VERVE GROUP SE (M8G.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:M8G - SE0018538068 - Common Stock
3.772 EUR
+0.21 (+5.9%)
We assign a fundamental rating of 5 out of 10 to M8G. M8G was compared to 68 industry peers in the Media industry. M8G scores excellent on profitability, but there are concerns on its financial health. M8G is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
- M8G had positive earnings in the past year.
- In the past year M8G had a positive cash flow from operations.
- Of the past 5 years M8G 4 years were profitable.
- M8G had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 2.30%, M8G perfoms like the industry average, outperforming 50.70% of the companies in the same industry.
- With a Return On Equity value of 6.39%, M8G perfoms like the industry average, outperforming 50.70% of the companies in the same industry.
- M8G has a better Return On Invested Capital (6.61%) than 63.38% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for M8G is in line with the industry average of 7.53%.
- The 3 year average ROIC (5.86%) for M8G is below the current ROIC(6.61%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.3% | ||
| ROE | 6.39% | ||
| ROIC | 6.61% |
ROA(3y)1.66%
ROA(5y)1.5%
ROE(3y)4.45%
ROE(5y)4.06%
ROIC(3y)5.86%
ROIC(5y)4.68%
1.3 Margins
- The Profit Margin of M8G (6.59%) is better than 69.01% of its industry peers.
- M8G's Profit Margin has been stable in the last couple of years.
- Looking at the Operating Margin, with a value of 21.46%, M8G belongs to the top of the industry, outperforming 98.59% of the companies in the same industry.
- In the last couple of years the Operating Margin of M8G has grown nicely.
- M8G has a Gross Margin of 105.70%. This is amongst the best in the industry. M8G outperforms 94.37% of its industry peers.
- M8G's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.46% | ||
| PM (TTM) | 6.59% | ||
| GM | 105.71% |
OM growth 3Y22.31%
OM growth 5Y30.2%
PM growth 3Y1.14%
PM growth 5YN/A
GM growth 3Y-1.75%
GM growth 5Y-14.4%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so M8G is destroying value.
- The number of shares outstanding for M8G has been increased compared to 1 year ago.
- The number of shares outstanding for M8G has been increased compared to 5 years ago.
- The debt/assets ratio for M8G has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.37, we must say that M8G is in the distress zone and has some risk of bankruptcy.
- M8G's Altman-Z score of 1.37 is in line compared to the rest of the industry. M8G outperforms 46.48% of its industry peers.
- M8G has a debt to FCF ratio of 5.26. This is a neutral value as M8G would need 5.26 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 5.26, M8G perfoms like the industry average, outperforming 57.75% of the companies in the same industry.
- M8G has a Debt/Equity ratio of 1.10. This is a high value indicating a heavy dependency on external financing.
- M8G's Debt to Equity ratio of 1.10 is in line compared to the rest of the industry. M8G outperforms 43.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 5.26 | ||
| Altman-Z | 1.37 |
ROIC/WACC0.83
WACC7.94%
2.3 Liquidity
- M8G has a Current Ratio of 0.79. This is a bad value and indicates that M8G is not financially healthy enough and could expect problems in meeting its short term obligations.
- M8G has a Current ratio of 0.79. This is in the lower half of the industry: M8G underperforms 61.97% of its industry peers.
- M8G has a Quick Ratio of 0.79. This is a bad value and indicates that M8G is not financially healthy enough and could expect problems in meeting its short term obligations.
- M8G has a Quick ratio (0.79) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
- The earnings per share for M8G have decreased strongly by -39.31% in the last year.
- Measured over the past years, M8G shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.52% on average per year.
- The Revenue has grown by 35.72% in the past year. This is a very strong growth!
- The Revenue has been growing by 39.11% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-39.31%
EPS 3Y10.52%
EPS 5YN/A
EPS Q2Q%125%
Revenue 1Y (TTM)35.72%
Revenue growth 3Y20.12%
Revenue growth 5Y39.11%
Sales Q2Q%46.11%
3.2 Future
- The Earnings Per Share is expected to grow by 40.10% on average over the next years. This is a very strong growth
- Based on estimates for the next years, M8G will show a quite strong growth in Revenue. The Revenue will grow by 13.98% on average per year.
EPS Next Y100%
EPS Next 2Y57.48%
EPS Next 3Y40.1%
EPS Next 5YN/A
Revenue Next Year24.8%
Revenue Next 2Y16.8%
Revenue Next 3Y13.98%
Revenue Next 5YN/A
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 accelerating.
- 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
- M8G is valuated rather expensively with a Price/Earnings ratio of 18.86.
- Compared to the rest of the industry, the Price/Earnings ratio of M8G is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 28.60. M8G is valued slightly cheaper when compared to this.
- The Price/Forward Earnings ratio is 9.34, which indicates a very decent valuation of M8G.
- M8G's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. M8G is cheaper than 77.46% of the companies in the same industry.
- M8G's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.86 | ||
| Fwd PE | 9.34 |
4.2 Price Multiples
- M8G's Enterprise Value to EBITDA is on the same level as the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of M8G indicates a somewhat cheap valuation: M8G is cheaper than 69.01% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.48 | ||
| EV/EBITDA | 7.34 |
4.3 Compensation for Growth
- M8G's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- M8G has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as M8G's earnings are expected to grow with 40.10% in the coming years.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y57.48%
EPS Next 3Y40.1%
5. Dividend
5.1 Amount
- No dividends for M8G!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
VERVE GROUP SE / M8G.DE FAQ
What is the fundamental rating for M8G stock?
ChartMill assigns a fundamental rating of 5 / 10 to M8G.DE.
What is the valuation status of VERVE GROUP SE (M8G.DE) stock?
ChartMill assigns a valuation rating of 6 / 10 to VERVE GROUP SE (M8G.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for VERVE GROUP SE?
VERVE GROUP SE (M8G.DE) has a profitability rating of 6 / 10.
What is the financial health of VERVE GROUP SE (M8G.DE) stock?
The financial health rating of VERVE GROUP SE (M8G.DE) is 2 / 10.