SOLUTIONS CAPITAL MANAGEMENT (SCM.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:SCM - IT0005200248 - Common Stock
4.54 EUR
-0.02 (-0.44%)
We assign a fundamental rating of 5 out of 10 to SCM. SCM was compared to 118 industry peers in the Capital Markets industry. SCM has an excellent financial health rating, but there are some minor concerns on its profitability. SCM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- SCM had positive earnings in the past year.
- SCM had a positive operating cash flow in the past year.
- In the past 5 years SCM reported 4 times negative net income.
- In the past 5 years SCM reported 4 times negative operating cash flow.
1.2 Ratios
- SCM has a Return On Assets of 6.46%. This is in the better half of the industry: SCM outperforms 79.17% of its industry peers.
- SCM has a better Return On Equity (13.00%) than 68.33% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 7.50%, SCM is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.46% | ||
| ROE | 13% | ||
| ROIC | 7.5% |
ROA(3y)-4.42%
ROA(5y)-4.24%
ROE(3y)-10.79%
ROE(5y)-9.16%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- SCM has a Profit Margin of 4.23%. This is comparable to the rest of the industry: SCM outperforms 44.17% of its industry peers.
- In the last couple of years the Profit Margin of SCM has grown nicely.
- The Operating Margin of SCM (5.48%) is comparable to the rest of the industry.
- SCM's Gross Margin of 50.54% is fine compared to the rest of the industry. SCM outperforms 64.17% of its industry peers.
- In the last couple of years the Gross Margin of SCM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.48% | ||
| PM (TTM) | 4.23% | ||
| GM | 50.54% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5Y80.82%
GM growth 3Y-6.17%
GM growth 5Y-1.95%
2. Health
2.1 Basic Checks
- The number of shares outstanding for SCM remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, SCM has more shares outstanding
- SCM has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.48 indicates that SCM is not in any danger for bankruptcy at the moment.
- SCM has a Altman-Z score of 4.48. This is amongst the best in the industry. SCM outperforms 84.17% of its industry peers.
- SCM has a debt to FCF ratio of 2.12. This is a good value and a sign of high solvency as SCM would need 2.12 years to pay back of all of its debts.
- The Debt to FCF ratio of SCM (2.12) is better than 85.83% of its industry peers.
- SCM has a Debt/Equity ratio of 0.56. This is a neutral value indicating SCM is somewhat dependend on debt financing.
- SCM's Debt to Equity ratio of 0.56 is in line compared to the rest of the industry. SCM outperforms 55.83% of its industry peers.
- Although SCM does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.12 | ||
| Altman-Z | 4.48 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- SCM has a Current Ratio of 9.01. This indicates that SCM is financially healthy and has no problem in meeting its short term obligations.
- SCM has a Current ratio of 9.01. This is amongst the best in the industry. SCM outperforms 95.83% of its industry peers.
- A Quick Ratio of 9.01 indicates that SCM has no problem at all paying its short term obligations.
- SCM has a Quick ratio of 9.01. This is amongst the best in the industry. SCM outperforms 95.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 9.01 | ||
| Quick Ratio | 9.01 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 69.53% over the past year.
- The Earnings Per Share has been growing by 90.06% on average over the past years. This is a very strong growth
- The Revenue has grown by 12.06% in the past year. This is quite good.
- The Revenue has been growing slightly by 7.32% on average over the past years.
EPS 1Y (TTM)69.53%
EPS 3YN/A
EPS 5Y90.06%
EPS Q2Q%-64.96%
Revenue 1Y (TTM)12.06%
Revenue growth 3Y15.93%
Revenue growth 5Y7.32%
Sales Q2Q%-1.37%
3.2 Future
- The Earnings Per Share is expected to grow by 44.23% on average over the next years. This is a very strong growth
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next Y-11.76%
EPS Next 2Y39.33%
EPS Next 3Y44.23%
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- 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 34.92 indicates a quite expensive valuation of SCM.
- Compared to the rest of the industry, the Price/Earnings ratio of SCM is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, SCM is valued a bit more expensive.
- A Price/Forward Earnings ratio of 13.62 indicates a correct valuation of SCM.
- SCM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SCM is cheaper than 79.17% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, SCM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.92 | ||
| Fwd PE | 13.62 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, SCM is valued cheaper than 85.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- SCM's earnings are expected to grow with 44.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.39
EPS Next 2Y39.33%
EPS Next 3Y44.23%
5. Dividend
5.1 Amount
- SCM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
SOLUTIONS CAPITAL MANAGEMENT / SCM.MI FAQ
What is the fundamental rating for SCM stock?
ChartMill assigns a fundamental rating of 5 / 10 to SCM.MI.
What is the valuation status of SOLUTIONS CAPITAL MANAGEMENT (SCM.MI) stock?
ChartMill assigns a valuation rating of 4 / 10 to SOLUTIONS CAPITAL MANAGEMENT (SCM.MI). This can be considered as Fairly Valued.
What is the profitability of SCM stock?
SOLUTIONS CAPITAL MANAGEMENT (SCM.MI) has a profitability rating of 4 / 10.
What is the financial health of SOLUTIONS CAPITAL MANAGEMENT (SCM.MI) stock?
The financial health rating of SOLUTIONS CAPITAL MANAGEMENT (SCM.MI) is 8 / 10.
What is the earnings growth outlook for SOLUTIONS CAPITAL MANAGEMENT?
The Earnings per Share (EPS) of SOLUTIONS CAPITAL MANAGEMENT (SCM.MI) is expected to decline by -11.76% in the next year.