CONVERGENZE SPA SOCIETA BENE (CVG.MI) Stock Fundamental Analysis
BIT:CVG - Euronext Milan - IT0005426215 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to CVG. CVG was compared to 32 industry peers in the Diversified Telecommunication Services industry. CVG has only an average score on both its financial health and profitability. 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
CVG had positive earnings in the past year.
In the past year CVG had a positive cash flow from operations.
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
With an excellent Return On Assets value of 5.13%, CVG belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
CVG has a better Return On Equity (17.86%) than 87.50% of its industry peers.
CVG has a Return On Invested Capital of 13.26%. This is amongst the best in the industry. CVG outperforms 93.75% 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's Profit Margin of 4.42% is in line compared to the rest of the industry. CVG outperforms 40.63% of its industry peers.
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 71.88% of its industry peers.
In the last couple of years the Operating Margin of CVG has grown nicely.
The Gross Margin of CVG (31.55%) is worse than 78.13% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CVG is creating some 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
CVG has an Altman-Z score of 2.01. 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 (2.01) is better than 87.50% 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 93.75% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that CVG is somewhat dependend on debt financing.
The Debt to Equity ratio of CVG (0.74) is better than 75.00% of its industry peers.
| 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.
Looking at the Current ratio, with a value of 0.65, CVG is doing worse than 68.75% of the companies in the same industry.
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.
The Quick ratio of CVG (0.62) is worse than 68.75% of its industry peers.
| 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.
The Earnings Per Share has been growing by 19.42% on average over the past years. This is quite good.
Looking at the last year, CVG shows a very strong growth in Revenue. 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
CVG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.47% yearly.
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
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
A Price/Earnings ratio of 7.76 indicates a rather cheap valuation of CVG.
Based on the Price/Earnings ratio, CVG is valued cheaply inside the industry as 90.63% of the companies are valued more expensively.
CVG is valuated cheaply when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.15, the valuation of CVG can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CVG indicates a rather cheap valuation: CVG is cheaper than 81.25% of the companies listed in the same industry.
CVG is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.76 | ||
| Fwd PE | 9.15 |
4.2 Price Multiples
CVG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CVG is cheaper than 71.88% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CVG is valued cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.22 | ||
| EV/EBITDA | 4.81 |
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.
The decent profitability rating of CVG 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 1.05%, CVG has a reasonable but not impressive dividend return.
CVG's Dividend Yield is slightly below the industry average, which is at 4.30.
With a Dividend Yield of 1.05, CVG pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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 (5/28/2025, 7:00:00 PM)
1.94
+0.02 (+1.04%)
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 Target3.98 (105.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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)0.65%
PT rev (3m)0.65%
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%