INDUSTRIE DE NORA SPA (DNR.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:DNR - IT0005186371 - Common Stock
7.428 EUR
-0.09 (-1.26%)
We assign a fundamental rating of 5 out of 10 to DNR. DNR was compared to 111 industry peers in the Machinery industry. DNR has only an average score on both its financial health and profitability. DNR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- DNR had positive earnings in the past year.
- In the past year DNR had a positive cash flow from operations.
- Each year in the past 5 years DNR has been profitable.
- Of the past 5 years DNR 4 years had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 6.69%, DNR is doing good in the industry, outperforming 79.28% of the companies in the same industry.
- DNR's Return On Equity of 9.67% is in line compared to the rest of the industry. DNR outperforms 59.46% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 9.10%, DNR is in the better half of the industry, outperforming 72.07% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for DNR is in line with the industry average of 9.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.69% | ||
| ROE | 9.67% | ||
| ROIC | 9.1% |
ROA(3y)10.03%
ROA(5y)8.22%
ROE(3y)15.44%
ROE(5y)13.82%
ROIC(3y)9.33%
ROIC(5y)9.82%
1.3 Margins
- Looking at the Profit Margin, with a value of 10.21%, DNR belongs to the top of the industry, outperforming 80.18% of the companies in the same industry.
- In the last couple of years the Profit Margin of DNR has grown nicely.
- DNR has a Operating Margin of 14.52%. This is amongst the best in the industry. DNR outperforms 81.08% of its industry peers.
- DNR's Operating Margin has improved in the last couple of years.
- DNR has a Gross Margin (43.19%) which is in line with its industry peers.
- DNR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.52% | ||
| PM (TTM) | 10.21% | ||
| GM | 43.19% |
OM growth 3Y-4.58%
OM growth 5Y6.3%
PM growth 3Y-3.72%
PM growth 5Y10.98%
GM growth 3Y-0.95%
GM growth 5Y-1.81%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DNR is destroying value.
- The number of shares outstanding for DNR has been reduced compared to 1 year ago.
- Compared to 5 years ago, DNR has more shares outstanding
- DNR has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.73 indicates that DNR is not a great score, but indicates only limited risk for bankruptcy at the moment.
- DNR has a Altman-Z score of 2.73. This is comparable to the rest of the industry: DNR outperforms 59.46% of its industry peers.
- The Debt to FCF ratio of DNR is 4.59, which is a neutral value as it means it would take DNR, 4.59 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of DNR (4.59) is comparable to the rest of the industry.
- DNR has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of DNR (0.14) is better than 75.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 4.59 | ||
| Altman-Z | 2.73 |
ROIC/WACC0.96
WACC9.52%
2.3 Liquidity
- DNR has a Current Ratio of 2.94. This indicates that DNR is financially healthy and has no problem in meeting its short term obligations.
- DNR has a Current ratio of 2.94. This is amongst the best in the industry. DNR outperforms 86.49% of its industry peers.
- A Quick Ratio of 1.94 indicates that DNR should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.94, DNR belongs to the top of the industry, outperforming 88.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.94 | ||
| Quick Ratio | 1.94 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 9.00% over the past year.
- DNR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.83% yearly.
- The Revenue has been growing slightly by 7.83% in the past year.
- Measured over the past years, DNR shows a quite strong growth in Revenue. The Revenue has been growing by 11.29% on average per year.
EPS 1Y (TTM)9%
EPS 3Y8.2%
EPS 5Y23.83%
EPS Q2Q%93.55%
Revenue 1Y (TTM)7.83%
Revenue growth 3Y11.89%
Revenue growth 5Y11.29%
Sales Q2Q%7.4%
3.2 Future
- DNR is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.00% yearly.
- Based on estimates for the next years, DNR will show a small growth in Revenue. The Revenue will grow by 1.06% on average per year.
EPS Next Y4.69%
EPS Next 2Y-6%
EPS Next 3Y0.25%
EPS Next 5Y-1%
Revenue Next Year2.22%
Revenue Next 2Y-1.35%
Revenue Next 3Y1.13%
Revenue Next 5Y1.06%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- DNR is valuated correctly with a Price/Earnings ratio of 16.15.
- Based on the Price/Earnings ratio, DNR is valued a bit cheaper than 73.87% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, DNR is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 19.92, the valuation of DNR can be described as rather expensive.
- DNR's Price/Forward Earnings is on the same level as the industry average.
- When comparing the Price/Forward Earnings ratio of DNR to the average of the S&P500 Index (25.83), we can say DNR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.15 | ||
| Fwd PE | 19.92 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DNR indicates a rather cheap valuation: DNR is cheaper than 93.69% of the companies listed in the same industry.
- 75.68% of the companies in the same industry are more expensive than DNR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.86 | ||
| EV/EBITDA | 2.03 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of DNR may justify a higher PE ratio.
PEG (NY)3.45
PEG (5Y)0.68
EPS Next 2Y-6%
EPS Next 3Y0.25%
5. Dividend
5.1 Amount
- DNR has a Yearly Dividend Yield of 1.35%.
- DNR's Dividend Yield is comparable with the industry average which is at 1.48.
- DNR's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 22.74% of the earnings are spent on dividend by DNR. This is a low number and sustainable payout ratio.
DP22.74%
EPS Next 2Y-6%
EPS Next 3Y0.25%
INDUSTRIE DE NORA SPA / DNR.MI FAQ
What is the ChartMill fundamental rating of INDUSTRIE DE NORA SPA (DNR.MI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to DNR.MI.
What is the valuation status for DNR stock?
ChartMill assigns a valuation rating of 5 / 10 to INDUSTRIE DE NORA SPA (DNR.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for INDUSTRIE DE NORA SPA?
INDUSTRIE DE NORA SPA (DNR.MI) has a profitability rating of 6 / 10.
What are the PE and PB ratios of INDUSTRIE DE NORA SPA (DNR.MI) stock?
The Price/Earnings (PE) ratio for INDUSTRIE DE NORA SPA (DNR.MI) is 16.15 and the Price/Book (PB) ratio is 0.4.
How sustainable is the dividend of INDUSTRIE DE NORA SPA (DNR.MI) stock?
The dividend rating of INDUSTRIE DE NORA SPA (DNR.MI) is 3 / 10 and the dividend payout ratio is 22.74%.