ALA SPA (ALA.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:ALA - IT0005446700 - Common Stock
36 EUR
-0.1 (-0.28%)
Taking everything into account, ALA scores 6 out of 10 in our fundamental rating. ALA was compared to 16 industry peers in the Air Freight & Logistics industry. While ALA has a great profitability rating, there are some minor concerns on its financial health. ALA is growing strongly while it is still valued neutral. This is a good combination! These ratings could make ALA a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
- ALA had positive earnings in the past year.
- ALA had a negative operating cash flow in the past year.
- In the past 5 years ALA has always been profitable.
- In multiple years ALA reported negative operating cash flow during the last 5 years.
1.2 Ratios
- ALA has a better Return On Assets (8.55%) than 88.89% of its industry peers.
- The Return On Equity of ALA (27.08%) is better than 77.78% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 19.62%, ALA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for ALA is above the industry average of 9.76%.
- The last Return On Invested Capital (19.62%) for ALA is above the 3 year average (12.92%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.55% | ||
| ROE | 27.08% | ||
| ROIC | 19.62% |
ROA(3y)5.59%
ROA(5y)5.58%
ROE(3y)16.61%
ROE(5y)15.7%
ROIC(3y)12.92%
ROIC(5y)12.27%
1.3 Margins
- With an excellent Profit Margin value of 6.92%, ALA belongs to the best of the industry, outperforming 94.44% of the companies in the same industry.
- ALA's Profit Margin has improved in the last couple of years.
- The Operating Margin of ALA (11.94%) is better than 88.89% of its industry peers.
- In the last couple of years the Operating Margin of ALA has grown nicely.
- Looking at the Gross Margin, with a value of 30.88%, ALA is doing worse than 72.22% of the companies in the same industry.
- ALA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.94% | ||
| PM (TTM) | 6.92% | ||
| GM | 30.88% |
OM growth 3Y6.77%
OM growth 5Y9.83%
PM growth 3Y7.8%
PM growth 5Y9.31%
GM growth 3Y3.49%
GM growth 5Y2.83%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ALA is creating value.
- Compared to 1 year ago, ALA has about the same amount of shares outstanding.
- The number of shares outstanding for ALA remains at a similar level compared to 5 years ago.
- ALA has a worse debt/assets ratio than last year.
2.2 Solvency
- ALA has an Altman-Z score of 3.55. This indicates that ALA is financially healthy and has little risk of bankruptcy at the moment.
- ALA has a better Altman-Z score (3.55) than 83.33% of its industry peers.
- ALA has a Debt/Equity ratio of 0.60. This is a neutral value indicating ALA is somewhat dependend on debt financing.
- ALA has a better Debt to Equity ratio (0.60) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.55 |
ROIC/WACC2.7
WACC7.27%
2.3 Liquidity
- ALA has a Current Ratio of 1.73. This is a normal value and indicates that ALA is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.73, ALA belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- ALA has a Quick Ratio of 1.73. This is a bad value and indicates that ALA is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of ALA (0.62) is worse than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 95.40% over the past year.
- ALA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.72% yearly.
- The Revenue has grown by 23.45% in the past year. This is a very strong growth!
- ALA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.44% yearly.
EPS 1Y (TTM)95.4%
EPS 3Y41.49%
EPS 5Y27.72%
EPS Q2Q%69.83%
Revenue 1Y (TTM)23.45%
Revenue growth 3Y30.61%
Revenue growth 5Y16.44%
Sales Q2Q%20.07%
3.2 Future
- Based on estimates for the next years, ALA will show a very strong growth in Earnings Per Share. The EPS will grow by 23.10% on average per year.
- ALA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.99% yearly.
EPS Next Y26.04%
EPS Next 2Y24.26%
EPS Next 3Y23.1%
EPS Next 5YN/A
Revenue Next Year13.18%
Revenue Next 2Y11.78%
Revenue Next 3Y10.47%
Revenue Next 5Y4.99%
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
- ALA is valuated correctly with a Price/Earnings ratio of 14.88.
- Compared to the rest of the industry, the Price/Earnings ratio of ALA indicates a somewhat cheap valuation: ALA is cheaper than 77.78% of the companies listed in the same industry.
- ALA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 11.96, the valuation of ALA can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, ALA is valued cheaper than 94.44% of the companies in the same industry.
- ALA is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.88 | ||
| Fwd PE | 11.96 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALA indicates a slightly more expensive valuation: ALA is more expensive than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.08 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- ALA has an outstanding profitability rating, which may justify a higher PE ratio.
- ALA's earnings are expected to grow with 23.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.57
PEG (5Y)0.54
EPS Next 2Y24.26%
EPS Next 3Y23.1%
5. Dividend
5.1 Amount
- ALA has a Yearly Dividend Yield of 2.08%.
- ALA's Dividend Yield is comparable with the industry average which is at 2.89.
- ALA's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 30.93% of the earnings are spent on dividend by ALA. This is a low number and sustainable payout ratio.
DP30.93%
EPS Next 2Y24.26%
EPS Next 3Y23.1%
ALA SPA / ALA.MI FAQ
What is the fundamental rating for ALA stock?
ChartMill assigns a fundamental rating of 6 / 10 to ALA.MI.
Can you provide the valuation status for ALA SPA?
ChartMill assigns a valuation rating of 6 / 10 to ALA SPA (ALA.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for ALA SPA?
ALA SPA (ALA.MI) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for ALA stock?
The Price/Earnings (PE) ratio for ALA SPA (ALA.MI) is 14.88 and the Price/Book (PB) ratio is 4.02.
How sustainable is the dividend of ALA SPA (ALA.MI) stock?
The dividend rating of ALA SPA (ALA.MI) is 3 / 10 and the dividend payout ratio is 30.93%.