HIGH QUALITY FOOD SPA (HQF.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:HQF - IT0005450694 - Common Stock
0.61 EUR
+0.01 (+1.67%)
Taking everything into account, HQF scores 2 out of 10 in our fundamental rating. HQF was compared to 0 industry peers in the Unkown industry. HQF may be in some trouble as it scores bad on both profitability and health. HQF is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year HQF was profitable.
- In the past year HQF has reported a negative cash flow from operations.
- In multiple years HQF reported negative net income over the last 5 years.
- In the past 5 years HQF always reported negative operating cash flow.
1.2 Ratios
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.96% | ||
| ROE | 2.87% | ||
| ROIC | 3.9% |
ROA(3y)1.79%
ROA(5y)-1.15%
ROE(3y)5.42%
ROE(5y)-20.87%
ROIC(3y)4.93%
ROIC(5y)N/A
1.3 Margins
- In the last couple of years the Gross Margin of HQF has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.78% | ||
| PM (TTM) | 1.29% | ||
| GM | 22.88% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y29.59%
GM growth 5YN/A
2. Health
2.1 Basic Checks
- HQF has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for HQF remains at a similar level compared to 1 year ago.
- The debt/assets ratio for HQF is higher compared to a year ago.
2.2 Solvency
- HQF has an Altman-Z score of 1.72. This is a bad value and indicates that HQF is not financially healthy and even has some risk of bankruptcy.
- HQF has a Debt/Equity ratio of 0.57. This is a neutral value indicating HQF is somewhat dependend on debt financing.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.72 |
ROIC/WACC0.65
WACC6%
2.3 Liquidity
- A Current Ratio of 1.99 indicates that HQF should not have too much problems paying its short term obligations.
- HQF has a Quick Ratio of 1.10. This is a normal value and indicates that HQF is financially healthy and should not expect problems in meeting its short term obligations.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
- The earnings per share for HQF have decreased strongly by -58.69% in the last year.
- Looking at the last year, HQF shows a decrease in Revenue. The Revenue has decreased by -9.19% in the last year.
- The Revenue has been growing by 8.07% on average over the past years. This is quite good.
EPS 1Y (TTM)-58.69%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%20.79%
Revenue 1Y (TTM)-9.19%
Revenue growth 3Y8.07%
Revenue growth 5YN/A
Sales Q2Q%-3.49%
3.2 Future
- The Earnings Per Share is expected to grow by 13.71% on average over the next years. This is quite good.
- HQF is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.60% yearly.
EPS Next Y-37.5%
EPS Next 2Y10.27%
EPS Next 3Y30.79%
EPS Next 5Y13.71%
Revenue Next Year0%
Revenue Next 2Y2.35%
Revenue Next 3Y13.09%
Revenue Next 5Y8.6%
3.3 Evolution
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 30.50, the valuation of HQF can be described as expensive.
- HQF is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 5.64, the valuation of HQF can be described as very cheap.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, HQF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.5 | ||
| Fwd PE | 5.64 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.22 |
4.3 Compensation for Growth
- HQF's earnings are expected to grow with 30.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y10.27%
EPS Next 3Y30.79%
5. Dividend
5.1 Amount
- HQF does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
HIGH QUALITY FOOD SPA / HQF.MI FAQ
What is the fundamental rating for HQF stock?
ChartMill assigns a fundamental rating of 2 / 10 to HQF.MI.
What is the valuation status for HQF stock?
ChartMill assigns a valuation rating of 3 / 10 to HIGH QUALITY FOOD SPA (HQF.MI). This can be considered as Overvalued.
What is the profitability of HQF stock?
HIGH QUALITY FOOD SPA (HQF.MI) has a profitability rating of 1 / 10.
What is the earnings growth outlook for HIGH QUALITY FOOD SPA?
The Earnings per Share (EPS) of HIGH QUALITY FOOD SPA (HQF.MI) is expected to decline by -37.5% in the next year.