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

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
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 0.74% signifying low profitability per unit of shareholders funds
INTEREST(HY) At EUR 3.6 MM has Grown at 24.14%
ROCE(HY) Lowest at 12.16%
RAW MATERIAL COST(Y) Grown by 18.18% (YoY)

With ROE of -6.50%, it has a Very Expensive valuation with a 1.07 Price to Book Value

Over the past year, while the stock has generated a return of -9.49%, its profits have risen by 40.4%

Below par performance in long term as well as near term

Along with generating -9.49% returns in the last 1 year, the stock has also underperformed Italy FTSE MIB in the last 3 years, 1 year and 3 months

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

-9.65%

-0.35

21.61%

Italy FTSE MIB

27.29%

1.54

16.37%

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)

2.23

Tax Ratio

1.30%

Dividend Payout Ratio

66.10%

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

1.07

EV to EBIT

357.47

EV to EBITDA

8.12

EV to Capital Employed

1.07

EV to Sales

0.47

PEG Ratio

Dividend Yield

10.58%

ROCE (Latest)

0.30%

ROE (Latest)

-6.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

No Trend

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

3What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 182.77%

DEBT-EQUITY RATIO (HY)

Lowest at 22.03 %

DEBTORS TURNOVER RATIO(HY)

Highest at 3.82 times

-10What is not working for the Company

INTEREST(HY)

At EUR 3.6 MM has Grown at 24.14%

ROCE(HY)

Lowest at 12.16%

RAW MATERIAL COST(Y)

Grown by 18.18% (YoY

NET SALES(Q)

Lowest at EUR 361.5 MM

OPERATING PROFIT(Q)

Lowest at EUR 44.7 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 12.37 %

NET PROFIT(Q)

Lowest at EUR 22.1 MM

EPS(Q)

Lowest at EUR 0.04

Here's what is working for RCS MediaGroup SpA

Debt-Equity Ratio

Lowest at 22.03 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 3.82 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 182.77%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for RCS MediaGroup SpA

Interest

At EUR 3.6 MM has Grown at 24.14%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (EUR MM)

Net Sales

Lowest at EUR 361.5 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (EUR MM)

Operating Profit

Lowest at EUR 44.7 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (EUR MM)

Operating Profit Margin

Lowest at 12.37 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at EUR 22.1 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (EUR MM)

EPS

Lowest at EUR 0.04

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (EUR)

Raw Material Cost

Grown by 18.18% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at EUR 0.61 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income