VALSOIA SPA (VLS.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:VLS - IT0001018362 - Common Stock
10.4 EUR
-0.05 (-0.48%)
We assign a fundamental rating of 5 out of 10 to VLS. VLS was compared to 62 industry peers in the Food Products industry. VLS has an average financial health and profitability rating. VLS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- VLS had positive earnings in the past year.
- In the past year VLS had a positive cash flow from operations.
- Each year in the past 5 years VLS has been profitable.
- Each year in the past 5 years VLS had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of VLS (6.20%) is better than 79.03% of its industry peers.
- VLS has a Return On Equity (9.25%) which is comparable to the rest of the industry.
- VLS has a Return On Invested Capital of 8.00%. This is in the better half of the industry: VLS outperforms 72.58% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for VLS is in line with the industry average of 7.38%.
- The 3 year average ROIC (7.40%) for VLS is below the current ROIC(8.00%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.2% | ||
| ROE | 9.25% | ||
| ROIC | 8% |
ROA(3y)6.23%
ROA(5y)6.49%
ROE(3y)9.1%
ROE(5y)9.37%
ROIC(3y)7.4%
ROIC(5y)7.76%
1.3 Margins
- VLS has a better Profit Margin (7.12%) than 77.42% of its industry peers.
- VLS's Profit Margin has declined in the last couple of years.
- VLS has a better Operating Margin (9.64%) than 67.74% of its industry peers.
- VLS's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 38.12%, VLS perfoms like the industry average, outperforming 58.06% of the companies in the same industry.
- In the last couple of years the Gross Margin of VLS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.64% | ||
| PM (TTM) | 7.12% | ||
| GM | 38.12% |
OM growth 3Y-6.27%
OM growth 5Y-3.68%
PM growth 3Y-4.34%
PM growth 5Y-5.95%
GM growth 3Y-0.55%
GM growth 5Y-1.73%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so VLS is still creating some value.
- VLS has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for VLS has been increased compared to 5 years ago.
- Compared to 1 year ago, VLS has an improved debt to assets ratio.
2.2 Solvency
- VLS has an Altman-Z score of 3.35. This indicates that VLS is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of VLS (3.35) is better than 77.42% of its industry peers.
- VLS has a debt to FCF ratio of 5.01. This is a neutral value as VLS would need 5.01 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 5.01, VLS is doing good in the industry, outperforming 72.58% of the companies in the same industry.
- VLS has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of VLS (0.05) is better than 91.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 5.01 | ||
| Altman-Z | 3.35 |
ROIC/WACC1.05
WACC7.65%
2.3 Liquidity
- VLS has a Current Ratio of 1.29. This is a normal value and indicates that VLS is financially healthy and should not expect problems in meeting its short term obligations.
- VLS has a Current ratio (1.29) which is comparable to the rest of the industry.
- VLS has a Quick Ratio of 1.29. This is a bad value and indicates that VLS is not financially healthy enough and could expect problems in meeting its short term obligations.
- VLS has a Quick ratio (0.89) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
- VLS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.17%, which is quite good.
- VLS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.62% yearly.
- The Revenue has been growing slightly by 2.66% in the past year.
- Measured over the past years, VLS shows a quite strong growth in Revenue. The Revenue has been growing by 9.32% on average per year.
EPS 1Y (TTM)11.17%
EPS 3Y4.1%
EPS 5Y2.62%
EPS Q2Q%2.37%
Revenue 1Y (TTM)2.66%
Revenue growth 3Y8.68%
Revenue growth 5Y9.32%
Sales Q2Q%2.33%
3.2 Future
- The Earnings Per Share is expected to grow by 3.23% on average over the next years.
- The Revenue is expected to grow by 2.84% on average over the next years.
EPS Next Y-3.75%
EPS Next 2Y0.62%
EPS Next 3Y3.23%
EPS Next 5YN/A
Revenue Next Year2.52%
Revenue Next 2Y2.75%
Revenue Next 3Y2.84%
Revenue Next 5YN/A
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 accelerating.
- 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 13.33, which indicates a correct valuation of VLS.
- 69.35% of the companies in the same industry are more expensive than VLS, based on the Price/Earnings ratio.
- VLS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.60.
- With a Price/Forward Earnings ratio of 12.71, VLS is valued correctly.
- 62.90% of the companies in the same industry are more expensive than VLS, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of VLS to the average of the S&P500 Index (25.83), we can say VLS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.33 | ||
| Fwd PE | 12.71 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, VLS is valued a bit cheaper than the industry average as 64.52% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of VLS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49 | ||
| EV/EBITDA | 7.84 |
4.3 Compensation for Growth
- VLS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.09
EPS Next 2Y0.62%
EPS Next 3Y3.23%
5. Dividend
5.1 Amount
- VLS has a Yearly Dividend Yield of 3.65%.
- Compared to an average industry Dividend Yield of 2.38, VLS pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, VLS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
5.2 History
- The dividend of VLS has a limited annual growth rate of 0.03%.
Dividend Growth(5Y)0.03%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- VLS pays out 48.76% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of VLS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP48.76%
EPS Next 2Y0.62%
EPS Next 3Y3.23%
VALSOIA SPA / VLS.MI FAQ
Can you provide the ChartMill fundamental rating for VALSOIA SPA?
ChartMill assigns a fundamental rating of 5 / 10 to VLS.MI.
What is the valuation status of VALSOIA SPA (VLS.MI) stock?
ChartMill assigns a valuation rating of 5 / 10 to VALSOIA SPA (VLS.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for VALSOIA SPA?
VALSOIA SPA (VLS.MI) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for VLS stock?
The Price/Earnings (PE) ratio for VALSOIA SPA (VLS.MI) is 13.33 and the Price/Book (PB) ratio is 1.24.
What is the earnings growth outlook for VALSOIA SPA?
The Earnings per Share (EPS) of VALSOIA SPA (VLS.MI) is expected to decline by -3.75% in the next year.