SESA SPA (SES.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:SES - IT0004729759 - Common Stock
91.1 EUR
-0.95 (-1.03%)
Overall SES gets a fundamental rating of 6 out of 10. We evaluated SES against 52 industry peers in the Electronic Equipment, Instruments & Components industry. SES has an excellent profitability rating, but there are some minor concerns on its financial health. SES has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- SES had positive earnings in the past year.
- SES had a positive operating cash flow in the past year.
- SES had positive earnings in each of the past 5 years.
- Each year in the past 5 years SES had a positive operating cash flow.
1.2 Ratios
- SES has a better Return On Assets (5.19%) than 78.85% of its industry peers.
- SES has a Return On Equity of 25.96%. This is amongst the best in the industry. SES outperforms 94.23% of its industry peers.
- The Return On Invested Capital of SES (12.45%) is better than 92.31% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for SES is in line with the industry average of 7.60%.
- The 3 year average ROIC (8.40%) for SES is below the current ROIC(12.45%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.19% | ||
| ROE | 25.96% | ||
| ROIC | 12.45% |
ROA(3y)3.62%
ROA(5y)3.97%
ROE(3y)18.23%
ROE(5y)19.35%
ROIC(3y)8.4%
ROIC(5y)8.99%
1.3 Margins
- Looking at the Profit Margin, with a value of 2.18%, SES is in the better half of the industry, outperforming 65.38% of the companies in the same industry.
- In the last couple of years the Profit Margin of SES has declined.
- The Operating Margin of SES (3.93%) is better than 61.54% of its industry peers.
- SES's Operating Margin has been stable in the last couple of years.
- SES's Gross Margin of 25.77% is on the low side compared to the rest of the industry. SES is outperformed by 80.77% of its industry peers.
- SES's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.93% | ||
| PM (TTM) | 2.18% | ||
| GM | 25.77% |
OM growth 3Y-6.32%
OM growth 5Y1.36%
PM growth 3Y-14.65%
PM growth 5Y-2.09%
GM growth 3Y4.88%
GM growth 5Y7.04%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SES is creating some value.
- SES has less shares outstanding than it did 1 year ago.
- SES has less shares outstanding than it did 5 years ago.
- SES has a worse debt/assets ratio than last year.
2.2 Solvency
- SES has an Altman-Z score of 3.60. This indicates that SES is financially healthy and has little risk of bankruptcy at the moment.
- SES has a Altman-Z score of 3.60. This is in the better half of the industry: SES outperforms 63.46% of its industry peers.
- The Debt to FCF ratio of SES is 2.71, which is a good value as it means it would take SES, 2.71 years of fcf income to pay off all of its debts.
- SES has a Debt to FCF ratio of 2.71. This is in the better half of the industry: SES outperforms 76.92% of its industry peers.
- SES has a Debt/Equity ratio of 0.66. This is a neutral value indicating SES is somewhat dependend on debt financing.
- SES has a Debt to Equity ratio of 0.66. This is in the lower half of the industry: SES underperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 2.71 | ||
| Altman-Z | 3.6 |
ROIC/WACC1.49
WACC8.38%
2.3 Liquidity
- A Current Ratio of 1.30 indicates that SES should not have too much problems paying its short term obligations.
- SES has a worse Current ratio (1.30) than 67.31% of its industry peers.
- A Quick Ratio of 1.14 indicates that SES should not have too much problems paying its short term obligations.
- SES has a Quick ratio of 1.14. This is in the better half of the industry: SES outperforms 63.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 3.12% over the past year.
- SES shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.41% yearly.
- SES shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.57%.
- SES shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.77% yearly.
EPS 1Y (TTM)3.12%
EPS 3Y-5.42%
EPS 5Y10.41%
EPS Q2Q%14%
Revenue 1Y (TTM)9.57%
Revenue growth 3Y10.81%
Revenue growth 5Y12.77%
Sales Q2Q%11.95%
3.2 Future
- Based on estimates for the next years, SES will show a small growth in Earnings Per Share. The EPS will grow by 5.09% on average per year.
- The Revenue is expected to grow by 10.28% on average over the next years. This is quite good.
EPS Next Y-5.47%
EPS Next 2Y2.37%
EPS Next 3Y5.09%
EPS Next 5YN/A
Revenue Next Year4.92%
Revenue Next 2Y5.05%
Revenue Next 3Y5.08%
Revenue Next 5Y10.28%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 12.10, which indicates a correct valuation of SES.
- 92.31% of the companies in the same industry are more expensive than SES, based on the Price/Earnings ratio.
- SES is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 11.88, the valuation of SES can be described as very reasonable.
- SES's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SES is cheaper than 71.15% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, SES is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.1 | ||
| Fwd PE | 11.88 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SES indicates a rather cheap valuation: SES is cheaper than 88.46% of the companies listed in the same industry.
- 75.00% of the companies in the same industry are more expensive than SES, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.78 | ||
| EV/EBITDA | 4.71 |
4.3 Compensation for Growth
- SES has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.16
EPS Next 2Y2.37%
EPS Next 3Y5.09%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.07%, SES has a reasonable but not impressive dividend return.
- SES's Dividend Yield is comparable with the industry average which is at 1.54.
- With a Dividend Yield of 1.07, SES pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
5.2 History
- The dividend of SES is nicely growing with an annual growth rate of 8.18%!
Dividend Growth(5Y)8.18%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 14.52% of the earnings are spent on dividend by SES. This is a low number and sustainable payout ratio.
- SES's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP14.52%
EPS Next 2Y2.37%
EPS Next 3Y5.09%
SESA SPA / SES.MI FAQ
What is the fundamental rating for SES stock?
ChartMill assigns a fundamental rating of 6 / 10 to SES.MI.
What is the valuation status of SESA SPA (SES.MI) stock?
ChartMill assigns a valuation rating of 6 / 10 to SESA SPA (SES.MI). This can be considered as Fairly Valued.
What is the profitability of SES stock?
SESA SPA (SES.MI) has a profitability rating of 7 / 10.
What is the financial health of SESA SPA (SES.MI) stock?
The financial health rating of SESA SPA (SES.MI) is 5 / 10.
Is the dividend of SESA SPA sustainable?
The dividend rating of SESA SPA (SES.MI) is 4 / 10 and the dividend payout ratio is 14.52%.