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Ratti

BIT:RAT
Snowflake Description

Solid track record and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RAT
BIT
€104M
Market Cap
  1. Home
  2. IT
  3. Consumer Durables
Company description

Ratti S.p.A. manufactures and sells fabrics and accessories for men and women in Italy and internationally. The last earnings update was 6 days ago. More info.


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  • Ratti has significant price volatility in the past 3 months.
RAT Share Price and Events
7 Day Returns
0.3%
BIT:RAT
-0.6%
IT Luxury
3.1%
IT Market
1 Year Returns
54.5%
BIT:RAT
-5.5%
IT Luxury
-5.7%
IT Market
RAT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Ratti (RAT) 0.3% 8.9% 39.7% 54.5% 63.7% 58.3%
IT Luxury -0.6% -1.2% 3.9% -5.5% 3.9% 14.9%
IT Market 3.1% 5% 11.7% -5.7% -9.7% -31.6%
1 Year Return vs Industry and Market
  • RAT outperformed the Luxury industry which returned -5.5% over the past year.
  • RAT outperformed the Market in Italy which returned -5.7% over the past year.
Price Volatility
RAT
Industry
5yr Volatility vs Market

Value

 Is Ratti 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 Ratti 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 Ratti.

BIT:RAT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 11.1%
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:RAT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IT Govt Bond Rate 2.9%
Equity Risk Premium S&P Global 9%
Luxury Unlevered Beta Simply Wall St/ S&P Global 0.69
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.686 (1 + (1- 24%) (33.73%))
0.908
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.91
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.93% + (0.908 * 9.02%)
11.12%

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

The calculations below outline how an intrinsic value for Ratti 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:RAT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 11.12%)
2019 11.81 Est @ 34.87% 10.63
2020 14.79 Est @ 25.29% 11.98
2021 17.54 Est @ 18.58% 12.79
2022 19.98 Est @ 13.89% 13.10
2023 22.10 Est @ 10.6% 13.04
2024 23.93 Est @ 8.3% 12.71
2025 25.53 Est @ 6.69% 12.20
2026 26.95 Est @ 5.56% 11.59
2027 28.24 Est @ 4.77% 10.93
2028 29.43 Est @ 4.22% 10.25
Present value of next 10 years cash flows €119.23
BIT:RAT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= €29.43 × (1 + 2.93%) ÷ (11.12% – 2.93%)
€370.01
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €370.01 ÷ (1 + 11.12%)10
€128.88
BIT:RAT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €119.23 + €128.88
€248.11
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €248.11 / 27.35
€9.07
BIT:RAT Discount to Share Price
Calculation Result
Value per share (EUR) From above. €9.07
Current discount Discount to share price of €3.80
= -1 x (€3.80 - €9.07) / €9.07
58.1%

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

Current Discount
Amount off the current price Ratti is available for.
Intrinsic value
>50%
Share price is €3.8 vs Future cash flow value of €9.07
Current Discount Checks
For Ratti to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Ratti's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Ratti's share price is below the future cash flow value, and 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 Ratti's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Ratti's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BIT:RAT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in EUR €0.38
BIT:RAT Share Price ** BIT (2019-03-20) in EUR €3.8
Italy Luxury Industry PE Ratio Median Figure of 15 Publicly-Listed Luxury Companies 16.85x
Italy Market PE Ratio Median Figure of 239 Publicly-Listed Companies 16.08x

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

** Primary Listing of Ratti.

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

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

= 3.8 ÷ 0.38

10x

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

  • Ratti is good value based on earnings compared to the IT Luxury industry average.
  • Ratti is good value based on earnings compared to the Italy market.
Price based on expected Growth
Does Ratti's expected growth come at a high price?
Raw Data
BIT:RAT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
5.5%per year
Italy Luxury Industry PEG Ratio Median Figure of 9 Publicly-Listed Luxury Companies 2.61x
Italy Market PEG Ratio Median Figure of 159 Publicly-Listed Companies 1.22x

*Line of best fit is calculated by linear regression .

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

  • Unable to calculate PEG ratio for Ratti, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Ratti's assets?
Raw Data
BIT:RAT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in EUR €1.92
BIT:RAT Share Price * BIT (2019-03-20) in EUR €3.8
Italy Luxury Industry PB Ratio Median Figure of 21 Publicly-Listed Luxury Companies 1.86x
Italy Market PB Ratio Median Figure of 312 Publicly-Listed Companies 1.55x
BIT:RAT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 3.8 ÷ 1.92

1.98x

* Primary Listing of Ratti.

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

  • Ratti is overvalued based on assets compared to the IT Luxury industry average.
X
Value checks
We assess Ratti'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 Luxury 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 Luxury industry average (and greater than 0)? (1 check)
  5. Ratti 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.

Future Performance

 How is Ratti expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Ratti, future earnings growth has been estimated based on fundamentals.
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
5.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Ratti expected to grow at an attractive rate?
  • Ratti's earnings growth is expected to exceed the low risk savings rate of 2.9%.
Growth vs Market Checks
  • Ratti's earnings growth is positive but not above the Italy market average.
  • Unable to compare Ratti's revenue growth to the Italy market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
BIT:RAT Future Growth Rates Data Sources
Data Point Source Value (per year)
BIT:RAT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 5.5%
Italy Luxury Industry Earnings Growth Rate Market Cap Weighted Average 8.9%
Italy Luxury Industry Revenue Growth Rate Market Cap Weighted Average 6%
Italy Market Earnings Growth Rate Market Cap Weighted Average 10.7%
Italy Market Revenue Growth Rate Market Cap Weighted Average 3.8%

*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:RAT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BIT:RAT Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2018-12-31 111 13 10
2018-09-30 109 13 10
2018-06-30 106 14 9
2018-03-31 103 11 7
2017-12-31 100 9 6
2017-09-30 103 8 5
2017-06-30 95 6 4
2017-03-31 94 8 4
2016-12-31 92 5 4
2016-09-30 91 6 3
2016-06-30 90 6 3
2016-03-31 92 4 3

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Ratti's earnings are expected to grow by 5.5% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Ratti is high growth as no revenue estimate data is available.
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:RAT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Ratti Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BIT:RAT Past Financials Data
Date (Data in EUR Millions) EPS *
2018-12-31 0.38
2018-09-30 0.35
2018-06-30 0.32
2018-03-31 0.27
2017-12-31 0.22
2017-09-30 0.19
2017-06-30 0.16
2017-03-31 0.16
2016-12-31 0.13
2016-09-30
2016-06-30 0.10
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.
  • Unable to establish if Ratti will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Ratti'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.
Ratti has a total score of 1/6, 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.

Past Performance

  How has Ratti 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 Ratti's growth in the last year to its industry (Luxury).
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.
  • Ratti has delivered over 20% year on year earnings growth in the past 5 years.
  • Ratti's 1-year earnings growth exceeds its 5-year average (73.7% vs 27.1%)
  • Ratti's earnings growth has exceeded the IT Luxury industry average in the past year (73.7% vs 9.8%).
Earnings and Revenue History
Ratti'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 Ratti Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BIT:RAT Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 111.08 10.34 32.42
2018-09-30 108.53 9.54 32.04
2018-06-30 105.99 8.75 31.66
2018-03-31 103.05 7.35 31.18
2017-12-31 100.12 5.95 30.70
2017-09-30 102.80 5.12 31.31
2017-06-30 95.48 4.35 29.93
2017-03-31 94.47 4.34 30.09
2016-12-31 91.92 3.60 30.24
2016-09-30 91.40 2.52 30.34
2016-06-30 90.40 2.78 30.03
2016-03-31 92.08 2.59 29.68
2015-12-31 92.60 3.29 29.31
2015-09-30 94.13 2.76 29.65
2015-06-30 96.69 3.04 30.08
2015-03-31 98.61 2.85 30.31
2014-12-31 100.78 2.74 30.89
2014-09-30 101.70 3.58 30.58
2014-06-30 101.76 3.53 30.75
2014-03-31 102.61 3.35 31.02
2013-12-31 102.73 3.15 30.75
2013-09-30 104.56 4.39 30.71
2013-06-30 105.40 4.09 30.98
2013-03-31 105.80 4.25 30.90
2012-12-31 103.77 4.31 30.69
2012-09-30 99.91 12.54 30.67
2012-06-30 97.40 11.96 30.23
2012-03-31 93.98 12.38 29.87

*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.
  • Ratti has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Ratti used its assets less efficiently than the IT Luxury industry average last year based on Return on Assets.
  • Ratti has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Ratti'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 Luxury 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.
Ratti has a total score of 5/6, 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.

Health

 How is Ratti'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 Ratti's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Ratti is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Ratti's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Ratti'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 2.6x 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 Ratti Company Filings, last reported 2 months ago.

BIT:RAT Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 52.13 35.06 37.35
2018-09-30 52.13 35.06 37.35
2018-06-30 46.11 37.63 38.78
2018-03-31 46.11 37.63 38.78
2017-12-31 45.52 23.35 22.99
2017-09-30 45.52 23.35 22.99
2017-06-30 41.02 24.90 21.69
2017-03-31 41.02 24.90 21.69
2016-12-31 41.86 21.20 17.41
2016-09-30 40.80 17.49 13.00
2016-06-30 39.04 19.02 14.91
2016-03-31 41.40 18.42 14.01
2015-12-31 41.29 19.46 17.99
2015-09-30 40.85 21.52 18.45
2015-06-30 39.18 20.24 18.00
2015-03-31 41.01 11.21 10.60
2014-12-31 40.49 20.01 20.46
2014-09-30 40.91 18.77 21.96
2014-06-30 38.80 25.14 27.43
2014-03-31 41.62 23.06 26.91
2013-12-31 40.99 26.05 26.02
2013-09-30 40.39 25.76 22.77
2013-06-30 38.43 28.53 25.75
2013-03-31 40.81 25.04 25.24
2012-12-31 40.36 28.33 29.73
2012-09-30 39.17 27.69 28.91
2012-06-30 37.58 27.28 32.09
2012-03-31 39.99 28.61 33.12
  • Ratti's level of debt (67.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (63.5% vs 67.2% today).
  • Debt is well covered by operating cash flow (37%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 10.5x coverage).
X
Financial health checks
We assess Ratti'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. Ratti 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.

Dividends

 What is Ratti'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
3.42%
Current annual income from Ratti dividends.
If you bought €2,000 of Ratti shares you are expected to receive €68 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?
  • Ratti's pays a higher dividend yield than the bottom 25% of dividend payers in Italy (1.98%).
  • Ratti's dividend is below the markets top 25% of dividend payers in Italy (4.32%).
Upcoming dividend payment

Purchase Ratti on or before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
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:RAT 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 0 Analyst Estimates (S&P Global) See Below
Italy Luxury Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 1.8%
Italy Market Average Dividend Yield Market Cap Weighted Average of 176 Stocks 4%
Italy Minimum Threshold Dividend Yield 10th Percentile 1.1%
Italy Bottom 25% Dividend Yield 25th Percentile 2%
Italy Top 25% Dividend Yield 75th Percentile 4.3%

Industry and Market average data is calculated daily.

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

BIT:RAT Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2018-04-03 0.130 4.407
2018-03-15 0.130 5.293
2016-03-29 0.100 4.645
2016-03-14 0.100 4.274
2015-03-13 0.100 4.065
2014-03-28 0.100 4.068
2014-03-19 0.100 4.112
2013-03-19 0.100 4.635
2012-07-27 0.100 5.000
2012-04-03 0.100 5.300

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

  • Whilst dividend payments have been stable, Ratti has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Ratti only paid a dividend in the past 7 years.
Current Payout to shareholders
What portion of Ratti's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.9x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Ratti's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - 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 Ratti afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Ratti has a total score of 2/6, see the detailed checks below.


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

Management

 What is the CEO of Ratti'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
Sergio Tamborini
COMPENSATION €98,000
CEO Bio

Mr. Tamborini Sergio serves as the Chief Executive Officer of Ratti SpA and serves as its Director.

CEO Compensation
  • Sergio's compensation has been consistent with company performance over the past year.
  • Sergio's remuneration is higher than average for companies of similar size in Italy.
Management Team

Sergio Tamborini

TITLE
Chief Executive Officer and Director
COMPENSATION
€98K

Claudio D’Ambrosio

TITLE
Financial Reporting Officer

Maiocchi Giulio

TITLE
Joint General Manager
COMPENSATION
€44K
Board of Directors Tenure

Average tenure of the Ratti board of directors in years:

4.9
Average Tenure
  • The tenure for the Ratti board of directors is about average.
Board of Directors

Donatella Ratti

TITLE
Chairman

Sergio Tamborini

TITLE
Chief Executive Officer and Director
COMPENSATION
€98K

Antonio Favrin

TITLE
Deputy Chairman
AGE
79

Sergio Meacci

TITLE
Director
COMPENSATION
€26K

Giovanni Rizzi

TITLE
Chairman of the Board of Statutory Auditors
COMPENSATION
€20K
AGE
49
TENURE
4.9 yrs

Favrin Federica

TITLE
Director
COMPENSATION
€21K

Carlo Lazzati

TITLE
Director
COMPENSATION
€23K

Andrea Donà Dalle Rose

TITLE
Director
COMPENSATION
€15K

Davide Favrin

TITLE
Director
COMPENSATION
€14K
TENURE
4.9 yrs

Giovanna Lazzarotto

TITLE
Director
COMPENSATION
€14K
TENURE
4.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
20. Nov 18 Buy Antonio Favrin Individual 16. Nov 18 16. Nov 18 3,000 €2.80 €8,361
20. Nov 18 Buy Wizard S.r.l. Company 16. Nov 18 16. Nov 18 3,000 €2.80 €8,400
19. Nov 18 Buy Antonio Favrin Individual 15. Nov 18 15. Nov 18 900 €2.86 €2,557
19. Nov 18 Buy Wizard S.r.l. Company 15. Nov 18 15. Nov 18 900 €2.80 €2,517
09. Oct 18 Buy Wizard S.r.l. Company 06. Feb 18 05. Oct 18 7,500 €3.14 €20,889
09. Oct 18 Buy Antonio Favrin Individual 06. Feb 18 05. Oct 18 7,500 €3.15 €20,890
X
Management checks
We assess Ratti'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. Ratti 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.

News

Simply Wall St News

How Good Is Ratti S.p.A. (BIT:RAT) At Creating Shareholder Value?

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. … What is Return On Capital Employed (ROCE)? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

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Consider This Before Buying Ratti S.p.A. (BIT:RAT) For The 3.6% Dividend

A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. … Historically, Ratti S.p.A. … View our latest analysis for Ratti

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Could The Ratti S.p.A. (BIT:RAT) Ownership Structure Tell Us Something Useful?

A look at the shareholders of Ratti S.p.A. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Taking a look at the our data on the ownership groups (below), it's seems that.

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A Closer Look At Ratti S.p.A.'s (BIT:RAT) Impressive ROE

This article is for those who would like to learn about Return On Equity (ROE). … One way to conceptualize this, is that for each €1 of shareholders' equity it has, the company made €0.19 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

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Does Ratti SpA (BIT:RAT) Have A Place In Your Portfolio?

Historically, Ratti SpA (BIT:RAT) has paid a dividend to shareholders. … Does Ratti tick all the boxes of a great dividend stock? … How I analyze a dividend stock

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Ratti SpA (BIT:RAT): Assessing Capital Returns

and looking to gauge the potential return on investment in Ratti SpA (BIT:RAT). … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … Thus, to understand how your money can grow by investing in Ratti, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

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Does Ratti SpA's (BIT:RAT) PE Ratio Signal A Buying Opportunity?

I will deconstruct the P/E ratio and highlight what you need to be careful of when using the P/E ratio … View our latest analysis for Ratti … Breaking down the Price-Earnings ratio

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What You Must Know About Ratti SpA's (BIT:RAT) ROE

This analysis is intended to introduce important early concepts to people who are starting to invest. … and want to begin learning the link between company’s fundamentals and stock market performance. … Sustainability can be gauged by a company’s financial leverage – the more debt it has, the higher ROE is pumped up in the short term, at the expense of long term interest payment burden.

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Is Ratti SpA (BIT:RAT) A Smart Choice For Dividend Investors?

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … Over the past 6 years, Ratti SpA (BIT:RAT) has returned an average of 5.00% per year to shareholders in terms of dividend yield. … Let's dig deeper into whether Ratti should have a place in your portfolio.

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What Should Investors Know About Ratti SpA's (BIT:RAT) Capital Returns?

Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … Therefore, looking at how efficiently Ratti is able to use capital to create earnings will help us understand your potential return.

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Company Info

Description

Ratti S.p.A. manufactures and sells fabrics and accessories for men and women in Italy and internationally. The company offers printed, plain, yarn-dyed, and jacquard fabrics for women’s ready-to-wear, beachwear, underwear, and handbags, as well as headscarves, shawls, and scarves; and printed, plain, and jacquard fabrics for men’s shirts, ready-to-wear, and beachwear, as well as scarves, ties, fabrics for bags, and garment prints. It also provides furnishings, including upholstery, curtain, cushion, and home décor fabrics, as well as furnishing fabrics for hotels, showrooms, and stores. Ratti S.p.A. was founded in 1945 and is based in Guanzate, Italy.

Details
Name: Ratti S.p.A.
RAT
Exchange: BIT
Founded: 1945
€103,930,000
27,350,000
Website: http://www.ratti.it
Address: Ratti S.p.A.
Via Madonna, 30,
Guanzate,
Como, 22070,
Italy
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BIT RAT Ordinary Shares Borsa Italiana IT EUR 02. Jan 1992
LSE 0P41 Ordinary Shares London Stock Exchange GB EUR 02. Jan 1992
BATS-CHIXE RATM Ordinary Shares BATS 'Chi-X Europe' GB EUR 02. Jan 1992
Number of employees
Current staff
Staff numbers
0
Ratti employees.
Industry
Textiles
Consumer Durables
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/20 20:47
End of day share price update: 2019/03/20 00:00
Last earnings filing: 2019/03/14
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.