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CVG

Convergenze. Società Benefit BIT:CVG Stock Report

Last Price

€2.76

Market Cap

€19.7m

7D

1.1%

1Y

-9.5%

Updated

12 Aug, 2022

Data

Company Financials +
CVG fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance1/6
Financial Health4/6
Dividends0/6

CVG Stock Overview

Convergenze S.p.A. Società Benefit provides nationwide Internet services, voice, energy, and natural gas services.

Convergenze. Società Benefit Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Convergenze. Società Benefit
Historical stock prices
Current Share Price€2.76
52 Week High€3.76
52 Week Low€2.20
Beta0
1 Month Change4.55%
3 Month Change5.75%
1 Year Change-9.51%
3 Year Changen/a
5 Year Changen/a
Change since IPO5.14%

Recent News & Updates

Mar 08
Convergenze. Società Benefit (BIT:CVG) Is Reinvesting At Lower Rates Of Return

Convergenze. Società Benefit (BIT:CVG) Is Reinvesting At Lower Rates Of Return

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Amongst...

Shareholder Returns

CVGIT TelecomIT Market
7D1.1%4.4%1.7%
1Y-9.5%-16.6%-16.0%

Return vs Industry: CVG exceeded the Italian Telecom industry which returned -17.7% over the past year.

Return vs Market: CVG exceeded the Italian Market which returned -16.1% over the past year.

Price Volatility

Is CVG's price volatile compared to industry and market?
CVG volatility
CVG Average Weekly Movement7.6%
Telecom Industry Average Movement4.8%
Market Average Movement5.0%
10% most volatile stocks in IT Market7.7%
10% least volatile stocks in IT Market3.2%

Stable Share Price: CVG is more volatile than 75% of Italian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: CVG's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of Italian stocks.

About the Company

FoundedEmployeesCEOWebsite
200579Rosario Pingarohttps://convergenze.it

Convergenze S.p.A. Società Benefit provides nationwide Internet services, voice, energy, and natural gas services. The company offers fiber optic network and WiFi; VoIP and voice services, and marketing services; and cloud data storage, fax, and phone services. It also provides electricity supply service for the private, residential, and business customers; charging points for electric cars; and natural gas supply services.

Convergenze. Società Benefit Fundamentals Summary

How do Convergenze. Società Benefit's earnings and revenue compare to its market cap?
CVG fundamental statistics
Market Cap€19.71m
Earnings (TTM)€238.41k
Revenue (TTM)€18.37m

82.7x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CVG income statement (TTM)
Revenue€18.37m
Cost of Revenue€16.67m
Gross Profit€1.70m
Other Expenses€1.46m
Earnings€238.41k

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.033
Gross Margin9.25%
Net Profit Margin1.30%
Debt/Equity Ratio101.2%

How did CVG perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is CVG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CVG?

Other financial metrics that can be useful for relative valuation.

CVG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.2x
Enterprise Value/EBITDA14.1x
PEG Ratio7.7x

Price to Earnings Ratio vs Peers

How does CVG's PE Ratio compare to its peers?

CVG PE Ratio vs Peers
The above table shows the PE ratio for CVG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average27x
PLT Planetel
45xn/a€47.4m
UD Unidata
15.6xn/a€122.5m
ITD Intred
27.1x15.0%€233.2m
BDCOM BDCOM Online
20.2xn/a৳1.7b
CVG Convergenze. Società Benefit
82.7x10.7%€19.7m

Price-To-Earnings vs Peers: CVG is expensive based on its Price-To-Earnings Ratio (82.7x) compared to the peer average (27x).


Price to Earnings Ratio vs Industry

How does CVG's PE Ratio compare vs other companies in the European Telecom Industry?

Price-To-Earnings vs Industry: CVG is expensive based on its Price-To-Earnings Ratio (82.7x) compared to the Italian Telecom industry average (33.8x)


Price to Earnings Ratio vs Fair Ratio

What is CVG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CVG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio82.7x
Fair PE Ratio23.2x

Price-To-Earnings vs Fair Ratio: CVG is expensive based on its Price-To-Earnings Ratio (82.7x) compared to the estimated Fair Price-To-Earnings Ratio (23.2x).


Share Price vs Fair Value

What is the Fair Price of CVG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CVG (€2.76) is trading below our estimate of fair value (€7.96)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.


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Future Growth

How is Convergenze. Società Benefit forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


10.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CVG's forecast earnings growth (10.7% per year) is above the savings rate (1.7%).

Earnings vs Market: CVG's earnings (10.7% per year) are forecast to grow faster than the Italian market (8.5% per year).

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

Revenue vs Market: CVG's revenue (12.9% per year) is forecast to grow faster than the Italian market (-0% per year).

High Growth Revenue: CVG's revenue (12.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CVG's Return on Equity is forecast to be low in 3 years time (7%).


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Past Performance

How has Convergenze. Società Benefit performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


9.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CVG has a high level of non-cash earnings.

Growing Profit Margin: CVG's current net profit margins (1.3%) are lower than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: CVG's earnings have grown by 9.6% per year over the past 5 years.

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

Earnings vs Industry: CVG had negative earnings growth (-65.7%) over the past year, making it difficult to compare to the Telecom industry average (19.9%).


Return on Equity

High ROE: CVG's Return on Equity (4.1%) is considered low.


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Financial Health

How is Convergenze. Società Benefit's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: CVG's short term assets (€6.8M) exceed its short term liabilities (€5.7M).

Long Term Liabilities: CVG's short term assets (€6.8M) do not cover its long term liabilities (€7.4M).


Debt to Equity History and Analysis

Debt Level: CVG's net debt to equity ratio (39.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if CVG's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: CVG's debt is well covered by operating cash flow (31.7%).

Interest Coverage: CVG's interest payments on its debt are well covered by EBIT (7.1x coverage).


Balance Sheet


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Dividend

What is Convergenze. Società Benefit current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

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

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

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


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as CVG has not reported any payouts.


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Management

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


CEO

Rosario Pingaro (48 yo)

no data

Tenure

Engineer Rosario Pingaro is the Chief Executive Officer, Chief Technology Officer and President of the board at Convergenze S.p.A. Società Benefit. He is the President of the Board at Banca di Credito Coop...


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

Convergenze S.p.A. Società Benefit's employee growth, exchange listings and data sources


Key Information

  • Name: Convergenze S.p.A. Società Benefit
  • Ticker: CVG
  • Exchange: BIT
  • Founded: 2005
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Implied Market Cap: €19.707m
  • Shares outstanding: 7.14m
  • Website: https://convergenze.it

Number of Employees


Location

  • Convergenze S.p.A. Società Benefit
  • Convergenze Innovation Center
  • Via Seliano 2
  • Salerno
  • Salerno
  • 84047
  • Italy

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/12 00:00
End of Day Share Price2022/08/12 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.