Buy Or Sell Opportunity • May 05
Now 23% undervalued after recent price drop Over the last 90 days, the stock has fallen 7.3% to €0.025. The fair value is estimated to be €0.033, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 9.0% over the last 3 years. Earnings per share has grown by 6.9%. Reported Earnings • Apr 20
Full year 2024 earnings released: EPS: €0.001 (vs €0.002 in FY 2023) Full year 2024 results: EPS: €0.001 (down from €0.002 in FY 2023). Revenue: €6.38m (down 8.6% from FY 2023). Net income: €779.0k (down 70% from FY 2023). Profit margin: 12% (down from 37% in FY 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 75 percentage points per year, which is a significant difference in performance. New Risk • Mar 14
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2024. 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 Risk Earnings have declined by 22% per year over the past 5 years. Minor Risks Latest financial reports are more than 6 months old (reported June 2024 fiscal period end). Share price has been volatile over the past 3 months (6.9% average weekly change). Large one-off items impacting financial results. Market cap is less than US$100m (€39.8m market cap, or US$43.2m). Buy Or Sell Opportunity • Dec 17
Now 21% undervalued Over the last 90 days, the stock has risen 3.6% to €0.029. The fair value is estimated to be €0.037, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 48% over the last 3 years. Earnings per share has declined by 70%. Buy Or Sell Opportunity • Nov 22
Now 23% undervalued after recent price drop Over the last 90 days, the stock has fallen 3.6% to €0.027. The fair value is estimated to be €0.035, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 48% over the last 3 years. Earnings per share has declined by 70%. New Risk • Nov 07
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 Belgian stocks, typically moving 6.4% 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 Share price has been highly volatile over the past 3 months (6.4% average weekly change). Earnings have declined by 22% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Market cap is less than US$100m (€34.1m market cap, or US$36.7m). Buy Or Sell Opportunity • Nov 06
Now 24% undervalued after recent price drop Over the last 90 days, the stock has fallen 10.0% to €0.027. The fair value is estimated to be €0.036, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 48% over the last 3 years. Earnings per share has declined by 70%. Buy Or Sell Opportunity • Oct 17
Now 24% undervalued after recent price drop Over the last 90 days, the stock has fallen 8.5% to €0.027. The fair value is estimated to be €0.036, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 48% over the last 3 years. Earnings per share has declined by 70%. New Risk • Aug 28
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 26% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 22% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (5.0% average weekly change). Large one-off items impacting financial results. Market cap is less than US$100m (€34.7m market cap, or US$38.6m). New Risk • Aug 15
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Belgian stocks, typically moving 4.7% a week. This is considered a minor risk. Share price volatility indicates 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. It also 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. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 13% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (4.7% average weekly change). Market cap is less than US$100m (€37.3m market cap, or US$40.9m). Board Change • Jun 11
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Independent Director Axelle Vanthournout was the last independent director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Feb 29
Full year 2023 earnings released: EPS: €0.002 (vs €0 in FY 2022) Full year 2023 results: EPS: €0.002 (up from €0 in FY 2022). Revenue: €7.02m (down 7.5% from FY 2022). Net income: €2.60m (up €2.26m from FY 2022). Profit margin: 37% (up from 4.5% in FY 2022). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 43% per year but the company’s share price has only fallen by 16% per year, which means it has not declined as severely as earnings. New Risk • Aug 30
New major risk - Revenue and earnings growth Earnings have declined by 4.1% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Dividend per share is over 14x earnings per share. Cash payout ratio: 377% Earnings have declined by 4.1% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (6.1% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (11% net profit margin). Market cap is less than US$100m (€34.9m market cap, or US$38.1m). New Risk • Aug 11
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Belgian stocks, typically moving 4.8% a week. This is considered a minor risk. Share price volatility indicates 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. It also 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. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Dividend per share is over 33x earnings per share. Cash payout ratio: 418% Minor Risks Share price has been volatile over the past 3 months (4.8% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (4.5% net profit margin). Market cap is less than US$100m (€36.6m market cap, or US$40.1m). Reported Earnings • Feb 22
Full year 2022 earnings released: EPS: €0 (vs €0.013 in FY 2021) Full year 2022 results: EPS: €0 (down from €0.013 in FY 2021). Revenue: €7.59m (down 64% from FY 2021). Net income: €339.0k (down 98% from FY 2021). Profit margin: 4.5% (down from 81% in FY 2021). Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has fallen by 16% per year, which means it is significantly lagging earnings. Board Change • May 19
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Independent Director Mieke De Clercq was the last independent director to join the board, commencing their role in 2015. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Feb 24
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: €0.013 (up from €0.005 in FY 2020). Revenue: €32.9m (up 64% from FY 2020). Net income: €17.0m (up 193% from FY 2020). Profit margin: 52% (up from 29% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 17% per year whereas the company’s share price has increased by 18% per year.