Ontex Group (ENXTBR:ONTEX) - Share price, News & Analysis

Q: What is the Fair Price of ONTEX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ONTEX (€5.42) is trading below our estimate of [[fair value]] (€24.95)

ONTEX fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	4/6
Past Performance	0/6
Financial Health	2/6
Dividends	0/6

ONTEX Stock Overview

Ontex Group NV provides personal hygiene solutions for baby, feminine, and adult care in Western Europe, Eastern Europe, the Americas, Mexico, the United Kingdom, Italy, France, and internationally.

Rewards

Trading at 78.3% below our estimate of its fair value

Earnings are forecast to grow 98.57% per year

Risk Analysis

Interest payments are not well covered by earnings

Volatile share price over the past 3 months

Ontex Group Competitors

Henan Rebecca Hair Products

SHSE:600439

CN¥2.9b

TCI

TPEX:8436

NT$14.6b

Mandom

TSE:4917

JP¥67.0b

Chlitina Holding

TWSE:4137

NT$12.4b

Price History & Performance

Summary of all time highs, changes and price drops for Ontex Group
Historical stock prices
Current Share Price	€5.42
52 Week High	€9.55
52 Week Low	€5.25
Beta	0.40
1 Month Change	-4.83%
3 Month Change	-25.34%
1 Year Change	-39.78%
3 Year Change	-64.44%
5 Year Change	-81.82%
Change since IPO	-71.47%

Shareholder Returns

	ONTEX	BE Personal Products	BE Market
7D	-1.2%	0.6%	0.7%
1Y	-39.8%	-3.2%	-13.7%

Return vs Industry: ONTEX underperformed the Belgian Personal Products industry which returned -3.9% over the past year.

Return vs Market: ONTEX underperformed the Belgian Market which returned -13.4% over the past year.

Price Volatility

Is ONTEX's price volatile compared to industry and market?
ONTEX volatility
ONTEX Average Weekly Movement	7.8%
Personal Products Industry Average Movement	4.6%
Market Average Movement	5.0%
10% most volatile stocks in BE Market	7.8%
10% least volatile stocks in BE Market	3.0%

Stable Share Price: ONTEX is more volatile than 75% of Belgian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: ONTEX's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of Belgian stocks.

About the Company

Founded	Employees	CEO	Website
1979	9,049	Esther Berrozpe Galindo	https://ontex.com

Ontex Group NV provides personal hygiene solutions for baby, feminine, and adult care in Western Europe, Eastern Europe, the Americas, Mexico, the United Kingdom, Italy, France, and internationally. It offers baby care products, such as baby diapers and pants, and wet wipes under the Baby Pants, Bbtips, Bio Baby, Chicolastics, Canbebe, Cremer Disney, Helen Harper, Kiddies, Little Big Change, Moltex, Pom Pom, Sapeka, and Mônica brands; and feminine care products, including sanitary towels, panty liners, and tampons under the Fiore, Mia, NAT, Sincere, and Silhouette brand names. The company also provides adult incontinence products comprising adult pants and diapers, incontinence towels, and bed protection products under the A Lovely Day, Adultmax Maturidade, Affective, Bigfral, iD, Canped, Affective, Lille Healthcare, Kylie, Serenity, Orizon, and Moviment brands; and as produces and sells face masks.

Ontex Group Fundamentals Summary

How do Ontex Group's earnings and revenue compare to its market cap?
ONTEX fundamental statistics
Market Cap	€438.84m
Earnings (TTM)	-€168.90m
Revenue (TTM)	€2.12b

0.2x

P/S Ratio

-2.6x

P/E Ratio

Is ONTEX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ONTEX income statement (TTM)
Revenue	€2.12b
Cost of Revenue	€1.64b
Gross Profit	€479.50m
Other Expenses	€648.40m
Earnings	-€168.90m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 10, 2022

Earnings per share (EPS)	-2.09
Gross Margin	22.62%
Net Profit Margin	-7.97%
Debt/Equity Ratio	85.8%

How did ONTEX perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is ONTEX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ONTEX?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ONTEX. This is calculated by dividing ONTEX's market cap by their current preferred multiple.
What is ONTEX's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€438.84m

ONTEX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.6x
Enterprise Value/EBITDA	12.3x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does ONTEX's PS Ratio compare to its peers?

ONTEX PS Ratio vs Peers

The above table shows the PS ratio for ONTEX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	1.9x
600439 Henan Rebecca Hair Products	1.9x	n/a	CN¥2.9b
8436 TCI	1.9x	11.3%	NT$14.6b
4917 Mandom	1.1x	6.4%	JP¥67.0b
4137 Chlitina Holding	2.6x	8.9%	NT$12.4b
ONTEX Ontex Group	0.2x	3.7%	€438.8m

Price-To-Sales vs Peers: ONTEX is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (1.9x).

Price to Earnings Ratio vs Industry

How does ONTEX's PE Ratio compare vs other companies in the European Personal Products Industry?

Price-To-Sales vs Industry: ONTEX is good value based on its Price-To-Sales Ratio (0.2x) compared to the European Personal Products industry average (1.4x)

Price to Sales Ratio vs Fair Ratio

What is ONTEX's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ONTEX PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.2x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate ONTEX's Price-To-Sales Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of ONTEX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ONTEX (€5.42) is trading below our estimate of fair value (€24.95)

Significantly Below Fair Value: ONTEX is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Future Growth

How is Ontex Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

98.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ONTEX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.1%).

Earnings vs Market: ONTEX is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ONTEX is expected to become profitable in the next 3 years.

Revenue vs Market: ONTEX's revenue (3.7% per year) is forecast to grow faster than the Belgian market (2% per year).

High Growth Revenue: ONTEX's revenue (3.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ONTEX's Return on Equity is forecast to be low in 3 years time (8.7%).

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Past Performance

How has Ontex Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-56.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ONTEX is currently unprofitable.

Growing Profit Margin: ONTEX is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: ONTEX is unprofitable, and losses have increased over the past 5 years at a rate of 56% per year.

Accelerating Growth: Unable to compare ONTEX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ONTEX is unprofitable, making it difficult to compare its past year earnings growth to the Personal Products industry (10.1%).

Return on Equity

High ROE: ONTEX has a negative Return on Equity (-17.05%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Ontex Group's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ONTEX's short term assets (€1.4B) exceed its short term liabilities (€854.0M).

Long Term Liabilities: ONTEX's short term assets (€1.4B) exceed its long term liabilities (€911.7M).

Debt to Equity History and Analysis

Debt Level: ONTEX's net debt to equity ratio (74.2%) is considered high.

Reducing Debt: ONTEX's debt to equity ratio has increased from 74.2% to 85.8% over the past 5 years.

Debt Coverage: ONTEX's debt is not well covered by operating cash flow (6.4%).

Interest Coverage: ONTEX's interest payments on its debt are not well covered by EBIT (1x coverage).

Balance Sheet

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Dividend

What is Ontex Group current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

2.22%

Forecast Dividend Yield

Dividend Yield vs Market

Ontex Group Dividend Yield vs Market

How does Ontex Group dividend yield compare to the market?
Segment	Dividend Yield
Company (Ontex Group)	0%
Market Bottom 25% (BE)	2.1%
Market Top 25% (BE)	7.3%
Industry Average (Personal Products)	2.2%
Analyst forecast in 3 Years (Ontex Group)	2.2%

Notable Dividend: Unable to evaluate ONTEX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ONTEX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ONTEX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ONTEX's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: ONTEX is not paying a notable dividend for the Belgian market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ONTEX has not reported any payouts.

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Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure

CEO

Esther Berrozpe Galindo (52 yo)

1.75yrs

Tenure

€1,588,121

Compensation

Mrs. Esther Berrozpe Galindo served as Director at Sika AG since April 20, 2021. She has been an Independent Director of Fluidra, S.A. since September 6, 2019. She was a Director at Ontex Group NV since Ma...

CEO Compensation Analysis

Esther Berrozpe Galindo's Compensation vs Ontex Group Earnings

How has Esther Berrozpe Galindo's remuneration changed compared to Ontex Group's earnings?
Date	Total Comp.	Salary	Company Earnings
Jun 30 2022	n/a	n/a	-€169m
Mar 31 2022	n/a	n/a	-€115m
Dec 31 2021	€2m	€900k	-€62m
Sep 30 2021	n/a	n/a	-€21m
Jun 30 2021	n/a	n/a	€20m
Mar 31 2021	n/a	n/a	€37m
Dec 31 2020	€133k	n/a	€54m
Sep 30 2020	n/a	n/a	€62m
Jun 30 2020	n/a	n/a	€70m
Mar 31 2020	n/a	n/a	€54m
Dec 31 2019	€48k	n/a	€37m

Compensation vs Market: Esther's total compensation ($USD1.57M) is above average for companies of similar size in the Belgian market ($USD620.60K).

Compensation vs Earnings: Esther's compensation has increased whilst the company is unprofitable.

Leadership Team

Experienced Management: ONTEX's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.

Board Members

Experienced Board: ONTEX's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

What is the ownership structure of ONTEX?
Owner Type	Number of Shares	Ownership Percentage
Private Companies	2,837,621	3.5%
Hedge Funds	12,411,999	15.3%
Public Companies	16,454,453	20.3%
Institutions	18,381,384	22.7%
General Public	30,880,621	38.1%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Top 25 shareholders own 62.1% of the company

Ownership	Name	Shares	Current Value	Change %	Portfolio %
20.32%	Groupe Bruxelles Lambert SA	16,454,453	€89.2m	0%	no data
15.33%	Ena Investment Capital Llp	12,411,999	€67.3m	0%	23.75%
3.36%	The Pamajugo Irrevocable Trust	2,722,221	€14.8m	0%	no data
3.29%	The Vanguard Group, Inc.	2,662,739	€14.4m	-0.1%	no data
3.09%	Veraison Capital AG	2,497,800	€13.5m	0%	16.4%
2.51%	Norges Bank Investment Management	2,034,669	€11.0m	0%	no data
2.33%	Dimensional Fund Advisors LP	1,886,107	€10.2m	1.36%	no data
2.07%	LOYS AG	1,679,617	€9.1m	0%	1.25%
2.02%	BlackRock, Inc.	1,635,555	€8.9m	0%	no data
1.93%	Black Creek Investment Management Inc.	1,560,000	€8.5m	0%	0.13%
0.95%	Pictet Asset Management Limited	765,188	€4.1m	0%	no data
0.94%	CI Global Asset Management	765,000	€4.1m	0%	0.01%
0.8%	Generali Investments Europe S.p.A. SGR	649,709	€3.5m	0%	0.1%
0.73%	Charles Schwab Investment Management, Inc.	592,065	€3.2m	11.14%	no data
0.5%	Brandes Investment Partners, LP	406,574	€2.2m	-11.01%	0.02%
0.38%	BNPP Asset Management Holding	311,471	€1.7m	0%	no data
0.32%	KBC Asset Management NV	259,968	€1.4m	0%	no data
0.19%	Martin Maurel Gestion Institutionnelle	150,000	€813.0k	0%	0.15%
0.17%	Deutsche Asset & Wealth Management	141,612	€767.5k	0%	no data
0.16%	BNPP Asset Management France	131,364	€712.0k	0%	no data
0.16%	Jean-Philippe Hottinguer Gestion Privée S.A	130,000	€704.6k	0%	0.64%
0.15%	Cedar Street Asset Management LLC	122,116	€661.9k	0%	0.85%
0.13%	State Street Global Advisors, Inc.	105,221	€570.3k	0.07%	no data
0.13%	CIAM	103,467	€560.8k	-82.52%	2.36%
0.12%	Mandatum Omaisuudenhoito Oy	100,000	€542.0k	0%	0.41%

Ticker	Exchange	Primary Security	Security Type	Country	Currency	Listed on
ONTEX	ENXTBR (Euronext Brussels)	Yes	Ordinary Shares	BE	EUR	Jun 2014
OT7	DB (Deutsche Boerse AG)	Yes	Ordinary Shares	DE	EUR	Jun 2014
0QVQ	LSE (London Stock Exchange)	Yes	Ordinary Shares	GB	EUR	Jun 2014
ONTEXb	BATS-CHIXE (BATS 'Chi-X Europe')	Yes	Ordinary Shares	GB	EUR	Jun 2014
ONXX.F	OTCPK (Pink Sheets LLC)	Yes	Ordinary Shares	US	USD	Jun 2014
ONTX	WBAG (Wiener Boerse AG)	Yes	Ordinary Shares	AT	EUR	Jun 2014
ONTEX N	BMV (Bolsa Mexicana de Valores)	Yes	Ordinary Shares	MX	MXN	Jun 2014
ONXY.Y	OTCPK (Pink Sheets LLC)		UNSPONSORE ADR	US	USD	Mar 2017

Data	Last Updated (UTC time)
Company Analysis	2022/10/05 00:00
End of Day Share Price	2022/10/05 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31