RAI WAY SPA (RWAY.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:RWAY - IT0005054967 - Common Stock
5.65 EUR
+0.1 (+1.8%)
RWAY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 35 industry peers in the Diversified Telecommunication Services industry. RWAY scores excellent points on both the profitability and health parts. This is a solid base for a good stock. RWAY is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- RWAY had positive earnings in the past year.
- In the past year RWAY had a positive cash flow from operations.
- Each year in the past 5 years RWAY has been profitable.
- Each year in the past 5 years RWAY had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 19.67%, RWAY belongs to the best of the industry, outperforming 97.14% of the companies in the same industry.
- RWAY has a Return On Equity of 59.91%. This is amongst the best in the industry. RWAY outperforms 100.00% of its industry peers.
- RWAY has a better Return On Invested Capital (31.28%) than 100.00% of its industry peers.
- RWAY had an Average Return On Invested Capital over the past 3 years of 29.45%. This is significantly above the industry average of 8.42%.
- The last Return On Invested Capital (31.28%) for RWAY is above the 3 year average (29.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.67% | ||
| ROE | 59.91% | ||
| ROIC | 31.28% |
ROA(3y)18.18%
ROA(5y)18.2%
ROE(3y)44.84%
ROE(5y)42.55%
ROIC(3y)29.45%
ROIC(5y)27.7%
1.3 Margins
- With an excellent Profit Margin value of 32.27%, RWAY belongs to the best of the industry, outperforming 97.14% of the companies in the same industry.
- In the last couple of years the Profit Margin of RWAY has grown nicely.
- Looking at the Operating Margin, with a value of 47.69%, RWAY belongs to the top of the industry, outperforming 97.14% of the companies in the same industry.
- RWAY's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 99.52%, RWAY belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- RWAY's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 47.69% | ||
| PM (TTM) | 32.27% | ||
| GM | 99.52% |
OM growth 3Y6.59%
OM growth 5Y3.51%
PM growth 3Y4.63%
PM growth 5Y2.62%
GM growth 3Y0.06%
GM growth 5Y3.33%
2. Health
2.1 Basic Checks
- RWAY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for RWAY remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, RWAY has less shares outstanding
- The debt/assets ratio for RWAY is higher compared to a year ago.
2.2 Solvency
- RWAY has an Altman-Z score of 4.65. This indicates that RWAY is financially healthy and has little risk of bankruptcy at the moment.
- RWAY's Altman-Z score of 4.65 is amongst the best of the industry. RWAY outperforms 94.29% of its industry peers.
- RWAY has a debt to FCF ratio of 2.41. This is a good value and a sign of high solvency as RWAY would need 2.41 years to pay back of all of its debts.
- RWAY has a better Debt to FCF ratio (2.41) than 100.00% of its industry peers.
- RWAY has a Debt/Equity ratio of 0.84. This is a neutral value indicating RWAY is somewhat dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.84, RWAY is doing good in the industry, outperforming 62.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 2.41 | ||
| Altman-Z | 4.65 |
ROIC/WACC4.06
WACC7.7%
2.3 Liquidity
- A Current Ratio of 0.58 indicates that RWAY may have some problems paying its short term obligations.
- With a Current ratio value of 0.58, RWAY is not doing good in the industry: 82.86% of the companies in the same industry are doing better.
- RWAY has a Quick Ratio of 0.58. This is a bad value and indicates that RWAY is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of RWAY (0.58) is worse than 80.00% of its industry peers.
- RWAY does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 1.03% over the past year.
- The Earnings Per Share has been growing slightly by 7.53% on average over the past years.
- Looking at the last year, RWAY shows a small growth in Revenue. The Revenue has grown by 1.95% in the last year.
- The Revenue has been growing slightly by 4.52% on average over the past years.
EPS 1Y (TTM)1.03%
EPS 3Y11.19%
EPS 5Y7.53%
EPS Q2Q%5.75%
Revenue 1Y (TTM)1.95%
Revenue growth 3Y6.29%
Revenue growth 5Y4.52%
Sales Q2Q%2.38%
3.2 Future
- The Earnings Per Share is expected to grow by 1.36% on average over the next years.
- Based on estimates for the next years, RWAY will show a small growth in Revenue. The Revenue will grow by 0.13% on average per year.
EPS Next Y-0.49%
EPS Next 2Y-0.05%
EPS Next 3Y1.36%
EPS Next 5YN/A
Revenue Next Year2.59%
Revenue Next 2Y3.66%
Revenue Next 3Y4.01%
Revenue Next 5Y0.13%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 16.62, which indicates a correct valuation of RWAY.
- The rest of the industry has a similar Price/Earnings ratio as RWAY.
- RWAY is valuated rather cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 16.71 indicates a correct valuation of RWAY.
- RWAY's Price/Forward Earnings is on the same level as the industry average.
- When comparing the Price/Forward Earnings ratio of RWAY to the average of the S&P500 Index (25.83), we can say RWAY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.62 | ||
| Fwd PE | 16.71 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RWAY is valued a bit more expensive than 71.43% of the companies in the same industry.
- 62.86% of the companies in the same industry are cheaper than RWAY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.67 | ||
| EV/EBITDA | 9.06 |
4.3 Compensation for Growth
- The excellent profitability rating of RWAY may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.21
EPS Next 2Y-0.05%
EPS Next 3Y1.36%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.02%, RWAY is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 3.26, RWAY pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, RWAY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.02% |
5.2 History
- On average, the dividend of RWAY grows each year by 7.98%, which is quite nice.
Dividend Growth(5Y)7.98%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- RWAY pays out 99.29% of its income as dividend. This is not a sustainable payout ratio.
- RWAY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP99.29%
EPS Next 2Y-0.05%
EPS Next 3Y1.36%
RAI WAY SPA / RWAY.MI FAQ
What is the fundamental rating for RWAY stock?
ChartMill assigns a fundamental rating of 6 / 10 to RWAY.MI.
What is the valuation status for RWAY stock?
ChartMill assigns a valuation rating of 3 / 10 to RAI WAY SPA (RWAY.MI). This can be considered as Overvalued.
What is the profitability of RWAY stock?
RAI WAY SPA (RWAY.MI) has a profitability rating of 10 / 10.
What is the financial health of RAI WAY SPA (RWAY.MI) stock?
The financial health rating of RAI WAY SPA (RWAY.MI) is 7 / 10.
Can you provide the dividend sustainability for RWAY stock?
The dividend rating of RAI WAY SPA (RWAY.MI) is 6 / 10 and the dividend payout ratio is 99.29%.