WIIT SPA (WIIT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:WIIT - IT0005440893 - Common Stock
24.65 EUR
+0.3 (+1.23%)
Taking everything into account, WIIT scores 4 out of 10 in our fundamental rating. WIIT was compared to 76 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.
- 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 of 5.18%. This is comparable to the rest of the industry: WIIT outperforms 56.58% of its industry peers.
- The Return On Equity of WIIT (52.68%) is better than 96.05% of its industry peers.
- With a decent Return On Invested Capital value of 9.99%, WIIT is doing good in the industry, outperforming 60.53% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for WIIT is significantly below the industry average of 25.98%.
- 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 76.32% of its industry peers.
- WIIT's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 14.82%, WIIT belongs to the best of the industry, outperforming 85.53% of the companies in the same industry.
- WIIT's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 68.55%, WIIT perfoms like the industry average, outperforming 55.26% 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WIIT is destroying value.
- The number of shares outstanding for WIIT has been reduced compared to 1 year ago.
- WIIT has more shares outstanding than it did 5 years ago.
- WIIT has a better debt/assets ratio than last year.
2.2 Solvency
- WIIT has an Altman-Z score of 2.53. 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.
- Looking at the Altman-Z score, with a value of 2.53, WIIT is in line with its industry, outperforming 43.42% 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.
- Looking at the Debt to FCF ratio, with a value of 6.38, WIIT is doing worse than 61.84% of the companies in the same industry.
- A Debt/Equity ratio of 6.78 is on the high side and indicates that WIIT has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 6.78, WIIT is doing worse than 90.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.78 | ||
| Debt/FCF | 6.38 | ||
| Altman-Z | 2.53 |
ROIC/WACC0.81
WACC12.28%
2.3 Liquidity
- A Current Ratio of 0.73 indicates that WIIT may have some problems paying its short term obligations.
- The Current ratio of WIIT (0.73) is worse than 84.21% of its industry peers.
- A Quick Ratio of 0.72 indicates that WIIT may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.72, WIIT is doing worse than 84.21% of the companies in the same industry.
| 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%.
- WIIT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.68% yearly.
- WIIT shows a strong growth in Revenue. In the last year, 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.
- WIIT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.77% yearly.
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- WIIT is valuated quite expensively with a Price/Earnings ratio of 38.52.
- 61.84% of the companies in the same industry are cheaper than WIIT, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of WIIT to the average of the S&P500 Index (27.30), we can say WIIT is valued slightly more expensively.
- Based on the Price/Forward Earnings ratio of 34.94, the valuation of WIIT can be described as expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of WIIT indicates a slightly more expensive valuation: WIIT is more expensive than 67.11% of the companies listed in the same industry.
- WIIT's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.52 | ||
| Fwd PE | 34.94 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WIIT indicates a slightly more expensive valuation: WIIT is more expensive than 63.16% of the companies listed 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 | 18.56 | ||
| EV/EBITDA | 11.81 |
4.3 Compensation for Growth
- The decent profitability rating of WIIT 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)3.04
EPS Next 2Y6.86%
EPS Next 3Y13.66%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.35%, WIIT has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.10, 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 | 1.35% |
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.
- 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 38.52 and the Price/Book (PB) ratio is 21.73.
Can you provide the financial health for WIIT stock?
The financial health rating of WIIT SPA (WIIT.MI) is 2 / 10.