WIIT SPA (WIIT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:WIIT - IT0005440893 - Common Stock
25.825 EUR
+1.13 (+4.55%)
WIIT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year WIIT was profitable.
- 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
- Looking at the Return On Assets, with a value of 5.18%, WIIT is in line with its industry, outperforming 54.29% of the companies in the same industry.
- The Return On Equity of WIIT (52.68%) is better than 95.71% of its industry peers.
- WIIT has a Return On Invested Capital of 9.99%. This is in the better half of the industry: WIIT outperforms 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 3 year average ROIC (5.22%) for WIIT is below the current ROIC(9.99%), indicating increased profibility in the last year.
| 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's Profit Margin of 6.79% is fine compared to the rest 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 better Operating Margin (14.82%) than 84.29% of its industry peers.
- In the last couple of years the Operating Margin of WIIT has declined.
- The Gross Margin of WIIT (68.55%) is comparable to the rest of the 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
- 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.
- Looking at the Altman-Z score, with a value of 2.55, WIIT is in line with its industry, outperforming 42.86% of the companies in the same industry.
- 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.
- 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.
- A Debt/Equity ratio of 6.78 is on the high side and indicates that WIIT has dependencies on debt financing.
- WIIT has a worse Debt to Equity ratio (6.78) than 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
- A Current Ratio of 0.73 indicates that WIIT may have some problems paying 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.
- WIIT has a Quick 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.
- 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
- 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.
- The Revenue has grown by 21.86% in the past year. This is a very strong growth!
- WIIT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 35.67% yearly.
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
- With a Price/Earnings ratio of 40.35, WIIT can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, WIIT is valued a bit 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.
- WIIT is valuated quite expensively with a Price/Forward Earnings ratio of 36.60.
- 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.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. WIIT is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.35 | ||
| Fwd PE | 36.6 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.44 | ||
| EV/EBITDA | 11.94 |
4.3 Compensation for Growth
- WIIT has a very decent profitability rating, which may justify a higher PE ratio.
- WIIT's earnings are expected to grow with 13.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)3.18
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.
- WIIT's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| 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
- WIIT pays out 46.50% of its income as dividend. 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 40.35 and the Price/Book (PB) ratio is 22.76.
Can you provide the financial health for WIIT stock?
The financial health rating of WIIT SPA (WIIT.MI) is 2 / 10.