RCS MEDIAGROUP SPA (RCS.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:RCS - IT0004931496 - Common Stock
0.983 EUR
-0.01 (-1.21%)
Taking everything into account, RCS scores 5 out of 10 in our fundamental rating. RCS was compared to 69 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 it does not seem to be growing. Finally RCS also has an excellent dividend rating. With these ratings, RCS could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
- RCS had positive earnings in the past year.
- 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
- With an excellent Return On Assets value of 5.83%, RCS belongs to the best of the industry, outperforming 85.29% of the companies in the same industry.
- The Return On Equity of RCS (13.79%) is better than 76.47% of its industry peers.
- The Return On Invested Capital of RCS (11.40%) is better than 85.29% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for RCS is in line with the industry average of 8.04%.
- The last Return On Invested Capital (11.40%) for RCS is above the 3 year average (9.48%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.83% | ||
| ROE | 13.79% | ||
| ROIC | 11.4% |
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
- With a decent Profit Margin value of 5.28%, RCS is doing good in the industry, outperforming 63.24% of the companies in the same industry.
- RCS's Profit Margin has been stable in the last couple of years.
- RCS has a Operating Margin of 8.52%. This is in the better half of the industry: RCS outperforms 60.29% of its industry peers.
- RCS's Operating Margin has been stable in the last couple of years.
- RCS's Gross Margin of 64.17% is fine compared to the rest of the industry. RCS outperforms 66.18% 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 | 8.52% | ||
| PM (TTM) | 5.28% | ||
| GM | 64.17% |
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.
- The number of shares outstanding for RCS remains at a similar level compared to 1 year ago.
- The number of shares outstanding for RCS remains at a similar level compared to 5 years ago.
- The debt/assets ratio for RCS is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.17 indicates that RCS is not a great score, but indicates only limited risk for bankruptcy at the moment.
- RCS has a better Altman-Z score (2.17) than 72.06% of its industry peers.
- The Debt to FCF ratio of RCS is 1.44, which is an excellent value as it means it would take RCS, only 1.44 years of fcf income to pay off all of its debts.
- RCS's Debt to FCF ratio of 1.44 is amongst the best of the industry. RCS outperforms 86.76% of its industry peers.
- A Debt/Equity ratio of 0.29 indicates that RCS is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.29, RCS is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.44 | ||
| Altman-Z | 2.17 |
ROIC/WACC1.61
WACC7.09%
2.3 Liquidity
- A Current Ratio of 0.94 indicates that RCS may have some problems paying its short term obligations.
- RCS has a Current ratio of 0.94. This is comparable to the rest of the industry: RCS outperforms 45.59% of its industry peers.
- RCS has a Quick Ratio of 0.94. This is a bad value and indicates that RCS is not financially healthy enough and could expect problems in meeting its short term obligations.
- RCS has a Quick ratio (0.89) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 3.90% over the past year.
- The Earnings Per Share has been decreasing by -1.98% on average over the past years.
- The Revenue has decreased by -0.89% in the past year.
- RCS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.37% yearly.
EPS 1Y (TTM)3.9%
EPS 3Y-5.04%
EPS 5Y-1.98%
EPS Q2Q%0%
Revenue 1Y (TTM)-0.89%
Revenue growth 3Y-1.08%
Revenue growth 5Y-2.37%
Sales Q2Q%-1.82%
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
- A Price/Earnings ratio of 8.19 indicates a reasonable valuation of RCS.
- Based on the Price/Earnings ratio, RCS is valued cheaper than 85.29% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. RCS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.19 | ||
| Fwd PE | N/A |
4.2 Price Multiples
- 76.47% of the companies in the same industry are more expensive than RCS, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, RCS is valued cheaper than 88.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.53 | ||
| EV/EBITDA | 4.2 |
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 7.06%, RCS is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 3.07, RCS pays a better dividend. On top of this RCS pays more dividend than 94.12% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, RCS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.06% |
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
- 59.64% of the earnings are spent on dividend by RCS. This is a bit on the high side, but may be sustainable.
- RCS's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP59.64%
EPS Next 2YN/A
EPS Next 3YN/A
RCS MEDIAGROUP SPA / RCS.MI FAQ
What is the ChartMill fundamental rating of RCS MEDIAGROUP SPA (RCS.MI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to RCS.MI.
What is the valuation status for RCS stock?
ChartMill assigns a valuation rating of 5 / 10 to RCS MEDIAGROUP SPA (RCS.MI). This can be considered as Fairly Valued.
What is the profitability of RCS stock?
RCS MEDIAGROUP SPA (RCS.MI) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for RCS stock?
The Price/Earnings (PE) ratio for RCS MEDIAGROUP SPA (RCS.MI) is 8.19 and the Price/Book (PB) ratio is 1.17.
Is the dividend of RCS MEDIAGROUP SPA sustainable?
The dividend rating of RCS MEDIAGROUP SPA (RCS.MI) is 7 / 10 and the dividend payout ratio is 59.64%.