MAGIS SPA/CERRETO GUIDI (MGS.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:MGS - IT0005525347 - Common Stock
9.45 EUR
+0.1 (+1.07%)
Taking everything into account, MGS scores 5 out of 10 in our fundamental rating. MGS was compared to 71 industry peers in the Chemicals industry. While MGS has a great profitability rating, there are some minor concerns on its financial health. MGS has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- MGS had positive earnings in the past year.
- MGS had a positive operating cash flow in the past year.
- MGS had positive earnings in each of the past 5 years.
- Of the past 5 years MGS 4 years had a positive operating cash flow.
1.2 Ratios
- MGS has a better Return On Assets (8.23%) than 80.28% of its industry peers.
- The Return On Equity of MGS (13.24%) is better than 71.83% of its industry peers.
- MGS has a Return On Invested Capital of 13.16%. This is amongst the best in the industry. MGS outperforms 90.14% of its industry peers.
- MGS had an Average Return On Invested Capital over the past 3 years of 19.33%. This is significantly above the industry average of 7.19%.
- The 3 year average ROIC (19.33%) for MGS is well above the current ROIC(13.16%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.23% | ||
| ROE | 13.24% | ||
| ROIC | 13.16% |
ROA(3y)11.57%
ROA(5y)8.59%
ROE(3y)21.69%
ROE(5y)18.63%
ROIC(3y)19.33%
ROIC(5y)15.58%
1.3 Margins
- MGS's Profit Margin of 7.47% is fine compared to the rest of the industry. MGS outperforms 67.61% of its industry peers.
- In the last couple of years the Profit Margin of MGS has grown nicely.
- MGS's Operating Margin of 10.43% is fine compared to the rest of the industry. MGS outperforms 69.01% of its industry peers.
- MGS's Operating Margin has improved in the last couple of years.
- The Gross Margin of MGS (28.54%) is worse than 60.56% of its industry peers.
- MGS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.43% | ||
| PM (TTM) | 7.47% | ||
| GM | 28.54% |
OM growth 3Y18.76%
OM growth 5YN/A
PM growth 3Y27.62%
PM growth 5YN/A
GM growth 3Y5.65%
GM growth 5YN/A
2. Health
2.1 Basic Checks
- MGS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for MGS has been increased compared to 1 year ago.
- Compared to 1 year ago, MGS has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.63 indicates that MGS is not in any danger for bankruptcy at the moment.
- MGS's Altman-Z score of 3.63 is fine compared to the rest of the industry. MGS outperforms 70.42% of its industry peers.
- MGS has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of MGS (0.04) is better than 90.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.63 |
ROIC/WACC1.75
WACC7.52%
2.3 Liquidity
- A Current Ratio of 1.86 indicates that MGS should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.86, MGS perfoms like the industry average, outperforming 57.75% of the companies in the same industry.
- A Quick Ratio of 1.17 indicates that MGS should not have too much problems paying its short term obligations.
- MGS's Quick ratio of 1.17 is in line compared to the rest of the industry. MGS outperforms 56.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
- The earnings per share for MGS have decreased strongly by -31.54% in the last year.
- The Earnings Per Share has been growing by 8.31% on average over the past years. This is quite good.
- MGS shows a decrease in Revenue. In the last year, the revenue decreased by -2.52%.
- The Revenue has been growing slightly by 4.47% on average over the past years.
EPS 1Y (TTM)-31.54%
EPS 3Y8.31%
EPS 5YN/A
EPS Q2Q%-66.65%
Revenue 1Y (TTM)-2.52%
Revenue growth 3Y4.47%
Revenue growth 5YN/A
Sales Q2Q%-4.78%
3.2 Future
- The Earnings Per Share is expected to decrease by -12.96% on average over the next years. This is quite bad
- Based on estimates for the next years, MGS will show a small growth in Revenue. The Revenue will grow by 1.16% on average per year.
EPS Next Y-65.33%
EPS Next 2Y-30.06%
EPS Next 3Y-17.71%
EPS Next 5Y-12.96%
Revenue Next Year-7.43%
Revenue Next 2Y-1.29%
Revenue Next 3Y0.77%
Revenue Next 5Y1.16%
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 decreasing.
- 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
- A Price/Earnings ratio of 8.92 indicates a reasonable valuation of MGS.
- Based on the Price/Earnings ratio, MGS is valued cheaper than 94.37% of the companies in the same industry.
- MGS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.25.
- Based on the Price/Forward Earnings ratio of 11.84, the valuation of MGS can be described as reasonable.
- Based on the Price/Forward Earnings ratio, MGS is valued cheaply inside the industry as 87.32% of the companies are valued more expensively.
- MGS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.92 | ||
| Fwd PE | 11.84 |
4.2 Price Multiples
- MGS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MGS is cheaper than 97.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.95 |
4.3 Compensation for Growth
- The excellent profitability rating of MGS may justify a higher PE ratio.
- MGS's earnings are expected to decrease with -17.71% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-30.06%
EPS Next 3Y-17.71%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 9.53%, MGS is a good candidate for dividend investing.
- The stock price of MGS dropped by -31.02% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- MGS's Dividend Yield is rather good when compared to the industry average which is at 2.45. MGS pays more dividend than 100.00% of the companies in the same industry.
- MGS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.53% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y-30.06%
EPS Next 3Y-17.71%
MAGIS SPA/CERRETO GUIDI / MGS.MI FAQ
What is the ChartMill fundamental rating of MAGIS SPA/CERRETO GUIDI (MGS.MI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to MGS.MI.
Can you provide the valuation status for MAGIS SPA/CERRETO GUIDI?
ChartMill assigns a valuation rating of 6 / 10 to MAGIS SPA/CERRETO GUIDI (MGS.MI). This can be considered as Fairly Valued.
What is the profitability of MGS stock?
MAGIS SPA/CERRETO GUIDI (MGS.MI) has a profitability rating of 8 / 10.
What is the expected EPS growth for MAGIS SPA/CERRETO GUIDI (MGS.MI) stock?
The Earnings per Share (EPS) of MAGIS SPA/CERRETO GUIDI (MGS.MI) is expected to decline by -65.33% in the next year.