SESA SPA (SES.MI) Stock Fundamental Analysis
BIT:SES - Euronext Milan - IT0004729759 - Common Stock - Currency: EUR
Taking everything into account, SES scores 6 out of 10 in our fundamental rating. SES was compared to 49 industry peers in the Electronic Equipment, Instruments & Components industry. While SES has a great profitability rating, there are some minor concerns on its financial health. SES is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, SES could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
SES had positive earnings in the past year.
In the past year SES had a positive cash flow from operations.
Each year in the past 5 years SES has been profitable.
SES had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SES has a Return On Assets of 5.72%. This is amongst the best in the industry. SES outperforms 83.67% of its industry peers.
SES's Return On Equity of 26.57% is amongst the best of the industry. SES outperforms 100.00% of its industry peers.
The Return On Invested Capital of SES (12.52%) is better than 89.80% of its industry peers.
SES had an Average Return On Invested Capital over the past 3 years of 9.80%. This is above the industry average of 7.79%.
The 3 year average ROIC (9.80%) for SES is below the current ROIC(12.52%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.72% | ||
| ROE | 26.57% | ||
| ROIC | 12.52% |
ROA(3y)4.27%
ROA(5y)4.11%
ROE(3y)21.35%
ROE(5y)19.77%
ROIC(3y)9.8%
ROIC(5y)9.34%
1.3 Margins
The Profit Margin of SES (2.39%) is better than 67.35% of its industry peers.
SES's Profit Margin has improved in the last couple of years.
SES has a Operating Margin of 4.15%. This is in the better half of the industry: SES outperforms 67.35% of its industry peers.
In the last couple of years the Operating Margin of SES has grown nicely.
Looking at the Gross Margin, with a value of 25.71%, SES is doing worse than 73.47% of the companies in the same industry.
In the last couple of years the Gross Margin of SES has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.15% | ||
| PM (TTM) | 2.39% | ||
| GM | 25.71% |
OM growth 3Y2.29%
OM growth 5Y5.07%
PM growth 3Y-1.46%
PM growth 5Y5.4%
GM growth 3Y4.82%
GM growth 5Y6.17%
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.
Compared to 1 year ago, SES has about the same amount of shares outstanding.
The number of shares outstanding for SES remains at a similar level compared to 5 years ago.
Compared to 1 year ago, SES has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.60 indicates that SES is not in any danger for bankruptcy at the moment.
The Altman-Z score of SES (3.60) is better than 79.59% of its industry peers.
SES has a debt to FCF ratio of 7.30. This is a slightly negative value and a sign of low solvency as SES would need 7.30 years to pay back of all of its debts.
SES's Debt to FCF ratio of 7.30 is fine compared to the rest of the industry. SES outperforms 61.22% of its industry peers.
SES has a Debt/Equity ratio of 0.70. This is a neutral value indicating SES is somewhat dependend on debt financing.
SES has a Debt to Equity ratio of 0.70. This is in the lower half of the industry: SES underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 7.3 | ||
| Altman-Z | 3.6 |
ROIC/WACC1.6
WACC7.81%
2.3 Liquidity
A Current Ratio of 1.36 indicates that SES should not have too much problems paying its short term obligations.
With a Current ratio value of 1.36, SES is not doing good in the industry: 67.35% of the companies in the same industry are doing better.
SES has a Quick Ratio of 1.21. This is a normal value and indicates that SES is financially healthy and should not expect problems in meeting its short term obligations.
SES has a Quick ratio of 1.21. This is in the better half of the industry: SES outperforms 65.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
SES shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.41%.
Measured over the past years, SES shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.73% on average per year.
The Revenue has been growing slightly by 1.45% in the past year.
SES shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.50% yearly.
EPS 1Y (TTM)-16.41%
EPS 3Y14.39%
EPS 5Y21.73%
EPS Q2Q%-31.61%
Revenue 1Y (TTM)1.45%
Revenue growth 3Y16.09%
Revenue growth 5Y15.5%
Sales Q2Q%-5.07%
3.2 Future
SES is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.52% yearly.
The Revenue is expected to grow by 11.09% on average over the next years. This is quite good.
EPS Next Y7.95%
EPS Next 2Y11.67%
EPS Next 3Y8.52%
EPS Next 5YN/A
Revenue Next Year5.47%
Revenue Next 2Y6.93%
Revenue Next 3Y5.26%
Revenue Next 5Y11.09%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.51, the valuation of SES can be described as reasonable.
Based on the Price/Earnings ratio, SES is valued cheaper than 87.76% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.35. SES is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 7.96, the valuation of SES can be described as very cheap.
Based on the Price/Forward Earnings ratio, SES is valued cheaply inside the industry as 83.67% of the companies are valued more expensively.
SES is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.51 | ||
| Fwd PE | 7.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SES is valued cheaper than 91.84% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SES is valued a bit cheaper than the industry average as 61.22% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.85 | ||
| EV/EBITDA | 3.71 |
4.3 Compensation for Growth
SES's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of SES may justify a higher PE ratio.
PEG (NY)1.2
PEG (5Y)0.44
EPS Next 2Y11.67%
EPS Next 3Y8.52%
5. Dividend
5.1 Amount
SES has a Yearly Dividend Yield of 1.43%.
SES's Dividend Yield is comparable with the industry average which is at 3.31.
Compared to the average S&P500 Dividend Yield of 2.33, SES is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
5.2 History
On average, the dividend of SES grows each year by 8.92%, which is quite nice.
Dividend Growth(5Y)8.92%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
SES pays out 13.69% of its income as dividend. This is a sustainable payout ratio.
The dividend of SES is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP13.69%
EPS Next 2Y11.67%
EPS Next 3Y8.52%
BIT:SES (3/7/2025, 5:35:30 PM)
69.5
-0.3 (-0.43%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners29.94%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.08B
Analysts80
Price Target146.93 (111.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
Yearly Dividend1
Dividend Growth(5Y)8.92%
DP13.69%
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)-5.93%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-3.64%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.51 | ||
| Fwd PE | 7.96 | ||
| P/S | 0.23 | ||
| P/FCF | 18.85 | ||
| P/OCF | 13.12 | ||
| P/B | 2.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.71 |
EPS(TTM)7.31
EY10.52%
EPS(NY)8.73
Fwd EY12.57%
FCF(TTM)3.69
FCFY5.31%
OCF(TTM)5.3
OCFY7.62%
SpS306.18
BVpS27.49
TBVpS-4.35
PEG (NY)1.2
PEG (5Y)0.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.72% | ||
| ROE | 26.57% | ||
| ROCE | 18.85% | ||
| ROIC | 12.52% | ||
| ROICexc | 20.96% | ||
| ROICexgc | 86.43% | ||
| OM | 4.15% | ||
| PM (TTM) | 2.39% | ||
| GM | 25.71% | ||
| FCFM | 1.2% |
ROA(3y)4.27%
ROA(5y)4.11%
ROE(3y)21.35%
ROE(5y)19.77%
ROIC(3y)9.8%
ROIC(5y)9.34%
ROICexc(3y)26.09%
ROICexc(5y)26.56%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)14.81%
ROCE(5y)14.28%
ROICexcg growth 3Y7.85%
ROICexcg growth 5Y35.83%
ROICexc growth 3Y-14.8%
ROICexc growth 5Y-2.7%
OM growth 3Y2.29%
OM growth 5Y5.07%
PM growth 3Y-1.46%
PM growth 5Y5.4%
GM growth 3Y4.82%
GM growth 5Y6.17%
F-Score5
Asset Turnover2.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 7.3 | ||
| Debt/EBITDA | 1.09 | ||
| Cap/Depr | 33.27% | ||
| Cap/Sales | 0.53% | ||
| Interest Coverage | 4.62 | ||
| Cash Conversion | 30.17% | ||
| Profit Quality | 50.48% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 3.6 |
F-Score5
WACC7.81%
ROIC/WACC1.6
Cap/Depr(3y)40.37%
Cap/Depr(5y)45.63%
Cap/Sales(3y)0.78%
Cap/Sales(5y)0.77%
Profit Quality(3y)142.53%
Profit Quality(5y)179.58%
High Growth Momentum
Growth
EPS 1Y (TTM)-16.41%
EPS 3Y14.39%
EPS 5Y21.73%
EPS Q2Q%-31.61%
EPS Next Y7.95%
EPS Next 2Y11.67%
EPS Next 3Y8.52%
EPS Next 5YN/A
Revenue 1Y (TTM)1.45%
Revenue growth 3Y16.09%
Revenue growth 5Y15.5%
Sales Q2Q%-5.07%
Revenue Next Year5.47%
Revenue Next 2Y6.93%
Revenue Next 3Y5.26%
Revenue Next 5Y11.09%
EBIT growth 1Y-13.25%
EBIT growth 3Y18.76%
EBIT growth 5Y21.35%
EBIT Next Year53.15%
EBIT Next 3Y24.19%
EBIT Next 5YN/A
FCF growth 1Y-39.61%
FCF growth 3Y-5.07%
FCF growth 5Y41.64%
OCF growth 1Y-29.95%
OCF growth 3Y-2.37%
OCF growth 5Y36.7%