XTRA:NWO

Stock Analysis Report

Executive Summary

New Work SE operates professional networking Websites primarily in Germany, Austria, Switzerland, and internationally.

Rewards

Trading at 12.7% below its fair value

Earnings are forecast to grow 20.94% per year

Risk Analysis

No risks detected for NWO from our risk checks.


Snowflake Analysis

High growth potential with excellent balance sheet.


Similar Companies

Share Price & News

How has New Work's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NWO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.6%

NWO

-5.2%

DE Interactive Media and Services

-6.8%

DE Market


1 Year Return

-15.9%

NWO

22.0%

DE Interactive Media and Services

6.5%

DE Market

Return vs Industry: NWO underperformed the German Interactive Media and Services industry which returned 22.8% over the past year.

Return vs Market: NWO underperformed the German Market which returned 6.1% over the past year.


Shareholder returns

NWOIndustryMarket
7 Day-6.6%-5.2%-6.8%
30 Day-13.9%-3.4%-3.7%
90 Day-17.7%5.1%-3.6%
1 Year-14.5%-15.9%23.6%22.0%9.8%6.5%
3 Year32.4%27.6%77.8%72.0%6.8%-2.6%
5 Year98.2%87.3%-36.2%-45.2%12.5%-2.9%

Price Volatility Vs. Market

How volatile is New Work's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is New Work undervalued compared to its fair value and its price relative to the market?

17.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NWO (€263) is trading below our estimate of fair value (€301.4)

Significantly Below Fair Value: NWO is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: NWO is poor value based on its PE Ratio (50.7x) compared to the Interactive Media and Services industry average (36.8x).

PE vs Market: NWO is poor value based on its PE Ratio (50.7x) compared to the German market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: NWO is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: NWO is overvalued based on its PB Ratio (16.4x) compared to the DE Interactive Media and Services industry average (8.1x).


Next Steps

Future Growth

How is New Work forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

16.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NWO's forecast earnings growth (20.9% per year) is above the savings rate (-0.4%).

Earnings vs Market: NWO's earnings (20.9% per year) are forecast to grow faster than the German market (13% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NWO's revenue (11.3% per year) is forecast to grow faster than the German market (5.1% per year).

High Growth Revenue: NWO's revenue (11.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NWO's Return on Equity is forecast to be very high in 3 years time (47.1%).


Next Steps

Past Performance

How has New Work performed over the past 5 years?

22.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NWO has high quality earnings.

Growing Profit Margin: NWO's current net profit margins (11.2%) are lower than last year (12.2%).


Past Earnings Growth Analysis

Earnings Trend: NWO's earnings have grown significantly by 23.5% per year over the past 5 years.

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

Earnings vs Industry: NWO had negative earnings growth (-0.4%) over the past year, making it difficult to compare to the Interactive Media and Services industry average (13.9%).


Return on Equity

High ROE: NWO's Return on Equity (32.5%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is New Work's financial position?


Financial Position Analysis

Short Term Liabilities: NWO's short term assets (€84.6M) do not cover its short term liabilities (€153.5M).

Long Term Liabilities: NWO's short term assets (€84.6M) exceed its long term liabilities (€55.1M).


Debt to Equity History and Analysis

Debt Level: NWO is debt free.

Reducing Debt: NWO has not had any debt for past 5 years.

Debt Coverage: NWO has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: NWO has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: NWO has a low level of unsold assets or inventory.

Debt Coverage by Assets: NWO's debt is covered by short term assets (assets are 4.7648647007532E+16x debt).


Next Steps

Dividend

What is New Work's current dividend yield, its reliability and sustainability?

1.02%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%1.5%markettop25%3.8%industryaverage1.2%forecastin3Years1.4%

Current dividend yield vs market & industry

Notable Dividend: NWO's dividend (0.81%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.43%).

High Dividend: NWO's dividend (0.81%) is low compared to the top 25% of dividend payers in the German market (3.8%).


Stability and Growth of Payments

Stable Dividend: NWO has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: NWO's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.2%), NWO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NWO's dividends in 3 years are forecast to be well covered by earnings (37.2% payout ratio).


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Thomas Vollmoeller (59yo)

7.3yrs

Tenure

€1,120,000

Compensation

Dr. Thomas Vollmoeller has been the Chief Executive Officer and Member of Executive Board at New Work SE (XING AG) since October 16, 2012. He serves as Independent Chairman of the Board at eDreams ODIGEO  ...


CEO Compensation Analysis

Compensation vs Market: Thomas's total compensation ($USD1.22M) is about average for companies of similar size in the German market ($USD1.63M).

Compensation vs Earnings: Thomas's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Vollmoeller
Chairman of Executive Board & CEO7.3yrs€1.12mno data
Ingo Chu
CFO & Member of Executive Board10.6yrs€751.00kno data
Jens Pape
Chief Technical Officer & Member of Executive Board9.1yrs€751.00kno data
Alastair Bruce
CSO & Member of Executive Board3yrs€751.00kno data
Patrick Alberts
CPO & Member of Executive Board2.1yrs€301.00kno data
Petra Von Strombeck
Member of Executive Board0.08yrsno datano data
Patrick Moeller
Editor-In-Chief & Director of Investor Relations0yrsno datano data
Martin Rusch
Senior Vice President of Network and Senior Vice President of Platform & Content0yrsno datano data
Moritz Kothe
Chief Executive Officer of Kununu0yrsno datano data
Frank Hassler
Managing Director of E-Recruiting GmbH & Co KG4yrsno datano data

4.0yrs

Average Tenure

50yo

Average Age

Experienced Management: NWO's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jean Schmetz
Member of Supervisory Board8.8yrsno datano data
Andreas Rittstieg
Member of Supervisory Board3.2yrsno datano data
Johannes Meier
Deputy Chairman of Supervisory Board5.8yrsno datano data
Stefan Winners
Chairman of Supervisory Board0yrsno datano data
Jörg Lübcke
Member of Supervisory Board8.8yrsno datano data
Anette Weber
Member of Supervisory Board0yrsno datano data

7.3yrs

Average Tenure

50.5yo

Average Age

Experienced Board: NWO's board of directors are considered experienced (7.3 years average tenure).


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.


Top Shareholders

Company Information

New Work SE's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: New Work SE
  • Ticker: NWO
  • Exchange: XTRA
  • Founded: 2003
  • Industry: Interactive Media and Services
  • Sector: Media
  • Market Cap: €1.422b
  • Shares outstanding: 5.62m
  • Website: https://www.xing.com

Number of Employees


Location

  • New Work SE
  • Dammtorstrasse 30
  • Hamburg
  • Hamburg
  • 20354
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NWODB (Deutsche Boerse AG)YesRegistered SharesDEEURDec 2006
NWOXTRA (XETRA Trading Platform)YesRegistered SharesDEEURDec 2006
0OR4LSE (London Stock Exchange)YesRegistered SharesGBEURDec 2006
NWOBRSE (Berne Stock Exchange)YesRegistered SharesCHCHFDec 2006
NWSEWBAG (Wiener Boerse AG)YesRegistered SharesATEURDec 2006
NWOETLX (Eurotlx)YesRegistered SharesITEURDec 2006

Biography

New Work SE operates professional networking Websites primarily in Germany, Austria, Switzerland, and internationally. It operates through four segments: B2C, B2B E-Recruiting, B2B Advertising & Events, and Kununu International. The B2C segment serves XING members who use XING.com, XING Jobs, and kununu.com to network with other professionals for finding a suitable job, obtaining information about employers, or reading about career-related topics. The B2B E-Recruiting segment offers passive recruiting products and services that allow recruiters to post various kinds of jobs ads on the XING platform; and active recruiting products and services, which provides active candidate search and management product, as well as employer branding profiles. It also offers Xing referral manager to recruit talent with the help of existing employees. The B2B Advertising & Events segment engages in selling advertising space on XING.com., as well as provides Xing sponsored posts, mailings, video posts, articles, and business pages. The segment also processes events through its XING platform that offers registration, ticketing, and billing services for event organizers, as well as provides an online tool, which offers event organizers to select target groups for events they post on XING and then advertise them on the platform. The Kununu International segment engages in the provision of technical infrastructure services. The company was formerly known as Xing SE and changed its name to New Work SE in August 2019. The company was founded in 2003 and is based in Hamburg, Germany. New Work SE is a subsidiary of Burda Digital GmbH. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 21:28
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.