CONVERGENZE SPA SOCIETA BENE (CVG.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:CVG - IT0005426215 - Common Stock
1.86 EUR
+0.01 (+0.54%)
We assign a fundamental rating of 5 out of 10 to CVG. CVG was compared to 35 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. CVG is evaluated to be cheap and growing strongly. This does not happen too often!
1. Profitability
1.1 Basic Checks
- CVG had positive earnings in the past year.
- 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
- CVG has a Return On Assets of 5.98%. This is in the better half of the industry: CVG outperforms 80.00% of its industry peers.
- CVG's Return On Equity of 19.01% is fine compared to the rest of the industry. CVG outperforms 68.57% of its industry peers.
- The Return On Invested Capital of CVG (14.69%) is better than 91.43% 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
- The Profit Margin of CVG (4.75%) is comparable to the rest of the industry.
- CVG's Profit Margin has improved in the last couple of years.
- CVG has a Operating Margin of 8.69%. This is in the lower half of the industry: CVG underperforms 74.29% of its industry peers.
- 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 74.29% of its industry peers.
- In the last couple of years the Gross Margin of CVG has grown nicely.
| 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.
- Compared to 1 year ago, CVG has less shares outstanding
- CVG has more shares outstanding than it did 5 years ago.
- CVG has a better debt/assets ratio than last year.
2.2 Solvency
- CVG has an Altman-Z score of 2.17. 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.
- CVG's Altman-Z score of 2.17 is amongst the best of the industry. CVG outperforms 88.57% of its industry peers.
- The Debt to FCF ratio of CVG is 6.18, which is on the high side as it means it would take CVG, 6.18 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 6.18, CVG is doing good in the industry, outperforming 74.29% of the companies in the same industry.
- CVG has a Debt/Equity ratio of 0.58. This is a neutral value indicating CVG is somewhat dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.58, CVG is doing good in the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 6.18 | ||
| Altman-Z | 2.17 |
ROIC/WACC2.14
WACC6.87%
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.
- The Current ratio of CVG (0.62) is worse than 77.14% of its industry peers.
- 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 77.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 148.90% over the past year.
- CVG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.42% yearly.
- Looking at the last year, CVG shows a quite strong growth in Revenue. The Revenue has grown by 16.56% in the last year.
- 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)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.
- Based on estimates for the next years, CVG will show a quite strong growth in Revenue. The Revenue will grow by 9.61% on average per year.
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.
- 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
- CVG is valuated reasonably with a Price/Earnings ratio of 10.94.
- Compared to the rest of the industry, the Price/Earnings ratio of CVG indicates a somewhat cheap valuation: CVG is cheaper than 80.00% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of CVG to the average of the S&P500 Index (28.60), we can say CVG is valued rather cheaply.
- A Price/Forward Earnings ratio of 7.08 indicates a rather cheap 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 94.29% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, CVG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.94 | ||
| Fwd PE | 7.08 |
4.2 Price Multiples
- CVG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CVG is cheaper than 91.43% of the companies in the same industry.
- CVG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.21 | ||
| EV/EBITDA | 4.26 |
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's earnings are expected to grow with 17.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.25
PEG (5Y)0.56
EPS Next 2Y24.72%
EPS Next 3Y17.23%
5. Dividend
5.1 Amount
- CVG has a Yearly Dividend Yield of 1.11%.
- CVG's Dividend Yield is slightly below the industry average, which is at 3.26.
- CVG's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- CVG pays out 11.97% of its income as dividend. This is a sustainable payout ratio.
DP11.97%
EPS Next 2Y24.72%
EPS Next 3Y17.23%
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 5 / 10 to CVG.MI.
What is the valuation status for CVG stock?
ChartMill assigns a valuation rating of 7 / 10 to CONVERGENZE SPA SOCIETA BENE (CVG.MI). This can be considered as Undervalued.
How profitable is CONVERGENZE SPA SOCIETA BENE (CVG.MI) stock?
CONVERGENZE SPA SOCIETA BENE (CVG.MI) has a profitability rating of 5 / 10.
What is the valuation of CONVERGENZE SPA SOCIETA BENE based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CONVERGENZE SPA SOCIETA BENE (CVG.MI) is 10.94 and the Price/Book (PB) ratio is 2.12.
How sustainable is the dividend of CONVERGENZE SPA SOCIETA BENE (CVG.MI) stock?
The dividend rating of CONVERGENZE SPA SOCIETA BENE (CVG.MI) is 2 / 10 and the dividend payout ratio is 11.97%.