Eneti Inc (NETI) Stock Fundamental Analysis
NYSE:NETI - New York Stock Exchange, Inc. - MHY2294C1075 - Common Stock - Currency: USD
Taking everything into account, NETI scores 4 out of 10 in our fundamental rating. NETI was compared to 51 industry peers in the Construction & Engineering industry. Both the profitability and the financial health of NETI get a neutral evaluation. Nothing too spectacular is happening here. 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.
In the past year NETI had a positive cash flow from operations.
In multiple years NETI reported negative net income over the last 5 years.
Of the past 5 years NETI 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -4.76%, NETI is doing worse than 81.58% of the companies in the same industry.
With a Return On Equity value of -5.43%, NETI is not doing good in the industry: 73.68% of the companies in the same industry are doing better.
NETI's Return On Invested Capital of 1.17% is on the low side compared to the rest of the industry. NETI is outperformed by 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NETI is destroying value.
Compared to 1 year ago, NETI has less shares outstanding
The debt/assets ratio for NETI has been reduced compared to a year ago.
2.2 Solvency
NETI has an Altman-Z score of 0.65. This is a bad value and indicates that NETI is not financially healthy and even has some risk of bankruptcy.
NETI's Altman-Z score of 0.65 is on the low side compared to the rest of the industry. NETI is outperformed by 86.84% of its industry peers.
NETI has a debt to FCF ratio of 47.41. This is a negative value and a sign of low solvency as NETI would need 47.41 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 47.41, NETI is in line with its industry, outperforming 44.74% of the companies in the same industry.
NETI has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
NETI has a better Debt to Equity ratio (0.06) 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
A Current Ratio of 3.64 indicates that NETI has no problem at all paying its short term obligations.
NETI has a Current ratio of 3.64. This is amongst the best in the industry. NETI outperforms 94.74% of its industry peers.
A Quick Ratio of 3.50 indicates that NETI has no problem at all paying its short term obligations.
NETI's Quick ratio of 3.50 is amongst the best of the industry. NETI outperforms 94.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.64 | ||
| Quick Ratio | 3.5 |
3. Growth
3.1 Past
NETI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -170.27%.
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.
Measured over the past years, NETI shows a small growth in Revenue. The Revenue has been growing by 4.21% on average per year.
EPS 1Y (TTM)-170.27%
EPS 3Y-24.37%
EPS 5YN/A
EPS Q2Q%-49.47%
Revenue 1Y (TTM)-7.55%
Revenue growth 3Y-3.91%
Revenue growth 5Y4.21%
Sales Q2Q%-23.12%
3.2 Future
Based on estimates for the next years, NETI will show a decrease in Earnings Per Share. The EPS will decrease by -1.15% on average per year.
Based on estimates for the next years, NETI will show a quite strong growth in Revenue. The Revenue will grow by 11.96% on average per year.
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
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for NETI. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 28.12, NETI can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NETI indicates a slightly more expensive valuation: NETI is more expensive than 71.05% of the companies listed in the same industry.
NETI is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.50, which is the current average of the S&P500 Index.
| 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 the industry average as 63.16% of the companies are valued more expensively.
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
With a yearly dividend of 0.35%, NETI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.77, NETI pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.35, NETI pays less dividend than the S&P500 average, which is at 2.36.
| 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.
The dividend of NETI decreased 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%
11.33
+0.01 (+0.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners0.19%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap437.90M
Analysts86.67
Price Target15.61 (37.78%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
Yearly Dividend0.04
Dividend Growth(5Y)-27.26%
DP-4.27%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1690.22%
Min EPS beat(2)-3454.3%
Max EPS beat(2)73.86%
EPS beat(4)3
Avg EPS beat(4)-757.58%
Min EPS beat(4)-3454.3%
Max EPS beat(4)304.52%
EPS beat(8)6
Avg EPS beat(8)-354.96%
EPS beat(12)8
Avg EPS beat(12)-24.71%
EPS beat(16)9
Avg EPS beat(16)496.23%
Revenue beat(2)1
Avg Revenue beat(2)3.24%
Min Revenue beat(2)-0.52%
Max Revenue beat(2)6.99%
Revenue beat(4)3
Avg Revenue beat(4)13.71%
Min Revenue beat(4)-0.52%
Max Revenue beat(4)38.26%
Revenue beat(8)6
Avg Revenue beat(8)7.17%
Revenue beat(12)9
Avg Revenue beat(12)17.95%
Revenue beat(16)9
Avg Revenue beat(16)12.09%
PT rev (1m)2.57%
PT rev (3m)5.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)347.04%
EPS NY rev (1m)0%
EPS NY rev (3m)6.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 28.12 | ||
| P/S | 2.87 | ||
| P/FCF | 375.56 | ||
| P/OCF | 11.49 | ||
| P/B | 0.65 | ||
| P/tB | 0.66 | ||
| EV/EBITDA | 12.51 |
EPS(TTM)-1.04
EYN/A
EPS(NY)0.4
Fwd EY3.56%
FCF(TTM)0.03
FCFY0.27%
OCF(TTM)0.99
OCFY8.7%
SpS3.94
BVpS17.37
TBVpS17.26
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.76% | ||
| ROE | -5.43% | ||
| ROCE | 1.48% | ||
| ROIC | 1.17% | ||
| ROICexc | 1.31% | ||
| ROICexgc | 1.32% | ||
| OM | 7.08% | ||
| PM (TTM) | N/A | ||
| GM | 48.34% | ||
| FCFM | 0.76% |
ROA(3y)-20.64%
ROA(5y)-12%
ROE(3y)-76.16%
ROE(5y)-44.97%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y99.78%
ROICexcg growth 5YN/A
ROICexc growth 3Y99.32%
ROICexc growth 5YN/A
OM growth 3Y56.95%
OM growth 5YN/A
PM growth 3Y38.64%
PM growth 5YN/A
GM growth 3Y4.27%
GM growth 5Y5.39%
F-Score3
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 47.41 | ||
| Debt/EBITDA | 1.3 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 115.16% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.64 | ||
| Quick Ratio | 3.5 | ||
| Altman-Z | 0.65 |
F-Score3
WACC7.66%
ROIC/WACC0.15
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-170.27%
EPS 3Y-24.37%
EPS 5YN/A
EPS Q2Q%-49.47%
EPS Next Y-155.28%
EPS Next 2Y-61.65%
EPS Next 3Y-11.22%
EPS Next 5Y-1.15%
Revenue 1Y (TTM)-7.55%
Revenue growth 3Y-3.91%
Revenue growth 5Y4.21%
Sales Q2Q%-23.12%
Revenue Next Year-27.92%
Revenue Next 2Y-14%
Revenue Next 3Y11.84%
Revenue Next 5Y11.96%
EBIT growth 1Y-43.33%
EBIT growth 3Y50.82%
EBIT growth 5YN/A
EBIT Next Year-20.87%
EBIT Next 3Y57.9%
EBIT Next 5Y44.83%
FCF growth 1Y1357.5%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y106.59%
OCF growth 3Y23.14%
OCF growth 5Y26.43%