TECHNICAL PUBLICATIONS SERVI (TPS.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:TPS - IT0005246142 - Common Stock
7.9 EUR
+0.45 (+6.04%)
Taking everything into account, TPS scores 7 out of 10 in our fundamental rating. TPS was compared to 53 industry peers in the Aerospace & Defense industry. TPS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. TPS is cheap, but on the other hand it scores bad on growth. These ratings would make TPS suitable for value investing!
1. Profitability
1.1 Basic Checks
- In the past year TPS was profitable.
- In the past year TPS had a positive cash flow from operations.
- TPS had positive earnings in each of the past 5 years.
- In the past 5 years TPS always reported a positive cash flow from operatings.
1.2 Ratios
- TPS has a Return On Assets of 7.35%. This is amongst the best in the industry. TPS outperforms 85.45% of its industry peers.
- TPS has a Return On Equity (11.67%) which is comparable to the rest of the industry.
- The Return On Invested Capital of TPS (9.90%) is better than 69.09% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for TPS is in line with the industry average of 9.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.35% | ||
| ROE | 11.67% | ||
| ROIC | 9.9% |
ROA(3y)7.55%
ROA(5y)7.08%
ROE(3y)12.19%
ROE(5y)11.7%
ROIC(3y)10.38%
ROIC(5y)9.82%
1.3 Margins
- TPS's Profit Margin of 8.18% is fine compared to the rest of the industry. TPS outperforms 74.55% of its industry peers.
- In the last couple of years the Profit Margin of TPS has grown nicely.
- TPS has a better Operating Margin (12.31%) than 78.18% of its industry peers.
- TPS's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 77.83%, TPS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- TPS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.31% | ||
| PM (TTM) | 8.18% | ||
| GM | 77.83% |
OM growth 3Y-4.7%
OM growth 5Y2.84%
PM growth 3Y-3.65%
PM growth 5Y4.1%
GM growth 3Y-0.92%
GM growth 5Y-0.76%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TPS is still creating some value.
- Compared to 1 year ago, TPS has about the same amount of shares outstanding.
- TPS has about the same amout of shares outstanding than it did 5 years ago.
- TPS has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.47 indicates that TPS is not in any danger for bankruptcy at the moment.
- TPS has a Altman-Z score of 4.47. This is in the better half of the industry: TPS outperforms 76.36% of its industry peers.
- The Debt to FCF ratio of TPS is 0.30, which is an excellent value as it means it would take TPS, only 0.30 years of fcf income to pay off all of its debts.
- TPS has a Debt to FCF ratio of 0.30. This is amongst the best in the industry. TPS outperforms 96.36% of its industry peers.
- A Debt/Equity ratio of 0.04 indicates that TPS is not too dependend on debt financing.
- With an excellent Debt to Equity ratio value of 0.04, TPS belongs to the best of the industry, outperforming 94.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.3 | ||
| Altman-Z | 4.47 |
ROIC/WACC1.09
WACC9.1%
2.3 Liquidity
- TPS has a Current Ratio of 3.61. This indicates that TPS is financially healthy and has no problem in meeting its short term obligations.
- With an excellent Current ratio value of 3.61, TPS belongs to the best of the industry, outperforming 94.55% of the companies in the same industry.
- TPS has a Quick Ratio of 3.57. This indicates that TPS is financially healthy and has no problem in meeting its short term obligations.
- TPS has a better Quick ratio (3.57) than 94.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.61 | ||
| Quick Ratio | 3.57 |
3. Growth
3.1 Past
- TPS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.08%, which is quite good.
- Measured over the past years, TPS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.26% on average per year.
- The Revenue has decreased by -1.37% in the past year.
- Measured over the past years, TPS shows a small growth in Revenue. The Revenue has been growing by 7.77% on average per year.
EPS 1Y (TTM)19.08%
EPS 3Y12.61%
EPS 5Y15.26%
EPS Q2Q%-5.63%
Revenue 1Y (TTM)-1.37%
Revenue growth 3Y11.24%
Revenue growth 5Y7.77%
Sales Q2Q%-3.51%
3.2 Future
- The Earnings Per Share is expected to grow by 6.16% on average over the next years.
- The Revenue is expected to grow by 5.80% on average over the next years.
EPS Next Y7.69%
EPS Next 2Y6.16%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.83%
Revenue Next 2Y5.8%
Revenue Next 3YN/A
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
- A Price/Earnings ratio of 12.15 indicates a correct valuation of TPS.
- Based on the Price/Earnings ratio, TPS is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of TPS to the average of the S&P500 Index (27.21), we can say TPS is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 10.68, the valuation of TPS can be described as reasonable.
- 100.00% of the companies in the same industry are more expensive than TPS, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, TPS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.15 | ||
| Fwd PE | 10.68 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TPS indicates a rather cheap valuation: TPS is cheaper than 100.00% of the companies listed in the same industry.
- TPS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TPS is cheaper than 96.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.04 | ||
| EV/EBITDA | 4.36 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of TPS may justify a higher PE ratio.
PEG (NY)1.58
PEG (5Y)0.8
EPS Next 2Y6.16%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a yearly dividend of 0.89%, TPS is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.74, TPS pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.89, TPS pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
5.2 History
- On average, the dividend of TPS grows each year by 16.14%, which is quite nice.
Dividend Growth(5Y)16.14%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 18.40% of the earnings are spent on dividend by TPS. This is a low number and sustainable payout ratio.
- TPS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP18.4%
EPS Next 2Y6.16%
EPS Next 3YN/A
TECHNICAL PUBLICATIONS SERVI / TPS.MI FAQ
Can you provide the ChartMill fundamental rating for TECHNICAL PUBLICATIONS SERVI?
ChartMill assigns a fundamental rating of 7 / 10 to TPS.MI.
What is the valuation status of TECHNICAL PUBLICATIONS SERVI (TPS.MI) stock?
ChartMill assigns a valuation rating of 7 / 10 to TECHNICAL PUBLICATIONS SERVI (TPS.MI). This can be considered as Undervalued.
What is the profitability of TPS stock?
TECHNICAL PUBLICATIONS SERVI (TPS.MI) has a profitability rating of 7 / 10.
What is the valuation of TECHNICAL PUBLICATIONS SERVI based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TECHNICAL PUBLICATIONS SERVI (TPS.MI) is 12.15 and the Price/Book (PB) ratio is 1.64.
How financially healthy is TECHNICAL PUBLICATIONS SERVI?
The financial health rating of TECHNICAL PUBLICATIONS SERVI (TPS.MI) is 9 / 10.