TECHNOGYM SPA (TGYM.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:TGYM - IT0005162406 - Common Stock
17.715 EUR
+0.07 (+0.43%)
Taking everything into account, TGYM scores 6 out of 10 in our fundamental rating. TGYM was compared to 14 industry peers in the Leisure Products industry. TGYM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. TGYM is not valued too expensively and it also shows a decent growth rate. These ratings would make TGYM suitable for quality investing!
1. Profitability
1.1 Basic Checks
- In the past year TGYM was profitable.
- TGYM had a positive operating cash flow in the past year.
- TGYM had positive earnings in each of the past 5 years.
- In the past 5 years TGYM always reported a positive cash flow from operatings.
1.2 Ratios
- TGYM has a better Return On Assets (12.58%) than 92.86% of its industry peers.
- The Return On Equity of TGYM (37.37%) is better than 100.00% of its industry peers.
- TGYM has a better Return On Invested Capital (25.97%) than 92.86% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for TGYM is above the industry average of 11.21%.
- The 3 year average ROIC (14.80%) for TGYM is below the current ROIC(25.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.58% | ||
| ROE | 37.37% | ||
| ROIC | 25.97% |
ROA(3y)8.9%
ROA(5y)8.05%
ROE(3y)20.74%
ROE(5y)19.01%
ROIC(3y)14.8%
ROIC(5y)13%
1.3 Margins
- Looking at the Profit Margin, with a value of 10.11%, TGYM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- TGYM's Profit Margin has declined in the last couple of years.
- TGYM has a Operating Margin of 14.48%. This is amongst the best in the industry. TGYM outperforms 92.86% of its industry peers.
- In the last couple of years the Operating Margin of TGYM has declined.
- Looking at the Gross Margin, with a value of 45.63%, TGYM is in line with its industry, outperforming 50.00% of the companies in the same industry.
- In the last couple of years the Gross Margin of TGYM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.48% | ||
| PM (TTM) | 10.11% | ||
| GM | 45.63% |
OM growth 3Y8.23%
OM growth 5Y-3.66%
PM growth 3Y-2.18%
PM growth 5Y-4.96%
GM growth 3Y0.82%
GM growth 5Y-0.66%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TGYM is creating value.
- TGYM has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for TGYM has been reduced compared to 5 years ago.
- The debt/assets ratio for TGYM has been reduced compared to a year ago.
2.2 Solvency
- TGYM has an Altman-Z score of 6.57. This indicates that TGYM is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 6.57, TGYM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- The Debt to FCF ratio of TGYM is 0.75, which is an excellent value as it means it would take TGYM, only 0.75 years of fcf income to pay off all of its debts.
- TGYM has a better Debt to FCF ratio (0.75) than 92.86% of its industry peers.
- TGYM has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
- TGYM has a Debt to Equity ratio of 0.27. This is in the better half of the industry: TGYM outperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 6.57 |
ROIC/WACC3.22
WACC8.06%
2.3 Liquidity
- A Current Ratio of 1.12 indicates that TGYM should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.12, TGYM is doing worse than 64.29% of the companies in the same industry.
- A Quick Ratio of 0.79 indicates that TGYM may have some problems paying its short term obligations.
- TGYM has a Quick ratio (0.79) which is in line with its industry peers.
- TGYM does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
- TGYM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.45%, which is quite impressive.
- TGYM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.09% yearly.
- Looking at the last year, TGYM shows a quite strong growth in Revenue. The Revenue has grown by 14.08% in the last year.
- The Revenue has been growing slightly by 6.17% on average over the past years.
EPS 1Y (TTM)25.45%
EPS 3Y11.74%
EPS 5Y1.09%
EPS Q2Q%31.25%
Revenue 1Y (TTM)14.08%
Revenue growth 3Y13.82%
Revenue growth 5Y6.17%
Sales Q2Q%14.37%
3.2 Future
- Based on estimates for the next years, TGYM will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.09% on average per year.
- TGYM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.53% yearly.
EPS Next Y24.77%
EPS Next 2Y19.77%
EPS Next 3Y17.09%
EPS Next 5YN/A
Revenue Next Year13.84%
Revenue Next 2Y11.16%
Revenue Next 3Y9.9%
Revenue Next 5Y3.53%
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
- Based on the Price/Earnings ratio of 36.91, the valuation of TGYM can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of TGYM is on the same level as its industry peers.
- TGYM is valuated rather expensively when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 27.99 indicates a quite expensive valuation of TGYM.
- Based on the Price/Forward Earnings ratio, TGYM is valued a bit more expensive than the industry average as 64.29% of the companies are valued more cheaply.
- TGYM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.91 | ||
| Fwd PE | 27.99 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TGYM is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of TGYM indicates a rather cheap valuation: TGYM is cheaper than 85.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.69 | ||
| EV/EBITDA | 17.88 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of TGYM may justify a higher PE ratio.
- TGYM's earnings are expected to grow with 17.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.49
PEG (5Y)33.79
EPS Next 2Y19.77%
EPS Next 3Y17.09%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.66%, TGYM has a reasonable but not impressive dividend return.
- TGYM's Dividend Yield is slightly below the industry average, which is at 2.37.
- Compared to an average S&P500 Dividend Yield of 1.82, TGYM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
5.2 History
- On average, the dividend of TGYM 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
- TGYM pays out 163.15% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of TGYM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP163.15%
EPS Next 2Y19.77%
EPS Next 3Y17.09%
TECHNOGYM SPA / TGYM.MI FAQ
Can you provide the ChartMill fundamental rating for TECHNOGYM SPA?
ChartMill assigns a fundamental rating of 6 / 10 to TGYM.MI.
What is the valuation status of TECHNOGYM SPA (TGYM.MI) stock?
ChartMill assigns a valuation rating of 4 / 10 to TECHNOGYM SPA (TGYM.MI). This can be considered as Fairly Valued.
How profitable is TECHNOGYM SPA (TGYM.MI) stock?
TECHNOGYM SPA (TGYM.MI) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for TGYM stock?
The Price/Earnings (PE) ratio for TECHNOGYM SPA (TGYM.MI) is 36.91 and the Price/Book (PB) ratio is 13.78.
Can you provide the financial health for TGYM stock?
The financial health rating of TECHNOGYM SPA (TGYM.MI) is 8 / 10.