CIRCLE INTERNET GROUP INC (1CRCL.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1CRCL - US1725731079 - Common Stock
64.2 EUR
-3 (-4.46%)
1CRCL gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 114 industry peers in the Software industry. 1CRCL has a bad profitability rating. Also its financial health evaluation is rather negative. 1CRCL 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 1CRCL has reported negative net income.
1.2 Ratios
- With a Return On Assets value of -0.06%, 1CRCL perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
- Looking at the Return On Equity, with a value of -1.56%, 1CRCL is in line with its industry, outperforming 41.18% of the companies in the same industry.
- 1CRCL has a Return On Invested Capital of 0.53%. This is comparable to the rest of the industry: 1CRCL outperforms 45.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.06% | ||
| ROE | -1.56% | ||
| ROIC | 0.53% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- With a Operating Margin value of 0.60%, 1CRCL perfoms like the industry average, outperforming 46.22% of the companies in the same industry.
- 1CRCL does not have Profit Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.6% | ||
| PM (TTM) | N/A | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1CRCL is destroying value.
- The number of shares outstanding for 1CRCL remains at a similar level compared to 1 year ago.
- Compared to 1 year ago, 1CRCL has an improved debt to assets ratio.
2.2 Solvency
- 1CRCL has an Altman-Z score of 0.20. This is a bad value and indicates that 1CRCL is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of 1CRCL (0.20) is worse than 80.67% of its industry peers.
- A Debt/Equity ratio of 0.05 indicates that 1CRCL is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.05, 1CRCL is doing good in the industry, outperforming 77.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.2 |
ROIC/WACC0.05
WACC11.08%
2.3 Liquidity
- A Current Ratio of 1.03 indicates that 1CRCL should not have too much problems paying its short term obligations.
- 1CRCL has a Current ratio of 1.03. This is in the lower half of the industry: 1CRCL underperforms 68.07% of its industry peers.
- 1CRCL has a Quick Ratio of 1.03. This is a normal value and indicates that 1CRCL is financially healthy and should not expect problems in meeting its short term obligations.
- 1CRCL's Quick ratio of 1.03 is on the low side compared to the rest of the industry. 1CRCL is outperformed by 66.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
- 1CRCL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.80%.
- 1CRCL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.57%.
EPS 1Y (TTM)-41.8%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%N/A
Revenue 1Y (TTM)15.57%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%N/A
3.2 Future
- Based on estimates for the next years, 1CRCL will show a very strong growth in Earnings Per Share. The EPS will grow by 65.57% on average per year.
- 1CRCL is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 33.97% yearly.
EPS Next Y-152.89%
EPS Next 2Y29.67%
EPS Next 3Y48.56%
EPS Next 5Y65.57%
Revenue Next Year93.69%
Revenue Next 2Y51.9%
Revenue Next 3Y45.64%
Revenue Next 5Y33.97%
3.3 Evolution
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings Ratio is negative for 1CRCL. In the last year negative earnings were reported.
- With a Price/Forward Earnings ratio of 74.15, 1CRCL can be considered very expensive at the moment.
- 63.03% of the companies in the same industry are cheaper than 1CRCL, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of 1CRCL to the average of the S&P500 Index (25.98), we can say 1CRCL is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 74.15 |
4.2 Price Multiples
- 68.91% of the companies in the same industry are cheaper than 1CRCL, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 224.88 |
4.3 Compensation for Growth
- 1CRCL's earnings are expected to grow with 48.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y29.67%
EPS Next 3Y48.56%
5. Dividend
5.1 Amount
- 1CRCL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CIRCLE INTERNET GROUP INC / 1CRCL.MI FAQ
What is the ChartMill fundamental rating of CIRCLE INTERNET GROUP INC (1CRCL.MI) stock?
ChartMill assigns a fundamental rating of 2 / 10 to 1CRCL.MI.
Can you provide the valuation status for CIRCLE INTERNET GROUP INC?
ChartMill assigns a valuation rating of 1 / 10 to CIRCLE INTERNET GROUP INC (1CRCL.MI). This can be considered as Overvalued.
How profitable is CIRCLE INTERNET GROUP INC (1CRCL.MI) stock?
CIRCLE INTERNET GROUP INC (1CRCL.MI) has a profitability rating of 1 / 10.