Eneti Inc (NETI)
MHY2294C1075 - Common Stock
We assign a fundamental rating of 4 out of 10 to NETI. NETI was compared to 43 industry peers in the Construction & Engineering industry. NETI has an average financial health and profitability rating. NETI is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year NETI has reported negative net income.
NETI had a positive operating cash flow in the past year.
In multiple years NETI reported negative net income over the last 5 years.
NETI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
NETI has a Return On Assets of -4.76%. This is amonst the worse of the industry: NETI underperforms 81.58% of its industry peers.
NETI has a Return On Equity of -5.43%. This is in the lower half of the industry: NETI underperforms 73.68% of its industry peers.
NETI has a worse Return On Invested Capital (1.17%) than 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.76% | ||
| ROE | -5.43% | ||
| ROIC | 1.17% |
ROA(3y)-20.64%
ROA(5y)-12%
ROE(3y)-76.16%
ROE(5y)-44.97%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
NETI's Profit Margin has improved in the last couple of years.
NETI has a Operating Margin of 7.08%. This is in the better half of the industry: NETI outperforms 73.68% of its industry peers.
In the last couple of years the Operating Margin of NETI has grown nicely.
NETI has a better Gross Margin (48.34%) than 86.84% of its industry peers.
NETI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.08% | ||
| PM (TTM) | N/A | ||
| GM | 48.34% |
OM growth 3Y56.95%
OM growth 5YN/A
PM growth 3Y38.64%
PM growth 5YN/A
GM growth 3Y4.27%
GM growth 5Y5.39%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NETI is destroying value.
NETI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for NETI has been increased compared to 5 years ago.
NETI has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.65, we must say that NETI is in the distress zone and has some risk of bankruptcy.
NETI has a worse Altman-Z score (0.65) than 86.84% of its industry peers.
The Debt to FCF ratio of NETI is 47.41, which is on the high side as it means it would take NETI, 47.41 years of fcf income to pay off all of its debts.
NETI's Debt to FCF ratio of 47.41 is in line compared to the rest of the industry. NETI outperforms 44.74% of its industry peers.
NETI has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of NETI (0.06) is better than 84.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 47.41 | ||
| Altman-Z | 0.65 |
ROIC/WACC0.15
WACC7.66%
2.3 Liquidity
NETI has a Current Ratio of 3.64. This indicates that NETI is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.64, NETI belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
A Quick Ratio of 3.50 indicates that NETI has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 3.50, NETI belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.64 | ||
| Quick Ratio | 3.5 |
3. Growth
3.1 Past
The earnings per share for NETI have decreased strongly by -170.27% in the last year.
Measured over the past years, NETI shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -24.37% on average per year.
Looking at the last year, NETI shows a decrease in Revenue. The Revenue has decreased by -7.55% in the last year.
NETI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.21% yearly.
EPS 1Y (TTM)-170.27%
EPS 3Y-24.37%
EPS 5YN/A
EPS growth Q2Q-49.47%
Revenue 1Y (TTM)-7.55%
Revenue growth 3Y-3.91%
Revenue growth 5Y4.21%
Revenue growth Q2Q-23.12%
3.2 Future
NETI is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.15% yearly.
NETI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.96% yearly.
EPS Next Y-155.28%
EPS Next 2Y-61.65%
EPS Next 3Y-11.22%
EPS Next 5Y-1.15%
Revenue Next Year-27.92%
Revenue Next 2Y-14%
Revenue Next 3Y11.84%
Revenue Next 5Y11.96%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for NETI. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 28.12, the valuation of NETI can be described as expensive.
Based on the Price/Forward Earnings ratio, NETI is valued a bit more expensive than 71.05% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.20. NETI is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 28.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NETI is valued a bit cheaper than 63.16% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as NETI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 375.56 | ||
| EV/EBITDA | 12.51 |
4.3 Compensation for Growth
A cheap valuation may be justified as NETI's earnings are expected to decrease with -11.22% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-61.65%
EPS Next 3Y-11.22%
5. Dividend
5.1 Amount
NETI has a yearly dividend return of 0.35%, which is pretty low.
Compared to an average industry Dividend Yield of 0.89, NETI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, NETI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
5.2 History
The dividend of NETI decreases each year by -27.26%.
NETI has been paying a dividend for over 5 years, so it has already some track record.
NETI has decreased its dividend recently.
Dividend Growth(5Y)-27.26%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
The earnings of NETI are negative and hence is the payout ratio. NETI will probably not be able to sustain this dividend level.
The Dividend Rate of NETI has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-4.27%
EPS Next 2Y-61.65%
EPS Next 3Y-11.22%
Eneti Inc
NYSE:NETI (12/28/2023, 7:04:01 PM)
After market: 11.33 0 (0%)11.33
+0.01 (+0.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap437.90M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 28.12 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.76% | ||
| ROE | -5.43% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.08% | ||
| PM (TTM) | N/A | ||
| GM | 48.34% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.64 | ||
| Quick Ratio | 3.5 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-170.27%
EPS 3Y-24.37%
EPS 5Y
EPS growth Q2Q
EPS Next Y-155.28%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.55%
Revenue growth 3Y-3.91%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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EBIT Next 3Y
EBIT Next 5Y
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