SABAF SPA (SAB.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:SAB - IT0001042610 - Common Stock
13.6 EUR
-0.12 (-0.91%)
Overall SAB gets a fundamental rating of 5 out of 10. We evaluated SAB against 33 industry peers in the Household Durables industry. SAB has only an average score on both its financial health and profitability. SAB is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year SAB was profitable.
- SAB had a positive operating cash flow in the past year.
- In the past 5 years SAB has always been profitable.
- In the past 5 years SAB always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of SAB (2.48%) is better than 69.70% of its industry peers.
- SAB's Return On Equity of 5.92% is fine compared to the rest of the industry. SAB outperforms 66.67% of its industry peers.
- With a decent Return On Invested Capital value of 6.05%, SAB is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for SAB is significantly below the industry average of 9.57%.
- The 3 year average ROIC (4.16%) for SAB is below the current ROIC(6.05%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.48% | ||
| ROE | 5.92% | ||
| ROIC | 6.05% |
ROA(3y)2.48%
ROA(5y)4.1%
ROE(3y)5.29%
ROE(5y)9.58%
ROIC(3y)4.16%
ROIC(5y)6%
1.3 Margins
- The Profit Margin of SAB (2.06%) is better than 63.64% of its industry peers.
- SAB's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 5.65%, SAB is in line with its industry, outperforming 57.58% of the companies in the same industry.
- SAB's Operating Margin has been stable in the last couple of years.
- SAB's Gross Margin of 54.05% is fine compared to the rest of the industry. SAB outperforms 72.73% of its industry peers.
- In the last couple of years the Gross Margin of SAB has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.65% | ||
| PM (TTM) | 2.06% | ||
| GM | 54.05% |
OM growth 3Y-19.86%
OM growth 5Y-0.84%
PM growth 3Y-35.56%
PM growth 5Y-17.5%
GM growth 3Y-2.09%
GM growth 5Y-1.45%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SAB is destroying value.
- Compared to 1 year ago, SAB has about the same amount of shares outstanding.
- The number of shares outstanding for SAB has been increased compared to 5 years ago.
- SAB has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.85 indicates that SAB is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.85, SAB is in the better half of the industry, outperforming 75.76% of the companies in the same industry.
- The Debt to FCF ratio of SAB is 8.48, which is on the high side as it means it would take SAB, 8.48 years of fcf income to pay off all of its debts.
- SAB's Debt to FCF ratio of 8.48 is fine compared to the rest of the industry. SAB outperforms 63.64% of its industry peers.
- SAB has a Debt/Equity ratio of 0.54. This is a neutral value indicating SAB is somewhat dependend on debt financing.
- SAB has a Debt to Equity ratio (0.54) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 8.48 | ||
| Altman-Z | 2.85 |
ROIC/WACC1
WACC6.05%
2.3 Liquidity
- A Current Ratio of 1.61 indicates that SAB should not have too much problems paying its short term obligations.
- SAB has a Current ratio of 1.61. This is comparable to the rest of the industry: SAB outperforms 57.58% of its industry peers.
- A Quick Ratio of 1.03 indicates that SAB should not have too much problems paying its short term obligations.
- The Quick ratio of SAB (1.03) is better than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
- The earnings per share for SAB have decreased strongly by -56.03% in the last year.
- Measured over the past years, SAB shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.69% on average per year.
- SAB shows a small growth in Revenue. In the last year, the Revenue has grown by 3.85%.
- SAB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.83% yearly.
EPS 1Y (TTM)-56.03%
EPS 3Y-36.2%
EPS 5Y-8.69%
EPS Q2Q%-37.35%
Revenue 1Y (TTM)3.85%
Revenue growth 3Y2.69%
Revenue growth 5Y12.83%
Sales Q2Q%-1.16%
3.2 Future
- Based on estimates for the next years, SAB will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.63% on average per year.
- Based on estimates for the next years, SAB will show a small growth in Revenue. The Revenue will grow by 4.19% on average per year.
EPS Next Y3.7%
EPS Next 2Y10.74%
EPS Next 3Y10.63%
EPS Next 5YN/A
Revenue Next Year2.66%
Revenue Next 2Y3.52%
Revenue Next 3Y3.55%
Revenue Next 5Y4.19%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- SAB is valuated rather expensively with a Price/Earnings ratio of 19.15.
- Compared to the rest of the industry, the Price/Earnings ratio of SAB indicates a somewhat cheap valuation: SAB is cheaper than 69.70% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. SAB is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 9.04, the valuation of SAB can be described as reasonable.
- Based on the Price/Forward Earnings ratio, SAB is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
- SAB is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.15 | ||
| Fwd PE | 9.04 |
4.2 Price Multiples
- SAB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SAB is cheaper than 84.85% of the companies in the same industry.
- SAB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SAB is cheaper than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.41 | ||
| EV/EBITDA | 4.87 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- SAB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.17
PEG (5Y)N/A
EPS Next 2Y10.74%
EPS Next 3Y10.63%
5. Dividend
5.1 Amount
- SAB has a Yearly Dividend Yield of 4.26%, which is a nice return.
- SAB's Dividend Yield is a higher than the industry average which is at 2.64.
- SAB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
5.2 History
- The dividend of SAB has a limited annual growth rate of 5.14%.
Dividend Growth(5Y)5.14%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- SAB pays out 102.01% of its income as dividend. This is not a sustainable payout ratio.
- SAB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP102.01%
EPS Next 2Y10.74%
EPS Next 3Y10.63%
SABAF SPA / SAB.MI FAQ
What is the fundamental rating for SAB stock?
ChartMill assigns a fundamental rating of 5 / 10 to SAB.MI.
What is the valuation status for SAB stock?
ChartMill assigns a valuation rating of 5 / 10 to SABAF SPA (SAB.MI). This can be considered as Fairly Valued.
How profitable is SABAF SPA (SAB.MI) stock?
SABAF SPA (SAB.MI) has a profitability rating of 6 / 10.
What is the earnings growth outlook for SABAF SPA?
The Earnings per Share (EPS) of SABAF SPA (SAB.MI) is expected to grow by 3.7% in the next year.
Can you provide the dividend sustainability for SAB stock?
The dividend rating of SABAF SPA (SAB.MI) is 6 / 10 and the dividend payout ratio is 102.01%.