CONVERGENZE SPA SOCIETA BENE (CVG.MI) Stock Fundamental Analysis
BIT:CVG - Euronext Milan - IT0005426215 - Common Stock - Currency: EUR
CVG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 30 industry peers in the Diversified Telecommunication Services industry. CVG has an average financial health and profitability rating. An interesting combination arises when we look at growth and value: CVG is growing strongly while it also seems undervalued. With these ratings, CVG could be worth investigating further for value and growth investing!.
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.
CVG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.13%, CVG is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
CVG has a better Return On Equity (17.86%) than 76.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.26%, CVG belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
| 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
The Profit Margin of CVG (4.42%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of CVG has grown nicely.
CVG has a Operating Margin of 8.50%. This is in the lower half of the industry: CVG underperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of CVG has grown nicely.
With a Gross Margin value of 31.55%, CVG is not doing good in the industry: 76.67% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of CVG has grown nicely.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CVG is creating value.
There is no outstanding debt for CVG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 2.02 indicates that CVG is not a great score, but indicates only limited risk for bankruptcy at the moment.
CVG's Altman-Z score of 2.02 is amongst the best of the industry. CVG outperforms 86.67% 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.
CVG has a better Debt to FCF ratio (2.81) than 93.33% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that CVG is somewhat dependend on debt financing.
CVG has a better Debt to Equity ratio (0.74) than 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 2.81 | ||
| Altman-Z | 2.02 |
ROIC/WACC1.8
WACC7.36%
2.3 Liquidity
A Current Ratio of 0.65 indicates that CVG may have some problems paying its short term obligations.
The Current ratio of CVG (0.65) is worse than 70.00% of its industry peers.
A Quick Ratio of 0.62 indicates that CVG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.62, CVG is doing worse than 66.67% of the companies in the same industry.
| 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.
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.
CVG shows a strong growth in Revenue. In the last year, the Revenue has grown by 69.58%.
The Revenue has been growing by 9.61% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 16.80% on average over the next years. This is quite good.
CVG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.10% yearly.
EPS Next Y16.67%
EPS Next 2Y22.47%
EPS Next 3Y16.8%
EPS Next 5YN/A
Revenue Next Year7.92%
Revenue Next 2Y9.72%
Revenue Next 3Y9.1%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.84 indicates a rather cheap valuation of CVG.
Based on the Price/Earnings ratio, CVG is valued cheaply inside the industry as 93.33% of the companies are valued more expensively.
CVG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.48.
A Price/Forward Earnings ratio of 9.24 indicates a reasonable valuation of CVG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CVG indicates a rather cheap valuation: CVG is cheaper than 83.33% of the companies listed in the same industry.
CVG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.84 | ||
| Fwd PE | 9.24 |
4.2 Price Multiples
80.00% 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 a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.29 | ||
| EV/EBITDA | 4.85 |
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.
A more expensive valuation may be justified as CVG's earnings are expected to grow with 16.80% in the coming years.
PEG (NY)0.47
PEG (5Y)0.4
EPS Next 2Y22.47%
EPS Next 3Y16.8%
5. Dividend
5.1 Amount
CVG has a Yearly Dividend Yield of 1.02%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.38, CVG is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.39, CVG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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 3Y16.8%
BIT:CVG (8/7/2025, 7:00:00 PM)
1.96
-0.04 (-2%)
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 Cap14.70M
Analysts80
Price Target3.98 (103.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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)0%
PT rev (3m)11.43%
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)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.84 | ||
| Fwd PE | 9.24 | ||
| P/S | 0.61 | ||
| P/FCF | 7.29 | ||
| P/OCF | 3.52 | ||
| P/B | 2.45 | ||
| P/tB | 2.77 | ||
| EV/EBITDA | 4.85 |
EPS(TTM)0.25
EY12.76%
EPS(NY)0.21
Fwd EY10.82%
FCF(TTM)0.27
FCFY13.71%
OCF(TTM)0.56
OCFY28.39%
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 | 2.02 |
F-Score7
WACC7.36%
ROIC/WACC1.8
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 3Y16.8%
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 3Y9.1%
Revenue Next 5YN/A
EBIT growth 1Y832.73%
EBIT growth 3Y64.01%
EBIT growth 5Y18.3%
EBIT Next Year108%
EBIT Next 3Y38.87%
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%