SAIPEM SPA (SPEA.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:SPEA - IT0005495657 - Common Stock
2.913 EUR
+0.11 (+3.81%)
SPEA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 38 industry peers in the Energy Equipment & Services industry. While SPEA seems to be doing ok healthwise, there are quite some concerns on its profitability. SPEA has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year SPEA was profitable.
- SPEA had a positive operating cash flow in the past year.
- In multiple years SPEA reported negative net income over the last 5 years.
- Of the past 5 years SPEA 4 years had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.20%, SPEA is doing worse than 68.42% of the companies in the same industry.
- SPEA has a Return On Equity (11.73%) which is in line with its industry peers.
- With a Return On Invested Capital value of 6.28%, SPEA is not doing good in the industry: 60.53% of the companies in the same industry are doing better.
- SPEA had an Average Return On Invested Capital over the past 3 years of 3.90%. This is significantly below the industry average of 10.43%.
- The 3 year average ROIC (3.90%) for SPEA is below the current ROIC(6.28%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.2% | ||
| ROE | 11.73% | ||
| ROIC | 6.28% |
ROA(3y)0.6%
ROA(5y)-5.93%
ROE(3y)3.16%
ROE(5y)-157.22%
ROIC(3y)3.9%
ROIC(5y)N/A
1.3 Margins
- With a Profit Margin value of 2.10%, SPEA is not doing good in the industry: 73.68% of the companies in the same industry are doing better.
- SPEA's Profit Margin has improved in the last couple of years.
- SPEA's Operating Margin of 4.47% is on the low side compared to the rest of the industry. SPEA is outperformed by 76.32% of its industry peers.
- SPEA's Operating Margin has declined in the last couple of years.
- SPEA's Gross Margin of 30.52% is fine compared to the rest of the industry. SPEA outperforms 63.16% of its industry peers.
- In the last couple of years the Gross Margin of SPEA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.47% | ||
| PM (TTM) | 2.1% | ||
| GM | 30.52% |
OM growth 3YN/A
OM growth 5Y-4.9%
PM growth 3YN/A
PM growth 5Y74.04%
GM growth 3Y11.3%
GM growth 5Y-3.46%
2. Health
2.1 Basic Checks
- SPEA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- SPEA has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for SPEA has been increased compared to 5 years ago.
- The debt/assets ratio for SPEA has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.65, we must say that SPEA is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of SPEA (1.65) is better than 65.79% of its industry peers.
- The Debt to FCF ratio of SPEA is 2.57, which is a good value as it means it would take SPEA, 2.57 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of SPEA (2.57) is better than 73.68% of its industry peers.
- A Debt/Equity ratio of 0.88 indicates that SPEA is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.88, SPEA is not doing good in the industry: 68.42% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 2.57 | ||
| Altman-Z | 1.65 |
ROIC/WACC0.89
WACC7.07%
2.3 Liquidity
- A Current Ratio of 1.13 indicates that SPEA should not have too much problems paying its short term obligations.
- SPEA's Current ratio of 1.13 is on the low side compared to the rest of the industry. SPEA is outperformed by 73.68% of its industry peers.
- SPEA has a Quick Ratio of 1.09. This is a normal value and indicates that SPEA is financially healthy and should not expect problems in meeting its short term obligations.
- SPEA has a worse Quick ratio (1.09) than 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 14.29% over the past year.
- SPEA shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -19.00% yearly.
- Looking at the last year, SPEA shows a very strong growth in Revenue. The Revenue has grown by 22.44%.
- Measured over the past years, SPEA shows a quite strong growth in Revenue. The Revenue has been growing by 9.81% on average per year.
EPS 1Y (TTM)14.29%
EPS 3YN/A
EPS 5Y-19%
EPS Q2Q%0%
Revenue 1Y (TTM)22.44%
Revenue growth 3Y30.62%
Revenue growth 5Y9.81%
Sales Q2Q%N/A
3.2 Future
- Based on estimates for the next years, SPEA will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.14% on average per year.
- Based on estimates for the next years, SPEA will show a small growth in Revenue. The Revenue will grow by 0.48% on average per year.
EPS Next Y19.94%
EPS Next 2Y31.1%
EPS Next 3Y26.47%
EPS Next 5Y17.14%
Revenue Next Year6.22%
Revenue Next 2Y4.72%
Revenue Next 3Y2.76%
Revenue Next 5Y0.48%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- SPEA is valuated rather expensively with a Price/Earnings ratio of 18.21.
- Based on the Price/Earnings ratio, SPEA is valued a bit more expensive than 60.53% of the companies in the same industry.
- SPEA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- The Price/Forward Earnings ratio is 12.11, which indicates a correct valuation of SPEA.
- SPEA's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of SPEA to the average of the S&P500 Index (24.26), we can say SPEA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.21 | ||
| Fwd PE | 12.11 |
4.2 Price Multiples
- 84.21% of the companies in the same industry are more expensive than SPEA, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, SPEA is valued cheaply inside the industry as 84.21% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.2 | ||
| EV/EBITDA | 3.38 |
4.3 Compensation for Growth
- SPEA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as SPEA's earnings are expected to grow with 26.47% in the coming years.
PEG (NY)0.91
PEG (5Y)N/A
EPS Next 2Y31.1%
EPS Next 3Y26.47%
5. Dividend
5.1 Amount
- SPEA has a Yearly Dividend Yield of 6.26%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.61, SPEA pays a bit more dividend than its industry peers.
- SPEA's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.26% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
DP0%
EPS Next 2Y31.1%
EPS Next 3Y26.47%
SAIPEM SPA / SPEA.DE FAQ
What is the ChartMill fundamental rating of SAIPEM SPA (SPEA.DE) stock?
ChartMill assigns a fundamental rating of 4 / 10 to SPEA.DE.
Can you provide the valuation status for SAIPEM SPA?
ChartMill assigns a valuation rating of 6 / 10 to SAIPEM SPA (SPEA.DE). This can be considered as Fairly Valued.
How profitable is SAIPEM SPA (SPEA.DE) stock?
SAIPEM SPA (SPEA.DE) has a profitability rating of 3 / 10.
What is the valuation of SAIPEM SPA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SAIPEM SPA (SPEA.DE) is 18.21 and the Price/Book (PB) ratio is 2.23.
Can you provide the financial health for SPEA stock?
The financial health rating of SAIPEM SPA (SPEA.DE) is 4 / 10.