Italian stock report - Finmeccanica

ITALY

Finmeccanica in 5th consecutive rise, nears two-month high March 01, 2017 17:30 CET

NEWS BITES - EUROPE

Finmeccanica (MI:FNC), Italy's 3rd largest Industrial goods & services company by market cap, extended its gains on Wednesday, rising an additional 45.0c (3.5%) to trade at EUR13.42. The stock climbed 4.9% on Monday and 0.9% on Tuesday. This brought its 5-day rise to 13.9%, compared with the FTSE MIB Index which rose 479.5 points (2.5%) in the five days for a relative price increase of 11.4%. Volume in the 5 days was 1.2 times the average daily volume of 3.7 million shares. The stock is now approaching its 50-day high of EUR13.62.

SECTION 1

FINMECCANICA BULLISH SIGNALS

1.1 Technicals:

Uptrend: The stock rose 3.5%, for a 5-day rise of 13.9%, on high volatility today and expanding price range.

+ Rises to Falls: in the past month the number of rises outnumbered falls 13:8 or 1.6:1.

+ The 2.5% discount to 12-month high of EUR13.76 against the 67.2% premium to 12-month low of EUR8.03 suggests the stock continues to push for new highs.

+ The present value of EUR1,000 (PV1000) invested one year ago in Finmeccanica is EUR1,317, for a capital gain of EUR317.

PV10001-week1-month1-year
FNC.MI1,0961,0881,317
FTSE MIB Index1,0241,0271,075

+ The present value of EUR1,000 (PV1000) invested five years ago in Finmeccanica is EUR3,533, for a capital gain of EUR2,533.

+ 5 years Multiplier in EUR = 3.533x

+ Compound Annual Growth Rate (CAGR) in EUR = 28.7%

Present Value of USD1,000 invested 5 years ago:

+ The present value of USD1,000 (PV1000) invested five years ago in Finmeccanica is $US2,797, for a capital gain of $US1,797.

+ 5 years ago EUR 1 equalled USD 1.3324

+ 5 years Multiplier in USD = 2.797x

+ Compound Annual Growth Rate (CAGR) in USD = 22.8%

Mar 01, 2017: EUR 1 equals USD 1.05

1.2 High Performance Indicators:

DescriptionValueRank In Market
% Prem to Vol Wtd Price9.1In Top 7%
Today's TurnoverEUR56.8 million (US$59.9 million)In Top 8%
Price Change %3.5In Top Quartile
Price/MAP2001.21In Top Quartile

SECTION 2

FINMECCANICA BEARISH SIGNALS

2.1 Technicals:

Overbought/Bearish/Resistance Signals:

+ At EUR13.42 the price has risen above the upper Bollinger band resistance of EUR13.07, indicating a downside risk for it to fall back within the band.

+ The Relative Strength Index (RSI) of 78.7 has penetrated the overbought line of 70, suggesting the price gain of 13.3% in the last 14 days is unusually high.

+ The stock is overbought according to the Williams % R indicator of -9.9, suggesting the price is close to its 14-day high of EUR13.62.

2.2 Low Performance Indicator:

DescriptionValueRank In Market
Volatility %4.7In Bottom Quartile

SECTION 3

PRICE VOLUME DYNAMICS

3.1 Momentum:

+ Volume: there were 4,230,000 shares worth EUR56.8 million (US$59.9 million) traded today. In the past week, volume was 1.2 times average and the shares were up 9.6%. The rise has been propped up by firm volume of 1.2 times the average daily volume of 3.7 million shares.

3.2 Turnover Rate & Turnover Period:

+ The turnover rate in the 12 months to date was 104.95% (or a turnover period of 11 months). This average length of ownership of the stock at 1.3 times the average holding period of 8 months for stocks in the FTSE MIB Index suggests a larger number of core investors, making a long-term investment safer.

3.3 Month-on-Month Comparison (Trailing Month - ended 28th)

28 Feb31 Jan30 Dec30 Nov31 Oct30 Sep
Price 28 Feb (EUR)12.9711.9213.3412.2511.110.09
% Price Change6.3-11.18.910.410.2-2.3
Avg Daily Volume3,683,2363,766,7163,817,3893,946,8143,758,4733,773,725
VWP (EUR)12.7212.4811.8611.0310.349.94
Price Range (EUR)11.52 - 13.1611.68 - 13.7611.97 - 13.6910.02 - 12.529.74 - 11.499.74 - 10.94
Relative Price Change %4.6-4.711.55.80.9
Volatility %14.217.814.424.91812.3

SECTION 4

PEER GROUP ANALYSIS & RANKING

4.1 Global Peer Group Analysis (all figures in USD)

NameRelative Str. (6 mo)MCapPV $1000 (1 yr)RevenueNet ProfitTotal Assets
Zodiac Aerospace888.5B1,724.35.5B114.8M6.4B
Koito Manufacturing768.5B1,195.47.2B412.1M5.2B
RWE368.4B1,192.550.7B1.7B61.6B
Yamaha Motor848.2B1,717.013.4B562.1M11.7B
Finmeccanica818.2B1,270.516.2B(34.3M)30.9B
Westlake Chemical798.2B1,493.35.1B398.9M10.9B
Sumitomo Metal Mining788.1B1,341.07.6B(2.8M)14.5B
NSK938.1B1,742.68.7B597.8M9.2B
Spectrum Brands558B1,445.45B357.1M7.1B

Global Peer Group Analysis (continued)

CodeCountryLast PriceP/EP/SP/BookTurnover Rate (%)% Disc to 52-w HiRetention Ratio*
ZCFREUR27.6550.51.614.271.73.541.6
7276JPJPY5,910.016.11.23.375.07.5
RWEDEEUR13.460.22.2229.918.4
7272JPJPY2,637.014.20.61.8159.25.965.0
FNCITEUR12.97108.75.7
WLKUS$US63.4316.81.64.6151.45.176.4
5713JPJPY1,569.01.2148.56.4
6471JPJPY1,650.09.20.52.187.81.777.0
SPBUS$US135.7217.31.3132.72.075.3

*Retention Ratio: The retention ratio is an opposite of payout ratio and refers to the percentage of net income that is retained to grow the business.

4.2 Global Rank [out of 46,650 stocks] and Rank in the Europe Region [out of 8,005 stocks]

DescriptionValueGlobal RankIn Eur Region
MCap (US$)8.2B1,583355
Total Assets (US$)30.9B1,104256
Revenue (US$)16.2B744190
Net Profit (US$)(34.3M)39,5726,540
Return on Equity %(0.9)27,5874,605
Net Profit Margin %(0.2)26,8884,433
PV$1000 (1Year) US$*1,27014,6991,922
US$* Change (1Year) %32.213,6761,762

* 1 year ago EUR 1 = USD 1.09

Mar 01, 2017: EUR 1 equals USD 1.05

4.3 Rank in the FTSE MIB Index [out of 29 stocks], Rank in the Total Italian Market [out of 285 stocks] and Rank in the Industrial goods & services sector [out of 43 stocks]

DescriptionValueIn FTSE MIB IndexIn Total Italian MarketIn Industrial goods & services sector
MCap (EUR)7.8B14173
Total Assets (EUR)27.9B15263
Revenue (EUR)14.7B8152
Net Profit (EUR)(31M)2623444
Return on Equity %(0.9)2717235
Net Profit Margin %(0.2)2515735
PV1000 (1Year)1,31786617

4.4 Independent Ratings

Finmeccanica was ranked 237 in the Industry Week list of the world's largest 1000 manufacturers by Revenues in 2015; a deterioration over a year from rank 192 in 2014.

It is the 485th largest by revenue in the Forbes Global 2000.

It is placed 63/297 in BSS News Bites' ranking of Italian performers in the past year, a percentile ranking of 79.

SECTION 5

FINMECCANICA PROFILE

5.1 Activities

Finmeccanica S.p.A. is a holding company engaged in the sectors of aeronautics, helicopters, space and defence.

5.2 Industry & Sector

Classification LevelName of Sector
Economic SectorBasic Materials
Business SectorChemicals
Industry GroupChemicals
IndustryCommodity Chemicals
ActivityIndustrial Gas

5.3 Top Management

The chairman is Giovanni De Gennaro and the chief executive officer is Mauro Moretti.

5.4 Issued Capital

Based on 578,150,000 issued shares the market capitalisation is EUR7.8 billion (US$8 billion).

SECTION 6

STOCK BUZZ

Corporate Wire

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April 16 2016: Finmeccanica announces AGM

Contact: 39 06 324731

Physical Address: Piazza Monte Grappa, 4 Roma 195 RM Italy

State/Province/Country: Italy

Exchange: Borsa Italiana

ISIN: IT0003856405

MI:FNC; BIT:FNC; IM:FNC; LDOF.MI

PermID: 4295875430

Source: www.BuySellSignals.com