CONVERGENZE SPA SOCIETA BENE (CVG.MI) Stock Fundamental Analysis
Europe - BIT:CVG - IT0005426215 - Common Stock
2.06 EUR
-0.04 (-1.9%)
Overall CVG gets a fundamental rating of 6 out of 10. We evaluated CVG against 30 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 has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!
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.
Of the past 5 years CVG 4 years had a positive operating cash flow.
1.2 Ratios
CVG's Return On Assets of 5.98% is amongst the best of the industry. CVG outperforms 90.00% of its industry peers.
CVG's Return On Equity of 19.01% is fine compared to the rest of the industry. CVG outperforms 80.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.69%, CVG belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
| 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
Looking at the Profit Margin, with a value of 4.75%, CVG is in line with its industry, outperforming 53.33% of the companies in the same industry.
CVG's Profit Margin has improved in the last couple of years.
CVG has a worse Operating Margin (8.69%) than 60.00% of its industry peers.
In the last couple of years the Operating Margin of CVG has grown nicely.
Looking at the Gross Margin, with a value of 33.23%, CVG is doing worse than 76.67% of the companies in the same industry.
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
CVG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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 2.24. 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 has a better Altman-Z score (2.24) than 93.33% 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.
CVG has a Debt to FCF ratio of 6.18. This is in the better half of the industry: CVG outperforms 76.67% of its industry peers.
CVG has a Debt/Equity ratio of 0.58. This is a neutral value indicating CVG is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.58, CVG belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 6.18 | ||
| Altman-Z | 2.24 |
ROIC/WACC2.11
WACC6.95%
2.3 Liquidity
A Current Ratio of 0.62 indicates that CVG may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.62, CVG is doing worse than 70.00% 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's Quick ratio of 0.58 is on the low side compared to the rest of the industry. CVG is outperformed by 70.00% 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.
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.
Looking at the last year, CVG shows a quite strong growth in Revenue. The Revenue has grown by 16.56% in the last year.
CVG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.61% yearly.
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
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.
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
The Price/Earnings ratio is 12.12, which indicates a correct valuation of CVG.
Compared to the rest of the industry, the Price/Earnings ratio of CVG indicates a rather cheap valuation: CVG is cheaper than 86.67% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CVG to the average of the S&P500 Index (27.76), we can say CVG is valued rather cheaply.
The Price/Forward Earnings ratio is 9.71, which indicates a very decent 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 is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.18, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.12 | ||
| Fwd PE | 9.71 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CVG indicates a rather cheap valuation: CVG is cheaper than 86.67% of the companies listed in the same industry.
60.00% of the companies in the same industry are cheaper than CVG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.95 | ||
| EV/EBITDA | 4.67 |
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 16.80% in the coming years.
PEG (NY)0.73
PEG (5Y)0.62
EPS Next 2Y22.47%
EPS Next 3Y16.8%
5. Dividend
5.1 Amount
CVG has a yearly dividend return of 0.95%, which is pretty low.
Compared to an average industry Dividend Yield of 4.23, CVG is paying slightly less dividend.
With a Dividend Yield of 0.95, CVG pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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 2Y22.47%
EPS Next 3Y16.8%
BIT:CVG (9/30/2025, 7:00:00 PM)
2.06
-0.04 (-1.9%)
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 Cap15.45M
Analysts80
Price Target3.98 (93.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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)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 | 12.12 | ||
| Fwd PE | 9.71 | ||
| P/S | 0.59 | ||
| P/FCF | 17.95 | ||
| P/OCF | 4.41 | ||
| P/B | 2.34 | ||
| P/tB | 2.57 | ||
| EV/EBITDA | 4.67 |
EPS(TTM)0.17
EY8.25%
EPS(NY)0.21
Fwd EY10.3%
FCF(TTM)0.11
FCFY5.57%
OCF(TTM)0.47
OCFY22.69%
SpS3.52
BVpS0.88
TBVpS0.8
PEG (NY)0.73
PEG (5Y)0.62
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
ROICexcg growth 3Y46.34%
ROICexcg 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 | 2.24 |
F-Score8
WACC6.95%
ROIC/WACC2.11
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 Y16.67%
EPS Next 2Y22.47%
EPS Next 3Y16.8%
EPS Next 5YN/A
Revenue 1Y (TTM)16.56%
Revenue growth 3Y12.84%
Revenue growth 5Y9.61%
Sales Q2Q%17.64%
Revenue Next Year7.92%
Revenue Next 2Y9.72%
Revenue Next 3Y9.1%
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%