CONVERGENZE SPA SOCIETA BENE (CVG.MI) Stock Fundamental Analysis
BIT:CVG - Euronext Milan - IT0005426215 - Common Stock - Currency: EUR
Overall CVG gets a fundamental rating of 6 out of 10. We evaluated CVG against 27 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.
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.
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 belongs to the top of the industry, outperforming 81.48% of the companies in the same industry.
The Return On Equity of CVG (17.86%) is better than 81.48% of its industry peers.
CVG has a better Return On Invested Capital (13.26%) than 96.30% 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
Looking at the Profit Margin, with a value of 4.42%, CVG is in line with its industry, outperforming 40.74% 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 (8.50%) than 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: 77.78% 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) just above the Cost of Capital (WACC), CVG is creating some value.
CVG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 2.01 indicates that CVG is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CVG (2.01) is better than 88.89% of its industry peers.
The Debt to FCF ratio of CVG is 2.81, which is a good value as it means it would take CVG, 2.81 years of fcf income to pay off all of its debts.
CVG has a better Debt to FCF ratio (2.81) than 92.59% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that CVG is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.74, CVG is in the better half of the industry, outperforming 74.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 2.81 | ||
| Altman-Z | 2.01 |
ROIC/WACC1.78
WACC7.46%
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 70.37% 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.
CVG's Quick ratio of 0.62 is on the low side compared to the rest of the industry. CVG is outperformed by 70.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 268.37% 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.
The Revenue has grown by 69.58% in the past year. This is a very strong growth!
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)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
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
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
CVG is valuated cheaply with a Price/Earnings ratio of 7.76.
CVG's Price/Earnings ratio is rather cheap when compared to the industry. CVG is cheaper than 92.59% of the companies in the same industry.
CVG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.45.
A Price/Forward Earnings ratio of 9.15 indicates a reasonable valuation of CVG.
CVG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CVG is cheaper than 77.78% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CVG to the average of the S&P500 Index (21.90), we can say CVG is valued rather cheaply.
| 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 74.07% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CVG is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.22 | ||
| EV/EBITDA | 4.81 |
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.
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 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 1.04%. Purely for dividend investing, there may be better candidates out there.
CVG's Dividend Yield is slightly below the industry average, which is at 4.71.
With a Dividend Yield of 1.04, CVG pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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 (7/3/2025, 7:00:00 PM)
1.94
-0.02 (-1.02%)
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 | 1.04% |
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)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)0%
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
WACC7.46%
ROIC/WACC1.78
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%