CONVERGENZE SPA SOCIETA BENE (CVG.MI) Stock Fundamental Analysis
BIT:CVG - IT0005426215 - Common Stock
2.16 EUR
-0.08 (-3.57%)
Overall CVG gets a fundamental rating of 5 out of 10. We evaluated CVG against 30 industry peers in the Diversified Telecommunication Services industry. CVG has an average financial health and profitability rating. CVG is not overvalued while it is showing excellent growth. This is an interesting 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
Looking at the Return On Assets, with a value of 5.98%, CVG belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
Looking at the Return On Equity, with a value of 19.01%, CVG belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
CVG has a Return On Invested Capital of 14.69%. This is amongst the best in the industry. CVG outperforms 96.67% 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
CVG has a Profit Margin of 4.75%. This is comparable to the rest of the industry: CVG outperforms 53.33% of its industry peers.
In the last couple of years the Profit Margin of CVG has grown nicely.
CVG's Operating Margin of 8.69% is on the low side compared to the rest of the industry. CVG is outperformed by 60.00% 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 73.33% 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
CVG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
CVG has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CVG has been increased compared to 5 years ago.
CVG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.26 indicates that CVG is not a great score, but indicates only limited risk for bankruptcy at the moment.
CVG's Altman-Z score of 2.26 is amongst the best of the industry. CVG outperforms 90.00% 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.
The Debt to FCF ratio of CVG (6.18) is better than 70.00% of its industry peers.
A Debt/Equity ratio of 0.58 indicates that CVG is somewhat dependend on debt financing.
CVG has a Debt to Equity ratio of 0.58. This is in the better half of the industry: CVG outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 6.18 | ||
| Altman-Z | 2.26 |
ROIC/WACC2.11
WACC6.97%
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 76.67% of its industry peers.
CVG has a Quick 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.
With a Quick ratio value of 0.58, CVG is not doing good in the industry: 76.67% of the companies in the same industry are doing better.
| 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.
CVG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.56%.
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
Based on estimates for the next years, CVG will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.80% on average per year.
Based on estimates for the next years, CVG will show a quite strong growth in Revenue. The Revenue will grow by 9.10% on average per year.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 12.71, which indicates a correct valuation of CVG.
Based on the Price/Earnings ratio, CVG is valued cheaper than 83.33% of the companies in the same industry.
When comparing the Price/Earnings ratio of CVG to the average of the S&P500 Index (27.02), we can say CVG is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.18, the valuation of CVG can be described as very reasonable.
Based on the Price/Forward Earnings ratio, CVG is valued a bit cheaper than the industry average as 76.67% of the companies are valued more expensively.
CVG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.66.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.71 | ||
| Fwd PE | 10.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CVG is valued cheaper than 83.33% of the companies in the same industry.
CVG's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. CVG is more expensive than 63.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.82 | ||
| EV/EBITDA | 4.77 |
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.
CVG has a very decent profitability rating, which may justify a higher PE ratio.
CVG's earnings are expected to grow with 16.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.76
PEG (5Y)0.65
EPS Next 2Y22.47%
EPS Next 3Y16.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.02%, CVG has a reasonable but not impressive dividend return.
CVG's Dividend Yield is slightly below the industry average, which is at 4.21.
Compared to an average S&P500 Dividend Yield of 2.45, 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
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 (9/8/2025, 7:00:00 PM)
2.16
-0.08 (-3.57%)
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 Cap16.20M
Analysts80
Price Target3.98 (84.26%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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 | 12.71 | ||
| Fwd PE | 10.18 | ||
| P/S | 0.61 | ||
| P/FCF | 18.82 | ||
| P/OCF | 4.62 | ||
| P/B | 2.46 | ||
| P/tB | 2.69 | ||
| EV/EBITDA | 4.77 |
EPS(TTM)0.17
EY7.87%
EPS(NY)0.21
Fwd EY9.82%
FCF(TTM)0.11
FCFY5.31%
OCF(TTM)0.47
OCFY21.64%
SpS3.52
BVpS0.88
TBVpS0.8
PEG (NY)0.76
PEG (5Y)0.65
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 | 2.26 |
F-Score8
WACC6.97%
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%