BIT:CERV

Stock Analysis Report

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Market Cap

€1.9b

Last Updated

2021/07/27 22:16 UTC

Data Sources

Company Financials +

Executive Summary

Cerved Group S.p.A. provides information products and services for financial institutions, corporations, insurance companies, public administrations, professionals, and private customers in Italy and internationally. More Details


Snowflake Analysis

Mediocre balance sheet with limited growth.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CERV is less volatile than 75% of Italian stocks over the past 3 months, typically moving +/- 1% a week.

Volatility Over Time: CERV's weekly volatility (1%) has been stable over the past year.


Market Performance


7 Day Return

-0.3%

CERV

3.9%

IT Diversified Financial

2.2%

IT Market


1 Year Return

32.2%

CERV

36.4%

IT Diversified Financial

22.9%

IT Market

Return vs Industry: CERV underperformed the Italian Diversified Financial industry which returned 36.8% over the past year.

Return vs Market: CERV exceeded the Italian Market which returned 23.5% over the past year.


Shareholder returns

CERVIndustryMarket
7 Day-0.3%3.9%2.2%
30 Day1.6%1.3%-1.2%
90 Day2.6%1.6%3.8%
1 Year32.2%32.2%37.3%36.4%26.5%22.9%
3 Year5.3%1.4%24.4%18.6%16.3%5.8%
5 Year46.4%33.3%81.7%64.4%49.7%21.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

65.92x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CERV (€9.94) is trading above our estimate of fair value (€7.99)

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


Price To Earnings Ratio

PE vs Industry: CERV is poor value based on its PE Ratio (65.9x) compared to the Italian Diversified Financial industry average (39.3x).

PE vs Market: CERV is poor value based on its PE Ratio (65.9x) compared to the Italian market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: CERV is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: CERV is overvalued based on its PB Ratio (3.7x) compared to the IT Diversified Financial industry average (2.1x).


Future Growth

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

19.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CERV's forecast earnings growth (19.8% per year) is above the savings rate (1.8%).

Earnings vs Market: CERV's earnings (19.8% per year) are forecast to grow faster than the Italian market (15.3% per year).

High Growth Earnings: CERV's earnings are forecast to grow, but not significantly.

Revenue vs Market: CERV's revenue (2.7% per year) is forecast to grow slower than the Italian market (2.9% per year).

High Growth Revenue: CERV's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CERV's Return on Equity is forecast to be low in 3 years time (19.5%).


Past Performance

How has Cerved Group performed over the past 5 years?

7.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CERV has a large one-off loss of €23.0M impacting its March 31 2021 financial results.

Growing Profit Margin: CERV's current net profit margins (6%) are lower than last year (10.5%).


Past Earnings Growth Analysis

Earnings Trend: CERV's earnings have grown by 7.4% per year over the past 5 years.

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

Earnings vs Industry: CERV had negative earnings growth (-46.4%) over the past year, making it difficult to compare to the Diversified Financial industry average (-12.4%).


Return on Equity

High ROE: CERV's Return on Equity (6.1%) is considered low.


Financial Health

How is Cerved Group's financial position?


Financial Position Analysis

Short Term Liabilities: CERV's short term assets (€344.8M) exceed its short term liabilities (€236.1M).

Long Term Liabilities: CERV's short term assets (€344.8M) do not cover its long term liabilities (€742.6M).


Debt to Equity History and Analysis

Debt Level: CERV's debt to equity ratio (107.2%) is considered high.

Reducing Debt: CERV's debt to equity ratio has increased from 98.7% to 107.2% over the past 5 years.

Debt Coverage: CERV's debt is well covered by operating cash flow (23%).

Interest Coverage: CERV's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet


Dividend

What is Cerved Group current dividend yield, its reliability and sustainability?

3.15%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate CERV's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CERV's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

1.5yrs

Average management tenure


CEO

Andrea Mignanelli (52 yo)

2.25yrs

Tenure

€850,000

Compensation

Mr. Andrea Mignanelli had been the Chief Executive Officer at Cerved Group S.p.A. since April 19, 2019. He had been the Chief Executive Officer of Cerved Credit Management at Cerved Group Spa since Septemb...


CEO Compensation Analysis

Compensation vs Market: Andrea's total compensation ($USD1.01M) is about average for companies of similar size in the Italian market ($USD1.16M).

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


Leadership Team

Experienced Management: CERV's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: CERV's board of directors are not considered experienced ( 2.5 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Cerved Group S.p.A.
  • Ticker: CERV
  • Exchange: BIT
  • Founded: 1974
  • Industry: Specialized Finance
  • Sector: Diversified Financials
  • Market Cap: €1.900b
  • Shares outstanding: 191.13m
  • Website: https://company.cerved.com

Number of Employees


Location

  • Cerved Group S.p.A.
  • Via dell’Unione Europea n. 6/A-6/B
  • San Donato Milanese
  • Milan
  • Milan
  • 20097
  • Italy

Listings


Biography

Cerved Group S.p.A. provides information products and services for financial institutions, corporations, insurance companies, public administrations, professionals, and private customers in Italy and inter...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/27 22:16
End of Day Share Price2021/07/27 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.