RCS MEDIAGROUP SPA (RCS.MI) Stock Fundamental Analysis
BIT:RCS - Euronext Milan - IT0004931496 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to RCS. RCS was compared to 66 industry peers in the Media industry. While RCS belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. RCS is valued quite cheap, but it does not seem to be growing. With these ratings, RCS could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
RCS had positive earnings in the past year.
RCS had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 5.38%, RCS is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.70%, RCS is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.92%, RCS belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
RCS had an Average Return On Invested Capital over the past 3 years of 10.72%. This is above the industry average of 8.67%.
The 3 year average ROIC (10.72%) for RCS is below the current ROIC(10.92%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.38% | ||
| ROE | 13.7% | ||
| ROIC | 10.92% |
ROA(3y)5.79%
ROA(5y)5.42%
ROE(3y)15.42%
ROE(5y)16.2%
ROIC(3y)10.72%
ROIC(5y)10.33%
1.3 Margins
The Profit Margin of RCS (4.87%) is better than 62.12% of its industry peers.
RCS's Profit Margin has declined in the last couple of years.
RCS has a Operating Margin (7.32%) which is in line with its industry peers.
RCS's Operating Margin has declined in the last couple of years.
RCS has a better Gross Margin (62.85%) than 62.12% of its industry peers.
RCS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.32% | ||
| PM (TTM) | 4.87% | ||
| GM | 62.85% |
OM growth 3Y24.81%
OM growth 5Y-4.38%
PM growth 3Y17.63%
PM growth 5Y-4.65%
GM growth 3Y0.1%
GM growth 5Y-0.02%
2. Health
2.1 Basic Checks
RCS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
RCS has a better debt/assets ratio than last year.
2.2 Solvency
RCS has an Altman-Z score of 2.05. 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.
Looking at the Altman-Z score, with a value of 2.05, RCS is in the better half of the industry, outperforming 71.21% of the companies in the same industry.
The Debt to FCF ratio of RCS is 2.19, which is a good value as it means it would take RCS, 2.19 years of fcf income to pay off all of its debts.
RCS has a better Debt to FCF ratio (2.19) than 83.33% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that RCS is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.36, RCS is doing good in the industry, outperforming 60.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.19 | ||
| Altman-Z | 2.05 |
ROIC/WACC1.47
WACC7.45%
2.3 Liquidity
RCS has a Current Ratio of 0.88. This is a bad value and indicates that RCS is not financially healthy enough and could expect problems in meeting its short term obligations.
RCS has a Current ratio of 0.88. This is in the lower half of the industry: RCS underperforms 62.12% of its industry peers.
RCS has a Quick Ratio of 0.88. This is a bad value and indicates that RCS is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.83, RCS perfoms like the industry average, outperforming 40.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
RCS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.25%, which is quite good.
The Earnings Per Share has been decreasing by -7.72% on average over the past years.
Looking at the last year, RCS shows a decrease in Revenue. The Revenue has decreased by -2.13% in the last year.
RCS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.23% yearly.
EPS 1Y (TTM)12.25%
EPS 3Y21.59%
EPS 5Y-7.72%
EPS Q2Q%39.13%
Revenue 1Y (TTM)-2.13%
Revenue growth 3Y3.38%
Revenue growth 5Y-3.23%
Sales Q2Q%0.36%
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 Y10%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.12%
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
A Price/Earnings ratio of 9.35 indicates a reasonable valuation of RCS.
Based on the Price/Earnings ratio, RCS is valued cheaper than 81.82% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.35. RCS is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.25, the valuation of RCS can be described as very reasonable.
Based on the Price/Forward Earnings ratio, RCS is valued a bit cheaper than the industry average as 75.76% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.20, RCS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.35 | ||
| Fwd PE | 9.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RCS is valued a bit cheaper than 65.15% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RCS is valued a bit cheaper than the industry average as 75.76% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.97 | ||
| EV/EBITDA | 5.12 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of RCS may justify a higher PE ratio.
PEG (NY)0.93
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
RCS has a Yearly Dividend Yield of 6.54%, which is a nice return.
RCS's Dividend Yield is rather good when compared to the industry average which is at 3.85. RCS pays more dividend than 93.94% of the companies in the same industry.
RCS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.54% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
64.07% of the earnings are spent on dividend by RCS. This is not a sustainable payout ratio.
DP64.07%
EPS Next 2YN/A
EPS Next 3YN/A
BIT:RCS (5/28/2025, 10:31:46 AM)
1.028
0 (-0.39%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners9.26%
Inst Owner ChangeN/A
Ins Owners68.32%
Ins Owner ChangeN/A
Market Cap536.47M
Analysts80
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.54% |
Yearly Dividend0.06
Dividend Growth(5Y)N/A
DP64.07%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.35 | ||
| Fwd PE | 9.25 | ||
| P/S | 0.46 | ||
| P/FCF | 5.97 | ||
| P/OCF | 4.79 | ||
| P/B | 1.3 | ||
| P/tB | 13.69 | ||
| EV/EBITDA | 5.12 |
EPS(TTM)0.11
EY10.7%
EPS(NY)0.11
Fwd EY10.81%
FCF(TTM)0.17
FCFY16.74%
OCF(TTM)0.21
OCFY20.86%
SpS2.22
BVpS0.79
TBVpS0.08
PEG (NY)0.93
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.38% | ||
| ROE | 13.7% | ||
| ROCE | 12.71% | ||
| ROIC | 10.92% | ||
| ROICexc | 11.16% | ||
| ROICexgc | 26% | ||
| OM | 7.32% | ||
| PM (TTM) | 4.87% | ||
| GM | 62.85% | ||
| FCFM | 7.75% |
ROA(3y)5.79%
ROA(5y)5.42%
ROE(3y)15.42%
ROE(5y)16.2%
ROIC(3y)10.72%
ROIC(5y)10.33%
ROICexc(3y)11.46%
ROICexc(5y)10.93%
ROICexgc(3y)29.58%
ROICexgc(5y)28%
ROCE(3y)12.48%
ROCE(5y)12.07%
ROICexcg growth 3Y18.27%
ROICexcg growth 5Y-19.15%
ROICexc growth 3Y24.12%
ROICexc growth 5Y-11.8%
OM growth 3Y24.81%
OM growth 5Y-4.38%
PM growth 3Y17.63%
PM growth 5Y-4.65%
GM growth 3Y0.1%
GM growth 5Y-0.02%
F-Score7
Asset Turnover1.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.19 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 39.46% | ||
| Cap/Sales | 1.91% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.42% | ||
| Profit Quality | 158.94% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 2.05 |
F-Score7
WACC7.45%
ROIC/WACC1.47
Cap/Depr(3y)77.81%
Cap/Depr(5y)59.43%
Cap/Sales(3y)4.8%
Cap/Sales(5y)3.66%
Profit Quality(3y)103.64%
Profit Quality(5y)149.53%
High Growth Momentum
Growth
EPS 1Y (TTM)12.25%
EPS 3Y21.59%
EPS 5Y-7.72%
EPS Q2Q%39.13%
EPS Next Y10%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-2.13%
Revenue growth 3Y3.38%
Revenue growth 5Y-3.23%
Sales Q2Q%0.36%
Revenue Next Year0.12%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y19.41%
EBIT growth 3Y29.02%
EBIT growth 5Y-7.47%
EBIT Next Year55.32%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-28.5%
FCF growth 3Y-5.28%
FCF growth 5Y-8.4%
OCF growth 1Y-22.29%
OCF growth 3Y-1.76%
OCF growth 5Y-5.91%