Fiera Milano SpA – Value Analysis (MILAN:FM) : November 14, 2017

Capitalcube gives Fiera Milano SpA a score of 11.

Our analysis is based on comparing Fiera Milano SpA with the following peers – GL Events SA and Best Union Company S.p.A. (GLO-FR and BEST-IT).

Investment Outlook

Fiera Milano SpA has a fundamental score of 11 and has a relative valuation of OVERVALUED.

Fundamental Score

Access our research and ratings on Fiera Milano SpA

Company Overview

  • From a peer analysis perspective, relative outperformance last month is up from a median performance last year.
  • It currently trades at a Price/Book ratio of (2.35).
  • FM-IT‘s EBITDA-based price implies better than peer median growth.The market seems to expect a turnaround in the company’s current EBITDA-based return on equity.
  • FM-IT has relatively low profit margins and median asset efficiency.
  • Compared with its chosen peers, the company’s annual revenues and earnings change at a slower rate, implying a lack of strategic focus and/or lack of execution success.
  • FM-IT‘s return on assets currently and over the past five years has trailed the peer median and suggests the company might be operationally challenged relative to its peers.
  • While FM-IT‘s revenues have increased slower than peer median, the market currently gives the company a higher than peer median Price/EBITDA ratio and may be factoring in some sort of a strategic play.
  • The company’s relatively low level of capital investment and below peer median returns on capital suggest that the company is in maintenance mode.
  • FM-IT‘s operating performance may not allow it to raise additional debt.

Access our research and ratings on Fiera Milano SpA

Leverage & Liquidity

FM-IT would seem to have a hard time raising additional debt.

  • With debt at 29.44% of its enterprise value compared to an overall benchmark of 25% (Note: The peer median is currently 48.75%), and relatively tight interest coverage level of -18.19x, FM-IT would have a hard time raising much additional debt.
  • All 2 peers for the company have an outstanding debt balance.

FM-IT has moved to a relatively low liquidity from an Some Capacity profile at the prior year-end.

  • FM-IT‘s interest coverage is its lowest over the last four years and compares to a high of 8.19x in 2015.
  • The decrease in its interest coverage to -18.19x from 8.19x (in 2015) was also accompanied by a decrease in its peer median during this period to 3.60x from 8.19x.
  • Interest coverage fell 21.79 points relative to peers. It is also below the 2.50x coverage benchmark unlike the peer median.
  • FM-IT‘s debt-EV is its lowest over the last four years and compares to a high of 40.18% in 2012.
  • Like the interest coverage trend, the decrease in its debt-EV (to 29.44% from 38.42%) was also accompanied by a decrease in its peer median during this period (to 48.75% from 50.36%).
  • Relative to peers, debt-EV fell 7.37 percentage points.

Access the detailed analysis for Fiera Milano SpA

Key Liquidity Items

Company Debt/Enterprise Value (%) Current Ratio Interest Coverage (x) Cash Flow To Total Debt (%)
GL Events SA 60.41 0.86 3.6 14.45
Best Union Company S.p.A. 48.75 1.08 5.64 47.35
Fiera Milano SpA 29.44 0.6 -18.19 -1.52
Peer Median 48.75 0.86 3.6 14.45
Best In Class 29.44 1.08 5.64 47.35

Looking for more metrics and analysis for Fiera Milano SpA?

Company Profile

Fiera Milano SpA engages in the exhibition and congress sectors. It deals with five areas of activity: Organisation and hospitality for exhibition events in Italy and abroad; Assembling services; Media (online and offline editorial services and content production; training; and events organising); Conference management. The company was founded in April 1920 and is headquartered in Rho, Italy.

Disclaimer

The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website www.analytixinsight.com.