SESA SPA (SES.MI)
IT0004729759 - Common Stock
SES gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 53 industry peers in the Electronic Equipment, Instruments & Components industry. While SES belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SES has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
SES had positive earnings in the past year.
SES had a positive operating cash flow in the past year.
In the past 5 years SES has always been profitable.
SES 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 6.17%, SES is in the better half of the industry, outperforming 74.00% of the companies in the same industry.
With an excellent Return On Equity value of 31.66%, SES belongs to the best of the industry, outperforming 94.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 16.17%, SES belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SES is in line with the industry average of 9.12%.
The 3 year average ROIC (10.42%) for SES is below the current ROIC(16.17%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.17% | ||
| ROE | 31.66% | ||
| ROIC | 16.17% |
ROA(3y)4.47%
ROA(5y)4.03%
ROE(3y)21.53%
ROE(5y)18.8%
ROIC(3y)10.42%
ROIC(5y)9.68%
1.3 Margins
Looking at the Profit Margin, with a value of 2.82%, SES is in line with its industry, outperforming 56.00% of the companies in the same industry.
In the last couple of years the Profit Margin of SES has grown nicely.
With a decent Operating Margin value of 4.79%, SES is doing good in the industry, outperforming 64.00% of the companies in the same industry.
In the last couple of years the Operating Margin of SES has grown nicely.
Looking at the Gross Margin, with a value of 24.33%, SES is doing worse than 80.00% of the companies in the same industry.
In the last couple of years the Gross Margin of SES has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.79% | ||
| PM (TTM) | 2.82% | ||
| GM | 24.33% |
OM growth 3Y10.88%
OM growth 5Y7.4%
PM growth 3Y11.04%
PM growth 5Y8.17%
GM growth 3Y7.09%
GM growth 5Y5.82%
2. Health
2.1 Basic Checks
SES has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
SES has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SES has less shares outstanding
Compared to 1 year ago, SES has an improved debt to assets ratio.
2.2 Solvency
SES has an Altman-Z score of 3.52. This indicates that SES is financially healthy and has little risk of bankruptcy at the moment.
SES has a Altman-Z score of 3.52. This is in the better half of the industry: SES outperforms 66.00% of its industry peers.
The Debt to FCF ratio of SES is 4.19, which is a neutral value as it means it would take SES, 4.19 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.19, SES is doing good in the industry, outperforming 72.00% of the companies in the same industry.
SES has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
SES has a Debt to Equity ratio (0.50) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.19 | ||
| Altman-Z | 3.52 |
ROIC/WACC2.16
WACC7.49%
2.3 Liquidity
SES has a Current Ratio of 1.29. This is a normal value and indicates that SES is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.29, SES is doing worse than 76.00% of the companies in the same industry.
A Quick Ratio of 1.12 indicates that SES should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.12, SES perfoms like the industry average, outperforming 54.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.13% over the past year.
The Earnings Per Share has been growing by 25.75% on average over the past years. This is a very strong growth
The Revenue has grown by 13.20% in the past year. This is quite good.
The Revenue has been growing by 16.25% on average over the past years. This is quite good.
EPS 1Y (TTM)2.13%
EPS 3Y30.6%
EPS 5Y25.75%
EPS Q2Q%-9.54%
Revenue 1Y (TTM)13.2%
Revenue growth 3Y17.61%
Revenue growth 5Y16.25%
Sales Q2Q%3.46%
3.2 Future
Based on estimates for the next years, SES will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.94% on average per year.
The Revenue is expected to grow by 6.45% on average over the next years.
EPS Next Y1.87%
EPS Next 2Y6.91%
EPS Next 3Y8.94%
EPS Next 5YN/A
Revenue Next Year6.4%
Revenue Next 2Y6.62%
Revenue Next 3Y6.45%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 12.41, which indicates a correct valuation of SES.
Based on the Price/Earnings ratio, SES is valued a bit cheaper than the industry average as 78.00% of the companies are valued more expensively.
SES is valuated cheaply when we compare the Price/Earnings ratio to 28.05, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.38, SES is valued correctly.
Based on the Price/Forward Earnings ratio, SES is valued a bit cheaper than the industry average as 66.00% of the companies are valued more expensively.
SES is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.07, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.41 | ||
| Fwd PE | 13.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SES is valued cheaply inside the industry as 82.00% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SES indicates a somewhat cheap valuation: SES is cheaper than 64.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.84 | ||
| EV/EBITDA | 5.38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SES does not grow enough to justify the current Price/Earnings ratio.
SES has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)6.65
PEG (5Y)0.48
EPS Next 2Y6.91%
EPS Next 3Y8.94%
5. Dividend
5.1 Amount
With a yearly dividend of 0.93%, SES is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.34, SES has a dividend in line with its industry peers.
With a Dividend Yield of 0.93, SES pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
5.2 History
On average, the dividend of SES grows each year by 8.87%, which is quite nice.
Dividend Growth(5Y)8.87%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
SES pays out 12.22% of its income as dividend. This is a sustainable payout ratio.
SES's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP12.22%
EPS Next 2Y6.91%
EPS Next 3Y8.94%
SESA SPA
BIT:SES (5/31/2024, 7:00:00 PM)
106.2
-1.3 (-1.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.64B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.41 | ||
| Fwd PE | 13.38 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)6.65
PEG (5Y)0.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.17% | ||
| ROE | 31.66% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.79% | ||
| PM (TTM) | 2.82% | ||
| GM | 24.33% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover2.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)2.13%
EPS 3Y30.6%
EPS 5Y
EPS Q2Q%
EPS Next Y1.87%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.2%
Revenue growth 3Y17.61%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y