POSTE ITALIANE SPA (PST.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:PST - IT0003796171 - Common Stock
21.82 EUR
-0.27 (-1.22%)
Taking everything into account, PST scores 4 out of 10 in our fundamental rating. PST was compared to 59 industry peers in the Financial Services industry. There are concerns on the financial health of PST while its profitability can be described as average. PST is not valued too expensively and it also shows a decent growth rate. PST also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year PST was profitable.
- PST had a positive operating cash flow in the past year.
- Each year in the past 5 years PST has been profitable.
- In the past 5 years PST always reported a positive cash flow from operatings.
1.2 Ratios
- PST's Return On Assets of 0.76% is in line compared to the rest of the industry. PST outperforms 45.90% of its industry peers.
- The Return On Equity of PST (16.35%) is better than 73.77% of its industry peers.
- PST has a Return On Invested Capital of 1.08%. This is in the lower half of the industry: PST underperforms 60.66% of its industry peers.
- PST had an Average Return On Invested Capital over the past 3 years of 0.89%. This is significantly below the industry average of 10.02%.
- The 3 year average ROIC (0.89%) for PST is below the current ROIC(1.08%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.76% | ||
| ROE | 16.35% | ||
| ROIC | 1.08% |
ROA(3y)0.68%
ROA(5y)0.61%
ROE(3y)18.66%
ROE(5y)16.11%
ROIC(3y)0.89%
ROIC(5y)0.76%
1.3 Margins
- PST has a better Profit Margin (16.12%) than 62.30% of its industry peers.
- In the last couple of years the Profit Margin of PST has grown nicely.
- PST's Operating Margin of 20.70% is fine compared to the rest of the industry. PST outperforms 68.85% of its industry peers.
- In the last couple of years the Operating Margin of PST has grown nicely.
- The Gross Margin of PST (70.85%) is better than 72.13% of its industry peers.
- PST's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.7% | ||
| PM (TTM) | 16.12% | ||
| GM | 70.85% |
OM growth 3Y10.96%
OM growth 5Y31.66%
PM growth 3Y3.13%
PM growth 5Y30.15%
GM growth 3Y-2.09%
GM growth 5Y-5.18%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PST is destroying value.
- PST has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, PST has less shares outstanding
- PST has a worse debt/assets ratio than last year.
2.2 Solvency
- PST has an Altman-Z score of 0.01. This is a bad value and indicates that PST is not financially healthy and even has some risk of bankruptcy.
- PST has a Altman-Z score of 0.01. This is in the lower half of the industry: PST underperforms 75.41% of its industry peers.
- The Debt to FCF ratio of PST is 46.28, which is on the high side as it means it would take PST, 46.28 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 46.28, PST is doing worse than 65.57% of the companies in the same industry.
- PST has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
- PST has a Debt to Equity ratio (0.46) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 46.28 | ||
| Altman-Z | 0.01 |
ROIC/WACC0.3
WACC3.62%
2.3 Liquidity
- PST has a Current Ratio of 0.50. This is a bad value and indicates that PST is not financially healthy enough and could expect problems in meeting its short term obligations.
- PST has a Current ratio of 0.50. This is in the lower half of the industry: PST underperforms 75.41% of its industry peers.
- A Quick Ratio of 0.50 indicates that PST may have some problems paying its short term obligations.
- PST's Quick ratio of 0.50 is on the low side compared to the rest of the industry. PST is outperformed by 75.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
- PST shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.66%, which is quite impressive.
- The Earnings Per Share has been growing by 8.38% on average over the past years. This is quite good.
- PST shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.44%.
- PST shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -16.83% yearly.
EPS 1Y (TTM)28.66%
EPS 3Y14.03%
EPS 5Y8.38%
EPS Q2Q%9.17%
Revenue 1Y (TTM)-13.44%
Revenue growth 3Y4.83%
Revenue growth 5Y-16.83%
Sales Q2Q%4.53%
3.2 Future
- Based on estimates for the next years, PST will show a small growth in Earnings Per Share. The EPS will grow by 4.67% on average per year.
- Based on estimates for the next years, PST will show a small growth in Revenue. The Revenue will grow by 2.62% on average per year.
EPS Next Y-1.73%
EPS Next 2Y1.36%
EPS Next 3Y4.01%
EPS Next 5Y4.67%
Revenue Next Year4.94%
Revenue Next 2Y3.5%
Revenue Next 3Y3.18%
Revenue Next 5Y2.62%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- A Price/Earnings ratio of 11.02 indicates a reasonable valuation of PST.
- Compared to the rest of the industry, the Price/Earnings ratio of PST indicates a somewhat cheap valuation: PST is cheaper than 67.21% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of PST to the average of the S&P500 Index (27.21), we can say PST is valued rather cheaply.
- A Price/Forward Earnings ratio of 11.80 indicates a reasonable valuation of PST.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of PST indicates a somewhat cheap valuation: PST is cheaper than 60.66% of the companies listed in the same industry.
- PST's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.02 | ||
| Fwd PE | 11.8 |
4.2 Price Multiples
- PST's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. PST is more expensive than 60.66% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, PST is valued a bit cheaper than the industry average as 62.30% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.56 | ||
| EV/EBITDA | 33.4 |
4.3 Compensation for Growth
- The decent profitability rating of PST may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.32
EPS Next 2Y1.36%
EPS Next 3Y4.01%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.89%, PST is a good candidate for dividend investing.
- PST's Dividend Yield is rather good when compared to the industry average which is at 1.97. PST pays more dividend than 85.25% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, PST pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
5.2 History
- The dividend of PST is nicely growing with an annual growth rate of 8.66%!
Dividend Growth(5Y)8.66%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- PST pays out 65.05% of its income as dividend. This is not a sustainable payout ratio.
- PST's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP65.05%
EPS Next 2Y1.36%
EPS Next 3Y4.01%
POSTE ITALIANE SPA / PST.MI FAQ
Can you provide the ChartMill fundamental rating for POSTE ITALIANE SPA?
ChartMill assigns a fundamental rating of 4 / 10 to PST.MI.
What is the valuation status of POSTE ITALIANE SPA (PST.MI) stock?
ChartMill assigns a valuation rating of 5 / 10 to POSTE ITALIANE SPA (PST.MI). This can be considered as Fairly Valued.
What is the profitability of PST stock?
POSTE ITALIANE SPA (PST.MI) has a profitability rating of 6 / 10.
What is the financial health of POSTE ITALIANE SPA (PST.MI) stock?
The financial health rating of POSTE ITALIANE SPA (PST.MI) is 1 / 10.
What is the earnings growth outlook for POSTE ITALIANE SPA?
The Earnings per Share (EPS) of POSTE ITALIANE SPA (PST.MI) is expected to decline by -1.73% in the next year.