RCS MEDIAGROUP SPA (RCS.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:RCS - IT0004931496 - Common Stock
0.98 EUR
0 (-0.31%)
Taking everything into account, RCS scores 5 out of 10 in our fundamental rating. RCS was compared to 68 industry peers in the Media industry. RCS scores excellent on profitability, but there are some minor concerns on its financial health. RCS has a valuation in line with the averages, but it does not seem to be growing. Finally RCS also has an excellent dividend rating. These ratings could make RCS a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
- In the past year RCS was profitable.
- In the past year RCS had a positive cash flow from operations.
- Each year in the past 5 years RCS has been profitable.
- In the past 5 years RCS always reported a positive cash flow from operatings.
1.2 Ratios
- RCS has a Return On Assets of 5.83%. This is amongst the best in the industry. RCS outperforms 86.57% of its industry peers.
- With a decent Return On Equity value of 13.79%, RCS is doing good in the industry, outperforming 77.61% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 11.40%, RCS belongs to the top of the industry, outperforming 86.57% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for RCS is in line with the industry average of 7.53%.
- The last Return On Invested Capital (11.40%) for RCS is above the 3 year average (9.48%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.83% | ||
| ROE | 13.79% | ||
| ROIC | 11.4% |
ROA(3y)5.43%
ROA(5y)5.28%
ROE(3y)13.54%
ROE(5y)14.11%
ROIC(3y)9.48%
ROIC(5y)8.92%
1.3 Margins
- The Profit Margin of RCS (5.28%) is better than 67.16% of its industry peers.
- RCS's Profit Margin has been stable in the last couple of years.
- Looking at the Operating Margin, with a value of 8.52%, RCS is in the better half of the industry, outperforming 64.18% of the companies in the same industry.
- In the last couple of years the Operating Margin of RCS has remained more or less at the same level.
- RCS has a better Gross Margin (64.17%) than 67.16% of its industry peers.
- RCS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.52% | ||
| PM (TTM) | 5.28% | ||
| GM | 64.17% |
OM growth 3Y1.16%
OM growth 5Y0.53%
PM growth 3Y-4.01%
PM growth 5Y0.41%
GM growth 3Y-0.21%
GM growth 5Y0.65%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RCS is creating some value.
- RCS has about the same amout of shares outstanding than it did 1 year ago.
- RCS has about the same amout of shares outstanding than it did 5 years ago.
- The debt/assets ratio for RCS is higher compared to a year ago.
2.2 Solvency
- RCS has an Altman-Z score of 2.17. This is not the best score and indicates that RCS is in the grey zone with still only limited risk for bankruptcy at the moment.
- With a decent Altman-Z score value of 2.17, RCS is doing good in the industry, outperforming 73.13% of the companies in the same industry.
- The Debt to FCF ratio of RCS is 1.44, which is an excellent value as it means it would take RCS, only 1.44 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of RCS (1.44) is better than 86.57% of its industry peers.
- RCS has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
- With a decent Debt to Equity ratio value of 0.29, RCS is doing good in the industry, outperforming 70.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.44 | ||
| Altman-Z | 2.17 |
ROIC/WACC1.61
WACC7.09%
2.3 Liquidity
- A Current Ratio of 0.94 indicates that RCS may have some problems paying its short term obligations.
- The Current ratio of RCS (0.94) is comparable to the rest of the industry.
- RCS has a Quick Ratio of 0.94. This is a bad value and indicates that RCS is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.89, RCS is in line with its industry, outperforming 50.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 3.90% over the past year.
- The Earnings Per Share has been decreasing by -1.98% on average over the past years.
- The Revenue has decreased by -0.89% in the past year.
- Measured over the past years, RCS shows a decrease in Revenue. The Revenue has been decreasing by -2.37% on average per year.
EPS 1Y (TTM)3.9%
EPS 3Y-5.04%
EPS 5Y-1.98%
EPS Q2Q%0%
Revenue 1Y (TTM)-0.89%
Revenue growth 3Y-1.08%
Revenue growth 5Y-2.37%
Sales Q2Q%-1.82%
3.2 Future
- No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 8.17, which indicates a very decent valuation of RCS.
- 85.07% of the companies in the same industry are more expensive than RCS, based on the Price/Earnings ratio.
- RCS is valuated cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.17 | ||
| Fwd PE | N/A |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RCS is valued a bit cheaper than the industry average as 79.10% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, RCS is valued cheaply inside the industry as 88.06% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.51 | ||
| EV/EBITDA | 4.16 |
4.3 Compensation for Growth
- RCS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
- RCS has a Yearly Dividend Yield of 7.04%, which is a nice return.
- RCS's Dividend Yield is rather good when compared to the industry average which is at 3.08. RCS pays more dividend than 94.03% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, RCS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.04% |
5.2 History
- The dividend of RCS has a limited annual growth rate of 3.17%.
Dividend Growth(5Y)3.17%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 59.64% of the earnings are spent on dividend by RCS. This is a bit on the high side, but may be sustainable.
- The Dividend Rate of RCS has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP59.64%
EPS Next 2YN/A
EPS Next 3YN/A
RCS MEDIAGROUP SPA / RCS.MI FAQ
What is the ChartMill fundamental rating of RCS MEDIAGROUP SPA (RCS.MI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to RCS.MI.
What is the valuation status for RCS stock?
ChartMill assigns a valuation rating of 5 / 10 to RCS MEDIAGROUP SPA (RCS.MI). This can be considered as Fairly Valued.
What is the profitability of RCS stock?
RCS MEDIAGROUP SPA (RCS.MI) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for RCS stock?
The Price/Earnings (PE) ratio for RCS MEDIAGROUP SPA (RCS.MI) is 8.17 and the Price/Book (PB) ratio is 1.16.
Is the dividend of RCS MEDIAGROUP SPA sustainable?
The dividend rating of RCS MEDIAGROUP SPA (RCS.MI) is 7 / 10 and the dividend payout ratio is 59.64%.