GROWENS SPA (GROW.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:GROW - IT0005040354 - Common Stock
2.77 EUR
0 (0%)
Taking everything into account, GROW scores 3 out of 10 in our fundamental rating. GROW was compared to 114 industry peers in the Software industry. While GROW seems to be doing ok healthwise, there are quite some concerns on its profitability. GROW is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year GROW has reported negative net income.
- GROW had a negative operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: GROW reported negative net income in multiple years.
- In multiple years GROW reported negative operating cash flow during the last 5 years.
1.2 Ratios
- GROW has a Return On Assets of -5.31%. This is in the lower half of the industry: GROW underperforms 71.05% of its industry peers.
- GROW has a Return On Equity of -9.78%. This is in the lower half of the industry: GROW underperforms 67.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.31% | ||
| ROE | -9.78% | ||
| ROIC | N/A |
ROA(3y)20.87%
ROA(5y)12.86%
ROE(3y)26.81%
ROE(5y)17.18%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- GROW's Gross Margin of 24.47% is on the low side compared to the rest of the industry. GROW is outperformed by 80.70% of its industry peers.
- GROW's Gross Margin has declined in the last couple of years.
- The Profit Margin and Operating Margin are not available for GROW so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 24.47% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-9.85%
GM growth 5Y-2.53%
2. Health
2.1 Basic Checks
- GROW does not have a ROIC to compare to the WACC, probably because it is not profitable.
- Compared to 1 year ago, GROW has about the same amount of shares outstanding.
- The number of shares outstanding for GROW has been reduced compared to 5 years ago.
- Compared to 1 year ago, GROW has a worse debt to assets ratio.
2.2 Solvency
- GROW has an Altman-Z score of 2.90. This is not the best score and indicates that GROW is in the grey zone with still only limited risk for bankruptcy at the moment.
- GROW's Altman-Z score of 2.90 is in line compared to the rest of the industry. GROW outperforms 51.75% of its industry peers.
- A Debt/Equity ratio of 0.05 indicates that GROW is not too dependend on debt financing.
- GROW has a Debt to Equity ratio of 0.05. This is in the better half of the industry: GROW outperforms 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.9 |
ROIC/WACCN/A
WACC8.44%
2.3 Liquidity
- A Current Ratio of 1.44 indicates that GROW should not have too much problems paying its short term obligations.
- GROW's Current ratio of 1.44 is in line compared to the rest of the industry. GROW outperforms 50.00% of its industry peers.
- A Quick Ratio of 1.44 indicates that GROW should not have too much problems paying its short term obligations.
- GROW has a Quick ratio of 1.44. This is comparable to the rest of the industry: GROW outperforms 51.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
- The earnings per share for GROW have decreased strongly by -104.98% in the last year.
- Looking at the last year, GROW shows a decrease in Revenue. The Revenue has decreased by -3.41% in the last year.
- The Revenue has been growing slightly by 4.14% on average over the past years.
EPS 1Y (TTM)-104.98%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-30.28%
Revenue 1Y (TTM)-3.41%
Revenue growth 3Y1.48%
Revenue growth 5Y4.14%
Sales Q2Q%-1.99%
3.2 Future
- GROW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.04% yearly.
- Based on estimates for the next years, GROW will show a small growth in Revenue. The Revenue will grow by 2.36% on average per year.
EPS Next Y56.25%
EPS Next 2Y47.9%
EPS Next 3Y31.04%
EPS Next 5YN/A
Revenue Next Year-2.7%
Revenue Next 2Y0.88%
Revenue Next 3Y2.36%
Revenue Next 5YN/A
3.3 Evolution
- 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
- The Price/Earnings Ratio is negative for GROW. In the last year negative earnings were reported.
- Based on the Price/Forward Earnings ratio of 90.52, the valuation of GROW can be described as expensive.
- 63.16% of the companies in the same industry are cheaper than GROW, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, GROW is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 90.52 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GROW indicates a slightly more expensive valuation: GROW is more expensive than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 80.61 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- GROW's earnings are expected to grow with 31.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y47.9%
EPS Next 3Y31.04%
5. Dividend
5.1 Amount
- GROW has a Yearly Dividend Yield of 13.15%, which is a nice return.
- GROW's Dividend Yield is rather good when compared to the industry average which is at 0.68. GROW pays more dividend than 100.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, GROW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.15% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- The earnings of GROW are negative and hence is the payout ratio. GROW will probably not be able to sustain this dividend level.
DP-358.76%
EPS Next 2Y47.9%
EPS Next 3Y31.04%
GROWENS SPA / GROW.MI FAQ
What is the fundamental rating for GROW stock?
ChartMill assigns a fundamental rating of 3 / 10 to GROW.MI.
What is the valuation status of GROWENS SPA (GROW.MI) stock?
ChartMill assigns a valuation rating of 1 / 10 to GROWENS SPA (GROW.MI). This can be considered as Overvalued.
Can you provide the profitability details for GROWENS SPA?
GROWENS SPA (GROW.MI) has a profitability rating of 1 / 10.
What is the earnings growth outlook for GROWENS SPA?
The Earnings per Share (EPS) of GROWENS SPA (GROW.MI) is expected to grow by 56.25% in the next year.