XTRA:ISH2

Stock Analysis Report

INTERSHOP Communications

Executive Summary

INTERSHOP Communications Aktiengesellschaft provides integrated enterprise solutions for omni-channel commerce worldwide.

Snowflake

Fundamentals

Excellent balance sheet and overvalued.

Share Price & News

How has INTERSHOP Communications's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-12.9%

ISH2

3.0%

DE Software

1.7%

DE Market


1 Year Return

-32.9%

ISH2

26.8%

DE Software

7.2%

DE Market

Return vs Industry: ISH2 underperformed the German Software industry which returned 26.8% over the past year.

Return vs Market: ISH2 underperformed the German Market which returned 7.2% over the past year.


Shareholder returns

ISH2IndustryMarket
7 Day-12.9%3.0%1.7%
30 Day-12.9%8.1%2.4%
90 Day-20.2%4.1%2.3%
1 Year-31.7%-32.9%28.5%26.8%10.6%7.2%
3 Year-16.3%-17.8%55.7%49.5%18.4%8.1%
5 Year-14.0%-15.6%150.8%132.9%42.3%22.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is INTERSHOP Communications undervalued compared to its fair value and its price relative to the market?

2.14x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate ISH2's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate ISH2's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: ISH2 is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: ISH2 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ISH2's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ISH2 is good value based on its PB Ratio (2.1x) compared to the DE Software industry average (3x).


Next Steps

Future Growth

How is INTERSHOP Communications forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

25.6%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as INTERSHOP Communications has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has INTERSHOP Communications performed over the past 5 years?

-9.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ISH2 is unprofitable, and losses have increased over the past 5 years at a rate of -9.4% per year.

Accelerating Growth: Unable to compare ISH2's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ISH2 is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (14.5%).


Return on Equity

High ROE: ISH2 has a negative Return on Equity (-45.83%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: ISH2 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: ISH2 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is INTERSHOP Communications's financial position?


Financial Position Analysis

Short Term Liabilities: ISH2's short term assets (€16.0M) exceeds its short term liabilities (€7.9M)

Long Term Liabilities: ISH2's short term assets (16.0M) exceeds its long term liabilities (602.0K)


Debt to Equity History and Analysis

Debt Level: ISH2's debt to equity ratio (9.7%) is considered satisfactory

Reducing Debt: Insufficient data to determine if ISH2's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: ISH2 has a low level of unsold assets or inventory.

Debt Coverage by Assets: ISH2's debt is covered by short term assets (assets are 8.893030x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: ISH2 has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: ISH2 has sufficient cash runway for 1.101479 years if free cash flow continues to reduce at historical rates of -61.7% each year.


Next Steps

Dividend

What is INTERSHOP Communications's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate ISH2's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ISH2's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if ISH2's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ISH2's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ISH2's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of INTERSHOP Communications's salary, the management and board of directors tenure and is there insider trading?

4.7yrs

Average management tenure


CEO

Jochen Wiechen (62yo)

4.1yrs

Tenure

€266,000

Compensation

Dr. Jochen Wiechen has been the Chief Executive Officer and Member of the Management Board of Intershop Communications Atiengesellschaft since September 1, 2015 and August 1, 2013 respectively. Dr. Wiechen ...


CEO Compensation Analysis

Compensation vs. Market: Jochen's total compensation ($USD296.35K) is above average for companies of similar size in the German market ($USD209.32K).

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


Management Age and Tenure

4.7yrs

Average Tenure

57yo

Average Age

Experienced Management: ISH2's management team is considered experienced (4.7 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

Experienced Board: ISH2's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Jochen Wiechen (62yo)

    CEO & Member of Management Board

    • Tenure: 4.1yrs
    • Compensation: €266.00k
  • Steve Kirchoff (73yo)

    Senior Vice President of Sales & Marketing

    • Tenure: 17yrs
  • Felix Ko (52yo)

    President of Asia Pacific

    • Tenure: 16.7yrs
  • Markus Klahn (52yo)

    COO & Member of Management Board

    • Tenure: 1.5yrs
    • Compensation: €257.64k
  • Albert Woo

    Managing Director of US and APAC

    • Tenure: 4.7yrs

Board Members

  • Christian Oecking (57yo)

    Chairman of Supervisory Board

    • Tenure: 3.3yrs
    • Compensation: €77.00k
  • Louis Velthuis

    Member of Supervisory Board

    • Tenure: 3.3yrs
    • Compensation: €36.00k
  • Ulrich Prädel

    Vice Chairman of the Supervisory Board

    • Tenure: 2.8yrs
    • Compensation: €39.00k

Company Information

INTERSHOP Communications Aktiengesellschaft's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: INTERSHOP Communications Aktiengesellschaft
  • Ticker: ISH2
  • Exchange: XTRA
  • Founded: 1992
  • Industry: Application Software
  • Sector: Software
  • Market Cap: €43.008m
  • Shares outstanding: 42.58m
  • Website: https://www.intershop.com

Number of Employees


Location

  • INTERSHOP Communications Aktiengesellschaft
  • Intershop Tower
  • Leutragraben 1
  • Jena
  • Thuringia
  • 7740
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ISH2DB (Deutsche Boerse AG)YesBearer SharesDEEURJul 1998
ITSH.FOTCPK (Pink Sheets LLC)YesBearer SharesUSUSDJul 1998
ISH2XTRA (XETRA Trading Platform)YesBearer SharesDEEURJul 1998
0NGVLSE (London Stock Exchange)YesBearer SharesGBEURJul 1998

Biography

INTERSHOP Communications Aktiengesellschaft provides integrated enterprise solutions for omni-channel commerce worldwide. The company provides packaged software for Internet sales, as well as acts as a bus ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 20:56
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.