BIT:CMB

Stock Analysis Report

Executive Summary

Cembre S.p.A., together with its subsidiaries, manufactures and sells electrical connectors and related tools in Italy, rest of Europe, and internationally.

Rewards

PE ratio (17x) is below the Italian market (18.3x)

Revenue is forecast to grow 3.41% per year

Risk Analysis

Unstable dividend track record



Snowflake Analysis

Excellent balance sheet average dividend payer.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CMB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.5%

CMB

1.8%

IT Electrical

0.5%

IT Market


1 Year Return

13.6%

CMB

22.5%

IT Electrical

18.3%

IT Market

Return vs Industry: CMB underperformed the Italian Electrical industry which returned 22.5% over the past year.

Return vs Market: CMB underperformed the Italian Market which returned 18.3% over the past year.


Shareholder returns

CMBIndustryMarket
7 Day1.5%1.8%0.5%
30 Day2.4%0.9%-0.7%
90 Day11.8%1.6%4.4%
1 Year18.1%13.6%25.5%22.5%23.6%18.3%
3 Year95.4%75.9%-3.3%-11.9%27.6%8.7%
5 Year168.2%127.7%51.7%23.3%32.3%-14.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

16.96x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CMB (€23.75) is trading above our estimate of fair value (€12.95)

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


Price To Earnings Ratio

PE vs Industry: CMB is good value based on its PE Ratio (17x) compared to the Electrical industry average (28.4x).

PE vs Market: CMB is good value based on its PE Ratio (17x) compared to the Italian market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CMB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CMB is overvalued based on its PB Ratio (2.6x) compared to the IT Electrical industry average (2.2x).


Next Steps

Future Growth

How is Cembre forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

3.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if CMB's forecast earnings growth is above the savings rate (1.2%).

Earnings vs Market: Insufficient data to determine if CMB's earnings are forecast to grow faster than the Italian market

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

Revenue vs Market: CMB's revenue (3.4% per year) is forecast to grow faster than the Italian market (3.1% per year).

High Growth Revenue: CMB's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CMB's Return on Equity is forecast to be low in 3 years time (13.4%).


Next Steps

Past Performance

How has Cembre performed over the past 5 years?

12.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CMB has high quality earnings.

Growing Profit Margin: CMB's current net profit margins (15.5%) are lower than last year (17.5%).


Past Earnings Growth Analysis

Earnings Trend: CMB's earnings have grown by 12.5% per year over the past 5 years.

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

Earnings vs Industry: CMB had negative earnings growth (-8.6%) over the past year, making it difficult to compare to the Electrical industry average (-8.6%).


Return on Equity

High ROE: CMB's Return on Equity (14.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Cembre's financial position?


Financial Position Analysis

Short Term Liabilities: CMB's short term assets (€98.1M) exceed its short term liabilities (€37.2M).

Long Term Liabilities: CMB's short term assets (€98.1M) exceed its long term liabilities (€11.4M).


Debt to Equity History and Analysis

Debt Level: CMB's debt to equity ratio (7.8%) is considered satisfactory.

Reducing Debt: CMB's debt to equity ratio has increased from 0.5% to 7.8% over the past 5 years.

Debt Coverage: CMB's debt is well covered by operating cash flow (268.4%).

Interest Coverage: CMB's interest payments on its debt are well covered by EBIT (373.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: CMB's debt is covered by short term assets (assets are 8.1x debt).


Next Steps

Dividend

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

3.79%

Current Dividend Yield


Dividend Yield vs Market

company3.8%marketbottom25%2.0%markettop25%4.3%industryaverage2.5%forecastin3Years3.8%

Current dividend yield vs market & industry

Notable Dividend: CMB's dividend (3.79%) is higher than the bottom 25% of dividend payers in the Italian market (1.98%).

High Dividend: CMB's dividend (3.79%) is low compared to the top 25% of dividend payers in the Italian market (4.32%).


Stability and Growth of Payments

Stable Dividend: CMB's dividend payments have been volatile in the past 10 years.

Growing Dividend: CMB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (64.3%), CMB's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CMB's dividends in 3 years are forecast to be covered by earnings (67.6% payout ratio).


Next Steps

Management

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

1.7yrs

Average board tenure


CEO

Giovanni Rosani 0

9.8yrs

Tenure

€210,947

Compensation

Mr. Giovanni Rosani has been the Chairman and Managing Director of Cembre S.p.A. since March 15, 2010. 


CEO Compensation Analysis

Compensation vs Market: Giovanni's total compensation ($USD0.00) is about average for companies of similar size in the Italian market ($USD638.32K).

Compensation vs Earnings: Giovanni's compensation has been consistent with company performance over the past year.


Board Age and Tenure

1.7yrs

Average Tenure

Experienced Board: CMB's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

Sell€4,466,00003 Jul 19
Lysne Spa
EntityCompany
Shares220,000
Max Price€20.30

Ownership Breakdown

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


Management Team

  • Giorgio Rota

    Secretary

    • Tenure: 0yrs
  • Giovanni Rosani

    Chairman & MD

    • Tenure: 9.8yrs
    • Compensation: €210.95k
  • Giovanni De Vecchi

    General Manager of Italy Division

    • Tenure: 0yrs
    • Compensation: €36.89k

Board Members

  • Sara Rosani

    Director

    • Tenure: 0yrs
    • Compensation: €11.31k
  • Giovanni Rosani

    Chairman & MD

    • Tenure: 9.8yrs
    • Compensation: €210.95k
  • Anna Onofri

    Vice Chairman of the Board

    • Tenure: 0yrs
    • Compensation: €177.58k
  • Aldo Bottini Bongrani

    Director

    • Tenure: 0yrs
    • Compensation: €403.24k
  • Fabio Fada

    Independent Director

    • Tenure: 10.7yrs
    • Compensation: €36.88k
  • Fabio Longhi

    Chairman of Board of Statutory Auditors

    • Tenure: 0yrs
    • Compensation: €36.00k
  • Rosanna Pilenga

    Permanent Auditor

    • Tenure: 0yrs
  • Felice Albertazzi

    Director

    • Tenure: 1.7yrs
  • Franco Celli

    Director

    • Tenure: 1.7yrs
  • Paola Carrara

    Independent Director

    • Tenure: 1.7yrs

Company Information

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


Key Information

  • Name: Cembre S.p.A.
  • Ticker: CMB
  • Exchange: BIT
  • Founded: 1969
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: €397.099m
  • Shares outstanding: 16.72m
  • Website: https://www.cembre.it

Number of Employees


Location

  • Cembre S.p.A.
  • Via Serenissima 9
  • Brescia
  • Brescia
  • 25135
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CMBBIT (Borsa Italiana)YesOrdinary SharesITEURJan 1998
0DXULSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1998
CMBMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1998

Biography

Cembre S.p.A., together with its subsidiaries, manufactures and sells electrical connectors and related tools in Italy, rest of Europe, and internationally. The company offers pre-insulated, un-insulated,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 20:41
End of Day Share Price2019/12/11 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.