INNOVATEC SPA (INC.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:INC - IT0005412298 - Common Stock
0.2345 EUR
+0 (+0.43%)
Taking everything into account, INC scores 3 out of 10 in our fundamental rating. INC was compared to 75 industry peers in the Electrical Equipment industry. INC has a bad profitability rating. Also its financial health evaluation is rather negative. INC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- INC had negative earnings in the past year.
- In the past year INC had a positive cash flow from operations.
- INC had positive earnings in 4 of the past 5 years.
- INC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- INC has a Return On Assets of -13.05%. This is in the lower half of the industry: INC underperforms 74.67% of its industry peers.
- Looking at the Return On Equity, with a value of -98.27%, INC is doing worse than 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -13.05% | ||
| ROE | -98.27% | ||
| ROIC | N/A |
ROA(3y)0.36%
ROA(5y)1.03%
ROE(3y)-2.06%
ROE(5y)4.57%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- The Gross Margin of INC (33.59%) is comparable to the rest of the industry.
- INC's Gross Margin has improved in the last couple of years.
- INC does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 33.59% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.41%
GM growth 5Y5.98%
2. Health
2.1 Basic Checks
- INC does not have a ROIC to compare to the WACC, probably because it is not profitable.
- The number of shares outstanding for INC remains at a similar level compared to 1 year ago.
- INC has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, INC has an improved debt to assets ratio.
2.2 Solvency
- INC has an Altman-Z score of 1.50. This is a bad value and indicates that INC is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of INC (1.50) is worse than 64.00% of its industry peers.
- A Debt/Equity ratio of 0.38 indicates that INC is not too dependend on debt financing.
- INC has a Debt to Equity ratio of 0.38. This is in the better half of the industry: INC outperforms 61.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.5 |
ROIC/WACCN/A
WACC6.49%
2.3 Liquidity
- A Current Ratio of 0.98 indicates that INC may have some problems paying its short term obligations.
- INC has a worse Current ratio (0.98) than 82.67% of its industry peers.
- A Quick Ratio of 0.47 indicates that INC may have some problems paying its short term obligations.
- INC's Quick ratio of 0.47 is on the low side compared to the rest of the industry. INC is outperformed by 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
- The earnings per share for INC have decreased strongly by -785.11% in the last year.
- INC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -48.14%.
- Measured over the past years, INC shows a very strong growth in Revenue. The Revenue has been growing by 37.55% on average per year.
EPS 1Y (TTM)-785.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%61.54%
Revenue 1Y (TTM)-48.14%
Revenue growth 3Y15.33%
Revenue growth 5Y37.55%
Sales Q2Q%-89.43%
3.2 Future
- Based on estimates for the next years, INC will show a very strong growth in Earnings Per Share. The EPS will grow by 58.11% on average per year.
- INC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.42% yearly.
EPS Next Y70%
EPS Next 2Y58.11%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year17.27%
Revenue Next 2Y17.48%
Revenue Next 3Y12.42%
Revenue Next 5YN/A
3.3 Evolution
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- INC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- INC is valuated cheaply with a Price/Forward Earnings ratio of 0.93.
- Based on the Price/Forward Earnings ratio, INC is valued cheaper than 100.00% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, INC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 0.93 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, INC is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.26 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as INC's earnings are expected to grow with 58.11% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y58.11%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- INC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
INNOVATEC SPA / INC.MI FAQ
What is the fundamental rating for INC stock?
ChartMill assigns a fundamental rating of 3 / 10 to INC.MI.
What is the valuation status for INC stock?
ChartMill assigns a valuation rating of 5 / 10 to INNOVATEC SPA (INC.MI). This can be considered as Fairly Valued.
What is the profitability of INC stock?
INNOVATEC SPA (INC.MI) has a profitability rating of 2 / 10.
How financially healthy is INNOVATEC SPA?
The financial health rating of INNOVATEC SPA (INC.MI) is 2 / 10.