New Risk • May 17
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 7.1% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Market cap is less than US$10m (kr.61.3m market cap, or US$8.92m). Minor Risks Share price has been volatile over the past 3 months (8.6% average weekly change). Shareholders have been diluted in the past year (7.1% increase in shares outstanding). Buy Or Sell Opportunity • Feb 21
Now 33% undervalued Over the last 90 days, the stock has risen 68% to kr.17.10. The fair value is estimated to be kr.25.63, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.6% over the last 3 years. Meanwhile, the company has become profitable. New Risk • Feb 02
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Danish stocks, typically moving 10% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.0x net interest cover). Share price has been highly volatile over the past 3 months (10% average weekly change). Market cap is less than US$10m (kr.41.0m market cap, or US$5.98m). Minor Risk Profit margins are more than 30% lower than last year (0.04% net profit margin). Reported Earnings • Nov 19
Full year 2023 earnings released Full year 2023 results: Revenue: kr.122.4m (flat on FY 2022). Net income: kr.52.0k (down 99% from FY 2022). Profit margin: 0% (down from 5.6% in FY 2022). Over the last 3 years on average, earnings per share has increased by 102% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. New Risk • Nov 13
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended March 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.8x net interest cover). Market cap is less than US$10m (kr.37.1m market cap, or US$5.31m). Minor Risks Latest financial reports are more than 6 months old (reported March 2023 fiscal period end). Share price has been volatile over the past 3 months (8.9% average weekly change). Valuation Update With 7 Day Price Move • Nov 02
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to kr.9.90, the stock trades at a trailing P/E ratio of 6.3x. Average trailing P/E is 14x in the Commercial Services industry in Europe. Total returns to shareholders of 11% over the past three years. Valuation Update With 7 Day Price Move • Jan 16
Investor sentiment improved over the past week After last week's 16% share price gain to kr.13.30, the stock trades at a trailing P/E ratio of 7x. Average trailing P/E is 14x in the Commercial Services industry in Europe. Total returns to shareholders of 15% over the past three years. Board Change • Nov 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 1 highly experienced director. Independent Chairman of the Board John Dueholm was the last director to join the board, commencing their role in 2017. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Jul 25
Investor sentiment improved over the past week After last week's 18% share price gain to kr.15.40, the stock trades at a trailing P/E ratio of 17.7x. Average trailing P/E is 16x in the Commercial Services industry in Europe. Total returns to shareholders of 25% over the past three years. Valuation Update With 7 Day Price Move • May 03
Investor sentiment improved over the past week After last week's 18% share price gain to kr.15.00, the stock trades at a trailing P/E ratio of 17.2x. Average trailing P/E is 19x in the Commercial Services industry in Europe. Total returns to shareholders of 17% over the past three years. Board Change • Apr 27
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 1 highly experienced director. Independent Chairman of the Board John Dueholm was the last director to join the board, commencing their role in 2017. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Nov 17
Investor sentiment improved over the past week After last week's 28% share price gain to kr.11.80, the stock trades at a trailing P/E ratio of 13.6x. Average trailing P/E is 22x in the Commercial Services industry in Europe. Total loss to shareholders of 38% over the past three years. Reported Earnings • Nov 15
Full year 2021 earnings released: EPS kr.0.90 (vs kr.0.93 loss in FY 2020) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2021 results: Revenue: kr.106.2m (down 5.8% from FY 2020). Net income: kr.3.13m (up kr.6.46m from FY 2020). Profit margin: 2.9% (up from net loss in FY 2020). The move to profitability was driven by lower expenses. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 81 percentage points per year, which is a significant difference in performance. 공시 • Dec 30
InterMail A/S, Annual General Meeting, Jan 12, 2021 InterMail A/S, Annual General Meeting, Jan 12, 2021, at 17:00 Central European Standard Time. Location: Stamholmen 70, Hvidovre Denmark Is New 90 Day High Low • Dec 23
New 90-day high: kr.9.25 The company is up 12% from its price of kr.8.25 on 24 September 2020. The Danish market is up 10.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Commercial Services industry, which is up 11% over the same period. Reported Earnings • Dec 04
Full year 2020 earnings released: kr.0.90 loss per share The company reported a poor full year result with weaker earnings, revenues and control over expenses. Full year 2020 results: Revenue: kr.112.7m (down 17% from FY 2019). Net loss: kr.3.33m (down kr.4.12m from profit in FY 2019). Over the last 3 years on average, earnings per share has fallen by 103% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings.