POSTE ITALIANE SPA (PST.MI) Stock Fundamental Analysis
BIT:PST - Euronext Milan - IT0003796171 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to PST. PST was compared to 38 industry peers in the Insurance industry. While PST belongs to the best of the industry regarding profitability, there are concerns on its financial health. PST has a correct valuation and a medium growth rate. PST also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year PST was profitable.
In the past year PST had a positive cash flow from operations.
In the past 5 years PST has always been profitable.
PST had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.86%, PST perfoms like the industry average, outperforming 42.11% of the companies in the same industry.
Looking at the Return On Equity, with a value of 19.86%, PST belongs to the top of the industry, outperforming 86.84% of the companies in the same industry.
The Return On Invested Capital of PST (0.95%) is worse than 60.53% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PST is in line with the industry average of 2.14%.
The 3 year average ROIC (0.89%) for PST is below the current ROIC(0.95%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.86% | ||
| ROE | 19.86% | ||
| ROIC | 0.95% |
ROA(3y)0.68%
ROA(5y)0.61%
ROE(3y)18.66%
ROE(5y)16.11%
ROIC(3y)0.89%
ROIC(5y)0.76%
1.3 Margins
The Profit Margin of PST (15.25%) is better than 86.84% of its industry peers.
In the last couple of years the Profit Margin of PST has grown nicely.
PST has a Operating Margin of 21.13%. This is amongst the best in the industry. PST outperforms 86.84% of its industry peers.
In the last couple of years the Operating Margin of PST has grown nicely.
With an excellent Gross Margin value of 73.40%, PST belongs to the best of the industry, outperforming 97.37% of the companies in the same industry.
PST's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.13% | ||
| PM (TTM) | 15.25% | ||
| GM | 73.4% |
OM growth 3Y10.96%
OM growth 5Y31.66%
PM growth 3Y3.13%
PM growth 5Y30.15%
GM growth 3Y-2.09%
GM growth 5Y-5.18%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PST is destroying value.
Compared to 1 year ago, PST has about the same amount of shares outstanding.
Compared to 5 years ago, PST has less shares outstanding
PST has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.05, we must say that PST is in the distress zone and has some risk of bankruptcy.
PST's Altman-Z score of 0.05 is fine compared to the rest of the industry. PST outperforms 71.05% of its industry peers.
PST has a debt to FCF ratio of 49.73. This is a negative value and a sign of low solvency as PST would need 49.73 years to pay back of all of its debts.
The Debt to FCF ratio of PST (49.73) is worse than 76.32% of its industry peers.
A Debt/Equity ratio of 6.24 is on the high side and indicates that PST has dependencies on debt financing.
PST's Debt to Equity ratio of 6.24 is on the low side compared to the rest of the industry. PST is outperformed by 94.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.24 | ||
| Debt/FCF | 49.73 | ||
| Altman-Z | 0.05 |
ROIC/WACC0.28
WACC3.4%
2.3 Liquidity
PST has a Current Ratio of 0.56. This is a bad value and indicates that PST is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Current ratio value of 0.56, PST is doing good in the industry, outperforming 76.32% of the companies in the same industry.
PST has a Quick Ratio of 0.56. This is a bad value and indicates that PST is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Quick ratio value of 0.55, PST is doing good in the industry, outperforming 76.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.16% over the past year.
Measured over the past years, PST shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.38% on average per year.
The Revenue has been growing slightly by 6.59% in the past year.
PST shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -16.83% yearly.
EPS 1Y (TTM)30.16%
EPS 3Y14.03%
EPS 5Y8.38%
EPS Q2Q%22.4%
Revenue 1Y (TTM)6.59%
Revenue growth 3Y4.83%
Revenue growth 5Y-16.83%
Sales Q2Q%6.41%
3.2 Future
PST is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.50% yearly.
Based on estimates for the next years, PST will show a small growth in Revenue. The Revenue will grow by 2.54% on average per year.
EPS Next Y-8.04%
EPS Next 2Y-2.38%
EPS Next 3Y0.87%
EPS Next 5Y0.5%
Revenue Next Year3.73%
Revenue Next 2Y3.07%
Revenue Next 3Y2.89%
Revenue Next 5Y2.54%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
PST is valuated reasonably with a Price/Earnings ratio of 9.89.
PST's Price/Earnings ratio is rather cheap when compared to the industry. PST is cheaper than 81.58% of the companies in the same industry.
When comparing the Price/Earnings ratio of PST to the average of the S&P500 Index (25.82), we can say PST is valued rather cheaply.
The Price/Forward Earnings ratio is 10.90, which indicates a very decent valuation of PST.
The rest of the industry has a similar Price/Forward Earnings ratio as PST.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, PST is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.89 | ||
| Fwd PE | 10.9 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as PST.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.91 | ||
| EV/EBITDA | -7.56 |
4.3 Compensation for Growth
PST has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.18
EPS Next 2Y-2.38%
EPS Next 3Y0.87%
5. Dividend
5.1 Amount
PST has a Yearly Dividend Yield of 5.76%, which is a nice return.
Compared to an average industry Dividend Yield of 4.43, PST pays a better dividend. On top of this PST pays more dividend than 81.58% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, PST pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.76% |
5.2 History
On average, the dividend of PST grows each year by 10.13%, which is quite nice.
Dividend Growth(5Y)10.13%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
PST pays out 44.06% of its income as dividend. This is a bit on the high side, but may be sustainable.
PST's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP44.06%
EPS Next 2Y-2.38%
EPS Next 3Y0.87%
BIT:PST (5/23/2025, 7:00:00 PM)
18.695
-0.08 (-0.43%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners9.98%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap24.42B
Analysts79
Price Target16.67 (-10.83%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.76% |
Yearly Dividend0.68
Dividend Growth(5Y)10.13%
DP44.06%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.72%
Min EPS beat(2)-0.49%
Max EPS beat(2)9.94%
EPS beat(4)3
Avg EPS beat(4)5.68%
Min EPS beat(4)-0.49%
Max EPS beat(4)9.94%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)1.72%
Min Revenue beat(2)1.56%
Max Revenue beat(2)1.88%
Revenue beat(4)4
Avg Revenue beat(4)2.3%
Min Revenue beat(4)1.56%
Max Revenue beat(4)2.95%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)4.41%
PT rev (3m)10.2%
EPS NQ rev (1m)-3.41%
EPS NQ rev (3m)-3.41%
EPS NY rev (1m)0%
EPS NY rev (3m)1.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.89 | ||
| Fwd PE | 10.9 | ||
| P/S | 1.57 | ||
| P/FCF | 13.91 | ||
| P/OCF | 9.12 | ||
| P/B | 2.05 | ||
| P/tB | 2.46 | ||
| EV/EBITDA | -7.56 |
EPS(TTM)1.89
EY10.11%
EPS(NY)1.72
Fwd EY9.17%
FCF(TTM)1.34
FCFY7.19%
OCF(TTM)2.05
OCFY10.97%
SpS11.89
BVpS9.12
TBVpS7.59
PEG (NY)N/A
PEG (5Y)1.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.86% | ||
| ROE | 19.86% | ||
| ROCE | 1.76% | ||
| ROIC | 0.95% | ||
| ROICexc | 1.14% | ||
| ROICexgc | 1.15% | ||
| OM | 21.13% | ||
| PM (TTM) | 15.25% | ||
| GM | 73.4% | ||
| FCFM | 11.31% |
ROA(3y)0.68%
ROA(5y)0.61%
ROE(3y)18.66%
ROE(5y)16.11%
ROIC(3y)0.89%
ROIC(5y)0.76%
ROICexc(3y)1.12%
ROICexc(5y)0.97%
ROICexgc(3y)1.15%
ROICexgc(5y)0.99%
ROCE(3y)1.48%
ROCE(5y)1.24%
ROICexcg growth 3Y15.42%
ROICexcg growth 5Y19.21%
ROICexc growth 3Y15.4%
ROICexc growth 5Y18.92%
OM growth 3Y10.96%
OM growth 5Y31.66%
PM growth 3Y3.13%
PM growth 5Y30.15%
GM growth 3Y-2.09%
GM growth 5Y-5.18%
F-Score7
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.24 | ||
| Debt/FCF | 49.73 | ||
| Debt/EBITDA | 17.81 | ||
| Cap/Depr | 103.13% | ||
| Cap/Sales | 5.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.14% | ||
| Profit Quality | 74.19% | ||
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 0.05 |
F-Score7
WACC3.4%
ROIC/WACC0.28
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)30.16%
EPS 3Y14.03%
EPS 5Y8.38%
EPS Q2Q%22.4%
EPS Next Y-8.04%
EPS Next 2Y-2.38%
EPS Next 3Y0.87%
EPS Next 5Y0.5%
Revenue 1Y (TTM)6.59%
Revenue growth 3Y4.83%
Revenue growth 5Y-16.83%
Sales Q2Q%6.41%
Revenue Next Year3.73%
Revenue Next 2Y3.07%
Revenue Next 3Y2.89%
Revenue Next 5Y2.54%
EBIT growth 1Y-14.82%
EBIT growth 3Y16.33%
EBIT growth 5Y9.5%
EBIT Next Year39.1%
EBIT Next 3Y15.35%
EBIT Next 5Y10.36%
FCF growth 1Y133.51%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y73.33%
OCF growth 3YN/A
OCF growth 5YN/A