New Risk • Jun 26
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of German stocks, typically moving 8.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (12% operating cash flow to total debt). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (8.3% average weekly change). Declared Dividend • May 20
Dividend increased to €0.023 Dividend of €0.023 is 25% higher than last year. Ex-date: 1st June 2026 Payment date: 3rd June 2026 Dividend yield will be 5.1%, which is higher than the industry average of 3.8%. Sustainability & Growth Dividend is well covered by both earnings (14% earnings payout ratio) and cash flows (25% cash payout ratio). The dividend has increased by an average of 5.1% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 16% over the next 3 years. However, it would need to fall by 85% to increase the payout ratio to a potentially unsustainable range. Board Change • May 20
Less than half of directors are independent There are 6 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 6 new directors. 2 experienced directors. 2 highly experienced directors. 3 independent directors (4 non-independent directors). Independent Vice Chairman of the Board Gianantonio Arnoldi is the most experienced director on the board, commencing their role in 2015. Independent Director Paola Panzeri was the last independent director to join the board, commencing their role in 2024. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Announcement • Mar 24
FNM S.p.A. announces Annual dividend, payable on June 03, 2026 FNM S.p.A. announced Annual dividend of EUR 0.0230 per share payable on June 03, 2026, ex-date on June 01, 2026 and record date on June 02, 2026. Announcement • Mar 26
FNM S.p.A. announces Annual dividend, payable on June 04, 2025 FNM S.p.A. announced Annual dividend of EUR 0.0184 per share payable on June 04, 2025, ex-date on June 02, 2025 and record date on June 03, 2025. Reported Earnings • Nov 17
Third quarter 2024 earnings released: EPS: €0.055 (vs €0.043 in 3Q 2023) Third quarter 2024 results: EPS: €0.055 (up from €0.043 in 3Q 2023). Revenue: €65.0m (down 64% from 3Q 2023). Net income: €24.0m (up 15% from 3Q 2023). Profit margin: 37% (up from 12% in 3Q 2023). The increase in margin was driven by lower expenses. Revenue is forecast to stay flat during the next 3 years compared to a 2.8% growth forecast for the Transportation industry in Europe. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 04
Second quarter 2024 earnings released Second quarter 2024 results: Revenue: €135.5m (down 30% from 2Q 2023). Net income: €16.8m (down 28% from 2Q 2023). Profit margin: 12% (in line with 2Q 2023). Revenue is expected to decline by 2.2% p.a. on average during the next 3 years, while revenues in the Transportation industry in Europe are expected to grow by 2.6%. Over the last 3 years on average, earnings per share has increased by 32% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Announcement • Jun 26
FNM S.p.A. agreed to acquire remaining 42% stake in Nordcom S.P.A from Tim Group. FNM S.p.A. agreed to acquire remaining 42% stake in Nordcom S.P.A from Tim Group on June 25, 2024. As of year ended 2023, Nordcom reported revenue of €23.5 million, EBITDA of €3.7 million and net income of €1.1 million. Upcoming Dividend • May 27
Upcoming dividend of €0.023 per share Eligible shareholders must have bought the stock before 03 June 2024. Payment date: 05 June 2024. Payout ratio is a comfortable 12% and this is well supported by cash flows. Trailing yield: 4.3%. Lower than top quartile of German dividend payers (4.6%). In line with average of industry peers (4.5%). New Risk • Apr 04
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 19% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (19% operating cash flow to total debt). Earnings are forecast to decline by an average of 6.9% per year for the foreseeable future. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (8.3% average weekly change). Declared Dividend • Mar 17
Dividend of €0.023 announced Shareholders will receive a dividend of €0.023. Ex-date: 3rd June 2024 Payment date: 5th June 2024 Dividend yield will be 5.6%, which is higher than the industry average of 3.8%. Sustainability & Growth The dividend has increased by an average of 7.2% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 26% over the next 3 years. However, it would need to fall by 86% to increase the payout ratio to a potentially unsustainable range. New Risk • Mar 07
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (19% operating cash flow to total debt). Earnings are forecast to decline by an average of 9.2% per year for the foreseeable future. Minor Risks Latest financial reports are more than 6 months old (reported June 2023 fiscal period end). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (9.5% average weekly change). Announcement • Feb 02
FNM S.p.A., Annual General Meeting, Apr 23, 2024 FNM S.p.A., Annual General Meeting, Apr 23, 2024. Buying Opportunity • Nov 18
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 1.7%. The fair value is estimated to be €0.51, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 29% over the last 3 years. Earnings per share has grown by 56%. Revenue is forecast to grow by 8.4% in 2 years. Earnings is forecast to decline by 25% in the next 2 years. Reported Earnings • Aug 03
Second quarter 2023 earnings released Second quarter 2023 results: Revenue: €146.8m (down 18% from 2Q 2022). Net income: €23.2m (up 26% from 2Q 2022). Profit margin: 16% (up from 10% in 2Q 2022). The increase in margin was driven by lower expenses. Revenue is forecast to grow 4.4% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Transportation industry in Europe. Upcoming Dividend • May 29
Upcoming dividend of €0.023 per share at 5.2% yield Eligible shareholders must have bought the stock before 05 June 2023. Payment date: 07 June 2023. Trailing yield: 5.2%. Within top quartile of German dividend payers (4.7%). Higher than average of industry peers (3.4%). Reported Earnings • Mar 17
Full year 2022 earnings released Full year 2022 results: Revenue: €605.4m (up 3.9% from FY 2021). Net income: €68.5m (up 68% from FY 2021). Profit margin: 11% (up from 7.0% in FY 2021). Revenue is forecast to grow 4.8% p.a. on average during the next 3 years, compared to a 9.2% growth forecast for the Transportation industry in Europe. Buying Opportunity • Dec 13
Now 25% undervalued after recent price drop Over the last 90 days, the stock is down 6.4%. The fair value is estimated to be €0.52, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 37% over the last 3 years. Earnings per share has grown by 45%. For the next 3 years, revenue is forecast to grow by 3.7% per annum. Earnings is also forecast to grow by 1.5% per annum over the same time period. Reported Earnings • Nov 16
Third quarter 2022 earnings released: EPS: €0.039 (vs €0.074 in 3Q 2021) Third quarter 2022 results: EPS: €0.039 (down from €0.074 in 3Q 2021). Revenue: €120.0m (down 32% from 3Q 2021). Net income: €17.0m (down 51% from 3Q 2021). Profit margin: 14% (down from 20% in 3Q 2021). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 3.7% p.a. on average during the next 3 years, compared to a 8.5% growth forecast for the Transportation industry in Europe. Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Board Change • Nov 16
Less than half of directors are independent There are 6 new directors who have joined the board in the last 3 years. Of these new board members, none were independent directors. The company's board is composed of: 6 new directors. 4 experienced directors. No highly experienced directors. 2 independent directors (5 non-independent directors). Member of Statutory Auditor Massimo Codari is the most experienced director on the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Reported Earnings • Oct 01
Second quarter 2022 earnings released Second quarter 2022 results: Revenue: €145.6m (down 16% from 2Q 2021). Net income: €18.4m (up €24.0m from 2Q 2021). Profit margin: 13% (up from net loss in 2Q 2021). The move to profitability was driven by lower expenses. Revenue is forecast to grow 4.5% p.a. on average during the next 3 years, compared to a 4.8% growth forecast for the Transportation industry in Europe. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Board Change • Apr 27
Less than half of directors are independent There are 7 new directors who have joined the board in the last 3 years. Of these new board members, none were independent directors. The company's board is composed of: 7 new directors. 3 experienced directors. No highly experienced directors. 2 independent directors (5 non-independent directors). Member of Statutory Auditor Massimo Codari is the most experienced director on the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Reported Earnings • Nov 14
Third quarter 2021 earnings released The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: €114.7m (up 70% from 3Q 2020). Net income: €34.8m (up 399% from 3Q 2020). Profit margin: 30% (up from 10% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. Reported Earnings • Aug 02
Second quarter 2021 earnings released The company reported a decent second quarter result with improved revenues, although losses increased and control over costs was weaker. Second quarter 2021 results: Revenue: €146.4m (up 157% from 2Q 2020). Net loss: €5.69m (loss widened 298% from 2Q 2020). Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Is New 90 Day High Low • Mar 16
New 90-day high: €0.60 The company is up 5.0% from a price of €0.58 on 16 December 2020. Underperformed the German market, which is up 9.0% over the last 90 days. Exceeded the Transportation industry, which is down 1.0% over the same period. Reported Earnings • Nov 15
Third quarter 2020 earnings released: EPS €0.016 The company reported a soft third quarter result with weaker earnings and profit margins, although revenues were improved. Third quarter 2020 results: Revenue: €82.7m (up 11% from 3Q 2019). Net income: €6.98m (down 23% from 3Q 2019). Profit margin: 8.4% (down from 12% in 3Q 2019). The decrease in margin was driven by higher expenses. Is New 90 Day High Low • Oct 30
New 90-day low: €0.42 The company is down 4.0% from its price of €0.43 on 31 July 2020. The German market is also down 4.0% over the last 90 days, indicating the company’s price trend is similar to the market over that time. However, it underperformed the Transportation industry, which is flat over the same period.