ECOSUNTEK SPA (ECK.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:ECK - IT0005654766 - Common Stock
2.38 EUR
+0.02 (+0.85%)
Taking everything into account, ECK scores 4 out of 10 in our fundamental rating. ECK was compared to 22 industry peers in the Independent Power and Renewable Electricity Producers industry. There are concerns on the financial health of ECK while its profitability can be described as average. ECK is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year ECK was profitable.
- In the past year ECK has reported a negative cash flow from operations.
- ECK had positive earnings in each of the past 5 years.
- Of the past 5 years ECK 4 years had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 0.61%, ECK perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- With a decent Return On Equity value of 10.69%, ECK is doing good in the industry, outperforming 72.73% of the companies in the same industry.
- ECK has a Return On Invested Capital of 9.74%. This is amongst the best in the industry. ECK outperforms 90.91% of its industry peers.
- ECK had an Average Return On Invested Capital over the past 3 years of 14.64%. This is significantly above the industry average of 5.29%.
- The last Return On Invested Capital (9.74%) for ECK is well below the 3 year average (14.64%), which needs to be investigated, but indicates that ECK had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 10.69% | ||
| ROIC | 9.74% |
ROA(3y)1.48%
ROA(5y)1.25%
ROE(3y)23.35%
ROE(5y)19.85%
ROIC(3y)14.64%
ROIC(5y)10.17%
1.3 Margins
- ECK has a Profit Margin (0.21%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of ECK has grown nicely.
- ECK's Operating Margin of 1.91% is on the low side compared to the rest of the industry. ECK is outperformed by 68.18% of its industry peers.
- ECK's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 3.14%, ECK is doing worse than 63.64% of the companies in the same industry.
- ECK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.91% | ||
| PM (TTM) | 0.21% | ||
| GM | 3.14% |
OM growth 3Y18%
OM growth 5Y-9.64%
PM growth 3Y-34.02%
PM growth 5Y11.75%
GM growth 3Y20.35%
GM growth 5Y7.37%
2. Health
2.1 Basic Checks
- ECK has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for ECK remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, ECK has about the same amount of shares outstanding.
- ECK has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.24 indicates that ECK is not in any danger for bankruptcy at the moment.
- ECK's Altman-Z score of 3.24 is amongst the best of the industry. ECK outperforms 86.36% of its industry peers.
- ECK has a Debt/Equity ratio of 3.69. This is a high value indicating a heavy dependency on external financing.
- ECK's Debt to Equity ratio of 3.69 is on the low side compared to the rest of the industry. ECK is outperformed by 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.69 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.24 |
ROIC/WACC1.91
WACC5.09%
2.3 Liquidity
- A Current Ratio of 1.09 indicates that ECK should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.09, ECK is doing worse than 77.27% of the companies in the same industry.
- ECK has a Quick Ratio of 1.08. This is a normal value and indicates that ECK is financially healthy and should not expect problems in meeting its short term obligations.
- ECK's Quick ratio of 1.08 is on the low side compared to the rest of the industry. ECK is outperformed by 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
- ECK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.19%.
- ECK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.62% yearly.
- The Revenue has grown by 50.58% in the past year. This is a very strong growth!
- ECK shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 55.21% yearly.
EPS 1Y (TTM)-16.19%
EPS 3Y4.62%
EPS 5YN/A
EPS Q2Q%152.66%
Revenue 1Y (TTM)50.58%
Revenue growth 3Y57.45%
Revenue growth 5Y55.21%
Sales Q2Q%81.43%
3.2 Future
- Based on estimates for the next years, ECK will show a very negative growth in Earnings Per Share. The EPS will decrease by -57.47% on average per year.
- The Revenue is expected to grow by 36.39% on average over the next years. This is a very strong growth
EPS Next Y-95.63%
EPS Next 2Y-75.02%
EPS Next 3Y-57.47%
EPS Next 5YN/A
Revenue Next Year119.26%
Revenue Next 2Y56.85%
Revenue Next 3Y36.39%
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.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 26.44, which means the current valuation is very expensive for ECK.
- ECK's Price/Earnings ratio is in line with the industry average.
- ECK is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 14.20, the valuation of ECK can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ECK indicates a somewhat cheap valuation: ECK is cheaper than 72.73% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, ECK is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.44 | ||
| Fwd PE | 14.2 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ECK indicates a rather cheap valuation: ECK is cheaper than 95.45% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.44 |
4.3 Compensation for Growth
- The decent profitability rating of ECK may justify a higher PE ratio.
- A cheap valuation may be justified as ECK's earnings are expected to decrease with -57.47% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-75.02%
EPS Next 3Y-57.47%
5. Dividend
5.1 Amount
- No dividends for ECK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ECOSUNTEK SPA / ECK.MI FAQ
Can you provide the ChartMill fundamental rating for ECOSUNTEK SPA?
ChartMill assigns a fundamental rating of 4 / 10 to ECK.MI.
Can you provide the valuation status for ECOSUNTEK SPA?
ChartMill assigns a valuation rating of 3 / 10 to ECOSUNTEK SPA (ECK.MI). This can be considered as Overvalued.
Can you provide the profitability details for ECOSUNTEK SPA?
ECOSUNTEK SPA (ECK.MI) has a profitability rating of 6 / 10.
Can you provide the financial health for ECK stock?
The financial health rating of ECOSUNTEK SPA (ECK.MI) is 3 / 10.