RCS MediaGroup SpA (RCS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

RCS MediaGroup SpA

Caltagirone Editore SpA

Visibilia Editore SpA

Poligrafici Printing SpA

Società Editoriale Il Fatto SpA

Netweek SpA

Monrif SpA

Why is RCS MediaGroup SpA ?

Weak Long Term Fundamental Strength as the company has not declared results in the last 6 months

Poor long term growth as Net Sales has grown by an annual rate of -13.74% and Operating profit at -57.91% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 0.74% signifying low profitability per unit of shareholders funds

With ROE of -6.79%, it has a Very Expensive valuation with a 1.23 Price to Book Value

Over the past year, while the stock has generated a return of 3.13%, its profits have risen by 40.4%

Underperformed the market in the last 1 year

The stock has generated a return of 3.13% in the last 1 year, much lower than market (Italy FTSE MIB) returns of 25.83%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is RCS MediaGroup SpA for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

RCS MediaGroup SpA

3.13%

-0.31

24.84%

Italy FTSE MIB

24.83%

1.34

19.25%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-13.74%

EBIT Growth (5y)

-57.91%

EBIT to Interest (avg)

-0.45

Debt to EBITDA (avg)

5.09

Net Debt to Equity (avg)

0.03

Sales to Capital Employed (avg)

2.26

Tax Ratio

1.30%

Dividend Payout Ratio

58.43%

Pledged Shares

Institutional Holding

ROCE (avg)

28.93%

ROE (avg)

0.74%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.23

EV to EBIT

402.67

EV to EBITDA

9.15

EV to Capital Employed

1.22

EV to Sales

0.53

PEG Ratio

Dividend Yield

9.62%

ROCE (Latest)

0.30%

ROE (Latest)

-6.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at EUR 231.3 MM

RAW MATERIAL COST(Y)

Fallen by -35.8% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 27.83 %

OPERATING PROFIT(Q)

Highest at EUR 67.3 MM

OPERATING PROFIT MARGIN(Q)

Highest at 15.79 %

PRE-TAX PROFIT(Q)

Highest at EUR 48.1 MM

NET PROFIT(Q)

Highest at EUR 35 MM

EPS(Q)

Highest at EUR 0.07

-1What is not working for the Company

INTEREST(Q)

Highest at EUR 6.1 MM

Here's what is working for RCS MediaGroup SpA

Operating Cash Flow

Highest at EUR 231.3 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (EUR MM)

Operating Profit

Highest at EUR 67.3 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (EUR MM)

Operating Profit Margin

Highest at 15.79 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at EUR 48.1 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (EUR MM)

Net Profit

Highest at EUR 35 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (EUR MM)

EPS

Highest at EUR 0.07

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (EUR)

Debt-Equity Ratio

Lowest at 27.83 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -35.8% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for RCS MediaGroup SpA

Interest

Highest at EUR 6.1 MM

in the last five periods and Increased by 110.34% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (EUR MM)