WIIT SPA (WIIT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:WIIT - IT0005440893 - Common Stock
24.7 EUR
+0.15 (+0.61%)
We assign a fundamental rating of 4 out of 10 to WIIT. WIIT was compared to 70 industry peers in the IT Services industry. There are concerns on the financial health of WIIT while its profitability can be described as average. WIIT is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- WIIT had positive earnings in the past year.
- WIIT had a positive operating cash flow in the past year.
- Of the past 5 years WIIT 4 years were profitable.
- WIIT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- WIIT has a Return On Assets (5.18%) which is comparable to the rest of the industry.
- WIIT has a Return On Equity of 52.68%. This is amongst the best in the industry. WIIT outperforms 95.71% of its industry peers.
- The Return On Invested Capital of WIIT (9.99%) is better than 61.43% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for WIIT is significantly below the industry average of 26.75%.
- The last Return On Invested Capital (9.99%) for WIIT is above the 3 year average (5.22%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.18% | ||
| ROE | 52.68% | ||
| ROIC | 9.99% |
ROA(3y)2.7%
ROA(5y)1.76%
ROE(3y)24.1%
ROE(5y)16.26%
ROIC(3y)5.22%
ROIC(5y)4.01%
1.3 Margins
- WIIT has a Profit Margin of 6.79%. This is in the better half of the industry: WIIT outperforms 72.86% of its industry peers.
- WIIT's Profit Margin has declined in the last couple of years.
- WIIT has a Operating Margin of 14.82%. This is amongst the best in the industry. WIIT outperforms 84.29% of its industry peers.
- In the last couple of years the Operating Margin of WIIT has declined.
- Looking at the Gross Margin, with a value of 68.55%, WIIT is in line with its industry, outperforming 55.71% of the companies in the same industry.
- WIIT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.82% | ||
| PM (TTM) | 6.79% | ||
| GM | 68.55% |
OM growth 3Y27.14%
OM growth 5Y-2.4%
PM growth 3YN/A
PM growth 5Y-16.64%
GM growth 3Y4.45%
GM growth 5Y2.19%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WIIT is still creating some value.
- Compared to 1 year ago, WIIT has less shares outstanding
- Compared to 5 years ago, WIIT has more shares outstanding
- WIIT has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.55 indicates that WIIT is not a great score, but indicates only limited risk for bankruptcy at the moment.
- WIIT has a Altman-Z score (2.55) which is in line with its industry peers.
- The Debt to FCF ratio of WIIT is 6.38, which is on the high side as it means it would take WIIT, 6.38 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of WIIT (6.38) is worse than 61.43% of its industry peers.
- WIIT has a Debt/Equity ratio of 6.78. This is a high value indicating a heavy dependency on external financing.
- WIIT's Debt to Equity ratio of 6.78 is on the low side compared to the rest of the industry. WIIT is outperformed by 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.78 | ||
| Debt/FCF | 6.38 | ||
| Altman-Z | 2.55 |
ROIC/WACC1.42
WACC7.05%
2.3 Liquidity
- WIIT has a Current Ratio of 0.73. This is a bad value and indicates that WIIT is not financially healthy enough and could expect problems in meeting its short term obligations.
- WIIT has a Current ratio of 0.73. This is amonst the worse of the industry: WIIT underperforms 82.86% of its industry peers.
- A Quick Ratio of 0.72 indicates that WIIT may have some problems paying its short term obligations.
- The Quick ratio of WIIT (0.72) is worse than 82.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
- WIIT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.00%.
- Measured over the past years, WIIT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.68% on average per year.
- WIIT shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.86%.
- The Revenue has been growing by 35.67% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-1%
EPS 3YN/A
EPS 5Y12.68%
EPS Q2Q%10.09%
Revenue 1Y (TTM)21.86%
Revenue growth 3Y26.61%
Revenue growth 5Y35.67%
Sales Q2Q%14.78%
3.2 Future
- The Earnings Per Share is expected to grow by 10.67% on average over the next years. This is quite good.
- The Revenue is expected to grow by 5.77% on average over the next years.
EPS Next Y-3.14%
EPS Next 2Y6.86%
EPS Next 3Y13.66%
EPS Next 5Y10.67%
Revenue Next Year6.11%
Revenue Next 2Y5.85%
Revenue Next 3Y5.95%
Revenue Next 5Y5.77%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same 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
- A Price/Earnings ratio of 38.59 indicates a quite expensive valuation of WIIT.
- WIIT's Price/Earnings ratio is a bit more expensive when compared to the industry. WIIT is more expensive than 64.29% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, WIIT is valued a bit more expensive.
- Based on the Price/Forward Earnings ratio of 35.01, the valuation of WIIT can be described as expensive.
- 68.57% of the companies in the same industry are cheaper than WIIT, based on the Price/Forward Earnings ratio.
- WIIT is valuated rather expensively 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 | 38.59 | ||
| Fwd PE | 35.01 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WIIT is valued a bit more expensive than the industry average as 64.29% of the companies are valued more cheaply.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of WIIT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.6 | ||
| EV/EBITDA | 11.88 |
4.3 Compensation for Growth
- WIIT has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as WIIT's earnings are expected to grow with 13.66% in the coming years.
PEG (NY)N/A
PEG (5Y)3.04
EPS Next 2Y6.86%
EPS Next 3Y13.66%
5. Dividend
5.1 Amount
- WIIT has a Yearly Dividend Yield of 1.23%.
- Compared to an average industry Dividend Yield of 2.27, WIIT has a dividend in line with its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.82, WIIT is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
5.2 History
- On average, the dividend of WIIT grows each year by 26.91%, which is quite nice.
Dividend Growth(5Y)26.91%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 46.50% of the earnings are spent on dividend by WIIT. This is a bit on the high side, but may be sustainable.
- WIIT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP46.5%
EPS Next 2Y6.86%
EPS Next 3Y13.66%
WIIT SPA / WIIT.MI FAQ
What is the ChartMill fundamental rating of WIIT SPA (WIIT.MI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to WIIT.MI.
What is the valuation status for WIIT stock?
ChartMill assigns a valuation rating of 1 / 10 to WIIT SPA (WIIT.MI). This can be considered as Overvalued.
What is the profitability of WIIT stock?
WIIT SPA (WIIT.MI) has a profitability rating of 6 / 10.
What are the PE and PB ratios of WIIT SPA (WIIT.MI) stock?
The Price/Earnings (PE) ratio for WIIT SPA (WIIT.MI) is 38.59 and the Price/Book (PB) ratio is 21.77.
Can you provide the financial health for WIIT stock?
The financial health rating of WIIT SPA (WIIT.MI) is 2 / 10.