Danieli & C Officine Meccaniche SpA (DANR.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:DANR - IT0000076486
44.36
-0.38 (-0.85%)
We assign a fundamental rating of 5 out of 10 to DANR. DANR was compared to 111 industry peers in the Machinery industry. Both the profitability and the financial health of DANR get a neutral evaluation. Nothing too spectacular is happening here. DANR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year DANR was profitable.
- DANR had a positive operating cash flow in the past year.
- DANR had positive earnings in each of the past 5 years.
- Each year in the past 5 years DANR had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of DANR (3.52%) is comparable to the rest of the industry.
- DANR's Return On Equity of 9.68% is fine compared to the rest of the industry. DANR outperforms 61.74% of its industry peers.
- DANR has a Return On Invested Capital of 5.48%. This is comparable to the rest of the industry: DANR outperforms 50.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.52% | ||
| ROE | 9.68% | ||
| ROIC | 5.48% |
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 6.35%, DANR is in the better half of the industry, outperforming 66.96% of the companies in the same industry.
- In the last couple of years the Profit Margin of DANR has grown nicely.
- DANR has a Operating Margin of 6.11%. This is comparable to the rest of the industry: DANR outperforms 49.57% of its industry peers.
- DANR's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 45.29%, DANR is doing good in the industry, outperforming 61.74% of the companies in the same industry.
- DANR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.11% | ||
| PM (TTM) | 6.35% | ||
| GM | 45.29% |
OM growth 3Y6.04%
OM growth 5Y13.12%
PM growth 3Y-6.41%
PM growth 5Y14.27%
GM growth 3Y-1.22%
GM growth 5Y-1.88%
2. Health
2.1 Basic Checks
- DANR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- There is no outstanding debt for DANR. 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
- An Altman-Z score of 1.92 indicates that DANR is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of DANR (1.92) is comparable to the rest of the industry.
- DANR has a debt to FCF ratio of 8.62. This is a slightly negative value and a sign of low solvency as DANR would need 8.62 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 8.62, DANR perfoms like the industry average, outperforming 41.74% of the companies in the same industry.
- DANR has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
- With a decent Debt to Equity ratio value of 0.22, DANR is doing good in the industry, outperforming 65.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 8.62 | ||
| Altman-Z | 1.92 |
ROIC/WACC0.66
WACC8.28%
2.3 Liquidity
- DANR has a Current Ratio of 1.46. This is a normal value and indicates that DANR is financially healthy and should not expect problems in meeting its short term obligations.
- DANR has a Current ratio of 1.46. This is comparable to the rest of the industry: DANR outperforms 47.83% of its industry peers.
- A Quick Ratio of 1.23 indicates that DANR should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.23, DANR is in the better half of the industry, outperforming 69.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
- DANR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.64%.
- The Earnings Per Share has been growing by 28.71% on average over the past years. This is a very strong growth
- Looking at the last year, DANR shows a decrease in Revenue. The Revenue has decreased by -1.69% in the last year.
- Measured over the past years, DANR shows a quite strong growth in Revenue. The Revenue has been growing by 12.43% on average per year.
EPS 1Y (TTM)-8.64%
EPS 3Y0.19%
EPS 5Y28.71%
EPS Q2Q%-33.44%
Revenue 1Y (TTM)-1.69%
Revenue growth 3Y7.06%
Revenue growth 5Y12.43%
Sales Q2Q%-2.53%
3.2 Future
- Based on estimates for the next years, DANR will show a small growth in Earnings Per Share. The EPS will grow by 5.84% on average per year.
- The Revenue is expected to grow by 2.19% on average over the next years.
EPS Next Y10.7%
EPS Next 2Y9.58%
EPS Next 3Y5.84%
EPS Next 5YN/A
Revenue Next Year0.07%
Revenue Next 2Y3.26%
Revenue Next 3Y2.19%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 14.94, DANR is valued correctly.
- Compared to the rest of the industry, the Price/Earnings ratio of DANR indicates a rather cheap valuation: DANR is cheaper than 81.74% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. DANR is valued slightly cheaper when compared to this.
- The Price/Forward Earnings ratio is 12.34, which indicates a correct valuation of DANR.
- Based on the Price/Forward Earnings ratio, DANR is valued a bit cheaper than 73.91% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. DANR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.94 | ||
| Fwd PE | 12.34 |
4.2 Price Multiples
- 71.30% of the companies in the same industry are cheaper than DANR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.38 | ||
| EV/EBITDA | -3.08 |
4.3 Compensation for Growth
- DANR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of DANR may justify a higher PE ratio.
PEG (NY)1.4
PEG (5Y)0.52
EPS Next 2Y9.58%
EPS Next 3Y5.84%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.49%, DANR is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.48, DANR is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.81, DANR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
5.2 History
- On average, the dividend of DANR grows each year by 23.78%, which is quite nice.
Dividend Growth(5Y)23.78%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- DANR pays out 8.87% of its income as dividend. This is a sustainable payout ratio.
- DANR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP8.87%
EPS Next 2Y9.58%
EPS Next 3Y5.84%
Danieli & C Officine Meccaniche SpA / DANR.MI FAQ
What is the fundamental rating for DANR stock?
ChartMill assigns a fundamental rating of 5 / 10 to DANR.MI.
Can you provide the valuation status for Danieli & C Officine Meccaniche SpA?
ChartMill assigns a valuation rating of 4 / 10 to Danieli & C Officine Meccaniche SpA (DANR.MI). This can be considered as Fairly Valued.
How profitable is Danieli & C Officine Meccaniche SpA (DANR.MI) stock?
Danieli & C Officine Meccaniche SpA (DANR.MI) has a profitability rating of 6 / 10.
What is the valuation of Danieli & C Officine Meccaniche SpA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for Danieli & C Officine Meccaniche SpA (DANR.MI) is 14.94 and the Price/Book (PB) ratio is 1.31.
What is the expected EPS growth for Danieli & C Officine Meccaniche SpA (DANR.MI) stock?
The Earnings per Share (EPS) of Danieli & C Officine Meccaniche SpA (DANR.MI) is expected to grow by 10.7% in the next year.