New Risk • Jul 03
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 97% Dividend yield: 1.5% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Minor Risks High level of debt (69% net debt to equity). Dividend is not well covered by cash flows (97% cash payout ratio). Share price has been volatile over the past 3 months (8.3% average weekly change). Profit margins are more than 30% lower than last year (1.9% net profit margin). Market cap is less than US$100m (€9.82m market cap, or US$11.2m). New Risk • Jul 01
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of German stocks, typically moving 8.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks High level of debt (69% net debt to equity). Share price has been volatile over the past 3 months (8.3% average weekly change). Profit margins are more than 30% lower than last year (1.9% net profit margin). Market cap is less than US$100m (€9.89m market cap, or US$11.3m). Valuation Update With 7 Day Price Move • Jul 01
Investor sentiment deteriorates as stock falls 27% After last week's 27% share price decline to €1.12, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 14x in the Telecom industry in Europe. Total loss to shareholders of 37% over the past three years. Board Change • May 20
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 10 experienced directors. No highly experienced directors. 1 independent director (6 non-independent directors). Standing Auditor Nicola Iuorio was the last director to join the board, commencing their role in 2026. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Duyuru • Mar 30
Convergenze S.p.A. Società Benefit announces Annual dividend, payable on June 04, 2025 Convergenze S.p.A. Società Benefit announced Annual dividend of EUR 0.0200 per share payable on June 04, 2025, ex-date on June 02, 2025 and record date on June 03, 2025. Reported Earnings • Oct 02
First half 2024 earnings released: EPS: €0.082 (vs €0.006 in 1H 2023) First half 2024 results: EPS: €0.082 (up from €0.006 in 1H 2023). Revenue: €12.0m (up 15% from 1H 2023). Net income: €605.7k (up €558.4k from 1H 2023). Profit margin: 5.0% (up from 0.5% in 1H 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 2.1% growth forecast for the Telecom industry in Germany. Over the last 3 years on average, earnings per share has increased by 50% per year but the company’s share price has fallen by 20% per year, which means it is significantly lagging earnings. Duyuru • Aug 29
Convergenze S.p.A. Società Benefit to Report First Half, 2024 Results on Sep 27, 2024 Convergenze S.p.A. Società Benefit announced that they will report first half, 2024 results on Sep 27, 2024 New Risk • Jun 10
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of German stocks, typically moving 6.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks High level of debt (99% net debt to equity). Share price has been volatile over the past 3 months (6.9% average weekly change). Market cap is less than US$100m (€13.4m market cap, or US$14.5m). Valuation Update With 7 Day Price Move • May 08
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to €1.74, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 12x in the Telecom industry in Europe. Total loss to shareholders of 42% over the past three years. Reported Earnings • May 05
Full year 2023 earnings released Full year 2023 results: Revenue: €22.9m (down 19% from FY 2022). Net income: €511.9k (up €1.31m from FY 2022). Profit margin: 2.2% (up from net loss in FY 2022). The move to profitability was driven by lower expenses. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 1.6% growth forecast for the Telecom industry in Germany. New Risk • Apr 16
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (0.4x net interest cover). Minor Risks Latest financial reports are more than 6 months old (reported June 2023 fiscal period end). Market cap is less than US$100m (€11.8m market cap, or US$12.5m). New Risk • Nov 14
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: €8.92m (US$9.54m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.4x net interest cover). Market cap is less than US$10m (€8.92m market cap, or US$9.54m). Minor Risks Share price has been volatile over the past 3 months (6.9% average weekly change). Shareholders have been diluted in the past year (5.0% increase in shares outstanding). Buying Opportunity • Oct 25
Now 23% undervalued Over the last 90 days, the stock is up 1.7%. The fair value is estimated to be €2.28, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 21% over the last 3 years. Meanwhile, the company became loss making. Reported Earnings • Oct 05
First half 2023 earnings released First half 2023 results: Revenue: €10.4m (down 17% from 1H 2022). Net income: €47.3k (up €477.1k from 1H 2022). Profit margin: 0.5% (up from net loss in 1H 2022). The move to profitability was driven by lower expenses. Revenue is forecast to grow 1.3% p.a. on average during the next 3 years, compared to a 2.7% growth forecast for the Telecom industry in Germany. Reported Earnings • Mar 29
Full year 2022 earnings released Full year 2022 results: Revenue: €28.4m (up 54% from FY 2021). Net loss: €799.2k (down 435% from profit in FY 2021). Revenue is forecast to grow 5.0% p.a. on average during the next 3 years, compared to a 1.9% growth forecast for the Telecom industry in Germany. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 6 non-independent directors. Standing Auditor Massimo Tartaro was the last director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 04
First half 2022 earnings released: EPS: €0 (vs €0 in 1H 2021) First half 2022 results: EPS: €0 (in line with 1H 2021). Revenue: €12.7m (up 45% from 1H 2021). Net loss: €429.8k (down 205% from profit in 1H 2021). Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 3.4% growth forecast for the Telecom industry in Germany. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 10 experienced directors. No highly experienced directors. 1 independent director (6 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Apr 18
Full year 2021 earnings released: EPS: €0.033 (vs €0.099 in FY 2020) Full year 2021 results: EPS: €0.033 (down from €0.099 in FY 2020). Revenue: €18.4m (up 13% from FY 2020). Net income: €238.4k (down 66% from FY 2020). Profit margin: 1.3% (down from 4.3% in FY 2020). Over the next year, revenue is forecast to grow 27%, compared to a 2.7% growth forecast for the industry in Germany. Valuation Update With 7 Day Price Move • Mar 08
Investor sentiment deteriorated over the past week After last week's 19% share price decline to €2.33, the stock trades at a trailing P/E ratio of 29.8x. Average trailing P/E is 27x in the Telecom industry in Germany. Total loss to shareholders of 15% over the past year. Valuation Update With 7 Day Price Move • Nov 10
Investor sentiment improved over the past week After last week's 16% share price gain to €3.56, the stock trades at a trailing P/E ratio of 51.5x. Average trailing P/E is 22x in the Telecom industry in Germany.