CompuGroup Medical SE KGaA (XTRA:COP) - Share price, News & Analysis

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

COP (€43.6) is trading below our estimate of [[fair value]] (€77.47)

COP fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	2/6
Past Performance	2/6
Financial Health	2/6
Dividends	4/6

COP Stock Overview

CompuGroup Medical SE & Co. KGaA develops and sells software and information technology solutions for the healthcare sector worldwide.

Rewards

Trading at 43.7% below our estimate of its fair value

Earnings are forecast to grow 18.14% per year

Risk Analysis

Debt is not well covered by operating cash flow

CompuGroup Medical SE KGaA Competitors

Nexus

XTRA:NXU

€864.0m

DocCheck

XTRA:AJ91

€80.3m

MeVis Medical Solutions

XTRA:M3V

€59.0m

Stratec

XTRA:SBS

€1.1b

Price History & Performance

Summary of all time highs, changes and price drops for CompuGroup Medical SE KGaA
Historical stock prices
Current Share Price	€43.60
52 Week High	€82.80
52 Week Low	€36.30
Beta	1.04
1 Month Change	3.71%
3 Month Change	-12.06%
1 Year Change	-41.24%
3 Year Change	-17.19%
5 Year Change	-9.71%
Change since IPO	440.39%

Recent News & Updates

Aug 04

CompuGroup Medical SE KGaA (ETR:COP) Has A Pretty Healthy Balance Sheet

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...

Jul 16

Here's What's Concerning About CompuGroup Medical SE KGaA's (ETR:COP) Returns On Capital

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Firstly...

Shareholder Returns

	COP	DE Healthcare Services	DE Market
7D	3.9%	4.0%	1.4%
1Y	-41.2%	-34.8%	-19.6%

Return vs Industry: COP underperformed the German Healthcare Services industry which returned -36.9% over the past year.

Return vs Market: COP underperformed the German Market which returned -20% over the past year.

Price Volatility

Is COP's price volatile compared to industry and market?
COP volatility
COP Average Weekly Movement	6.2%
Healthcare Services Industry Average Movement	5.1%
Market Average Movement	5.7%
10% most volatile stocks in DE Market	10.7%
10% least volatile stocks in DE Market	2.8%

Stable Share Price: COP is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: COP's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1987	8,734	n/a	https://www.cgm.com

CompuGroup Medical SE & Co. KGaA develops and sells software and information technology solutions for the healthcare sector worldwide. It operates in four segments: Ambulatory Information Systems (AIS), Pharmacy Information Systems (PCS), Hospital Information Systems (HIS), and Consumer & Health Management Information Systems (CHS). The AIS segment provides practice management software and electronic medical records for registered physicians, medical care centers, and physicians networks, as well as offers supplementary Internet and intranet solutions.

CompuGroup Medical SE KGaA Fundamentals Summary

How do CompuGroup Medical SE KGaA's earnings and revenue compare to its market cap?
COP fundamental statistics
Market Cap	€2.28b
Earnings (TTM)	€71.11m
Revenue (TTM)	€1.12b

32.0x

P/E Ratio

2.0x

P/S Ratio

Is COP overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
COP income statement (TTM)
Revenue	€1.12b
Cost of Revenue	€726.83m
Gross Profit	€389.65m
Other Expenses	€318.54m
Earnings	€71.11m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 03, 2022

Earnings per share (EPS)	1.36
Gross Margin	34.90%
Net Profit Margin	6.37%
Debt/Equity Ratio	122.4%

How did COP perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

37%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings 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 COP?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for COP. This is calculated by dividing COP's market cap by their current preferred multiple.
What is COP's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€2.28b

COP 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	2.7x
Enterprise Value/EBITDA	18.7x
PEG Ratio	1.8x

Price to Earnings Ratio vs Peers

How does COP's PE Ratio compare to its peers?

COP PE Ratio vs Peers

The above table shows the PE ratio for COP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	23.5x
NXU Nexus	49x	16.0%	€864.0m
AJ91 DocCheck	7x	n/a	€80.3m
M3V MeVis Medical Solutions	10.6x	n/a	€59.0m
SBS Stratec	27.5x	13.6%	€1.1b
COP CompuGroup Medical SE KGaA	32x	18.1%	€2.3b

Price-To-Earnings vs Peers: COP is expensive based on its Price-To-Earnings Ratio (32x) compared to the peer average (23.5x).

Price to Earnings Ratio vs Industry

How does COP's PE Ratio compare vs other companies in the European Healthcare Services Industry?

Price-To-Earnings vs Industry: COP is expensive based on its Price-To-Earnings Ratio (32x) compared to the German Healthcare Services industry average (30.6x)

Price to Earnings Ratio vs Fair Ratio

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

COP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	32x
Fair PE Ratio	24.4x

Price-To-Earnings vs Fair Ratio: COP is expensive based on its Price-To-Earnings Ratio (32x) compared to the estimated Fair Price-To-Earnings Ratio (24.4x).

Share Price vs Fair Value

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

Below Fair Value: COP (€43.6) is trading below our estimate of fair value (€77.47)

Significantly Below Fair Value: COP 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 and analysts are within a statistically confident range of agreement.

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Future Growth

How is CompuGroup Medical SE KGaA forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

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

18.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: COP's forecast earnings growth (18.1% per year) is above the savings rate (-0.01%).

Earnings vs Market: COP's earnings (18.1% per year) are forecast to grow faster than the German market (7.9% per year).

High Growth Earnings: COP's earnings are forecast to grow, but not significantly.

Revenue vs Market: COP's revenue (4.5% per year) is forecast to grow slower than the German market (4.6% per year).

High Growth Revenue: COP's revenue (4.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: COP's Return on Equity is forecast to be low in 3 years time (16.7%).

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Past Performance

How has CompuGroup Medical SE KGaA performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

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

7.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: COP has high quality earnings.

Growing Profit Margin: COP's current net profit margins (6.4%) are lower than last year (7.4%).

Past Earnings Growth Analysis

Earnings Trend: COP's earnings have grown by 7.7% per year over the past 5 years.

Accelerating Growth: COP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: COP had negative earnings growth (-1.7%) over the past year, making it difficult to compare to the Healthcare Services industry average (-1.7%).

Return on Equity

High ROE: COP's Return on Equity (11.4%) is considered low.

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Financial Health

How is CompuGroup Medical SE KGaA'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: COP's short term assets (€411.1M) do not cover its short term liabilities (€474.4M).

Long Term Liabilities: COP's short term assets (€411.1M) do not cover its long term liabilities (€829.9M).

Debt to Equity History and Analysis

Debt Level: COP's net debt to equity ratio (103.2%) is considered high.

Reducing Debt: COP's debt to equity ratio has reduced from 161.8% to 122.4% over the past 5 years.

Debt Coverage: COP's debt is not well covered by operating cash flow (18.3%).

Interest Coverage: COP earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is CompuGroup Medical SE KGaA current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

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

1.15%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: COP's dividend (1.15%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.46%).

High Dividend: COP's dividend (1.15%) is low compared to the top 25% of dividend payers in the German market (4.4%).

Stability and Growth of Payments

Stable Dividend: COP's dividends per share have been stable in the past 10 years.

Growing Dividend: COP's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (36.9%), COP's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (45.3%), COP's dividend payments are well covered by cash flows.

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Management

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

2.6yrs

Average management tenure

CEO

CompuGroup Medical SE KGaA has no CEO, or we have no data on them.

Leadership Team

Experienced Management: COP's management team is considered experienced (2.6 years average tenure).

Board Members

Experienced Board: COP's board of directors are not considered experienced ( 2.2 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

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

Data	Last Updated (UTC time)
Company Analysis	2022/08/08 00:00
End of Day Share Price	2022/08/08 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31