EMAK SPA (EM.MI) Stock Fundamental Analysis
BIT:EM - Euronext Milan - IT0001237053 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to EM. EM was compared to 6 industry peers in the Household Durables industry. EM has an average financial health and profitability rating. EM may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
EM had positive earnings in the past year.
In the past year EM had a positive cash flow from operations.
Each year in the past 5 years EM has been profitable.
In the past 5 years EM always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.23%, EM is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
EM has a worse Return On Equity (5.69%) than 68.75% of its industry peers.
EM has a Return On Invested Capital of 7.30%. This is in the better half of the industry: EM outperforms 62.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EM is above the industry average of 3.37%.
The last Return On Invested Capital (7.30%) for EM is above the 3 year average (5.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.23% | ||
| ROE | 5.69% | ||
| ROIC | 7.3% |
ROA(3y)2.68%
ROA(5y)3.25%
ROE(3y)6.67%
ROE(5y)8.32%
ROIC(3y)5.51%
ROIC(5y)6.18%
1.3 Margins
The Profit Margin of EM (1.76%) is worse than 68.75% of its industry peers.
EM's Profit Margin has declined in the last couple of years.
The Operating Margin of EM (5.56%) is comparable to the rest of the industry.
EM's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 48.54%, EM is in the better half of the industry, outperforming 65.63% of the companies in the same industry.
EM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.56% | ||
| PM (TTM) | 1.76% | ||
| GM | 48.54% |
OM growth 3Y-19.36%
OM growth 5Y-3.12%
PM growth 3Y-44.28%
PM growth 5Y-20.36%
GM growth 3Y0.43%
GM growth 5Y0.61%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EM is still creating some value.
Compared to 1 year ago, EM has about the same amount of shares outstanding.
The number of shares outstanding for EM has been reduced compared to 5 years ago.
Compared to 1 year ago, EM has about the same debt to assets ratio.
2.2 Solvency
EM has an Altman-Z score of 2.49. This is not the best score and indicates that EM is in the grey zone with still only limited risk for bankruptcy at the moment.
EM's Altman-Z score of 2.49 is fine compared to the rest of the industry. EM outperforms 68.75% of its industry peers.
EM has a debt to FCF ratio of 325.91. This is a negative value and a sign of low solvency as EM would need 325.91 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 325.91, EM is doing worse than 65.63% of the companies in the same industry.
A Debt/Equity ratio of 0.65 indicates that EM is somewhat dependend on debt financing.
The Debt to Equity ratio of EM (0.65) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 325.91 | ||
| Altman-Z | 2.49 |
ROIC/WACC1.24
WACC5.88%
2.3 Liquidity
EM has a Current Ratio of 2.04. This indicates that EM is financially healthy and has no problem in meeting its short term obligations.
EM's Current ratio of 2.04 is fine compared to the rest of the industry. EM outperforms 78.13% of its industry peers.
A Quick Ratio of 1.00 indicates that EM may have some problems paying its short term obligations.
With a decent Quick ratio value of 1.00, EM is doing good in the industry, outperforming 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The earnings per share for EM have decreased strongly by -40.25% in the last year.
Measured over the past years, EM shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -14.92% on average per year.
EM shows a small growth in Revenue. In the last year, the Revenue has grown by 7.94%.
The Revenue has been growing slightly by 6.76% on average over the past years.
EPS 1Y (TTM)-40.25%
EPS 3Y-43.79%
EPS 5Y-14.92%
EPS Q2Q%44.42%
Revenue 1Y (TTM)7.94%
Revenue growth 3Y0.77%
Revenue growth 5Y6.76%
Sales Q2Q%13.06%
3.2 Future
Based on estimates for the next years, EM will show a very strong growth in Earnings Per Share. The EPS will grow by 31.18% on average per year.
The Revenue is expected to grow by 3.78% on average over the next years.
EPS Next Y34.29%
EPS Next 2Y33.63%
EPS Next 3Y31.18%
EPS Next 5YN/A
Revenue Next Year4.33%
Revenue Next 2Y4.16%
Revenue Next 3Y3.78%
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 accelerating.
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
EM is valuated reasonably with a Price/Earnings ratio of 8.77.
EM's Price/Earnings ratio is a bit cheaper when compared to the industry. EM is cheaper than 71.88% of the companies in the same industry.
EM is valuated cheaply when we compare the Price/Earnings ratio to 26.32, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.81, the valuation of EM can be described as very cheap.
Based on the Price/Forward Earnings ratio, EM is valued cheaper than 81.25% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EM to the average of the S&P500 Index (22.19), we can say EM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.77 | ||
| Fwd PE | 6.81 |
4.2 Price Multiples
EM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EM is cheaper than 78.13% of the companies in the same industry.
65.63% of the companies in the same industry are cheaper than EM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 169.54 | ||
| EV/EBITDA | 4.61 |
4.3 Compensation for Growth
EM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
EM's earnings are expected to grow with 31.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.26
PEG (5Y)N/A
EPS Next 2Y33.63%
EPS Next 3Y31.18%
5. Dividend
5.1 Amount
EM has a Yearly Dividend Yield of 2.83%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.55, EM has a dividend in line with its industry peers.
EM's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
5.2 History
The dividend of EM has a limited annual growth rate of 0.17%.
Dividend Growth(5Y)0.17%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
EM pays out 46.70% of its income as dividend. This is a bit on the high side, but may be sustainable.
EM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP46.7%
EPS Next 2Y33.63%
EPS Next 3Y31.18%
BIT:EM (6/18/2025, 12:44:45 PM)
0.877
+0 (+0.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners8.49%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap143.77M
Analysts84.44
Price Target1.48 (68.76%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
Yearly Dividend0.05
Dividend Growth(5Y)0.17%
DP46.7%
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)-16.07%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.77 | ||
| Fwd PE | 6.81 | ||
| P/S | 0.16 | ||
| P/FCF | 169.54 | ||
| P/OCF | 5.82 | ||
| P/B | 0.5 | ||
| P/tB | 0.77 | ||
| EV/EBITDA | 4.61 |
EPS(TTM)0.1
EY11.4%
EPS(NY)0.13
Fwd EY14.68%
FCF(TTM)0.01
FCFY0.59%
OCF(TTM)0.15
OCFY17.19%
SpS5.63
BVpS1.74
TBVpS1.14
PEG (NY)0.26
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.23% | ||
| ROE | 5.69% | ||
| ROCE | 10.41% | ||
| ROIC | 7.3% | ||
| ROICexc | 7.85% | ||
| ROICexgc | 10% | ||
| OM | 5.56% | ||
| PM (TTM) | 1.76% | ||
| GM | 48.54% | ||
| FCFM | 0.09% |
ROA(3y)2.68%
ROA(5y)3.25%
ROE(3y)6.67%
ROE(5y)8.32%
ROIC(3y)5.51%
ROIC(5y)6.18%
ROICexc(3y)6.58%
ROICexc(5y)7.59%
ROICexgc(3y)8.69%
ROICexgc(5y)10.3%
ROCE(3y)7.91%
ROCE(5y)8.86%
ROICexcg growth 3Y-25.8%
ROICexcg growth 5Y-4.07%
ROICexc growth 3Y-24.35%
ROICexc growth 5Y-3.05%
OM growth 3Y-19.36%
OM growth 5Y-3.12%
PM growth 3Y-44.28%
PM growth 5Y-20.36%
GM growth 3Y0.43%
GM growth 5Y0.61%
F-Score6
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 325.91 | ||
| Debt/EBITDA | 2.2 | ||
| Cap/Depr | 73.72% | ||
| Cap/Sales | 2.59% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 29.55% | ||
| Profit Quality | 5.23% | ||
| Current Ratio | 2.04 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 2.49 |
F-Score6
WACC5.88%
ROIC/WACC1.24
Cap/Depr(3y)75.55%
Cap/Depr(5y)71.77%
Cap/Sales(3y)3.86%
Cap/Sales(5y)3.5%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-40.25%
EPS 3Y-43.79%
EPS 5Y-14.92%
EPS Q2Q%44.42%
EPS Next Y34.29%
EPS Next 2Y33.63%
EPS Next 3Y31.18%
EPS Next 5YN/A
Revenue 1Y (TTM)7.94%
Revenue growth 3Y0.77%
Revenue growth 5Y6.76%
Sales Q2Q%13.06%
Revenue Next Year4.33%
Revenue Next 2Y4.16%
Revenue Next 3Y3.78%
Revenue Next 5YN/A
EBIT growth 1Y-4.67%
EBIT growth 3Y-18.74%
EBIT growth 5Y3.43%
EBIT Next Year119.36%
EBIT Next 3Y37.16%
EBIT Next 5YN/A
FCF growth 1Y-93.5%
FCF growth 3Y-12.04%
FCF growth 5Y-13.15%
OCF growth 1Y-32.8%
OCF growth 3Y3.36%
OCF growth 5Y-1.36%