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Carraro

BIT:CARR
Snowflake Description

Good value with adequate balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CARR
BIT
€153M
Market Cap
  1. Home
  2. IT
  3. Capital Goods
Company description

Carraro S.p.A., together with its subsidiaries, engages in the manufacture and marketing of drive systems in Italy, other European countries, North and South America, Asia, and other non-European countries. The last earnings update was 99 days ago. More info.


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  • Carraro has significant price volatility in the past 3 months.
CARR Share Price and Events
7 Day Returns
-5.4%
BIT:CARR
-0.3%
IT Machinery
-0.8%
IT Market
1 Year Returns
-38.2%
BIT:CARR
-19.7%
IT Machinery
-1.2%
IT Market
CARR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Carraro (CARR) -5.4% -3% -19.6% -38.2% 66.6% -21.8%
IT Machinery -0.3% -1.5% -8.6% -19.7% 53.1% 60.9%
IT Market -0.8% 3.1% -0.6% -1.2% 8.2% -31.9%
1 Year Return vs Industry and Market
  • CARR underperformed the Machinery industry which returned -19.7% over the past year.
  • CARR underperformed the Market in Italy which returned -1.2% over the past year.
Price Volatility
CARR
Industry
5yr Volatility vs Market

CARR Value

 Is Carraro undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Carraro to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Carraro.

BIT:CARR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 19.1%
Perpetual Growth Rate 10-Year IT Government Bond Rate 2.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BIT:CARR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IT Govt Bond Rate 2.9%
Equity Risk Premium S&P Global 9%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.08
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.081 (1 + (1- 24%) (133.66%))
1.79
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.79
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.93% + (1.79 * 9.02%)
19.08%

Discounted Cash Flow Calculation for BIT:CARR using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Carraro is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

BIT:CARR DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 19.08%)
2020 30.40 Analyst x1 25.53
2021 33.70 Analyst x1 23.76
2022 36.10 Analyst x1 21.38
2023 38.16 Est @ 5.7% 18.98
2024 40.01 Est @ 4.87% 16.71
2025 41.73 Est @ 4.29% 14.63
2026 43.35 Est @ 3.88% 12.77
2027 44.91 Est @ 3.6% 11.11
2028 46.44 Est @ 3.4% 9.64
2029 47.95 Est @ 3.26% 8.36
Present value of next 10 years cash flows €162.87
BIT:CARR DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= €47.95 × (1 + 2.93%) ÷ (19.08% – 2.93%)
€305.64
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €305.64 ÷ (1 + 19.08%)10
€53.30
BIT:CARR Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €162.87 + €53.30
€216.17
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €216.17 / 77.09
€2.8
BIT:CARR Discount to Share Price
Calculation Result
Value per share (EUR) From above. €2.80
Current discount Discount to share price of €1.98
= -1 x (€1.98 - €2.80) / €2.80
29.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Carraro is available for.
Intrinsic value
29%
Share price is €1.98 vs Future cash flow value of €2.8
Current Discount Checks
For Carraro to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Carraro's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Carraro's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Carraro's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Carraro's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BIT:CARR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in EUR €0.16
BIT:CARR Share Price ** BIT (2019-07-19) in EUR €1.98
Italy Machinery Industry PE Ratio Median Figure of 16 Publicly-Listed Machinery Companies 15.74x
Italy Market PE Ratio Median Figure of 240 Publicly-Listed Companies 15.97x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Carraro.

BIT:CARR PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BIT:CARR Share Price ÷ EPS (both in EUR)

= 1.98 ÷ 0.16

12.51x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Carraro is good value based on earnings compared to the IT Machinery industry average.
  • Carraro is good value based on earnings compared to the Italy market.
Price based on expected Growth
Does Carraro's expected growth come at a high price?
Raw Data
BIT:CARR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 12.51x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
17.1%per year
Italy Machinery Industry PEG Ratio Median Figure of 13 Publicly-Listed Machinery Companies 0.81x
Italy Market PEG Ratio Median Figure of 161 Publicly-Listed Companies 1.32x

*Line of best fit is calculated by linear regression .

BIT:CARR PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 12.51x ÷ 17.1%

0.73x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Carraro is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Carraro's assets?
Raw Data
BIT:CARR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in EUR €0.88
BIT:CARR Share Price * BIT (2019-07-19) in EUR €1.98
Italy Machinery Industry PB Ratio Median Figure of 22 Publicly-Listed Machinery Companies 1.6x
Italy Market PB Ratio Median Figure of 324 Publicly-Listed Companies 1.51x
BIT:CARR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BIT:CARR Share Price ÷ Book Value per Share (both in EUR)

= 1.98 ÷ 0.88

2.25x

* Primary Listing of Carraro.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Carraro is overvalued based on assets compared to the IT Machinery industry average.
X
Value checks
We assess Carraro's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Carraro has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

CARR Future Performance

 How is Carraro expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
17.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Carraro expected to grow at an attractive rate?
  • Carraro's earnings growth is expected to exceed the low risk savings rate of 2.9%.
Growth vs Market Checks
  • Carraro's earnings growth is expected to exceed the Italy market average.
  • Carraro's revenue growth is positive but not above the Italy market average.
Annual Growth Rates Comparison
Raw Data
BIT:CARR Future Growth Rates Data Sources
Data Point Source Value (per year)
BIT:CARR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 17.1%
BIT:CARR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 2.5%
Italy Machinery Industry Earnings Growth Rate Market Cap Weighted Average 12.5%
Italy Machinery Industry Revenue Growth Rate Market Cap Weighted Average 5.9%
Italy Market Earnings Growth Rate Market Cap Weighted Average 8.8%
Italy Market Revenue Growth Rate Market Cap Weighted Average 3.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BIT:CARR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BIT:CARR Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 685 56 23 1
2021-12-31 667 54 21 1
2020-12-31 669 51 18 3
2019-12-31 636 44 14 2
BIT:CARR Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2018-12-31 624 18 12
2018-09-30 624 21 11
2018-06-30 624 24 10
2018-03-31 615 26 12
2017-12-31 606 28 14
2017-09-30 584 32 4
2017-06-30 580 30 4
2017-03-31 592 36 1
2016-12-31 594 22 -9
2016-09-30 621 19 1
2016-06-30 629 9 -6
2016-03-31 651 41 -12

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Carraro's earnings are expected to grow by 17.1% yearly, however this is not considered high growth (20% yearly).
  • Carraro's revenue is expected to grow by 2.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BIT:CARR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Carraro Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BIT:CARR Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 0.27 0.27 0.27 1.00
2020-12-31 0.23 0.24 0.22 3.00
2019-12-31 0.17 0.17 0.17 1.00
BIT:CARR Past Financials Data
Date (Data in EUR Millions) EPS *
2018-12-31 0.16
2018-09-30 0.14
2018-06-30 0.13
2018-03-31 0.17
2017-12-31 0.22
2017-09-30 0.05
2017-06-30 0.09
2017-03-31 0.01
2016-12-31 -0.21
2016-09-30
2016-06-30 -0.14
2016-03-31

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Carraro is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Carraro's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Italy market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Italy market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Carraro has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

CARR Past Performance

  How has Carraro performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Carraro's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Carraro has delivered over 20% year on year earnings growth in the past 5 years.
  • Carraro's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Carraro's 1-year earnings growth is negative, it can't be compared to the IT Machinery industry average.
Earnings and Revenue History
Carraro's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Carraro Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BIT:CARR Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 624.12 12.19 90.91
2018-09-30 623.93 11.07 92.06
2018-06-30 623.75 9.95 93.20
2018-03-31 614.88 11.81 93.92
2017-12-31 606.02 13.67 94.64
2017-09-30 583.75 3.71 95.88
2017-06-30 579.85 4.14 94.90
2017-03-31 591.52 0.97 96.75
2016-12-31 593.75 -9.09 98.06
2016-09-30 621.32 0.77 103.09
2016-06-30 628.64 -5.98 109.53
2016-03-31 650.86 -11.75 116.30
2015-12-31 674.01 -8.92 123.82
2015-09-30 692.64 -6.65 123.32
2015-06-30 726.31 -3.60 124.26
2015-03-31 731.13 -4.98 127.09
2014-12-31 727.76 -7.91 129.66
2014-09-30 761.89 -10.76 138.32
2014-06-30 794.19 -8.95 143.24
2014-03-31 849.78 -0.60 147.31
2013-12-31 871.94 1.29 148.15
2013-09-30 857.73 -8.46 147.35
2013-06-30 849.18 -9.65 145.83
2013-03-31 841.28 -14.49 144.01
2012-12-31 874.36 -15.30 143.41
2012-09-30 926.16 -5.18 141.81

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Carraro has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Carraro used its assets less efficiently than the IT Machinery industry average last year based on Return on Assets.
  • Carraro has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Carraro's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Carraro has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

CARR Health

 How is Carraro's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Carraro's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Carraro is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Carraro's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Carraro's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Carraro Company Filings, last reported 6 months ago.

BIT:CARR Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 77.07 204.02 36.01
2018-09-30 77.07 204.02 36.01
2018-06-30 72.03 209.31 41.04
2018-03-31 72.03 209.31 41.04
2017-12-31 82.06 207.83 49.86
2017-09-30 82.06 207.83 49.86
2017-06-30 72.90 239.81 73.70
2017-03-31 72.90 239.81 73.70
2016-12-31 46.73 247.95 48.36
2016-09-30 55.94 279.21 83.82
2016-06-30 53.97 279.70 74.67
2016-03-31 18.18 301.00 52.09
2015-12-31 31.02 315.50 71.19
2015-09-30 33.79 315.72 59.49
2015-06-30 41.15 320.39 70.81
2015-03-31 50.69 366.75 88.85
2014-12-31 41.21 290.97 63.74
2014-09-30 37.85 329.42 44.14
2014-06-30 43.06 308.90 36.95
2014-03-31 48.93 336.10 55.24
2013-12-31 54.86 326.86 73.93
2013-09-30 55.27 336.49 63.11
2013-06-30 60.06 336.44 72.48
2013-03-31 63.49 349.65 69.65
2012-12-31 63.12 330.57 110.11
2012-09-30 79.80 355.52 46.66
  • Carraro's level of debt (264.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (596.7% vs 264.7% today).
  • Debt is not well covered by operating cash flow (8.8%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.2x coverage).
X
Financial health checks
We assess Carraro's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Carraro has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

CARR Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.57%
Current annual income from Carraro dividends. Estimated to be 9.77% next year.
If you bought €2,000 of Carraro shares you are expected to receive €131 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Carraro's pays a higher dividend yield than the bottom 25% of dividend payers in Italy (2.1%).
  • Carraro's dividend is above the markets top 25% of dividend payers in Italy (4.44%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BIT:CARR Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
Italy Machinery Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 2.1%
Italy Market Average Dividend Yield Market Cap Weighted Average of 185 Stocks 4%
Italy Minimum Threshold Dividend Yield 10th Percentile 1%
Italy Bottom 25% Dividend Yield 25th Percentile 2.1%
Italy Top 25% Dividend Yield 75th Percentile 4.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BIT:CARR Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31 0.18 2.00
2019-12-31 0.22 1.00
BIT:CARR Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2019-04-11 0.130 6.038
2019-03-06 0.130 5.502
2018-03-29 0.170 6.966
2009-11-13 0.000 0.000
2009-11-12 0.000 0.000
2009-08-28 0.000 0.000
2009-05-15 0.000 0.000
2009-03-30 0.000 0.000
2008-08-29 0.165 5.915

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Carraro's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.5x coverage).
X
Income/ dividend checks
We assess Carraro's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Carraro afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Carraro has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

CARR Management

 What is the CEO of Carraro's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Alberto Negri
COMPENSATION €159,000
TENURE AS CEO 4.8 years
CEO Bio

Mr. Alberto Negri has been the Chief Executive Officer of Carraro SpA since October 29, 2014. Mr. Negri served as Managing Director of Gear World S.p.A. since March 01, 2012. Mr. Negri has accrued significant experience in the industrial and management field in internationally renowned manufacturing companies that have cutting-edge organizational structures. He has been a Director of Carraro SpA since October 29, 2014.

CEO Compensation
  • Insufficient data for Alberto to compare compensation growth.
  • Alberto's remuneration is higher than average for companies of similar size in Italy.
Management Team

Alberto Negri

TITLE
CEO & Director
COMPENSATION
€159K
TENURE
4.8 yrs

Mario Carraro

TITLE
President
COMPENSATION
€737K

Enrico Gomiero

TITLE
CFO, Financial Reporting Officer & Director

Sgobbi Mario

TITLE
Human Resources Director
Board of Directors Tenure

Average tenure of the Carraro board of directors in years:

1.5
Average Tenure
  • The average tenure for the Carraro board of directors is less than 3 years, this suggests a new board.
Board of Directors

Enrico Carraro

TITLE
Chairman of the Board
COMPENSATION
€900K

Alberto Negri

TITLE
CEO & Director
COMPENSATION
€159K
TENURE
4.8 yrs

Tomaso Carraro

TITLE
Deputy Chairman
COMPENSATION
€250K
AGE
60

Enrico Gomiero

TITLE
CFO, Financial Reporting Officer & Director
TENURE
1.5 yrs

Fabio Buttignon

TITLE
Independent Director

Marina Manna

TITLE
Independent Director

Carlo Pesce

TITLE
Chairman of Board of Statutory Auditors
TENURE
1.5 yrs

Marina Pittini

TITLE
Independent Director
COMPENSATION
€90K

Riccardo Arduini

TITLE
Independent Director
AGE
69
TENURE
3.6 yrs

Virginia Carraro

TITLE
Director
TENURE
1.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Carraro's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Carraro has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

CARR News

Simply Wall St News

A Note On Carraro S.p.A.'s (BIT:CARR) ROE and Debt To Equity

One way to conceptualize this, is that for each €1 of shareholders' equity it has, the company made €0.17 in profit. … The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Carraro: 17% = €12m ÷ €77m (Based on the trailing twelve months to December 2018.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … The Bottom Line On ROE Return on equity is one way we can compare the business quality of different companies.

Simply Wall St -

Are Investors Undervaluing Carraro S.p.A. (BIT:CARR) By 28%?

Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) forecast 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF (€, Millions) €30.4m €33.7m €36.1m €38.2m €40.0m €41.7m €43.3m €44.9m €46.4m €47.9m Growth Rate Estimate Source Analyst x1 Analyst x1 Analyst x1 Est @ 5.7% Est @ 4.87% Est @ 4.29% Est @ 3.88% Est @ 3.6% Est @ 3.4% Est @ 3.26% Present Value (€, Millions) Discounted @ 18.68% €25.6 €23.9 €21.6 €19.2 €17.0 €14.9 €13.1 €11.4 €9.9 €8.6 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= €165.4m After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = €48m × (1 + 2.9%) ÷ (18.7% – 2.9%) = €313m Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = €€313m ÷ ( 1 + 18.7%)10 = €56.52m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is €221.87m. … BIT:CARR Intrinsic value, July 4th 2019 The assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

A Holistic Look At Carraro S.p.A. (BIT:CARR)

In the case of CARR, it is a financially-robust company with a a strong track record high-quality dividend payments, trading at a great value. … BIT:CARR Historical Dividend Yield, June 25th 2019 Next Steps: For Carraro, I've compiled three key aspects you should further research: Future Outlook: What are well-informed industry analysts predicting for CARR’s future growth? … Take a look at our free research report of analyst consensus for CARR’s outlook.

Simply Wall St -

Will Carraro S.p.A.'s (BIT:CARR) Earnings Grow In The Year Ahead?

After Carraro S.p.A.'s (BIT:CARR) earnings announcement in December 2018, the consensus outlook from analysts appear somewhat bearish, as a 12% rise in profits is expected in the upcoming year, relative to the higher past 5-year average growth rate of 56%. … To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line. … BIT:CARR Past and Future Earnings, June 3rd 2019 By 2022, CARR's earnings should reach €21m, from current levels of €12m, resulting in an annual growth rate of 17%.

Simply Wall St -

Does Carraro S.p.A. (BIT:CARR) Have A Good P/E Ratio?

We'll apply a basic P/E ratio analysis to Carraro S.p.A.'s (BIT:CARR), to help you decide if the stock is worth further research. … Carraro has a P/E ratio of 14.52, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

What Kind Of Shareholder Owns Most Carraro S.p.A. (BIT:CARR) Stock?

The big shareholder groups in Carraro S.p.A. … Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … With a market capitalization of €190m, Carraro is a small cap stock, so it might not be well known by many institutional investors.

Simply Wall St -

Should You Care About Carraro S.p.A.’s (BIT:CARR) Investment Potential?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.

Simply Wall St -

Introducing Carraro (BIT:CARR), A Stock That Climbed 69% In The Last Three Years

(BIT:CARR) share price is up 69% in the last three years, clearly besting than the market return of around -13% (not including dividends). … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During three years of share price growth, Carraro moved from a loss to profitability.

Simply Wall St -

Does The Data Make Carraro S.p.A. (BIT:CARR) An Attractive Investment?

Help shape the future of investing tools and you could win a $250 gift card! … Upon building up an investment case for a stock, we should look at various aspects. … In the case of CARR, it

Simply Wall St -

How Good Is Carraro S.p.A. (BIT:CARR), When It Comes To ROE?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … One way to conceptualize this, is that for each €1 of shareholders' equity it has, the company made €0.15 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

CARR Company Info

Description

Carraro S.p.A., together with its subsidiaries, engages in the manufacture and marketing of drive systems in Italy, other European countries, North and South America, Asia, and other non-European countries. The company provides transmission systems, including axles, transmissions, and planetary drives primarily for agricultural and construction equipment, as well as a range of components and gears for use in automotive, light power tools, material handling, agricultural, and construction equipment applications. It also offers special tractors for third party brands, as well as a specialist own-brand range; and engineering services for the design of tractor ranges. The company was founded in 1932 and is headquartered in Campodarsego, Italy. Carraro S.p.A. is a subsidiary of Finaid S.p.A.

Details
Name: Carraro S.p.A.
CARR
Exchange: BIT
Founded: 1932
€152,637,095
77,089,442
Website: http://www.carraro.com
Address: Carraro S.p.A.
Via Olmo, 37,
Campodarsego,
Padova, 35011,
Italy
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BIT CARR Ordinary Shares Borsa Italiana IT EUR 28. Dec 1995
LSE 0N7L Ordinary Shares London Stock Exchange GB EUR 28. Dec 1995
BATS-CHIXE CARRM Ordinary Shares BATS 'Chi-X Europe' GB EUR 28. Dec 1995
Number of employees
Current staff
Staff numbers
2,854
Carraro employees.
Industry
Construction Machinery and Heavy Trucks
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/19 20:36
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/16
Last earnings filing: 2019/04/11
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.