BIT:ECNL

Stock Analysis Report

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Executive Summary

Aquafil S.p.A., together with its subsidiaries, produces and sells polyamide 6 fibers and polymers in Europe, the United States, and Asia.


Snowflake Analysis

Adequate balance sheet with moderate growth potential.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

5.8%

ECNL

5.2%

IT Luxury

3.6%

IT Market


1 Year Return

-43.4%

ECNL

-13.9%

IT Luxury

-1.9%

IT Market

Return vs Industry: ECNL underperformed the Italian Luxury industry which returned -13.9% over the past year.

Return vs Market: ECNL underperformed the Italian Market which returned -1.9% over the past year.


Shareholder returns

ECNLIndustryMarket
7 Day5.8%5.2%3.6%
30 Day-0.4%0.7%2.0%
90 Day22.6%7.9%17.5%
1 Year-43.4%-43.4%-13.9%-13.9%0.7%-1.9%
3 Yearn/a-17.2%-21.9%-3.4%-12.3%
5 Yearn/a-10.9%-21.0%-0.7%-31.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

37.04x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ECNL (€3.9) is trading above our estimate of fair value (€3.22)

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


Price To Earnings Ratio

PE vs Industry: ECNL is poor value based on its PE Ratio (37x) compared to the IT Luxury industry average (18.1x).

PE vs Market: ECNL is poor value based on its PE Ratio (37x) compared to the Italian market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: ECNL is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: ECNL is overvalued based on its PB Ratio (1.4x) compared to the IT Luxury industry average (1.1x).


Next Steps

Future Growth

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

62.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ECNL's forecast earnings growth (62% per year) is above the savings rate (2%).

Earnings vs Market: ECNL's earnings (62% per year) are forecast to grow faster than the Italian market (25.8% per year).

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

Revenue vs Market: ECNL's revenue (3.2% per year) is forecast to grow slower than the Italian market (5.4% per year).

High Growth Revenue: ECNL's revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ECNL's Return on Equity is forecast to be low in 3 years time (9.8%).


Next Steps

Past Performance

How has Aquafil performed over the past 5 years?

-6.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ECNL has a large one-off loss of €11.0M impacting its March 31 2020 financial results.

Growing Profit Margin: ECNL's current net profit margins (1%) are lower than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: ECNL's earnings have declined by 6.2% per year over the past 5 years.

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

Earnings vs Industry: ECNL had negative earnings growth (-80.7%) over the past year, making it difficult to compare to the Luxury industry average (0.9%).


Return on Equity

High ROE: ECNL's Return on Equity (3.7%) is considered low.


Next Steps

Financial Health

How is Aquafil's financial position?


Financial Position Analysis

Short Term Liabilities: ECNL's short term assets (€318.9M) exceed its short term liabilities (€134.6M).

Long Term Liabilities: ECNL's short term assets (€318.9M) do not cover its long term liabilities (€341.2M).


Debt to Equity History and Analysis

Debt Level: ECNL's debt to equity ratio (217.4%) is considered high.

Reducing Debt: ECNL's debt to equity ratio has reduced from 229.4% to 217.4% over the past 5 years.

Debt Coverage: ECNL's debt is well covered by operating cash flow (27.2%).

Interest Coverage: ECNL's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Aquafil current dividend yield, its reliability and sustainability?

6.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ECNL's dividend (6.15%) is higher than the bottom 25% of dividend payers in the Italian market (1.8%).

High Dividend: ECNL's dividend (6.15%) is in the top 25% of dividend payers in the Italian market (4.89%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ECNL has been paying a dividend for less than 10 years.

Growing Dividend: ECNL has only been paying a dividend for 2 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (227.9%), ECNL's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.1yrs

Average board tenure


CEO

Giulio Bonazzi (57 yo)

no data

Tenure

€1,353,000

Compensation

Mr. Giulio Bonazzi serves as the Chairman of the Board, Chief Executive Officer and President of Aquafil S.p.A. In 1987, Mr. Bonazzi started his career, working in the family business. After a year working ...


CEO Compensation Analysis

Compensation vs Market: Giulio's total compensation ($USD1.60M) is above average for companies of similar size in the Italian market ($USD678.16K).

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


Board Members

NamePositionTenureCompensationOwnership
Giulio Bonazzi
Chairmanno data€1.35mno data
Adriano Vivaldi
CFO & Executive Director3.08yrs€421.76kno data
Fabrizio Calenti
GM & Executive Director3.08yrs€428.59kno data
Franco Rossi
Executive Director3.08yrs€322.86kno data
Simona Heidempergher
Lead Independent Directorno data€65.00kno data
Francesco Profumo
Independent Director3.08yrs€65.00kno data
Stefano Longostrevi
Chairman of Board of Statutory Auditors2.58yrs€418.75kno data
Ilaria Maria Riva
Independent Director0.17yrno datano data
Margherita Elena Zambon
Independent Director3.08yrs€50.00kno data
Silvana Bonazzi
Non-Executive Director3.08yrs€40.00kno data
Fabio Buttignon
Statutory Auditor2.58yrsno datano data
Bettina Solimando
Statutory Auditor2.58yrsno datano data

3.1yrs

Average Tenure

58yo

Average Age

Experienced Board: ECNL's board of directors are considered experienced (3.1 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Aquafil S.p.A.
  • Ticker: ECNL
  • Exchange: BIT
  • Founded: 1969
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: €199.441m
  • Shares outstanding: 51.14m
  • Website: https://www.aquafil.com

Number of Employees


Location

  • Aquafil S.p.A.
  • via Linfano, 9
  • Arco
  • Trento
  • 38062
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ECNLBIT (Borsa Italiana)YesOrdinary SharesITEURDec 2017
0ROHLSE (London Stock Exchange)YesOrdinary SharesGBEURDec 2017
ECNLMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURDec 2017
6W7DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2017

Biography

Aquafil S.p.A., together with its subsidiaries, produces and sells polyamide 6 fibers and polymers in Europe, the United States, and Asia. It offers bulk continuous filament or synthetic yarns for the text ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 10:48
End of Day Share Price2020/08/13 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.