WIIT SPA (WIIT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:WIIT - IT0005440893 - Common Stock
26 EUR
+0.2 (+0.78%)
Overall WIIT gets a fundamental rating of 4 out of 10. We evaluated WIIT against 70 industry peers in the IT Services industry. WIIT has a medium profitability rating, but doesn't score so well on its financial health evaluation. WIIT is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- WIIT had positive earnings in the past year.
- In the past year WIIT had a positive cash flow from operations.
- WIIT had positive earnings in 4 of the past 5 years.
- 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 in line with its industry peers.
- 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.
- WIIT has a better Return On Invested Capital (9.99%) 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 better Profit Margin (6.79%) than 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.
- WIIT has less shares outstanding than it did 1 year ago.
- WIIT has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for WIIT has been reduced compared to a year ago.
2.2 Solvency
- WIIT has an Altman-Z score of 2.62. This is not the best score and indicates that WIIT is in the grey zone with still only limited risk for bankruptcy at the moment.
- WIIT has a Altman-Z score (2.62) which is in line with its industry peers.
- WIIT has a debt to FCF ratio of 6.38. This is a slightly negative value and a sign of low solvency as WIIT would need 6.38 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 6.38, WIIT is not doing good in the industry: 61.43% of the companies in the same industry are doing better.
- WIIT has a Debt/Equity ratio of 6.78. This is a high value indicating a heavy dependency on external financing.
- WIIT has a Debt to Equity ratio of 6.78. This is amonst the worse of the industry: WIIT underperforms 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.78 | ||
| Debt/FCF | 6.38 | ||
| Altman-Z | 2.62 |
ROIC/WACC1.41
WACC7.1%
2.3 Liquidity
- A Current Ratio of 0.73 indicates that WIIT may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.73, WIIT is doing worse than 82.86% of the companies in the same industry.
- A Quick Ratio of 0.72 indicates that WIIT may have some problems paying its short term obligations.
- With a Quick ratio value of 0.72, WIIT is not doing good in the industry: 82.86% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
- The earnings per share for WIIT have decreased by -1.00% in the last year.
- The Earnings Per Share has been growing by 12.68% on average over the past years. This is quite good.
- Looking at the last year, WIIT shows a very strong growth in Revenue. The Revenue has grown by 21.86%.
- Measured over the past years, WIIT shows a very strong growth in Revenue. The Revenue has been growing by 35.67% on average per year.
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
- WIIT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.67% yearly.
- Based on estimates for the next years, WIIT will show a small growth in Revenue. The Revenue will grow by 5.77% on average per year.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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 40.63 indicates a quite expensive valuation of WIIT.
- 64.29% of the companies in the same industry are cheaper than WIIT, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, WIIT is valued a bit more expensive.
- A Price/Forward Earnings ratio of 36.85 indicates a quite expensive valuation of WIIT.
- WIIT's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. WIIT is more expensive than 68.57% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, WIIT is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.63 | ||
| Fwd PE | 36.85 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WIIT is valued a bit more expensive than 65.71% of the companies in the same industry.
- WIIT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.58 | ||
| EV/EBITDA | 12.35 |
4.3 Compensation for Growth
- The decent profitability rating of WIIT 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)3.2
EPS Next 2Y6.86%
EPS Next 3Y13.66%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.23%, WIIT has a reasonable but not impressive dividend return.
- WIIT's Dividend Yield is comparable with the industry average which is at 2.27.
- 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
- The dividend of WIIT is nicely growing with an annual growth rate of 26.91%!
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.
- The dividend of WIIT is growing, but the earnings are growing slower. 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 40.63 and the Price/Book (PB) ratio is 22.92.
Can you provide the financial health for WIIT stock?
The financial health rating of WIIT SPA (WIIT.MI) is 2 / 10.