GENERALFINANCE SPA (GF.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:GF - IT0005144784 - Common Stock
24.05 EUR
-0.65 (-2.63%)
GF gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 60 industry peers in the Financial Services industry. GF scores excellent on profitability, but there are some minor concerns on its financial health. GF has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!
1. Profitability
1.1 Basic Checks
- In the past year GF was profitable.
- In the past year GF had a positive cash flow from operations.
- GF had positive earnings in each of the past 5 years.
- In multiple years GF reported negative operating cash flow during the last 5 years.
1.2 Ratios
- The Return On Assets of GF (4.89%) is better than 75.00% of its industry peers.
- GF's Return On Equity of 44.30% is amongst the best of the industry. GF outperforms 90.00% of its industry peers.
- GF has a Return On Invested Capital of 5.01%. This is in the better half of the industry: GF outperforms 65.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for GF is significantly below the industry average of 10.51%.
- The last Return On Invested Capital (5.01%) for GF is above the 3 year average (3.03%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.89% | ||
| ROE | 44.3% | ||
| ROIC | 5.01% |
ROA(3y)2.74%
ROA(5y)2.67%
ROE(3y)22.73%
ROE(5y)24.28%
ROIC(3y)3.03%
ROIC(5y)2.96%
1.3 Margins
- GF has a Profit Margin of 38.69%. This is amongst the best in the industry. GF outperforms 85.00% of its industry peers.
- In the last couple of years the Profit Margin of GF has grown nicely.
- With an excellent Operating Margin value of 58.11%, GF belongs to the best of the industry, outperforming 88.33% of the companies in the same industry.
- In the last couple of years the Operating Margin of GF has grown nicely.
- GF's Gross Margin of 90.12% is amongst the best of the industry. GF outperforms 95.00% of its industry peers.
- In the last couple of years the Gross Margin of GF has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 58.11% | ||
| PM (TTM) | 38.69% | ||
| GM | 90.12% |
OM growth 3Y4.07%
OM growth 5Y5.84%
PM growth 3Y4.03%
PM growth 5Y7.12%
GM growth 3Y0.97%
GM growth 5Y0.16%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GF is destroying value.
- GF has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, GF has about the same amount of shares outstanding.
- The debt/assets ratio for GF is higher compared to a year ago.
2.2 Solvency
- GF has an Altman-Z score of 0.89. This is a bad value and indicates that GF is not financially healthy and even has some risk of bankruptcy.
- GF has a Altman-Z score of 0.89. This is comparable to the rest of the industry: GF outperforms 41.67% of its industry peers.
- The Debt to FCF ratio of GF is 17.02, which is on the high side as it means it would take GF, 17.02 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 17.02, GF is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
- A Debt/Equity ratio of 4.63 is on the high side and indicates that GF has dependencies on debt financing.
- With a Debt to Equity ratio value of 4.63, GF is not doing good in the industry: 81.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.63 | ||
| Debt/FCF | 17.02 | ||
| Altman-Z | 0.89 |
ROIC/WACC0.73
WACC6.91%
2.3 Liquidity
- GF has a Current Ratio of 15.30. This indicates that GF is financially healthy and has no problem in meeting its short term obligations.
- GF has a Current ratio of 15.30. This is amongst the best in the industry. GF outperforms 95.00% of its industry peers.
- GF has a Quick Ratio of 15.30. This indicates that GF is financially healthy and has no problem in meeting its short term obligations.
- GF has a better Quick ratio (15.30) than 95.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 15.3 | ||
| Quick Ratio | 15.3 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 44.12% over the past year.
- Measured over the past years, GF shows a very strong growth in Earnings Per Share. The EPS has been growing by 38.19% on average per year.
- The Revenue has grown by 40.04% in the past year. This is a very strong growth!
- The Revenue has been growing by 29.00% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)44.12%
EPS 3Y30.68%
EPS 5Y38.19%
EPS Q2Q%54.31%
Revenue 1Y (TTM)40.04%
Revenue growth 3Y25.63%
Revenue growth 5Y29%
Sales Q2Q%47.74%
3.2 Future
- The Earnings Per Share is expected to grow by 18.83% on average over the next years. This is quite good.
- Based on estimates for the next years, GF will show a quite strong growth in Revenue. The Revenue will grow by 18.06% on average per year.
EPS Next Y40.62%
EPS Next 2Y20.8%
EPS Next 3Y18.83%
EPS Next 5YN/A
Revenue Next Year29.72%
Revenue Next 2Y20.83%
Revenue Next 3Y18.06%
Revenue Next 5YN/A
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
- GF is valuated reasonably with a Price/Earnings ratio of 8.38.
- Based on the Price/Earnings ratio, GF is valued a bit cheaper than 80.00% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. GF is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 10.00, the valuation of GF can be described as reasonable.
- Based on the Price/Forward Earnings ratio, GF is valued a bit cheaper than 63.33% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, GF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.38 | ||
| Fwd PE | 10 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GF indicates a somewhat cheap valuation: GF is cheaper than 65.00% of the companies listed in the same industry.
- GF's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.63 | ||
| EV/EBITDA | 10.59 |
4.3 Compensation for Growth
- GF's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- GF has an outstanding profitability rating, which may justify a higher PE ratio.
- GF's earnings are expected to grow with 18.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.21
PEG (5Y)0.22
EPS Next 2Y20.8%
EPS Next 3Y18.83%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.35%, GF has a reasonable but not impressive dividend return.
- GF's Dividend Yield is a higher than the industry average which is at 1.95.
- Compared to an average S&P500 Dividend Yield of 1.82, GF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 28.88% of the earnings are spent on dividend by GF. This is a low number and sustainable payout ratio.
DP28.88%
EPS Next 2Y20.8%
EPS Next 3Y18.83%
GENERALFINANCE SPA / GF.MI FAQ
Can you provide the ChartMill fundamental rating for GENERALFINANCE SPA?
ChartMill assigns a fundamental rating of 7 / 10 to GF.MI.
What is the valuation status of GENERALFINANCE SPA (GF.MI) stock?
ChartMill assigns a valuation rating of 7 / 10 to GENERALFINANCE SPA (GF.MI). This can be considered as Undervalued.
How profitable is GENERALFINANCE SPA (GF.MI) stock?
GENERALFINANCE SPA (GF.MI) has a profitability rating of 8 / 10.
What is the expected EPS growth for GENERALFINANCE SPA (GF.MI) stock?
The Earnings per Share (EPS) of GENERALFINANCE SPA (GF.MI) is expected to grow by 40.62% in the next year.
Is the dividend of GENERALFINANCE SPA sustainable?
The dividend rating of GENERALFINANCE SPA (GF.MI) is 5 / 10 and the dividend payout ratio is 28.88%.