BIT:AMP

Stock Analysis Report

Executive Summary

Amplifon SpA operates in the hearing care retail market that empowers people to rediscover various emotions of sound.


Snowflake Analysis

Moderate growth potential and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.4%

AMP

-1.3%

IT Healthcare

-0.7%

IT Market


1 Year Return

69.6%

AMP

63.5%

IT Healthcare

19.0%

IT Market

Return vs Industry: AMP exceeded the Italian Healthcare industry which returned 63.5% over the past year.

Return vs Market: AMP exceeded the Italian Market which returned 19% over the past year.


Shareholder returns

AMPIndustryMarket
7 Day-1.4%-1.3%-0.7%
30 Day13.6%13.0%-0.2%
90 Day12.5%13.0%5.3%
1 Year70.8%69.6%64.8%63.5%24.3%19.0%
3 Year206.5%200.5%-5.1%-8.8%29.6%10.3%
5 Year452.4%435.6%42.9%34.0%32.2%-13.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

23.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AMP (€26.2) is trading below our estimate of fair value (€34.34)

Significantly Below Fair Value: AMP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AMP is poor value based on its PE Ratio (55.5x) compared to the Healthcare industry average (35.8x).

PE vs Market: AMP is poor value based on its PE Ratio (55.5x) compared to the Italian market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: AMP is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: AMP is overvalued based on its PB Ratio (9.2x) compared to the IT Healthcare industry average (2.1x).


Next Steps

Future Growth

How is Amplifon forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

18.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMP's forecast earnings growth (18.5% per year) is above the savings rate (1.2%).

Earnings vs Market: AMP's earnings (18.5% per year) are forecast to grow faster than the Italian market (8.7% per year).

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

Revenue vs Market: AMP's revenue (7.8% per year) is forecast to grow faster than the Italian market (3.1% per year).

High Growth Revenue: AMP's revenue (7.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AMP's Return on Equity is forecast to be low in 3 years time (19.7%).


Next Steps

Past Performance

How has Amplifon performed over the past 5 years?

22.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMP has high quality earnings.

Growing Profit Margin: AMP's current net profit margins (6.4%) are lower than last year (8.3%).


Past Earnings Growth Analysis

Earnings Trend: AMP's earnings have grown significantly by 22.4% per year over the past 5 years.

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

Earnings vs Industry: AMP had negative earnings growth (-5.1%) over the past year, making it difficult to compare to the Healthcare industry average (-6.8%).


Return on Equity

High ROE: AMP's Return on Equity (16.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Amplifon's financial position?


Financial Position Analysis

Short Term Liabilities: AMP's short term assets (€469.8M) do not cover its short term liabilities (€697.2M).

Long Term Liabilities: AMP's short term assets (€469.8M) do not cover its long term liabilities (€1.5B).


Debt to Equity History and Analysis

Debt Level: AMP's debt to equity ratio (153.6%) is considered high.

Reducing Debt: AMP's debt to equity ratio has increased from 106% to 153.6% over the past 5 years.

Debt Coverage: AMP's debt is well covered by operating cash flow (28.8%).

Interest Coverage: AMP's interest payments on its debt are well covered by EBIT (8.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: AMP's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

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

0.53%

Current Dividend Yield


Dividend Yield vs Market

company0.5%marketbottom25%2.0%markettop25%4.3%industryaverage1.7%forecastin3Years0.7%

Current dividend yield vs market & industry

Notable Dividend: AMP's dividend (0.53%) isn’t notable compared to the bottom 25% of dividend payers in the Italian market (1.96%).

High Dividend: AMP's dividend (0.53%) is low compared to the top 25% of dividend payers in the Italian market (4.34%).


Stability and Growth of Payments

Stable Dividend: AMP is not paying a notable dividend for the Italian market, therefore no need to check if payments are stable.

Growing Dividend: AMP is not paying a notable dividend for the Italian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AMP's dividend in 3 years as they are not forecast to pay a notable one for the Italian market.


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Enrico Vita (50yo)

4.2yrs

Tenure

€2,918,000

Compensation

Mr. Enrico Vita has been Chief Executive Officer of Amplifon SpA since October 22, 2015 and Executive Director since October 20, 2015. Mr. Vita served as Chief Operating Officer and Executive Vice Presiden ...


CEO Compensation Analysis

Compensation vs Market: Enrico's total compensation ($USD3.24M) is above average for companies of similar size in the Italian market ($USD0.00).

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


Management Age and Tenure

3.1yrs

Average Tenure

43.5yo

Average Age

Experienced Management: AMP's management team is considered experienced (3.1 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

57yo

Average Age

Experienced Board: AMP's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

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.


Management Team

  • Enrico Vita (50yo)

    CEO & Executive Director

    • Tenure: 4.2yrs
    • Compensation: €2.92m
  • Paolo Tacciaria

    Head of Internal Audit

    • Tenure: 0yrs
  • Gabriele Galli (50yo)

    Chief Financial Officer

    • Tenure: 2.8yrs
  • Giulio Pizzini (45yo)

    Chief Strategy & Business Development Officer

    • Tenure: 4.3yrs
  • Francesca Rambaudi

    Investor Relations & Corporate Communication Director

    • Tenure: 4yrs
  • Cristian Finotti (50yo)

    Chief Supply Chain Officer

    • Tenure: 3.8yrs
  • Francesca Morichini (41yo)

    Chief HR Officer

    • Tenure: 2.2yrs
  • Alessandro Bonacina (41yo)

    Chief Marketing Officer

    • Tenure: 2.8yrs
  • Gabriele Chiesa (42yo)

    Chief Information Officer

    • Tenure: 1.8yrs
  • Federico Poz (41yo)

    Chief Legal Officer

    • Tenure: 3.1yrs

Board Members

  • Andrea Casalini (57yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: €85.00k
  • Giovanni Tamburi (65yo)

    Director

    • Tenure: 6.7yrs
    • Compensation: €55.00k
  • Susan Holland (63yo)

    Chairperson

    • Tenure: 8.7yrs
    • Compensation: €304.00k
  • Maurizio Costa (71yo)

    Independent Director

    • Tenure: 12.6yrs
    • Compensation: €85.00k
  • Enrico Vita (50yo)

    CEO & Executive Director

    • Tenure: 4.2yrs
    • Compensation: €2.92m
  • Maria Patrizia Grieco (67yo)

    Independent Director

    • Tenure: 0yrs
    • Compensation: €75.00k
  • Lorenzo Pozza (53yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: €100.00k
  • Alessandro Cortesi (57yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: €80.00k
  • Raffaella Pagani

    Chairperson of the Board of Statutory Auditors

    • Tenure: 4.7yrs
  • Laura Donnini (56yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: €90.00k

Company Information

Amplifon SpA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Amplifon SpA
  • Ticker: AMP
  • Exchange: BIT
  • Founded: 1950
  • Industry: Health Care Distributors
  • Sector: Healthcare
  • Market Cap: €5.899b
  • Shares outstanding: 222.76m
  • Website: https://corporate.amplifon.com

Number of Employees


Location

  • Amplifon SpA
  • Via Ripamonti No. 133
  • Milan
  • Milan
  • 20141
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AMFP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2001
AMPBIT (Borsa Italiana)YesOrdinary SharesITEURJun 2001
0N61LSE (London Stock Exchange)YesOrdinary SharesGBEURJun 2001
AXNADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2001
AMPMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJun 2001

Biography

Amplifon SpA operates in the hearing care retail market that empowers people to rediscover various emotions of sound. The company operates through a network of approximately 11,000 points of sale in 29 cou ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/06 20:44
End of Day Share Price2019/12/06 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.