRY.MI) is expected to grow by 62.09% in the next year.