Novem Group S.A.
Novem Group S.A. Fundamental Analysis
Novem Group S.A. (NVM.DE) shows moderate financial fundamentals with a PE ratio of 5.62, profit margin of 3.85%, and ROE of 20.90%. The company generates $0.5B in annual revenue with weak year-over-year growth of -14.80%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 14.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NVM.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakNVM.DE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNVM.DE trades at attractive valuation levels.
Growth Score
WeakNVM.DE faces weak or negative growth trends.
Financial Health Score
WeakNVM.DE carries high financial risk with limited liquidity.
Profitability Score
ModerateNVM.DE maintains healthy but balanced margins.
Key Financial Metrics
Is NVM.DE Expensive or Cheap?
P/E Ratio
NVM.DE trades at 5.62 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NVM.DE's PEG of 0.59 indicates potential undervaluation.
Price to Book
The market values Novem Group S.A. at 1.17 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.40 times EBITDA. This is generally considered low.
How Well Does NVM.DE Make Money?
Net Profit Margin
For every $100 in sales, Novem Group S.A. keeps $3.85 as profit after all expenses.
Operating Margin
Core operations generate 5.80 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.90 in profit for every $100 of shareholder equity.
ROA
Novem Group S.A. generates $3.63 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Novem Group S.A. produces operating cash flow of $71.44M, showing steady but balanced cash generation.
Free Cash Flow
Novem Group S.A. generates strong free cash flow of $59.15M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.37 in free cash annually.
FCF Yield
NVM.DE converts 53.48% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.62
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.59
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.17
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.22
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.65
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.85
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.21
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How NVM.DE Stacks Against Its Sector Peers
| Metric | NVM.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.62 | 23.78 | Better (Cheaper) |
| ROE | 20.90% | 1098.00% | Weak |
| Net Margin | 3.85% | -626.00% (disorted) | Weak |
| Debt/Equity | 2.65 | 0.86 | Weak (High Leverage) |
| Current Ratio | 0.85 | 2.64 | Weak Liquidity |
| ROA | 3.63% | -8081.00% (disorted) | Weak |
NVM.DE outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Novem Group S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-16.98%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
181.47%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-20.75%
Industry Style: Cyclical, Growth, Discretionary
Declining