LU-VE SPA (LUVE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:LUVE - IT0005107492 - Common Stock
40.875 EUR
-0.27 (-0.67%)
We assign a fundamental rating of 5 out of 10 to LUVE. LUVE was compared to 22 industry peers in the Building Products industry. Both the profitability and the financial health of LUVE get a neutral evaluation. Nothing too spectacular is happening here. LUVE is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year LUVE was profitable.
- In the past year LUVE had a positive cash flow from operations.
- LUVE had positive earnings in each of the past 5 years.
- In the past 5 years LUVE always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 5.05%, LUVE is in line with its industry, outperforming 54.55% of the companies in the same industry.
- LUVE has a Return On Equity of 17.62%. This is in the better half of the industry: LUVE outperforms 77.27% of its industry peers.
- LUVE has a Return On Invested Capital of 10.08%. This is in the better half of the industry: LUVE outperforms 77.27% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for LUVE is below the industry average of 10.48%.
- The last Return On Invested Capital (10.08%) for LUVE is above the 3 year average (6.87%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.05% | ||
| ROE | 17.62% | ||
| ROIC | 10.08% |
ROA(3y)4.53%
ROA(5y)3.71%
ROE(3y)16.74%
ROE(5y)14.22%
ROIC(3y)6.87%
ROIC(5y)5.99%
1.3 Margins
- The Profit Margin of LUVE (5.24%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of LUVE has grown nicely.
- LUVE's Operating Margin of 8.54% is in line compared to the rest of the industry. LUVE outperforms 50.00% of its industry peers.
- LUVE's Operating Margin has improved in the last couple of years.
- LUVE has a Gross Margin (42.65%) which is in line with its industry peers.
- LUVE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.54% | ||
| PM (TTM) | 5.24% | ||
| GM | 42.65% |
OM growth 3Y11.37%
OM growth 5Y4.3%
PM growth 3Y6.72%
PM growth 5Y5.54%
GM growth 3Y2.7%
GM growth 5Y1.21%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LUVE is still creating some value.
- Compared to 1 year ago, LUVE has about the same amount of shares outstanding.
- The number of shares outstanding for LUVE remains at a similar level compared to 5 years ago.
- LUVE has a better debt/assets ratio than last year.
2.2 Solvency
- LUVE has an Altman-Z score of 2.77. This is not the best score and indicates that LUVE is in the grey zone with still only limited risk for bankruptcy at the moment.
- LUVE has a Altman-Z score (2.77) which is in line with its industry peers.
- The Debt to FCF ratio of LUVE is 8.66, which is on the high side as it means it would take LUVE, 8.66 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of LUVE (8.66) is worse than 72.73% of its industry peers.
- LUVE has a Debt/Equity ratio of 1.19. This is a high value indicating a heavy dependency on external financing.
- LUVE's Debt to Equity ratio of 1.19 is on the low side compared to the rest of the industry. LUVE is outperformed by 86.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 8.66 | ||
| Altman-Z | 2.77 |
ROIC/WACC1.44
WACC7%
2.3 Liquidity
- A Current Ratio of 1.93 indicates that LUVE should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.93, LUVE belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
- LUVE has a Quick Ratio of 1.55. This is a normal value and indicates that LUVE is financially healthy and should not expect problems in meeting its short term obligations.
- LUVE has a Quick ratio of 1.55. This is amongst the best in the industry. LUVE outperforms 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
- The earnings per share for LUVE have decreased by -8.77% in the last year.
- Measured over the past years, LUVE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.41% on average per year.
- The Revenue has decreased by -1.71% in the past year.
- LUVE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.51% yearly.
EPS 1Y (TTM)-8.77%
EPS 3Y13.27%
EPS 5Y14.41%
EPS Q2Q%-16.26%
Revenue 1Y (TTM)-1.71%
Revenue growth 3Y6.13%
Revenue growth 5Y8.51%
Sales Q2Q%-0.51%
3.2 Future
- The Earnings Per Share is expected to grow by 13.20% on average over the next years. This is quite good.
- LUVE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.38% yearly.
EPS Next Y10.77%
EPS Next 2Y13.87%
EPS Next 3Y13.2%
EPS Next 5YN/A
Revenue Next Year2.84%
Revenue Next 2Y5.22%
Revenue Next 3Y5.68%
Revenue Next 5Y8.38%
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 stable.
- 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
- A Price/Earnings ratio of 20.14 indicates a rather expensive valuation of LUVE.
- LUVE's Price/Earnings ratio is a bit cheaper when compared to the industry. LUVE is cheaper than 63.64% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, LUVE is valued a bit cheaper.
- The Price/Forward Earnings ratio is 19.31, which indicates a rather expensive current valuation of LUVE.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of LUVE is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of LUVE to the average of the S&P500 Index (25.98), we can say LUVE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.14 | ||
| Fwd PE | 19.31 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as LUVE.
- Based on the Price/Free Cash Flow ratio, LUVE is valued a bit cheaper than 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.44 | ||
| EV/EBITDA | 8.86 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LUVE does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of LUVE may justify a higher PE ratio.
- LUVE's earnings are expected to grow with 13.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.87
PEG (5Y)1.4
EPS Next 2Y13.87%
EPS Next 3Y13.2%
5. Dividend
5.1 Amount
- With a yearly dividend of 1.00%, LUVE is not a good candidate for dividend investing.
- LUVE's Dividend Yield is slightly below the industry average, which is at 3.43.
- Compared to an average S&P500 Dividend Yield of 1.82, LUVE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
5.2 History
- The dividend of LUVE is nicely growing with an annual growth rate of 10.23%!
Dividend Growth(5Y)10.23%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 20.71% of the earnings are spent on dividend by LUVE. This is a low number and sustainable payout ratio.
- LUVE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP20.71%
EPS Next 2Y13.87%
EPS Next 3Y13.2%
LU-VE SPA / LUVE.MI FAQ
What is the ChartMill fundamental rating of LU-VE SPA (LUVE.MI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to LUVE.MI.
Can you provide the valuation status for LU-VE SPA?
ChartMill assigns a valuation rating of 4 / 10 to LU-VE SPA (LUVE.MI). This can be considered as Fairly Valued.
How profitable is LU-VE SPA (LUVE.MI) stock?
LU-VE SPA (LUVE.MI) has a profitability rating of 6 / 10.
Can you provide the financial health for LUVE stock?
The financial health rating of LU-VE SPA (LUVE.MI) is 4 / 10.
Can you provide the expected EPS growth for LUVE stock?
The Earnings per Share (EPS) of LU-VE SPA (LUVE.MI) is expected to grow by 10.77% in the next year.