PIAGGIO & C. S.P.A. (PIA.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:PIA - IT0003073266 - Common Stock
1.778 EUR
0 (-0.11%)
We assign a fundamental rating of 4 out of 10 to PIA. PIA was compared to 32 industry peers in the Automobiles industry. While PIA belongs to the best of the industry regarding profitability, there are concerns on its financial health. PIA has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- PIA had positive earnings in the past year.
- PIA had a positive operating cash flow in the past year.
- In the past 5 years PIA has always been profitable.
- PIA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- PIA has a Return On Assets (2.34%) which is comparable to the rest of the industry.
- The Return On Equity of PIA (11.04%) is better than 87.50% of its industry peers.
- The Return On Invested Capital of PIA (6.98%) is better than 84.38% of its industry peers.
- PIA had an Average Return On Invested Capital over the past 3 years of 10.61%. This is above the industry average of 6.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.34% | ||
| ROE | 11.04% | ||
| ROIC | 6.98% |
ROA(3y)4.26%
ROA(5y)3.59%
ROE(3y)19.42%
ROE(5y)16.31%
ROIC(3y)10.61%
ROIC(5y)8.94%
1.3 Margins
- PIA's Profit Margin of 2.89% is in line compared to the rest of the industry. PIA outperforms 59.38% of its industry peers.
- In the last couple of years the Profit Margin of PIA has grown nicely.
- With an excellent Operating Margin value of 7.30%, PIA belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
- PIA's Operating Margin has improved in the last couple of years.
- PIA has a Gross Margin of 38.05%. This is amongst the best in the industry. PIA outperforms 84.38% of its industry peers.
- PIA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.3% | ||
| PM (TTM) | 2.89% | ||
| GM | 38.05% |
OM growth 3Y8.22%
OM growth 5Y3.57%
PM growth 3Y3.16%
PM growth 5Y5.16%
GM growth 3Y1.33%
GM growth 5Y-0.36%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PIA is creating some value.
- Compared to 1 year ago, PIA has about the same amount of shares outstanding.
- The number of shares outstanding for PIA has been reduced compared to 5 years ago.
- Compared to 1 year ago, PIA has a worse debt to assets ratio.
2.2 Solvency
- PIA has an Altman-Z score of 1.28. This is a bad value and indicates that PIA is not financially healthy and even has some risk of bankruptcy.
- PIA has a Altman-Z score (1.28) which is comparable to the rest of the industry.
- PIA has a Debt/Equity ratio of 1.56. This is a high value indicating a heavy dependency on external financing.
- PIA's Debt to Equity ratio of 1.56 is on the low side compared to the rest of the industry. PIA is outperformed by 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.28 |
ROIC/WACC0.96
WACC7.28%
2.3 Liquidity
- A Current Ratio of 0.78 indicates that PIA may have some problems paying its short term obligations.
- PIA's Current ratio of 0.78 is on the low side compared to the rest of the industry. PIA is outperformed by 87.50% of its industry peers.
- A Quick Ratio of 0.40 indicates that PIA may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.40, PIA is doing worse than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
- PIA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -45.46%.
- The Earnings Per Share has been growing slightly by 7.71% on average over the past years.
- Looking at the last year, PIA shows a very negative growth in Revenue. The Revenue has decreased by -10.26% in the last year.
- PIA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.26% yearly.
EPS 1Y (TTM)-45.46%
EPS 3Y4.11%
EPS 5Y7.71%
EPS Q2Q%-84.56%
Revenue 1Y (TTM)-10.26%
Revenue growth 3Y0.65%
Revenue growth 5Y2.26%
Sales Q2Q%-4.11%
3.2 Future
- Based on estimates for the next years, PIA will show a small growth in Earnings Per Share. The EPS will grow by 0.06% on average per year.
- Based on estimates for the next years, PIA will show a small growth in Revenue. The Revenue will grow by 0.23% on average per year.
EPS Next Y-43.36%
EPS Next 2Y-8.6%
EPS Next 3Y0.06%
EPS Next 5YN/A
Revenue Next Year-9.01%
Revenue Next 2Y-2.16%
Revenue Next 3Y-0.31%
Revenue Next 5Y0.23%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 17.78, the valuation of PIA can be described as rather expensive.
- The rest of the industry has a similar Price/Earnings ratio as PIA.
- PIA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.25.
- With a Price/Forward Earnings ratio of 11.19, the valuation of PIA can be described as very reasonable.
- PIA's Price/Forward Earnings ratio is in line with the industry average.
- PIA'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 | 17.78 | ||
| Fwd PE | 11.19 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PIA is valued a bit cheaper than the industry average as 71.88% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.07 |
4.3 Compensation for Growth
- The excellent profitability rating of PIA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.3
EPS Next 2Y-8.6%
EPS Next 3Y0.06%
5. Dividend
5.1 Amount
- PIA has a Yearly Dividend Yield of 8.38%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.74, PIA pays a better dividend. On top of this PIA pays more dividend than 96.88% of the companies listed in the same industry.
- PIA's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.38% |
5.2 History
- The dividend of PIA is nicely growing with an annual growth rate of 6.13%!
Dividend Growth(5Y)6.13%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- PIA pays out 121.22% of its income as dividend. This is not a sustainable payout ratio.
- PIA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP121.22%
EPS Next 2Y-8.6%
EPS Next 3Y0.06%
PIAGGIO & C. S.P.A. / PIA.MI FAQ
What is the fundamental rating for PIA stock?
ChartMill assigns a fundamental rating of 4 / 10 to PIA.MI.
What is the valuation status of PIAGGIO & C. S.P.A. (PIA.MI) stock?
ChartMill assigns a valuation rating of 4 / 10 to PIAGGIO & C. S.P.A. (PIA.MI). This can be considered as Fairly Valued.
What is the profitability of PIA stock?
PIAGGIO & C. S.P.A. (PIA.MI) has a profitability rating of 8 / 10.
What are the PE and PB ratios of PIAGGIO & C. S.P.A. (PIA.MI) stock?
The Price/Earnings (PE) ratio for PIAGGIO & C. S.P.A. (PIA.MI) is 17.78 and the Price/Book (PB) ratio is 1.54.
What is the earnings growth outlook for PIAGGIO & C. S.P.A.?
The Earnings per Share (EPS) of PIAGGIO & C. S.P.A. (PIA.MI) is expected to decline by -43.36% in the next year.