RCS MEDIAGROUP SPA (RCS.MI) Stock Fundamental Analysis
BIT:RCS - Euronext Milan - IT0004931496 - Common Stock - Currency: EUR
Taking everything into account, RCS scores 5 out of 10 in our fundamental rating. RCS was compared to 65 industry peers in the Media industry. RCS has an excellent profitability rating, but there are some minor concerns on its financial health. RCS is valued quite cheap, but it does not seem to be growing. With these ratings, RCS could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year RCS was profitable.
In the past year RCS had a positive cash flow from operations.
Each year in the past 5 years RCS has been profitable.
In the past 5 years RCS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.38%, RCS is in the better half of the industry, outperforming 77.61% of the companies in the same industry.
With a decent Return On Equity value of 13.70%, RCS is doing good in the industry, outperforming 76.12% of the companies in the same industry.
RCS has a Return On Invested Capital of 10.92%. This is amongst the best in the industry. RCS outperforms 86.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RCS is above the industry average of 8.66%.
The last Return On Invested Capital (10.92%) for RCS is above the 3 year average (10.72%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.38% | ||
| ROE | 13.7% | ||
| ROIC | 10.92% |
ROA(3y)5.79%
ROA(5y)5.42%
ROE(3y)15.42%
ROE(5y)16.2%
ROIC(3y)10.72%
ROIC(5y)10.33%
1.3 Margins
RCS has a Profit Margin of 4.87%. This is in the better half of the industry: RCS outperforms 62.69% of its industry peers.
RCS's Profit Margin has declined in the last couple of years.
RCS has a Operating Margin of 7.32%. This is comparable to the rest of the industry: RCS outperforms 58.21% of its industry peers.
In the last couple of years the Operating Margin of RCS has declined.
The Gross Margin of RCS (62.85%) is better than 65.67% of its industry peers.
RCS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.32% | ||
| PM (TTM) | 4.87% | ||
| GM | 62.85% |
OM growth 3Y24.81%
OM growth 5Y-4.38%
PM growth 3Y17.63%
PM growth 5Y-4.65%
GM growth 3Y0.1%
GM growth 5Y-0.02%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RCS is still creating some value.
Compared to 1 year ago, RCS has about the same amount of shares outstanding.
Compared to 5 years ago, RCS has about the same amount of shares outstanding.
RCS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.05 indicates that RCS is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of RCS (2.05) is better than 71.64% of its industry peers.
RCS has a debt to FCF ratio of 2.19. This is a good value and a sign of high solvency as RCS would need 2.19 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.19, RCS belongs to the top of the industry, outperforming 82.09% of the companies in the same industry.
RCS has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
RCS has a Debt to Equity ratio of 0.36. This is in the better half of the industry: RCS outperforms 65.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.19 | ||
| Altman-Z | 2.05 |
ROIC/WACC1.5
WACC7.29%
2.3 Liquidity
RCS has a Current Ratio of 0.88. This is a bad value and indicates that RCS is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.88, RCS is in line with its industry, outperforming 44.78% of the companies in the same industry.
RCS has a Quick Ratio of 0.88. This is a bad value and indicates that RCS is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of RCS (0.83) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.25% over the past year.
RCS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.72% yearly.
The Revenue has decreased by -2.13% in the past year.
RCS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.23% yearly.
EPS 1Y (TTM)12.25%
EPS 3Y21.59%
EPS 5Y-7.72%
EPS Q2Q%39.13%
Revenue 1Y (TTM)-2.13%
Revenue growth 3Y3.38%
Revenue growth 5Y-3.23%
Sales Q2Q%0.36%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next Y10%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.12%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.36, the valuation of RCS can be described as very reasonable.
Based on the Price/Earnings ratio, RCS is valued a bit cheaper than 73.13% of the companies in the same industry.
RCS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.35.
A Price/Forward Earnings ratio of 9.27 indicates a reasonable valuation of RCS.
Based on the Price/Forward Earnings ratio, RCS is valued a bit cheaper than 70.15% of the companies in the same industry.
RCS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.36 | ||
| Fwd PE | 9.27 |
4.2 Price Multiples
70.15% of the companies in the same industry are more expensive than RCS, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RCS indicates a somewhat cheap valuation: RCS is cheaper than 73.13% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.99 | ||
| EV/EBITDA | 5.11 |
4.3 Compensation for Growth
RCS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of RCS may justify a higher PE ratio.
PEG (NY)0.94
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.80%, RCS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.64, RCS pays a better dividend. On top of this RCS pays more dividend than 88.06% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, RCS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.8% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
RCS pays out 64.07% of its income as dividend. This is not a sustainable payout ratio.
DP64.07%
EPS Next 2YN/A
EPS Next 3YN/A
BIT:RCS (3/7/2025, 7:00:00 PM)
1.03
0 (0%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners9.26%
Inst Owner ChangeN/A
Ins Owners68.32%
Ins Owner ChangeN/A
Market Cap537.52M
Analysts80
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.8% |
Yearly Dividend0.06
Dividend Growth(5Y)N/A
DP64.07%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.36 | ||
| Fwd PE | 9.27 | ||
| P/S | 0.46 | ||
| P/FCF | 5.99 | ||
| P/OCF | 4.8 | ||
| P/B | 1.3 | ||
| P/tB | 13.71 | ||
| EV/EBITDA | 5.11 |
EPS(TTM)0.11
EY10.68%
EPS(NY)0.11
Fwd EY10.79%
FCF(TTM)0.17
FCFY16.71%
OCF(TTM)0.21
OCFY20.82%
SpS2.22
BVpS0.79
TBVpS0.08
PEG (NY)0.94
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.38% | ||
| ROE | 13.7% | ||
| ROCE | 12.71% | ||
| ROIC | 10.92% | ||
| ROICexc | 11.16% | ||
| ROICexgc | 26% | ||
| OM | 7.32% | ||
| PM (TTM) | 4.87% | ||
| GM | 62.85% | ||
| FCFM | 7.75% |
ROA(3y)5.79%
ROA(5y)5.42%
ROE(3y)15.42%
ROE(5y)16.2%
ROIC(3y)10.72%
ROIC(5y)10.33%
ROICexc(3y)11.46%
ROICexc(5y)10.93%
ROICexgc(3y)29.58%
ROICexgc(5y)28%
ROCE(3y)12.48%
ROCE(5y)12.07%
ROICexcg growth 3Y18.27%
ROICexcg growth 5Y-19.15%
ROICexc growth 3Y24.12%
ROICexc growth 5Y-11.8%
OM growth 3Y24.81%
OM growth 5Y-4.38%
PM growth 3Y17.63%
PM growth 5Y-4.65%
GM growth 3Y0.1%
GM growth 5Y-0.02%
F-Score7
Asset Turnover1.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.19 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 39.46% | ||
| Cap/Sales | 1.91% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.42% | ||
| Profit Quality | 158.94% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 2.05 |
F-Score7
WACC7.29%
ROIC/WACC1.5
Cap/Depr(3y)77.81%
Cap/Depr(5y)59.43%
Cap/Sales(3y)4.8%
Cap/Sales(5y)3.66%
Profit Quality(3y)103.64%
Profit Quality(5y)149.53%
High Growth Momentum
Growth
EPS 1Y (TTM)12.25%
EPS 3Y21.59%
EPS 5Y-7.72%
EPS Q2Q%39.13%
EPS Next Y10%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-2.13%
Revenue growth 3Y3.38%
Revenue growth 5Y-3.23%
Sales Q2Q%0.36%
Revenue Next Year0.12%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y19.41%
EBIT growth 3Y29.02%
EBIT growth 5Y-7.47%
EBIT Next Year55.32%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-28.5%
FCF growth 3Y-5.28%
FCF growth 5Y-8.4%
OCF growth 1Y-22.29%
OCF growth 3Y-1.76%
OCF growth 5Y-5.91%