RCS MEDIAGROUP SPA (RCS.MI) Stock Fundamental Analysis
BIT:RCS - Euronext Milan - IT0004931496 - Common Stock - Currency: EUR
Overall RCS gets a fundamental rating of 5 out of 10. We evaluated RCS against 62 industry peers in the Media industry. While RCS has a great profitability rating, there are some minor concerns on its financial health. RCS has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
RCS had positive earnings in each of the past 5 years.
Each year in the past 5 years RCS had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 5.53%, RCS is doing good in the industry, outperforming 79.03% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.28%, RCS is in the better half of the industry, outperforming 75.81% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.46%, RCS belongs to the top of the industry, outperforming 85.48% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RCS is in line with the industry average of 8.25%.
The last Return On Invested Capital (10.46%) for RCS is above the 3 year average (9.48%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.53% | ||
| ROE | 13.28% | ||
| ROIC | 10.46% |
ROA(3y)5.43%
ROA(5y)5.28%
ROE(3y)13.54%
ROE(5y)14.11%
ROIC(3y)9.48%
ROIC(5y)8.92%
1.3 Margins
Looking at the Profit Margin, with a value of 5.07%, RCS is in the better half of the industry, outperforming 62.90% of the companies in the same industry.
RCS's Profit Margin has been stable in the last couple of years.
RCS's Operating Margin of 8.02% is in line compared to the rest of the industry. RCS outperforms 59.68% of its industry peers.
In the last couple of years the Operating Margin of RCS has remained more or less at the same level.
RCS's Gross Margin of 63.77% is fine compared to the rest of the industry. RCS outperforms 62.90% of its industry peers.
In the last couple of years the Gross Margin of RCS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.02% | ||
| PM (TTM) | 5.07% | ||
| GM | 63.77% |
OM growth 3Y1.16%
OM growth 5Y0.53%
PM growth 3Y-4.01%
PM growth 5Y0.41%
GM growth 3Y-0.21%
GM growth 5Y0.65%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RCS is creating some value.
Compared to 1 year ago, RCS has about the same amount of shares outstanding.
The number of shares outstanding for RCS remains at a similar level compared to 5 years ago.
RCS has a worse debt/assets ratio than last year.
2.2 Solvency
RCS has an Altman-Z score of 2.30. This is not the best score and indicates that RCS is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of RCS (2.30) is better than 79.03% of its industry peers.
The Debt to FCF ratio of RCS is 1.96, which is an excellent value as it means it would take RCS, only 1.96 years of fcf income to pay off all of its debts.
RCS has a better Debt to FCF ratio (1.96) than 83.87% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that RCS is not too dependend on debt financing.
RCS's Debt to Equity ratio of 0.34 is fine compared to the rest of the industry. RCS outperforms 66.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.96 | ||
| Altman-Z | 2.3 |
ROIC/WACC1.46
WACC7.15%
2.3 Liquidity
A Current Ratio of 0.95 indicates that RCS may have some problems paying its short term obligations.
RCS's Current ratio of 0.95 is in line compared to the rest of the industry. RCS outperforms 43.55% of its industry peers.
RCS has a Quick Ratio of 0.95. 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 Quick ratio, with a value of 0.90, RCS is in line with its industry, outperforming 46.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.02% over the past year.
RCS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.98% yearly.
Looking at the last year, RCS shows a decrease in Revenue. The Revenue has decreased by -0.64% in the last year.
RCS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.37% yearly.
EPS 1Y (TTM)14.02%
EPS 3Y-5.04%
EPS 5Y-1.98%
EPS Q2Q%61.29%
Revenue 1Y (TTM)-0.64%
Revenue growth 3Y-1.08%
Revenue growth 5Y-2.37%
Sales Q2Q%0.41%
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 YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
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
The Price/Earnings ratio is 8.12, which indicates a very decent valuation of RCS.
Based on the Price/Earnings ratio, RCS is valued cheaply inside the industry as 90.32% of the companies are valued more expensively.
RCS is valuated cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.12 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RCS indicates a somewhat cheap valuation: RCS is cheaper than 70.97% of the companies listed in the same industry.
RCS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RCS is cheaper than 80.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.38 | ||
| EV/EBITDA | 4.32 |
4.3 Compensation for Growth
RCS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.01%, RCS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.99, RCS pays a better dividend. On top of this RCS pays more dividend than 91.94% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, RCS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.01% |
5.2 History
The dividend of RCS has a limited annual growth rate of 3.17%.
Dividend Growth(5Y)3.17%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
61.77% of the earnings are spent on dividend by RCS. This is not a sustainable payout ratio.
The Dividend Rate of RCS has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP61.77%
EPS Next 2YN/A
EPS Next 3YN/A
BIT:RCS (7/3/2025, 7:00:00 PM)
0.974
-0.01 (-0.81%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners9.75%
Inst Owner ChangeN/A
Ins Owners68.32%
Ins Owner ChangeN/A
Market Cap508.29M
Analysts80
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.01% |
Yearly Dividend0.07
Dividend Growth(5Y)3.17%
DP61.77%
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)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.12 | ||
| Fwd PE | N/A | ||
| P/S | 0.44 | ||
| P/FCF | 5.38 | ||
| P/OCF | 4.39 | ||
| P/B | 1.15 | ||
| P/tB | 7.28 | ||
| EV/EBITDA | 4.32 |
EPS(TTM)0.12
EY12.32%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)0.18
FCFY18.59%
OCF(TTM)0.22
OCFY22.76%
SpS2.22
BVpS0.85
TBVpS0.13
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.53% | ||
| ROE | 13.28% | ||
| ROCE | 13.46% | ||
| ROIC | 10.46% | ||
| ROICexc | 11.42% | ||
| ROICexgc | 27.78% | ||
| OM | 8.02% | ||
| PM (TTM) | 5.07% | ||
| GM | 63.77% | ||
| FCFM | 8.17% |
ROA(3y)5.43%
ROA(5y)5.28%
ROE(3y)13.54%
ROE(5y)14.11%
ROIC(3y)9.48%
ROIC(5y)8.92%
ROICexc(3y)10%
ROICexc(5y)9.6%
ROICexgc(3y)24.34%
ROICexgc(5y)24.68%
ROCE(3y)12.21%
ROCE(5y)11.48%
ROICexcg growth 3Y-7.29%
ROICexcg growth 5Y-2.11%
ROICexc growth 3Y-2.92%
ROICexc growth 5Y-2.22%
OM growth 3Y1.16%
OM growth 5Y0.53%
PM growth 3Y-4.01%
PM growth 5Y0.41%
GM growth 3Y-0.21%
GM growth 5Y0.65%
F-Score6
Asset Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.96 | ||
| Debt/EBITDA | 1 | ||
| Cap/Depr | 38.27% | ||
| Cap/Sales | 1.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.12% | ||
| Profit Quality | 161.26% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 2.3 |
F-Score6
WACC7.15%
ROIC/WACC1.46
Cap/Depr(3y)78.2%
Cap/Depr(5y)60.63%
Cap/Sales(3y)4.95%
Cap/Sales(5y)3.82%
Profit Quality(3y)100.72%
Profit Quality(5y)144.72%
High Growth Momentum
Growth
EPS 1Y (TTM)14.02%
EPS 3Y-5.04%
EPS 5Y-1.98%
EPS Q2Q%61.29%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.64%
Revenue growth 3Y-1.08%
Revenue growth 5Y-2.37%
Sales Q2Q%0.41%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y21.02%
EBIT growth 3Y0.07%
EBIT growth 5Y-1.86%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y34.81%
FCF growth 3Y-6.79%
FCF growth 5Y-4.81%
OCF growth 1Y24.01%
OCF growth 3Y-4.94%
OCF growth 5Y-3.37%