CONVERGENZE SPA SOCIETA BENE (CVG.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:CVG - IT0005426215 - Common Stock
1.72 EUR
-0.18 (-9.47%)
We assign a fundamental rating of 6 out of 10 to CVG. CVG was compared to 33 industry peers in the Diversified Telecommunication Services industry. Both the profitability and the financial health of CVG get a neutral evaluation. Nothing too spectacular is happening here. An interesting combination arises when we look at growth and value: CVG is growing strongly while it also seems undervalued.
1. Profitability
1.1 Basic Checks
In the past year CVG was profitable.
CVG had a positive operating cash flow in the past year.
CVG had positive earnings in 4 of the past 5 years.
Of the past 5 years CVG 4 years had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 5.98%, CVG belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
CVG has a better Return On Equity (19.01%) than 72.73% of its industry peers.
CVG has a Return On Invested Capital of 14.69%. This is amongst the best in the industry. CVG outperforms 93.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.98% | ||
| ROE | 19.01% | ||
| ROIC | 14.69% |
ROA(3y)1.45%
ROA(5y)2.16%
ROE(3y)4.19%
ROE(5y)6.07%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CVG has a Profit Margin (4.75%) which is in line with its industry peers.
In the last couple of years the Profit Margin of CVG has grown nicely.
With a Operating Margin value of 8.69%, CVG is not doing good in the industry: 75.76% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of CVG has grown nicely.
CVG has a Gross Margin of 33.23%. This is in the lower half of the industry: CVG underperforms 72.73% of its industry peers.
CVG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.69% | ||
| PM (TTM) | 4.75% | ||
| GM | 33.23% |
OM growth 3Y45.34%
OM growth 5Y7.93%
PM growth 3Y53.74%
PM growth 5Y8.77%
GM growth 3Y12.92%
GM growth 5Y8.95%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CVG is creating value.
CVG has less shares outstanding than it did 1 year ago.
CVG has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CVG has been reduced compared to a year ago.
2.2 Solvency
CVG has an Altman-Z score of 2.12. This is not the best score and indicates that CVG is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of CVG (2.12) is better than 93.94% of its industry peers.
CVG has a debt to FCF ratio of 6.18. This is a slightly negative value and a sign of low solvency as CVG would need 6.18 years to pay back of all of its debts.
CVG has a Debt to FCF ratio of 6.18. This is in the better half of the industry: CVG outperforms 75.76% of its industry peers.
A Debt/Equity ratio of 0.58 indicates that CVG is somewhat dependend on debt financing.
CVG has a Debt to Equity ratio of 0.58. This is amongst the best in the industry. CVG outperforms 87.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 6.18 | ||
| Altman-Z | 2.12 |
ROIC/WACC2.18
WACC6.73%
2.3 Liquidity
CVG has a Current Ratio of 0.62. This is a bad value and indicates that CVG is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.62, CVG is doing worse than 75.76% of the companies in the same industry.
A Quick Ratio of 0.58 indicates that CVG may have some problems paying its short term obligations.
CVG has a worse Quick ratio (0.58) than 75.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
CVG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 148.90%, which is quite impressive.
Measured over the past years, CVG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.42% on average per year.
The Revenue has grown by 16.56% in the past year. This is quite good.
The Revenue has been growing by 9.61% on average over the past years. This is quite good.
EPS 1Y (TTM)148.9%
EPS 3Y78.28%
EPS 5Y19.42%
EPS Q2Q%42.58%
Revenue 1Y (TTM)16.56%
Revenue growth 3Y12.84%
Revenue growth 5Y9.61%
Sales Q2Q%17.64%
3.2 Future
CVG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.23% yearly.
The Revenue is expected to grow by 9.61% on average over the next years. This is quite good.
EPS Next Y44.44%
EPS Next 2Y24.72%
EPS Next 3Y17.23%
EPS Next 5YN/A
Revenue Next Year12.45%
Revenue Next 2Y11.08%
Revenue Next 3Y9.61%
Revenue Next 5YN/A
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CVG is valuated reasonably with a Price/Earnings ratio of 10.12.
84.85% of the companies in the same industry are more expensive than CVG, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CVG to the average of the S&P500 Index (26.84), we can say CVG is valued rather cheaply.
A Price/Forward Earnings ratio of 6.55 indicates a rather cheap valuation of CVG.
Based on the Price/Forward Earnings ratio, CVG is valued cheaper than 93.94% of the companies in the same industry.
CVG is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.12 | ||
| Fwd PE | 6.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CVG is valued cheaper than 90.91% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CVG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.99 | ||
| EV/EBITDA | 4.02 |
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.
CVG has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CVG's earnings are expected to grow with 17.23% in the coming years.
PEG (NY)0.23
PEG (5Y)0.52
EPS Next 2Y24.72%
EPS Next 3Y17.23%
5. Dividend
5.1 Amount
CVG has a Yearly Dividend Yield of 1.14%. Purely for dividend investing, there may be better candidates out there.
CVG's Dividend Yield is slightly below the industry average, which is at 3.32.
With a Dividend Yield of 1.14, CVG pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
11.97% of the earnings are spent on dividend by CVG. This is a low number and sustainable payout ratio.
DP11.97%
EPS Next 2Y24.72%
EPS Next 3Y17.23%
BIT:CVG (12/23/2025, 7:00:00 PM)
1.72
-0.18 (-9.47%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners0.2%
Inst Owner ChangeN/A
Ins Owners48.08%
Ins Owner ChangeN/A
Market Cap12.90M
Revenue(TTM)26.40M
Net Income(TTM)1.25M
Analysts80
Price Target3.98 (131.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
Yearly Dividend0.02
Dividend Growth(5Y)N/A
DP11.97%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)23.81%
EPS NY rev (3m)23.81%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)4.2%
Revenue NY rev (3m)4.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.12 | ||
| Fwd PE | 6.55 | ||
| P/S | 0.49 | ||
| P/FCF | 14.99 | ||
| P/OCF | 3.68 | ||
| P/B | 1.96 | ||
| P/tB | 2.14 | ||
| EV/EBITDA | 4.02 |
EPS(TTM)0.17
EY9.88%
EPS(NY)0.26
Fwd EY15.27%
FCF(TTM)0.11
FCFY6.67%
OCF(TTM)0.47
OCFY27.18%
SpS3.52
BVpS0.88
TBVpS0.8
PEG (NY)0.23
PEG (5Y)0.52
Graham Number1.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.98% | ||
| ROE | 19.01% | ||
| ROCE | 20.06% | ||
| ROIC | 14.69% | ||
| ROICexc | 15.5% | ||
| ROICexgc | 16.37% | ||
| OM | 8.69% | ||
| PM (TTM) | 4.75% | ||
| GM | 33.23% | ||
| FCFM | 3.26% |
ROA(3y)1.45%
ROA(5y)2.16%
ROE(3y)4.19%
ROE(5y)6.07%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y46.34%
ROICexgc growth 5Y-11.83%
ROICexc growth 3Y49.44%
ROICexc growth 5Y-11.64%
OM growth 3Y45.34%
OM growth 5Y7.93%
PM growth 3Y53.74%
PM growth 5Y8.77%
GM growth 3Y12.92%
GM growth 5Y8.95%
F-Score8
Asset Turnover1.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 6.18 | ||
| Debt/EBITDA | 0.86 | ||
| Cap/Depr | 126.49% | ||
| Cap/Sales | 10.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.94% | ||
| Profit Quality | 68.68% | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 2.12 |
F-Score8
WACC6.73%
ROIC/WACC2.18
Cap/Depr(3y)151.19%
Cap/Depr(5y)233.68%
Cap/Sales(3y)10.99%
Cap/Sales(5y)15.59%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)148.9%
EPS 3Y78.28%
EPS 5Y19.42%
EPS Q2Q%42.58%
EPS Next Y44.44%
EPS Next 2Y24.72%
EPS Next 3Y17.23%
EPS Next 5YN/A
Revenue 1Y (TTM)16.56%
Revenue growth 3Y12.84%
Revenue growth 5Y9.61%
Sales Q2Q%17.64%
Revenue Next Year12.45%
Revenue Next 2Y11.08%
Revenue Next 3Y9.61%
Revenue Next 5YN/A
EBIT growth 1Y93.56%
EBIT growth 3Y64.01%
EBIT growth 5Y18.3%
EBIT Next Year108%
EBIT Next 3Y38.87%
EBIT Next 5YN/A
FCF growth 1Y30.25%
FCF growth 3YN/A
FCF growth 5Y6.1%
OCF growth 1Y1.83%
OCF growth 3Y22.87%
OCF growth 5Y12.56%
CONVERGENZE SPA SOCIETA BENE / CVG.MI FAQ
What is the ChartMill fundamental rating of CONVERGENZE SPA SOCIETA BENE (CVG.MI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to CVG.MI.
What is the valuation status of CONVERGENZE SPA SOCIETA BENE (CVG.MI) stock?
ChartMill assigns a valuation rating of 8 / 10 to CONVERGENZE SPA SOCIETA BENE (CVG.MI). This can be considered as Undervalued.
Can you provide the profitability details for CONVERGENZE SPA SOCIETA BENE?
CONVERGENZE SPA SOCIETA BENE (CVG.MI) has a profitability rating of 6 / 10.
Can you provide the financial health for CVG stock?
The financial health rating of CONVERGENZE SPA SOCIETA BENE (CVG.MI) is 4 / 10.
What is the earnings growth outlook for CONVERGENZE SPA SOCIETA BENE?
The Earnings per Share (EPS) of CONVERGENZE SPA SOCIETA BENE (CVG.MI) is expected to grow by 44.44% in the next year.