CIR SPA-COMPAGNIE INDUSTRIAL (CIR.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:CIR - IT0000070786 - Common Stock
0.697 EUR
+0.01 (+1.16%)
Overall CIR gets a fundamental rating of 4 out of 10. We evaluated CIR against 31 industry peers in the Automobile Components industry. CIR has only an average score on both its financial health and profitability. CIR has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- CIR had positive earnings in the past year.
- CIR had a positive operating cash flow in the past year.
- Of the past 5 years CIR 4 years were profitable.
- Each year in the past 5 years CIR had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of CIR (1.20%) is comparable to the rest of the industry.
- Looking at the Return On Equity, with a value of 4.08%, CIR is in line with its industry, outperforming 58.06% of the companies in the same industry.
- CIR has a worse Return On Invested Capital (3.15%) than 61.29% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for CIR is below the industry average of 6.49%.
- The last Return On Invested Capital (3.15%) for CIR is above the 3 year average (2.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.2% | ||
| ROE | 4.08% | ||
| ROIC | 3.15% |
ROA(3y)1.93%
ROA(5y)1.36%
ROE(3y)7.01%
ROE(5y)5.11%
ROIC(3y)2.19%
ROIC(5y)1.83%
1.3 Margins
- Looking at the Profit Margin, with a value of 1.79%, CIR is in the better half of the industry, outperforming 67.74% of the companies in the same industry.
- In the last couple of years the Profit Margin of CIR has grown nicely.
- The Operating Margin of CIR (5.96%) is better than 74.19% of its industry peers.
- In the last couple of years the Operating Margin of CIR has grown nicely.
- CIR's Gross Margin of 65.90% is amongst the best of the industry. CIR outperforms 96.77% of its industry peers.
- In the last couple of years the Gross Margin of CIR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.96% | ||
| PM (TTM) | 1.79% | ||
| GM | 65.9% |
OM growth 3Y9.35%
OM growth 5Y5.44%
PM growth 3Y99.35%
PM growth 5YN/A
GM growth 3Y3.1%
GM growth 5Y2.71%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CIR is destroying value.
- CIR has less shares outstanding than it did 1 year ago.
- CIR has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for CIR has been reduced compared to a year ago.
2.2 Solvency
- CIR has an Altman-Z score of 1.31. This is a bad value and indicates that CIR is not financially healthy and even has some risk of bankruptcy.
- CIR has a worse Altman-Z score (1.31) than 64.52% of its industry peers.
- The Debt to FCF ratio of CIR is 12.55, which is on the high side as it means it would take CIR, 12.55 years of fcf income to pay off all of its debts.
- CIR has a Debt to FCF ratio (12.55) which is comparable to the rest of the industry.
- CIR has a Debt/Equity ratio of 1.16. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of CIR (1.16) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 12.55 | ||
| Altman-Z | 1.31 |
ROIC/WACC0.79
WACC3.99%
2.3 Liquidity
- CIR has a Current Ratio of 1.38. This is a normal value and indicates that CIR is financially healthy and should not expect problems in meeting its short term obligations.
- CIR's Current ratio of 1.38 is fine compared to the rest of the industry. CIR outperforms 64.52% of its industry peers.
- CIR has a Quick Ratio of 1.23. This is a normal value and indicates that CIR is financially healthy and should not expect problems in meeting its short term obligations.
- CIR has a better Quick ratio (1.23) than 90.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
- The earnings per share for CIR have decreased strongly by -61.27% in the last year.
- Measured over the past years, CIR shows a very strong growth in Earnings Per Share. The EPS has been growing by 128.94% on average per year.
- Looking at the last year, CIR shows a decrease in Revenue. The Revenue has decreased by -0.29% in the last year.
- Measured over the past years, CIR shows a decrease in Revenue. The Revenue has been decreasing by -1.87% on average per year.
EPS 1Y (TTM)-61.27%
EPS 3Y128.94%
EPS 5YN/A
EPS Q2Q%-84.2%
Revenue 1Y (TTM)-0.29%
Revenue growth 3Y-2.46%
Revenue growth 5Y-1.87%
Sales Q2Q%-1.73%
3.2 Future
- The Earnings Per Share is expected to grow by 40.10% on average over the next years. This is a very strong growth
- Based on estimates for the next years, CIR will show a very negative growth in Revenue. The Revenue will decrease by -21.89% on average per year.
EPS Next Y187.5%
EPS Next 2Y76.78%
EPS Next 3Y40.1%
EPS Next 5YN/A
Revenue Next Year-27.17%
Revenue Next 2Y-13.23%
Revenue Next 3Y-21.89%
Revenue Next 5YN/A
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
- CIR is valuated rather expensively with a Price/Earnings ratio of 17.42.
- The rest of the industry has a similar Price/Earnings ratio as CIR.
- CIR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.87.
- With a Price/Forward Earnings ratio of 15.34, CIR is valued correctly.
- Based on the Price/Forward Earnings ratio, CIR is valued a bit more expensive than 70.97% of the companies in the same industry.
- CIR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.42 | ||
| Fwd PE | 15.34 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as CIR.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of CIR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.38 | ||
| EV/EBITDA | 4.45 |
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.
- CIR has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as CIR's earnings are expected to grow with 40.10% in the coming years.
PEG (NY)0.09
PEG (5Y)N/A
EPS Next 2Y76.78%
EPS Next 3Y40.1%
5. Dividend
5.1 Amount
- CIR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CIR SPA-COMPAGNIE INDUSTRIAL / CIR.MI FAQ
Can you provide the ChartMill fundamental rating for CIR SPA-COMPAGNIE INDUSTRIAL?
ChartMill assigns a fundamental rating of 4 / 10 to CIR.MI.
What is the valuation status of CIR SPA-COMPAGNIE INDUSTRIAL (CIR.MI) stock?
ChartMill assigns a valuation rating of 5 / 10 to CIR SPA-COMPAGNIE INDUSTRIAL (CIR.MI). This can be considered as Fairly Valued.
How profitable is CIR SPA-COMPAGNIE INDUSTRIAL (CIR.MI) stock?
CIR SPA-COMPAGNIE INDUSTRIAL (CIR.MI) has a profitability rating of 6 / 10.
What are the PE and PB ratios of CIR SPA-COMPAGNIE INDUSTRIAL (CIR.MI) stock?
The Price/Earnings (PE) ratio for CIR SPA-COMPAGNIE INDUSTRIAL (CIR.MI) is 17.42 and the Price/Book (PB) ratio is 0.8.
How sustainable is the dividend of CIR SPA-COMPAGNIE INDUSTRIAL (CIR.MI) stock?
The dividend rating of CIR SPA-COMPAGNIE INDUSTRIAL (CIR.MI) is 0 / 10 and the dividend payout ratio is 197.57%.