BIT:OVS

Stock Analysis Report

Executive Summary

OVS S.p.A. operates as a fashion retailer in Italy and Internationally.

Rewards

PE ratio (16x) is below the Italian market (19x)

Earnings are forecast to grow 24.48% per year

Risk Analysis

Interest payments are not well covered by earnings

Large one-off items impacting financial results



Snowflake Analysis

Good value with moderate growth potential.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.3%

OVS

1.3%

IT Luxury

2.4%

IT Market


1 Year Return

40.3%

OVS

-9.1%

IT Luxury

18.3%

IT Market

Return vs Industry: OVS exceeded the Italian Luxury industry which returned -9.1% over the past year.

Return vs Market: OVS exceeded the Italian Market which returned 18.3% over the past year.


Shareholder returns

OVSIndustryMarket
7 Day0.3%1.3%2.4%
30 Day-4.7%-8.1%3.9%
90 Day-1.6%-0.8%6.8%
1 Year40.3%40.3%-7.7%-9.1%23.4%18.3%
3 Year-64.5%-65.4%-26.7%-33.8%38.4%24.6%
5 Yearn/a-36.5%-47.3%18.6%-22.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

16.04x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: OVS (€1.82) is trading above our estimate of fair value (€1.63)

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


Price To Earnings Ratio

PE vs Industry: OVS is good value based on its PE Ratio (16x) compared to the Luxury industry average (16x).

PE vs Market: OVS is good value based on its PE Ratio (16x) compared to the Italian market (19x).


Price to Earnings Growth Ratio

PEG Ratio: OVS is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: OVS is good value based on its PB Ratio (0.5x) compared to the IT Luxury industry average (1.4x).


Next Steps

Future Growth

How is OVS forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

24.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OVS's forecast earnings growth (24.5% per year) is above the savings rate (1.2%).

Earnings vs Market: OVS's earnings (24.5% per year) are forecast to grow faster than the Italian market (9.9% per year).

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

Revenue vs Market: OVS's revenue (1.6% per year) is forecast to grow slower than the Italian market (4.2% per year).

High Growth Revenue: OVS's revenue (1.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OVS's Return on Equity is forecast to be low in 3 years time (5.7%).


Next Steps

Past Performance

How has OVS performed over the past 5 years?

-0.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OVS has a large one-off loss of €26.6M impacting its July 31 2019 financial results.

Growing Profit Margin: OVS's current net profit margins (1.8%) are higher than last year (1.6%).


Past Earnings Growth Analysis

Earnings Trend: OVS has become profitable over the past 5 years, growing earnings by -0.4% per year.

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

Earnings vs Industry: OVS had negative earnings growth (-2.3%) over the past year, making it difficult to compare to the Luxury industry average (-11.5%).


Return on Equity

High ROE: OVS's Return on Equity (2.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is OVS's financial position?


Financial Position Analysis

Short Term Liabilities: OVS's short term assets (€612.1M) do not cover its short term liabilities (€1.1B).

Long Term Liabilities: OVS's short term assets (€612.1M) do not cover its long term liabilities (€913.6M).


Debt to Equity History and Analysis

Debt Level: OVS's debt to equity ratio (53.7%) is considered high.

Reducing Debt: OVS's debt to equity ratio has reduced from 213.8% to 53.7% over the past 5 years.

Debt Coverage: OVS's debt is well covered by operating cash flow (24%).

Interest Coverage: OVS's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: OVS's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

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

0.55%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.9%markettop25%4.3%industryaverage2.0%forecastin3Years0.5%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate OVS'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 OVS's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of OVS'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?

0.9yrs

Average board tenure


CEO

Stefano Beraldo (62yo)

€2,909,477

Compensation

Dr. Stefano Beraldo serves as General Manager of GS Euromercato SpA. Dr. Beraldo serves as Chief Executive Officer, General Manager and Executive Director of OVS S.p.A. Dr. Beraldo has been the Chief Execu ...


CEO Compensation Analysis

Compensation vs Market: Stefano's total compensation ($USD0.00) is below average for companies of similar size in the Italian market ($USD644.90K).

Compensation vs Earnings: Stefano's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Stefano Beraldo
CEO, GM & Executive Director0yrs€2.91m0.12% 510.5k
Giovanni Tamburi
Non-Executive Director0.9yrsno datano data
Heinz Krogner-Kornalik
Independent Non-Executive Director0yrs€73.33kno data
Gabriele del Torchio
Independent Non-Executive Director0yrs€91.67kno data
Alessandra Gritti
Non-Executive Director0.9yrsno datano data
Massimiliano Magrini
Non-Executive Director0.9yrsno datano data
Stefano Longostrevi
Chairman of the Board of Statutory Auditors1.7yrsno datano data
Elena Angela Garavaglia
Non-Executive Director1.7yrsno datano data
Chiara Mio
Independent Non-Executive Director0yrsno datano data
Franco Moscetti
Chairman0.8yrsno datano data

0.9yrs

Average Tenure

62yo

Average Age

Experienced Board: OVS's board of directors are not considered experienced ( 0.9 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: OVS 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

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


Key Information

  • Name: OVS S.p.A.
  • Ticker: OVS
  • Exchange: BIT
  • Founded: 1972
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: €410.762m
  • Shares outstanding: 226.19m
  • Website: https://www.ovscorporate.it

Number of Employees


Location

  • OVS S.p.A.
  • Via Terraglio 17
  • Mestre
  • Venice
  • 30174
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OVSBIT (Borsa Italiana)YesCommon StockITEURMar 2015
OVSmBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURMar 2015
0R5RLSE (London Stock Exchange)YesCommon StockGBEURMar 2015

Biography

OVS S.p.A. operates as a fashion retailer in Italy and Internationally. The company operates through OVS and UPIM segments. Its products include men’s wear, women’s wear, children’s wear, and infant’s clothing; table and kitchen ware; accessories to furnishings; toys; perfumes; make-up products; professional make-up accessories; and bath and skincare products. The company offers its products under the OVS, OVS KIDS, Upim, Blukids, Shaka Innovative Beauty, CROFF, and PIOMBO brands. As of January 31, 2019, it operated a network of 1,747 stores, including 763 DOS, 871 affiliated stores, and 113 administered stores. The company was founded in 1972 and is headquartered in Mestre, Italy. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 22:51
End of Day Share Price2020/02/18 00:00
Earnings2019/07/31
Annual Earnings2019/01/31


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.