CONVERGENZE SPA SOCIETA BENE (CVG.MI) Stock Fundamental Analysis
BIT:CVG - Euronext Milan - IT0005426215 - Common Stock - Currency: EUR
Overall CVG gets a fundamental rating of 6 out of 10. We evaluated CVG against 28 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.
Of the past 5 years CVG 4 years were profitable.
Of the past 5 years CVG 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CVG (5.13%) is better than 78.57% of its industry peers.
Looking at the Return On Equity, with a value of 17.86%, CVG belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
CVG has a Return On Invested Capital of 13.26%. This is amongst the best in the industry. CVG outperforms 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.13% | ||
| ROE | 17.86% | ||
| ROIC | 13.26% |
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
CVG has a Profit Margin (4.42%) which is in line with its industry peers.
In the last couple of years the Profit Margin of CVG has grown nicely.
CVG has a worse Operating Margin (8.50%) than 64.29% of its industry peers.
CVG's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 31.55%, CVG is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
CVG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.5% | ||
| PM (TTM) | 4.42% | ||
| GM | 31.55% |
OM growth 3Y45.34%
OM growth 5Y7.93%
PM growth 3Y53.74%
PM growth 5Y8.77%
GM growth 3Y16%
GM growth 5Y10.73%
2. Health
2.1 Basic Checks
CVG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
CVG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 2.01 indicates that CVG is not a great score, but indicates only limited risk for bankruptcy at the moment.
CVG has a Altman-Z score of 2.01. This is amongst the best in the industry. CVG outperforms 85.71% of its industry peers.
CVG has a debt to FCF ratio of 2.81. This is a good value and a sign of high solvency as CVG would need 2.81 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.81, CVG belongs to the best of the industry, outperforming 96.43% of the companies in the same industry.
CVG has a Debt/Equity ratio of 0.74. This is a neutral value indicating CVG is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.74, CVG is doing good in the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 2.81 | ||
| Altman-Z | 2.01 |
ROIC/WACC1.73
WACC7.67%
2.3 Liquidity
A Current Ratio of 0.65 indicates that CVG may have some problems paying its short term obligations.
CVG has a Current ratio of 0.65. This is in the lower half of the industry: CVG underperforms 67.86% of its industry peers.
CVG has a Quick Ratio of 0.65. This is a bad value and indicates that CVG is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.62, CVG is not doing good in the industry: 67.86% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
CVG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 268.37%, which is quite impressive.
CVG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.42% yearly.
CVG shows a strong growth in Revenue. In the last year, the Revenue has grown by 69.58%.
Measured over the past years, CVG shows a quite strong growth in Revenue. The Revenue has been growing by 9.61% on average per year.
EPS 1Y (TTM)268.37%
EPS 3Y78.28%
EPS 5Y19.42%
EPS Q2Q%174.19%
Revenue 1Y (TTM)69.58%
Revenue growth 3Y12.84%
Revenue growth 5Y9.61%
Sales Q2Q%115.84%
3.2 Future
Based on estimates for the next years, CVG will show a very strong growth in Earnings Per Share. The EPS will grow by 22.47% on average per year.
CVG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.72% yearly.
EPS Next Y16.67%
EPS Next 2Y22.47%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.92%
Revenue Next 2Y9.72%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
A Price/Earnings ratio of 7.76 indicates a rather cheap valuation of CVG.
Based on the Price/Earnings ratio, CVG is valued cheaper than 89.29% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.10. CVG is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.15, the valuation of CVG can be described as very reasonable.
85.71% of the companies in the same industry are more expensive than CVG, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.74. CVG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.76 | ||
| Fwd PE | 9.15 |
4.2 Price Multiples
71.43% of the companies in the same industry are more expensive than CVG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CVG is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.22 | ||
| EV/EBITDA | 4.81 |
4.3 Compensation for Growth
CVG's 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 22.47% in the coming years.
PEG (NY)0.47
PEG (5Y)0.4
EPS Next 2Y22.47%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.04%, CVG has a reasonable but not impressive dividend return.
CVG's Dividend Yield is slightly below the industry average, which is at 4.52.
With a Dividend Yield of 1.04, CVG pays less dividend than the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y22.47%
EPS Next 3YN/A
BIT:CVG (5/5/2025, 7:00:00 PM)
1.94
+0.01 (+0.52%)
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 Cap14.55M
Analysts80
Price Target3.57 (84.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
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)-9.68%
PT rev (3m)-9.68%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.76 | ||
| Fwd PE | 9.15 | ||
| P/S | 0.6 | ||
| P/FCF | 7.22 | ||
| P/OCF | 3.49 | ||
| P/B | 2.43 | ||
| P/tB | 2.74 | ||
| EV/EBITDA | 4.81 |
EPS(TTM)0.25
EY12.89%
EPS(NY)0.21
Fwd EY10.93%
FCF(TTM)0.27
FCFY13.85%
OCF(TTM)0.56
OCFY28.68%
SpS3.23
BVpS0.8
TBVpS0.71
PEG (NY)0.47
PEG (5Y)0.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.13% | ||
| ROE | 17.86% | ||
| ROCE | 18.11% | ||
| ROIC | 13.26% | ||
| ROICexc | 14.27% | ||
| ROICexgc | 15.26% | ||
| OM | 8.5% | ||
| PM (TTM) | 4.42% | ||
| GM | 31.55% | ||
| FCFM | 8.32% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
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
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y45.34%
OM growth 5Y7.93%
PM growth 3Y53.74%
PM growth 5Y8.77%
GM growth 3Y16%
GM growth 5Y10.73%
F-Score7
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 2.81 | ||
| Debt/EBITDA | 1.1 | ||
| Cap/Depr | 109.38% | ||
| Cap/Sales | 8.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.48% | ||
| Profit Quality | 188.3% | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 2.01 |
F-Score7
WACC7.67%
ROIC/WACC1.73
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)268.37%
EPS 3Y78.28%
EPS 5Y19.42%
EPS Q2Q%174.19%
EPS Next Y16.67%
EPS Next 2Y22.47%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)69.58%
Revenue growth 3Y12.84%
Revenue growth 5Y9.61%
Sales Q2Q%115.84%
Revenue Next Year7.92%
Revenue Next 2Y9.72%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y832.73%
EBIT growth 3Y64.01%
EBIT growth 5Y18.3%
EBIT Next Year108%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y212.18%
FCF growth 3YN/A
FCF growth 5Y6.1%
OCF growth 1Y332.46%
OCF growth 3Y22.87%
OCF growth 5Y12.56%