POWERSOFT SPA (PWS.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:PWS - IT0005353815 - Common Stock
16.6 EUR
+0.7 (+4.4%)
PWS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 33 industry peers in the Household Durables industry. PWS scores excellent on profitability, but there are some minor concerns on its financial health. PWS is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, PWS could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
- PWS had positive earnings in the past year.
- In the past year PWS had a positive cash flow from operations.
- In the past 5 years PWS has always been profitable.
- PWS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 8.78%, PWS belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
- PWS's Return On Equity of 29.68% is amongst the best of the industry. PWS outperforms 93.75% of its industry peers.
- With an excellent Return On Invested Capital value of 12.87%, PWS belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for PWS is significantly above the industry average of 9.57%.
- The 3 year average ROIC (27.22%) for PWS is well above the current ROIC(12.87%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.78% | ||
| ROE | 29.68% | ||
| ROIC | 12.87% |
ROA(3y)18.81%
ROA(5y)13.71%
ROE(3y)29.15%
ROE(5y)20.95%
ROIC(3y)27.22%
ROIC(5y)18.95%
1.3 Margins
- PWS has a Profit Margin of 14.94%. This is amongst the best in the industry. PWS outperforms 96.88% of its industry peers.
- PWS's Profit Margin has improved in the last couple of years.
- PWS has a Operating Margin of 22.63%. This is amongst the best in the industry. PWS outperforms 96.88% of its industry peers.
- In the last couple of years the Operating Margin of PWS has grown nicely.
- Looking at the Gross Margin, with a value of 51.55%, PWS is in the better half of the industry, outperforming 65.63% of the companies in the same industry.
- PWS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.63% | ||
| PM (TTM) | 14.94% | ||
| GM | 51.55% |
OM growth 3Y44.17%
OM growth 5Y16.59%
PM growth 3Y36.57%
PM growth 5Y16.19%
GM growth 3Y1.4%
GM growth 5Y0.56%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PWS is creating value.
- The number of shares outstanding for PWS has been increased compared to 1 year ago.
- PWS has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for PWS is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.99 indicates that PWS is not a great score, but indicates only limited risk for bankruptcy at the moment.
- PWS has a better Altman-Z score (2.99) than 75.00% of its industry peers.
- The Debt to FCF ratio of PWS is 8.47, which is on the high side as it means it would take PWS, 8.47 years of fcf income to pay off all of its debts.
- PWS's Debt to FCF ratio of 8.47 is fine compared to the rest of the industry. PWS outperforms 62.50% of its industry peers.
- PWS has a Debt/Equity ratio of 1.44. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of PWS (1.44) is worse than 84.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 8.47 | ||
| Altman-Z | 2.99 |
ROIC/WACC1.58
WACC8.14%
2.3 Liquidity
- PWS has a Current Ratio of 2.02. This indicates that PWS is financially healthy and has no problem in meeting its short term obligations.
- PWS has a Current ratio of 2.02. This is in the better half of the industry: PWS outperforms 71.88% of its industry peers.
- PWS has a Quick Ratio of 1.17. This is a normal value and indicates that PWS is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of PWS (1.17) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
- PWS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.28%.
- PWS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.97% yearly.
- Looking at the last year, PWS shows a small growth in Revenue. The Revenue has grown by 3.26% in the last year.
- The Revenue has been growing by 14.10% on average over the past years. This is quite good.
EPS 1Y (TTM)-16.28%
EPS 3Y78.25%
EPS 5Y32.97%
EPS Q2Q%-20.1%
Revenue 1Y (TTM)3.26%
Revenue growth 3Y28.9%
Revenue growth 5Y14.1%
Sales Q2Q%11.46%
3.2 Future
- PWS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 74.94% yearly.
- The Revenue is expected to grow by 47.35% on average over the next years. This is a very strong growth
EPS Next Y114.01%
EPS Next 2Y74.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year71.68%
Revenue Next 2Y47.35%
Revenue Next 3YN/A
Revenue Next 5YN/A
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.
- 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 18.04, which indicates a rather expensive current valuation of PWS.
- Based on the Price/Earnings ratio, PWS is valued a bit cheaper than 68.75% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. PWS is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 12.84, PWS is valued correctly.
- The rest of the industry has a similar Price/Forward Earnings ratio as PWS.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, PWS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.04 | ||
| Fwd PE | 12.84 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PWS is valued a bit more expensive than 65.63% of the companies in the same industry.
- PWS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.79 | ||
| EV/EBITDA | 12.49 |
4.3 Compensation for Growth
- PWS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of PWS may justify a higher PE ratio.
- PWS's earnings are expected to grow with 74.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.16
PEG (5Y)0.55
EPS Next 2Y74.94%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.21%, PWS is a good candidate for dividend investing.
- PWS's Dividend Yield is a higher than the industry average which is at 2.64.
- Compared to an average S&P500 Dividend Yield of 1.81, PWS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.21% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- PWS has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP0%
EPS Next 2Y74.94%
EPS Next 3YN/A
POWERSOFT SPA / PWS.MI FAQ
Can you provide the ChartMill fundamental rating for POWERSOFT SPA?
ChartMill assigns a fundamental rating of 7 / 10 to PWS.MI.
What is the valuation status for PWS stock?
ChartMill assigns a valuation rating of 5 / 10 to POWERSOFT SPA (PWS.MI). This can be considered as Fairly Valued.
What is the profitability of PWS stock?
POWERSOFT SPA (PWS.MI) has a profitability rating of 9 / 10.
Can you provide the financial health for PWS stock?
The financial health rating of POWERSOFT SPA (PWS.MI) is 5 / 10.
Can you provide the dividend sustainability for PWS stock?
The dividend rating of POWERSOFT SPA (PWS.MI) is 4 / 10 and the dividend payout ratio is 0%.