Compa (BVB:CMP) - Share price, News & Analysis

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

CMP (RON0.47) is trading above our estimate of [[fair value]] (RON0.13)

CMP fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	0/6
Financial Health	4/6
Dividends	2/6

CMP Stock Overview

Compa S.A. engages in the manufacture and sale of other parts and accessories for motor vehicles and motor vehicle engines in Romania.

Rewards

Price-To-Earnings ratio (11.4x) is below the Auto Components industry average (13.3x)

Risk Analysis

Earnings have declined by 23.1% per year over past 5 years

Dividend of 3.04% is not well covered by earnings

Large one-off items impacting financial results

Profit margins (1.2%) are lower than last year (2.8%)

+ 1 more risk

Compa Competitors

HKS

TSE:7219

JP¥2.8b

Kinetic Engineering

BSE:500240

₹1.6b

SaedongLtd

KOSDAQ:A053060

₩28.4b

Orange Electronic

TPEX:4554

NT$654.1m

Price History & Performance

Summary of all time highs, changes and price drops for Compa
Historical stock prices
Current Share Price	RON0.47
52 Week High	RON0.73
52 Week Low	RON0.44
Beta	0.55
1 Month Change	1.08%
3 Month Change	-12.64%
1 Year Change	-28.35%
3 Year Change	-40.51%
5 Year Change	-62.55%
Change since IPO	287.04%

Recent News & Updates

Mar 06

Capital Allocation Trends At Compa (BVB:CMP) Aren't Ideal

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

Oct 05

Is Compa (BVB:CMP) Using Too Much Debt?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

	CMP	RO Auto Components	RO Market
7D	-4.9%	-1.4%	0.2%
1Y	-28.4%	-31.0%	7.1%

Return vs Industry: CMP exceeded the RO Auto Components industry which returned -30.2% over the past year.

Return vs Market: CMP underperformed the RO Market which returned 7.1% over the past year.

Price Volatility

Is CMP's price volatile compared to industry and market?
CMP volatility
CMP Average Weekly Movement	3.8%
Auto Components Industry Average Movement	5.8%
Market Average Movement	3.8%
10% most volatile stocks in RO Market	6.4%
10% least volatile stocks in RO Market	2.6%

Stable Share Price: CMP is not significantly more volatile than the rest of RO stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CMP's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
n/a	1,866	Ioan Deac	https://compa.ro

Compa S.A. engages in the manufacture and sale of other parts and accessories for motor vehicles and motor vehicle engines in Romania. The company offers subassemblies and injection components; subassemblies and turbocharger components; subassemblies and windscreen wipers components; subassemblies and components for steering gears and columns; cold coiled springs; stamped parts; air-conditioning equipment; industrial equipment, molds, and tools; and metallic welded structures. It also provides center housings, flanges, and rollers for turbofans; arches; forged parts; and cardan transmissions.

Compa Fundamentals Summary

How do Compa's earnings and revenue compare to its market cap?
CMP fundamental statistics
Market Cap	RON99.48m
Earnings (TTM)	RON8.73m
Revenue (TTM)	RON735.22m

11.4x

P/E Ratio

0.1x

P/S Ratio

Is CMP overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CMP income statement (TTM)
Revenue	RON735.22m
Cost of Revenue	RON491.04m
Gross Profit	RON244.18m
Other Expenses	RON235.45m
Earnings	RON8.73m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.041
Gross Margin	33.21%
Net Profit Margin	1.19%
Debt/Equity Ratio	26.6%

How did CMP perform over the long term?

See historical performance and comparison

Dividends

3.0%

Current Dividend Yield

36%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is CMP 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 CMP?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for CMP. This is calculated by dividing CMP's market cap by their current preferred multiple.
What is CMP's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	RON99.48m

CMP 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/Revenue	0.3x
Enterprise Value/EBITDA	4.4x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

CMP PE Ratio vs Peers

The above table shows the PE ratio for CMP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	416.7x
7219 HKS	5.8x	n/a	JP¥2.8b
500240 Kinetic Engineering	1648.3x	n/a	₹1.6b
A053060 SaedongLtd	3.3x	n/a	₩28.4b
4554 Orange Electronic	9.5x	n/a	NT$654.1m
CMP Compa	11.4x	n/a	RON99.5m

Price-To-Earnings vs Peers: CMP is good value based on its Price-To-Earnings Ratio (11.4x) compared to the peer average (416.7x).

Price to Earnings Ratio vs Industry

How does CMP's PE Ratio compare vs other companies in the European Auto Components Industry?

Price-To-Earnings vs Industry: CMP is good value based on its Price-To-Earnings Ratio (11.4x) compared to the European Auto Components industry average (13.3x)

Price to Earnings Ratio vs Fair Ratio

What is CMP'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.

CMP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11.4x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate CMP's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

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

Below Fair Value: CMP (RON0.47) is trading above our estimate of fair value (RON0.13)

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

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

30.3%

Forecasted Automobiles industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Compa has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Examine Compa's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.

Past Performance

How has Compa performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-23.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CMP has a large one-off gain of RON3.3M impacting its March 31 2022 financial results.

Growing Profit Margin: CMP's current net profit margins (1.2%) are lower than last year (2.8%).

Past Earnings Growth Analysis

Earnings Trend: CMP's earnings have declined by 23.1% per year over the past 5 years.

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

Earnings vs Industry: CMP had negative earnings growth (-43.9%) over the past year, making it difficult to compare to the Auto Components industry average (-2.6%).

Return on Equity

High ROE: CMP's Return on Equity (1.7%) is considered low.

Discover strong past performing companies

Financial Health

How is Compa'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: CMP's short term assets (RON332.5M) exceed its short term liabilities (RON160.3M).

Long Term Liabilities: CMP's short term assets (RON332.5M) exceed its long term liabilities (RON160.1M).

Debt to Equity History and Analysis

Debt Level: CMP's net debt to equity ratio (25.7%) is considered satisfactory.

Reducing Debt: CMP's debt to equity ratio has increased from 11.9% to 26.6% over the past 5 years.

Debt Coverage: CMP's debt is not well covered by operating cash flow (5.4%).

Interest Coverage: CMP's interest payments on its debt are well covered by EBIT (4x coverage).

Balance Sheet

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Dividend

What is Compa current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

3.04%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CMP's dividend (3.04%) is higher than the bottom 25% of dividend payers in the RO market (2.88%).

High Dividend: CMP's dividend (3.04%) is low compared to the top 25% of dividend payers in the RO market (7.14%).

Stability and Growth of Payments

Stable Dividend: Too early to tell whether CMP's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if CMP's dividend payments are increasing as they only just started paying a dividend.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (35.8%), CMP's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: CMP is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

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

9.6yrs

Average management tenure

CEO

Ioan Deac (73 yo)

24.58yrs

Tenure

Mr. Ioan Deac serves as the Chairman of the Board, Chief Executive Officer, General Manager and President at Compa SA. Mr. Deac served as General Manager and President of the Management Council from 1994...

Leadership Team

Experienced Management: CMP's management team is seasoned and experienced (9.6 years average tenure).

Board Members

Experienced Board: CMP's board of directors are seasoned and experienced ( 14.9 years average tenure).

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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/15 00:00
End of Day Share Price	2022/08/12 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31