RACING FORCE SPA (RFG.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:RFG - IT0005466963 - Common Stock
4.89 EUR
-0.21 (-4.12%)
Taking everything into account, RFG scores 5 out of 10 in our fundamental rating. RFG was compared to 14 industry peers in the Leisure Products industry. RFG has an average financial health and profitability rating. RFG is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- RFG had positive earnings in the past year.
- In the past year RFG had a positive cash flow from operations.
- In the past 5 years RFG has always been profitable.
- RFG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 5.11%, RFG is in line with its industry, outperforming 50.00% of the companies in the same industry.
- The Return On Equity of RFG (7.75%) is comparable to the rest of the industry.
- RFG has a Return On Invested Capital (7.66%) which is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for RFG is in line with the industry average of 11.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.11% | ||
| ROE | 7.75% | ||
| ROIC | 7.66% |
ROA(3y)7.77%
ROA(5y)6.56%
ROE(3y)13.39%
ROE(5y)14.13%
ROIC(3y)10.5%
ROIC(5y)9.82%
1.3 Margins
- With a Profit Margin value of 6.94%, RFG perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
- In the last couple of years the Profit Margin of RFG has remained more or less at the same level.
- RFG has a Operating Margin of 9.37%. This is comparable to the rest of the industry: RFG outperforms 56.25% of its industry peers.
- RFG's Operating Margin has declined in the last couple of years.
- With an excellent Gross Margin value of 61.19%, RFG belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
- In the last couple of years the Gross Margin of RFG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.37% | ||
| PM (TTM) | 6.94% | ||
| GM | 61.19% |
OM growth 3Y-5.92%
OM growth 5YN/A
PM growth 3Y-0.53%
PM growth 5YN/A
GM growth 3Y1.31%
GM growth 5YN/A
2. Health
2.1 Basic Checks
- RFG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, RFG has more shares outstanding
- Compared to 1 year ago, RFG has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.33 indicates that RFG is not in any danger for bankruptcy at the moment.
- The Altman-Z score of RFG (4.33) is better than 87.50% of its industry peers.
- RFG has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of RFG (0.15) is better than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.33 |
ROIC/WACC0.98
WACC7.83%
2.3 Liquidity
- RFG has a Current Ratio of 2.27. This indicates that RFG is financially healthy and has no problem in meeting its short term obligations.
- RFG has a better Current ratio (2.27) than 87.50% of its industry peers.
- A Quick Ratio of 1.09 indicates that RFG should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.09, RFG belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
- RFG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.00%.
- Measured over the past 5 years, RFG shows a small growth in Earnings Per Share. The EPS has been growing by 6.19% on average per year.
- RFG shows a small growth in Revenue. In the last year, the Revenue has grown by 6.35%.
- The Revenue has been growing by 12.24% on average over the past years. This is quite good.
EPS 1Y (TTM)-15%
EPS 3Y6.19%
EPS 5YN/A
EPS Q2Q%-20%
Revenue 1Y (TTM)6.35%
Revenue growth 3Y12.24%
Revenue growth 5YN/A
Sales Q2Q%2.63%
3.2 Future
- Based on estimates for the next years, RFG will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.86% on average per year.
- RFG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.00% yearly.
EPS Next Y18.18%
EPS Next 2Y15.47%
EPS Next 3Y14.86%
EPS Next 5YN/A
Revenue Next Year8.54%
Revenue Next 2Y8.21%
Revenue Next 3Y7.68%
Revenue Next 5Y6%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 28.76, the valuation of RFG can be described as expensive.
- RFG's Price/Earnings ratio is in line with the industry average.
- RFG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.82.
- RFG is valuated rather expensively with a Price/Forward Earnings ratio of 22.01.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of RFG is on the same level as its industry peers.
- RFG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.76 | ||
| Fwd PE | 22.01 |
4.2 Price Multiples
- RFG's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.11 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- RFG's earnings are expected to grow with 14.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.58
PEG (5Y)N/A
EPS Next 2Y15.47%
EPS Next 3Y14.86%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.81%, RFG has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.37, RFG has a dividend in line with its industry peers.
- RFG's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 53.12% of the earnings are spent on dividend by RFG. This is a bit on the high side, but may be sustainable.
DP53.12%
EPS Next 2Y15.47%
EPS Next 3Y14.86%
RACING FORCE SPA / RFG.MI FAQ
What is the fundamental rating for RFG stock?
ChartMill assigns a fundamental rating of 5 / 10 to RFG.MI.
What is the valuation status for RFG stock?
ChartMill assigns a valuation rating of 2 / 10 to RACING FORCE SPA (RFG.MI). This can be considered as Overvalued.
Can you provide the profitability details for RACING FORCE SPA?
RACING FORCE SPA (RFG.MI) has a profitability rating of 6 / 10.
What is the financial health of RACING FORCE SPA (RFG.MI) stock?
The financial health rating of RACING FORCE SPA (RFG.MI) is 6 / 10.
Can you provide the expected EPS growth for RFG stock?
The Earnings per Share (EPS) of RACING FORCE SPA (RFG.MI) is expected to grow by 18.18% in the next year.