BIT:SO

Stock Analysis Report

Executive Summary

Sogefi S.p.A. designs, develops, and produces filtration systems, suspension components, air management, and engine cooling systems for the automotive industry worldwide.


Snowflake Analysis

Moderate growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Sogefi's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-10.5%

SO

-3.4%

IT Auto Components

-0.3%

IT Market


1 Year Return

-31.4%

SO

-16.4%

IT Auto Components

15.6%

IT Market

Return vs Industry: SO underperformed the Italian Auto Components industry which returned -16% over the past year.

Return vs Market: SO underperformed the Italian Market which returned 15.8% over the past year.


Shareholder returns

SOIndustryMarket
7 Day-10.5%-3.4%-0.3%
30 Day-8.5%-4.1%2.9%
90 Day-22.3%-11.3%4.5%
1 Year-31.4%-31.4%-14.0%-16.4%20.7%15.6%
3 Year-50.2%-50.2%-21.1%-27.6%39.4%25.4%
5 Year-60.5%-60.5%-11.8%-21.8%15.8%-23.8%

Price Volatility Vs. Market

How volatile is Sogefi's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sogefi undervalued compared to its fair value and its price relative to the market?

2.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SO (€1.29) is trading above our estimate of fair value (€1.22)

Significantly Below Fair Value: SO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SO is poor value based on its PE Ratio (29.3x) compared to the Auto Components industry average (18.8x).

PE vs Market: SO is poor value based on its PE Ratio (29.3x) compared to the Italian market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: SO is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: SO is good value based on its PB Ratio (0.8x) compared to the IT Auto Components industry average (1x).


Next Steps

Future Growth

How is Sogefi forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

68.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SO's forecast earnings growth (68.9% per year) is above the savings rate (1.2%).

Earnings vs Market: SO's earnings (68.9% per year) are forecast to grow faster than the Italian market (9.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SO's revenue (2% per year) is forecast to grow slower than the Italian market (4.2% per year).

High Growth Revenue: SO's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SO's Return on Equity is forecast to be low in 3 years time (11.3%).


Next Steps

Past Performance

How has Sogefi performed over the past 5 years?

11.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SO has a large one-off loss of €26.9M impacting its September 30 2019 financial results.

Growing Profit Margin: SO's current net profit margins (0.09%) are lower than last year (1%).


Past Earnings Growth Analysis

Earnings Trend: SO has become profitable over the past 5 years, growing earnings by 11.6% per year.

Accelerating Growth: SO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SO had negative earnings growth (-91%) over the past year, making it difficult to compare to the Auto Components industry average (-69.1%).


Return on Equity

High ROE: SO's Return on Equity (2.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sogefi's financial position?


Financial Position Analysis

Short Term Liabilities: SO's short term assets (€446.5M) do not cover its short term liabilities (€524.9M).

Long Term Liabilities: SO's short term assets (€446.5M) do not cover its long term liabilities (€515.2M).


Debt to Equity History and Analysis

Debt Level: SO's debt to equity ratio (187.2%) is considered high.

Reducing Debt: SO's debt to equity ratio has reduced from 231% to 187.2% over the past 5 years.

Debt Coverage: SO's debt is well covered by operating cash flow (36.5%).

Interest Coverage: SO's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet

Inventory Level: SO has a high level of physical assets or inventory.

Debt Coverage by Assets: SO's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

What is Sogefi's current dividend yield, its reliability and sustainability?

5.72%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.0%markettop25%4.5%industryaverage3.8%forecastin3Years5.7%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate SO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SO's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SO is not paying a notable dividend for the Italian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SO's dividend in 3 years as they are not forecast to pay a notable one for the Italian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.1yrs

Average management tenure


CEO

Mauro Fenzi 0

1.1yrs

Tenure

0

Mr. Mauro Fenzi has been Chief Executive Officer at Sogefi S.p.A. since 2019. Mr. Fenzi has been Chief Operating Officer of Systems at Fiat Chrysler Automobiles N.V. since April 1, 2015. Mr. Fenzi has been ...


Leadership Team

NamePositionTenureCompensationOwnership
Mauro Fenzi
CEO & GM1.1yrsno datano data
Yann Albrand
Group CFO & Investors Relation4.5yrsno datano data
Niccolò Moreschini
General Counsel & Secretary of the Board1.1yrsno datano data
Vittorio Argento
Corporate Development Manager0yrsno datano data
Mario Milani
Head of Sogefi Filtration South America0yrsno datano data
Giorgio Imposimato
Chief Audit Executive0yrsno datano data
Valentina Paduano
Chief Risk Officer0.9yrsno datano data
Pasquale Colicchia
Suspensions Business Unit CEO0.9yrsno datano data
Renato Ruscazio
Controlling Manager0yrsno datano data
Alberto Obert
Chief Executive Officer of Sogefi Rejna Spa0yrsno datano data

1.1yrs

Average Tenure

Experienced Management: SO's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Rodolfo De Benedetti
Director0yrs€63.00kno data
Carlo De Benedetti
Honorary Chairman0yrsno datano data
Christian Streiff
Director1.1yrsno datano data
Riccardo Zingales
Member of the Board of Statutory Auditors0yrs€40.00kno data
Roberta Di Vieto
Independent Director9.8yrs€30.00kno data
Monica Mondardini
Chairman4.7yrs€77.00kno data
Mauro Melis
Lead Independent Director1.1yrsno datano data
Ervino Riccobon
Director1.1yrsno datano data
Patrizia Canziani
Independent Director3.8yrsno datano data
Sonia Peron
Chairman of the Board of Statutory Auditors1.8yrsno datano data

1.8yrs

Average Tenure

59yo

Average Age

Experienced Board: SO's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sogefi S.p.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sogefi S.p.A.
  • Ticker: SO
  • Exchange: BIT
  • Founded: 1980
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: €139.995m
  • Shares outstanding: 117.74m
  • Website: https://www.sogefigroup.com

Number of Employees


Location

  • Sogefi S.p.A.
  • Via Ciovassino 1/a
  • Milan
  • Milan
  • 20121
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SOBIT (Borsa Italiana)YesOrdinary SharesITEURJan 1992
0NV0LSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
SOMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992

Biography

Sogefi S.p.A. designs, develops, and produces filtration systems, suspension components, air management, and engine cooling systems for the automotive industry worldwide. Its products include intake manifold systems, charged air ducts, air induction systems, thermostat housings and ducts, and coolant pumps and modules; and oil filtration systems, petrol fuel filters, diesel fuel filtration systems, air filtration systems, cam covers, and oil separators for the original equipment manufacturers of motorcycles, three wheelers, cars, and heavy duty vehicles. The company also offers oil, air, petrol, diesel, and cabin filters for the automotive replacement markets. In addition, its suspension components include helical springs, stabilizer bars, torsion bars, stabilinks, leaf springs, track tensioners, coil springs, FRP coil springs, and precision springs for use in cars, light and heavy commercial vehicles, earth-moving equipment, armored vehicles, and rolling wagons. Sogefi S.p.A. offers its products under the Allevard Rejna, Coopers Fiaam, FRAM, LP-DN, Purflux, Sidergarda Mollificio Bresciano, Sogefi PRO, and United Springs brands. The company was founded in 1980 and is headquartered in Milan, Italy. Sogefi S.p.A. is a subsidiary of Compagnie Industriali Riunite S.p.A. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 20:57
End of Day Share Price2020/02/24 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.