Loading...
Alkemy S.p.A. engages in the design, planning, and implementation of projects and solutions functional to the development and renewal of companies in Italy. The last earnings update was 95 days ago. More info.
7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
---|---|---|---|---|---|---|
Alkemy (ALK) | -25.1% | -23% | -20.8% | -21.5% | - | - |
IT Professional Services | -3.9% | -4.6% | 0.9% | 47.9% | 34.6% | 62.5% |
IT Market | 0.2% | -0.5% | 4.3% | 18.6% | 6.6% | -15.8% |
Is Alkemy undervalued based on future cash flows and its price relative to the stock market?
Below are the data sources, inputs and calculation used to determine the intrinsic value for Alkemy.
Data Point | Source | Value |
---|---|---|
Valuation Model | 2 Stage Free Cash Flow to Equity | |
Levered Free Cash Flow | Average of 1 Analyst Estimates (S&P Global) | See below |
Discount Rate (Cost of Equity) | See below | 9.6% |
Perpetual Growth Rate | 10-Year IT Government Bond Rate | 1.2% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
Data Point | Calculation/ Source | Result |
---|---|---|
Risk-Free Rate | 10-Year IT Govt Bond Rate | 1.2% |
Equity Risk Premium | S&P Global | 8.2% |
Professional Services Unlevered Beta | Simply Wall St/ S&P Global | 0.84 |
Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.836 (1 + (1- 24%) (29.25%)) |
1.015 |
Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.01 |
Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.21% + (1.015 * 8.23%) |
9.56% |
Discounted Cash Flow Calculation for BIT:ALK using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Alkemy is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
Note: Free cash flow to equity valuations ignore the company's cash or debt.
Levered FCF (EUR, Millions) | Source |
Present Value Discounted (@ 9.56%) |
|
---|---|---|---|
2020 | 3.00 | Analyst x1 | 2.74 |
2021 | 3.60 | Analyst x1 | 3.00 |
2022 | 4.03 | Est @ 12.08% | 3.07 |
2023 | 4.39 | Est @ 8.82% | 3.05 |
2024 | 4.68 | Est @ 6.54% | 2.96 |
2025 | 4.91 | Est @ 4.94% | 2.84 |
2026 | 5.10 | Est @ 3.82% | 2.69 |
2027 | 5.25 | Est @ 3.04% | 2.53 |
2028 | 5.38 | Est @ 2.49% | 2.37 |
2029 | 5.49 | Est @ 2.11% | 2.21 |
Present value of next 10 years cash flows | €27.00 |
Calculation | Result | |
---|---|---|
Terminal Value |
= FCF2029
× (1 + g) ÷ (Discount Rate – g)
= €5.49 × (1 + 1.21%) ÷ (9.56% – 1.21%) |
€66.60 |
Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= €66.60 ÷ (1 + 9.56%)10 |
€26.73 |
Calculation | Result | |
---|---|---|
Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= €27.00 + €26.73 |
€53.73 |
Equity Value per Share (EUR) |
= Total value / Shares Outstanding
= €53.73 / 5.55 |
€9.69 |
Calculation | Result | |
---|---|---|
Value per share (EUR) | From above. | €9.69 |
Current discount | Discount to share price of
€8.16
= -1 x (€8.16 - €9.69) / €9.69 |
15.8% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Data Point | Source | Value |
---|---|---|
Earnings Per Share * | Company Filings (2019-06-30) in EUR | €0.67 |
BIT:ALK Share Price ** | BIT (2019-12-13) in EUR | €8.16 |
Europe Professional Services Industry PE Ratio | Median Figure of 95 Publicly-Listed Professional Services Companies | 20.22x |
Italy Market PE Ratio | Median Figure of 248 Publicly-Listed Companies | 18.36x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Alkemy.
Calculation | Outcome | |
---|---|---|
PE Ratio | = BIT:ALK Share Price ÷ EPS (both in EUR) = 8.16 ÷ 0.67 |
12.26x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
Data Point | Source | Value |
---|---|---|
PE Ratio | See PE Ratio Section | 12.26x |
Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts |
21.1%per year |
Europe Professional Services Industry PEG Ratio | Median Figure of 58 Publicly-Listed Professional Services Companies | 1.42x |
Italy Market PEG Ratio | Median Figure of 169 Publicly-Listed Companies | 1.34x |
*Line of best fit is calculated by linear regression .
Calculation | Outcome | |
---|---|---|
PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 12.26x ÷ 21.1% |
0.58x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
Data Point | Source | Value |
---|---|---|
Book Value per Share | Company Filings (2019-06-30) in EUR | €6.32 |
BIT:ALK Share Price * | BIT (2019-12-13) in EUR | €8.16 |
Europe Professional Services Industry PB Ratio | Median Figure of 125 Publicly-Listed Professional Services Companies | 2.32x |
Italy Market PB Ratio | Median Figure of 326 Publicly-Listed Companies | 1.52x |
Calculation | Outcome | |
---|---|---|
PB Ratio | = BIT:ALK Share Price ÷ Book Value per Share (both in EUR) = 8.16 ÷ 6.32 |
1.29x |
* Primary Listing of Alkemy.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
How is Alkemy expected to perform in the next 1 to 3 years based on estimates from 1 analyst?
Data Point | Source | Value (per year) |
---|---|---|
BIT:ALK Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts | 21.1% |
BIT:ALK Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts | 13.1% |
Europe Professional Services Industry Earnings Growth Rate | Market Cap Weighted Average | 9.5% |
Europe Professional Services Industry Revenue Growth Rate | Market Cap Weighted Average | 4.7% |
Italy Market Earnings Growth Rate | Market Cap Weighted Average | 8.5% |
Italy Market Revenue Growth Rate | Market Cap Weighted Average | 3% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Data Point | Source | Value |
---|---|---|
Past Financials | Company Filings (5 months ago) | See Below |
Future Estimates | Average of up to 1 Analyst Estimates (S&P Global) | See Below |
Date (Data in EUR Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
---|---|---|---|---|
2021-12-31 | 116 | 6 | 5 | 1 |
2020-12-31 | 105 | 5 | 4 | 1 |
2019-12-31 | 95 | 3 | 3 | 1 |
2019-12-15 |
Date (Data in EUR Millions) | Revenue | Cash Flow | Net Income * |
---|---|---|---|
2019-06-30 | 82 | -3 | 4 |
2019-03-31 | 75 | -2 | 3 |
2018-12-31 | 68 | -2 | 3 |
2018-09-30 | 56 | -1 | 3 |
2018-06-30 | 48 | 1 | 2 |
2018-03-31 | 45 | 1 | 2 |
2017-12-31 | 41 | 2 | 1 |
2017-09-30 | 41 | 2 | 1 |
2017-06-30 | 39 | 1 | 1 |
2017-03-31 | 37 | 1 | 1 |
2016-12-31 | 35 | 1 | 1 |
*GAAP earnings excluding extraordinary items.
Data Point | Source | Value |
---|---|---|
Past Financials | Company Filings (5 months ago) | See Below |
Future Estimates | Average of up to 1 Analyst Estimates (S&P Global) | See Below |
All data from Alkemy Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
Date (Data in EUR Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
---|---|---|---|---|
2021-12-31 | 0.98 | 0.98 | 0.98 | 1.00 |
2020-12-31 | 0.79 | 0.79 | 0.79 | 1.00 |
2019-12-31 | ||||
2019-12-15 |
Date (Data in EUR Millions) | EPS * |
---|---|
2019-06-30 | 0.67 |
2019-03-31 | 0.63 |
2018-12-31 | 0.60 |
2018-09-30 | 0.50 |
2018-06-30 | 0.32 |
2018-03-31 | 0.29 |
2017-12-31 | 0.26 |
2017-09-30 | 0.22 |
2017-06-30 | |
2017-03-31 | |
2016-12-31 | 2.97 |
*GAAP earnings excluding extraordinary items.
How has Alkemy performed over the past 5 years?
All data from Alkemy Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
Date (Data in EUR Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
---|---|---|---|---|
2019-06-30 | 81.55 | 3.60 | 0.58 | |
2019-03-31 | 74.55 | 3.42 | 0.65 | |
2018-12-31 | 67.56 | 3.25 | 0.72 | |
2018-09-30 | 56.04 | 2.70 | 0.28 | |
2018-06-30 | 47.86 | 1.75 | 0.27 | |
2018-03-31 | 44.54 | 1.56 | 0.34 | |
2017-12-31 | 41.22 | 1.38 | 0.41 | |
2017-09-30 | 41.24 | 1.19 | 1.06 | |
2017-06-30 | 39.18 | 1.21 | 0.97 | |
2017-03-31 | 37.00 | 1.15 | 1.01 | |
2016-12-31 | 34.83 | 1.08 | 1.06 | |
2015-12-31 | 28.84 | 0.91 | 0.49 | |
2014-12-31 | 17.59 | 0.08 | 0.21 |
*GAAP earnings excluding extraordinary items.
How is Alkemy's financial health and their level of debt?
All data from Alkemy Company Filings, last reported 5 months ago.
Date (Data in EUR Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
---|---|---|---|
2019-06-30 | 34.47 | 8.93 | 13.38 |
2019-03-31 | 34.47 | 8.93 | 13.38 |
2018-12-31 | 34.91 | 20.81 | 10.18 |
2018-09-30 | 34.91 | 20.81 | 10.18 |
2018-06-30 | 33.47 | 2.57 | 16.62 |
2018-03-31 | 33.47 | 2.57 | 16.62 |
2017-12-31 | 31.02 | 10.88 | 23.45 |
2017-09-30 | 33.26 | 3.47 | 23.56 |
2017-06-30 | 11.96 | 2.86 | 3.08 |
2017-03-31 | 11.96 | 2.86 | 3.08 |
2016-12-31 | 11.57 | 3.11 | 2.91 |
2015-12-31 | 9.88 | 1.41 | 3.35 |
2014-12-31 | 5.76 | 0.00 | 2.11 |
What is Alkemy's current dividend yield, its reliability and sustainability?
Data Point | Source | Value |
---|---|---|
Past Annualized Dividend Yield | S&P Global Market Data | See Below |
Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
Future Dividends per Share Estimates | Average of up to 1 Analyst Estimates (S&P Global) | See Below |
Europe Professional Services Industry Average Dividend Yield | Market Cap Weighted Average of 76 Stocks | 2.5% |
Italy Market Average Dividend Yield | Market Cap Weighted Average of 177 Stocks | 4.1% |
Italy Minimum Threshold Dividend Yield | 10th Percentile | 1% |
Italy Bottom 25% Dividend Yield | 25th Percentile | 2% |
Italy Top 25% Dividend Yield | 75th Percentile | 4.3% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
Date (Data in €) | Dividend per Share (annual) | Avg. No. Analysts |
---|---|---|
2021-12-31 | ||
2020-12-31 | ||
2019-12-31 | ||
2019-12-15 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
Mr. Duccio Vitali serves as the Chief Executive Officer at Alkemy Srl. Mr. Vitali has 4 years as General Manager of an Internet start-up and 7 years as Partner in Bain & Co. in Milan, Dallas and Dubai. He serves as a Director at Alkemy Srl. Mr. Vitali holds Degree in Engineering and MBA at Bocconi Univerisity.
Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.
Simply Wall St - – Full articleWhile some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Another way to think of that is that for every €1 worth of equity in the company, it was able to earn €0.046. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articlewhose performance is linked to business conditions and the general economy, as it draws revenue from industries across different sectors … The sector also relies on the performance of general construction industries, financial and business service industries, and the mining sector as these generate a large proportion of the sector’s revenue
Simply Wall St - – Full articleWhile small-cap stocks, such as Alkemy SpA (BIT:ALK) with its market cap of €64.57m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … So, understanding the company's financial health becomes. … Here are a few basic checks that are good enough to have a broad overview of the company’s financial strength.
Simply Wall St - – Full articleThis share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … Therefore, looking at how efficiently Alkemy is able to use capital to create earnings will help us understand your potential return. … Investors use many different metrics but the analysis below focuses on return on capital employed (ROCE).
Simply Wall St - – Full articleToday, I will calculate the stock's intrinsic value. … by projecting its future cash flows and then discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model
Simply Wall St - – Full articleAlkemy SpA (BIT:ALK) closed yesterday at €11.8, which left some investors asking whether the high earnings potential can still be justified at this price. … View out our latest analysis for Alkemy? … The excitement around Alkemy's growth potential is not unfounded
Simply Wall St - – Full articleAttractive stocks have exceptional fundamentals. … In the case of Alkemy SpA (BIT:ALK), there's … priced into the stock.
Simply Wall St - – Full articleCheck out our latest analysis for Alkemy Did ALK's recent earnings growth beat the long-term trend and the industry? … Since these values may be fairly myopic, I’ve determined an annualized five-year figure for ALK's net income, which stands at €932.15K This means that, generally, Alkemy has been able to steadily raise its net income over the past few years as well. … Let's see whether it is solely owing to industry tailwinds, or if Alkemy has seen some company-specific growth.
Simply Wall St - – Full articleReturn on Equity = Net Profit ÷ Shareholders Equity ROE is assessed against cost of equity, which is measured using the Capital Asset Pricing Model (CAPM) – but let’s not dive into the details of that today. … ROE can be broken down into three different ratios: net profit margin, asset turnover, and financial leverage. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity BIT:ALK Last Perf May 11th 18 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient the business is with its cost management.
Simply Wall St - – Full article
Alkemy S.p.A. engages in the design, planning, and implementation of projects and solutions functional to the development and renewal of companies in Italy. It offers strategies, products and services, and communication and sales tools in the areas of consulting, e-commerce, creativity and brand strategy, social media, content, UX and design, media and performance, technology, predictive modeling, data analysis, and big data and advanced analytics. The company is headquartered in Milan, Italy.
Name: | Alkemy S.p.A. |
ALK | |
Exchange: | BIT |
Founded: | |
€45,260,337 | |
5,546,610 | |
Website: | http://www.alkemy.com |
Address: |
Alkemy S.p.A. Via San Gregorio, 34, Milan, Milan, 20124, Italy |
Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
---|---|---|---|---|---|---|---|
BIT | ALK | Ordinary Shares | Borsa Italiana | IT | EUR | 05. Dec 2017 | |
LSE | 0DF1 | Ordinary Shares | London Stock Exchange | GB | EUR | 05. Dec 2017 |
Research and Consulting Services | |
Commercial Services |
Area | Date (UTC time) |
---|---|
Company Analysis updated: | 2019/12/15 22:03 |
End of day share price update: | 2019/12/13 00:00 |
Last estimates confirmation: | 2019/09/06 |
Last earnings filing: | 2019/09/11 |
Last earnings reported: | 2019/06/30 |
Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.