SESA SPA (SES.MI) Stock Fundamental Analysis
BIT:SES - Euronext Milan - IT0004729759 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to SES. SES was compared to 47 industry peers in the Electronic Equipment, Instruments & Components industry. While SES belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SES may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make SES suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year SES was profitable.
SES had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 4.68%, SES is in the better half of the industry, outperforming 78.72% of the companies in the same industry.
The Return On Equity of SES (25.44%) is better than 97.87% of its industry peers.
SES has a Return On Invested Capital of 13.01%. This is amongst the best in the industry. SES outperforms 91.49% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SES is above the industry average of 6.92%.
The 3 year average ROIC (9.80%) for SES is below the current ROIC(13.01%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.68% | ||
| ROE | 25.44% | ||
| ROIC | 13.01% |
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
SES has a better Profit Margin (2.33%) than 65.96% of its industry peers.
In the last couple of years the Profit Margin of SES has grown nicely.
SES has a Operating Margin of 4.03%. This is in the better half of the industry: SES outperforms 61.70% of its industry peers.
SES's Operating Margin has improved in the last couple of years.
SES has a worse Gross Margin (25.33%) than 74.47% of its industry peers.
In the last couple of years the Gross Margin of SES has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.03% | ||
| PM (TTM) | 2.33% | ||
| GM | 25.33% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SES is still creating some value.
The number of shares outstanding for SES remains at a similar level compared to 1 year ago.
SES has about the same amout of 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 3.04. This indicates that SES is financially healthy and has little risk of bankruptcy at the moment.
SES's Altman-Z score of 3.04 is fine compared to the rest of the industry. SES outperforms 65.96% of its industry peers.
SES has a debt to FCF ratio of 4.70. This is a neutral value as SES would need 4.70 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.70, SES is in the better half of the industry, outperforming 70.21% of the companies in the same industry.
SES has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
SES has a Debt to Equity ratio of 0.44. This is comparable to the rest of the industry: SES outperforms 46.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 4.7 | ||
| Altman-Z | 3.04 |
ROIC/WACC1.66
WACC7.84%
2.3 Liquidity
SES has a Current Ratio of 1.22. This is a normal value and indicates that SES is financially healthy and should not expect problems in meeting its short term obligations.
SES's Current ratio of 1.22 is on the low side compared to the rest of the industry. SES is outperformed by 74.47% of its industry peers.
SES has a Quick Ratio of 1.10. This is a normal value and indicates that SES is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.10, SES is in line with its industry, outperforming 57.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
SES shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.37%.
SES shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.73% yearly.
SES shows a small growth in Revenue. In the last year, the Revenue has grown by 2.92%.
The Revenue has been growing by 15.50% on average over the past years. This is quite good.
EPS 1Y (TTM)-12.37%
EPS 3Y14.39%
EPS 5Y21.73%
EPS Q2Q%11.86%
Revenue 1Y (TTM)2.92%
Revenue growth 3Y16.09%
Revenue growth 5Y15.5%
Sales Q2Q%11.23%
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 3.48% on average per year.
SES is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.27% yearly.
EPS Next Y4.43%
EPS Next 2Y9.08%
EPS Next 3Y3.48%
EPS Next 5YN/A
Revenue Next Year6.21%
Revenue Next 2Y6.96%
Revenue Next 3Y5.1%
Revenue Next 5Y10.27%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.25, the valuation of SES can be described as reasonable.
Based on the Price/Earnings ratio, SES is valued cheaper than 89.36% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. SES is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.13, the valuation of SES can be described as very reasonable.
Based on the Price/Forward Earnings ratio, SES is valued a bit cheaper than the industry average as 72.34% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SES to the average of the S&P500 Index (21.76), we can say SES is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.25 | ||
| Fwd PE | 10.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SES is valued cheaper than 85.11% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SES is valued a bit cheaper than 65.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.87 | ||
| EV/EBITDA | 4.65 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of SES may justify a higher PE ratio.
PEG (NY)2.54
PEG (5Y)0.52
EPS Next 2Y9.08%
EPS Next 3Y3.48%
5. Dividend
5.1 Amount
SES has a Yearly Dividend Yield of 1.14%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.81, SES has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, SES's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
5.2 History
The dividend of SES is nicely growing with an annual growth rate of 8.92%!
Dividend Growth(5Y)8.92%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
SES pays out 13.98% 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.
DP13.98%
EPS Next 2Y9.08%
EPS Next 3Y3.48%
BIT:SES (7/11/2025, 7:00:00 PM)
84.4
-0.7 (-0.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners31.01%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.31B
Analysts80
Price Target141.83 (68.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
Yearly Dividend1
Dividend Growth(5Y)8.92%
DP13.98%
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)0%
EPS NY rev (3m)-1.36%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.25 | ||
| Fwd PE | 10.13 | ||
| P/S | 0.27 | ||
| P/FCF | 13.87 | ||
| P/OCF | 10.98 | ||
| P/B | 2.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.65 |
EPS(TTM)7.5
EY8.89%
EPS(NY)8.34
Fwd EY9.88%
FCF(TTM)6.09
FCFY7.21%
OCF(TTM)7.69
OCFY9.11%
SpS312.6
BVpS28.64
TBVpS-4.69
PEG (NY)2.54
PEG (5Y)0.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.68% | ||
| ROE | 25.44% | ||
| ROCE | 18.78% | ||
| ROIC | 13.01% | ||
| ROICexc | 24.93% | ||
| ROICexgc | 531.39% | ||
| OM | 4.03% | ||
| PM (TTM) | 2.33% | ||
| GM | 25.33% | ||
| FCFM | 1.95% |
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-Score6
Asset Turnover2.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 4.7 | ||
| Debt/EBITDA | 0.72 | ||
| Cap/Depr | 32.02% | ||
| Cap/Sales | 0.51% | ||
| Interest Coverage | 4.38 | ||
| Cash Conversion | 43.72% | ||
| Profit Quality | 83.54% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 3.04 |
F-Score6
WACC7.84%
ROIC/WACC1.66
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)-12.37%
EPS 3Y14.39%
EPS 5Y21.73%
EPS Q2Q%11.86%
EPS Next Y4.43%
EPS Next 2Y9.08%
EPS Next 3Y3.48%
EPS Next 5YN/A
Revenue 1Y (TTM)2.92%
Revenue growth 3Y16.09%
Revenue growth 5Y15.5%
Sales Q2Q%11.23%
Revenue Next Year6.21%
Revenue Next 2Y6.96%
Revenue Next 3Y5.1%
Revenue Next 5Y10.27%
EBIT growth 1Y-13.46%
EBIT growth 3Y18.76%
EBIT growth 5Y21.35%
EBIT Next Year45.84%
EBIT Next 3Y18.36%
EBIT Next 5YN/A
FCF growth 1Y-18.11%
FCF growth 3Y-5.07%
FCF growth 5Y41.64%
OCF growth 1Y-13.39%
OCF growth 3Y-2.37%
OCF growth 5Y36.7%