Saipem SpA
Saipem SpA Fundamental Analysis
Saipem SpA (SAPMF) shows weak financial fundamentals with a PE ratio of 33.65, profit margin of 2.06%, and ROE of 9.16%. The company generates $11.5B in annual revenue with moderate year-over-year growth of 6.52%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 31.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SAPMF's fundamental strength across five key dimensions:
Efficiency Score
WeakSAPMF struggles to generate sufficient returns from assets.
Valuation Score
ModerateSAPMF shows balanced valuation metrics.
Growth Score
ModerateSAPMF shows steady but slowing expansion.
Financial Health Score
ModerateSAPMF shows balanced financial health with some risks.
Profitability Score
WeakSAPMF struggles to sustain strong margins.
Key Financial Metrics
Is SAPMF Expensive or Cheap?
P/E Ratio
SAPMF trades at 33.65 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SAPMF's PEG of 0.40 indicates potential undervaluation.
Price to Book
The market values Saipem SpA at 3.06 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.76 times EBITDA. This is generally considered low.
How Well Does SAPMF Make Money?
Net Profit Margin
For every $100 in sales, Saipem SpA keeps $2.06 as profit after all expenses.
Operating Margin
Core operations generate 4.25 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.16 in profit for every $100 of shareholder equity.
ROA
Saipem SpA generates $1.66 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Saipem SpA produces operating cash flow of $1.16B, showing steady but balanced cash generation.
Free Cash Flow
Saipem SpA produces free cash flow of $901.09M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.46 in free cash annually.
FCF Yield
SAPMF converts 11.36% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
33.65
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.40
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.06
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.69
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.10
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How SAPMF Stacks Against Its Sector Peers
| Metric | SAPMF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 33.65 | 21.44 | Worse (Expensive) |
| ROE | 9.16% | 945.00% | Weak |
| Net Margin | 2.06% | -63502.00% (disorted) | Weak |
| Debt/Equity | 1.18 | -0.46 (disorted) | Distorted |
| Current Ratio | 1.10 | 6.42 | Neutral |
| ROA | 1.66% | 3336.00% | Weak |
SAPMF outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Saipem SpA's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-78.29%
Industry Style: Cyclical, Value, Commodity
DecliningEPS CAGR
102.85%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
-100.00%
Industry Style: Cyclical, Value, Commodity
Declining