XTRA:NC5A

Stock Analysis Report

NorCom Information Technology GmbH KGaA

Executive Summary

NorCom Information Technology GmbH & Co. KGaA provides software and consulting services in Germany and internationally.

Snowflake

Fundamentals

Exceptional growth potential with excellent balance sheet.

Share Price & News

How has NorCom Information Technology GmbH KGaA's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-4.1%

NC5A

-5.8%

DE IT

4.4%

DE Market


1 Year Return

-53.2%

NC5A

-18.1%

DE IT

1.6%

DE Market

Return vs Industry: NC5A underperformed the German IT industry which returned -18.1% over the past year.

Return vs Market: NC5A underperformed the German Market which returned 1.6% over the past year.


Shareholder returns

NC5AIndustryMarket
7 Day-4.1%-5.8%4.4%
30 Day-18.0%-11.3%0.8%
90 Day-36.1%-9.7%2.3%
1 Year-53.2%-53.2%-17.7%-18.1%4.8%1.6%
3 Year8.6%8.6%127.1%121.2%18.9%8.6%
5 Year806.2%806.2%286.1%269.7%43.7%24.1%

Price Volatility Vs. Market

How volatile is NorCom Information Technology GmbH KGaA's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is NorCom Information Technology GmbH KGaA undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: NC5A (€13.14) is trading below our estimate of fair value (€62.83)

Significantly Undervalued: NC5A is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NC5A is poor value based on its PE Ratio (70.5x) compared to the IT industry average (26.3x).

PE vs Market: NC5A is poor value based on its PE Ratio (70.5x) compared to the German market (19.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: NC5A is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: NC5A is overvalued based on its PB Ratio (4.1x) compared to the DE IT industry average (3.9x).


Next Steps

  • Explore potentially undervalued companies in the Software industry.

Future Growth

How is NorCom Information Technology GmbH KGaA forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

63.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NC5A's forecast earnings growth (63.6% per year) is above the savings rate (0.2%).

Earnings vs Market: NC5A's earnings (63.6% per year) are forecast to grow faster than the German market (12.6% per year).

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

Revenue vs Market: NC5A's revenue (20.1% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: NC5A's revenue (20.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: NC5A's Return on Equity is forecast to be high in 3 years time (24.4%)


Next Steps

Past Performance

How has NorCom Information Technology GmbH KGaA performed over the past 5 years?

29.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NC5A has become profitable over the past 5 years, growing earnings by 29.5% per year.

Accelerating Growth: NC5A's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NC5A had negative earnings growth (-78.4%) over the past year, making it difficult to compare to the IT industry average (23.5%).


Return on Equity

High ROE: NC5A's Return on Equity (5.8%) is considered low.


Return on Assets

ROA vs Industry: NC5A's Return on Assets is below or equal to the IT industry average last year.


Return on Capital Employed

ROCE Improving: NC5A's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is NorCom Information Technology GmbH KGaA's financial position?


Financial Position Analysis

Short Term Liabilities: NC5A's short term assets (€11.7M) exceeds its short term liabilities (€5.8M)

Long Term Liabilities: NC5A's short term assets (11.7M) exceeds its long term liabilities (2.9M)


Debt to Equity History and Analysis

Debt Level: NC5A's debt to equity ratio (37.1%) is considered satisfactory

Reducing Debt: Insufficient data to determine if NC5A's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: NC5A's debt is well covered by operating cash flow (29.6%).

Interest Coverage: NC5A's interest payments on its debt are well covered by EBIT (15.8x coverage).


Balance Sheet

Inventory Level: NC5A has a low level of unsold assets or inventory.

Debt Coverage by Assets: NC5A's debt is covered by short term assets (assets are 4.935220x debt).


Next Steps

Dividend

What is NorCom Information Technology GmbH KGaA's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.8%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate NC5A's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate NC5A'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 NC5A's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NC5A'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 NC5A'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 NorCom Information Technology GmbH KGaA's salary, the management and board of directors tenure and is there insider trading?

€330k

CEO Compensation


CEO

Viggo Nordbakk 0

20.8yrs

Tenure

€330,000

Compensation

Mr. Viggo Nordbakk founded Norcom Information Technology AG in 1989. Mr. Nordbakk has been the Chief Executive Officer at Norcom Information Technology AG since 1999., and serves as its Head of Business De ...


CEO Compensation Analysis

Compensation vs. Market: Viggo's total compensation ($USD364.20K) is about average for companies of similar size in the German market ($USD216.31K).

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


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

  • Viggo Nordbakk

    Founder

    • Tenure: 20.8yrs
    • Compensation: €330.00k
  • Tobias Abthoff

    CTO, Head of Business Development & Member of the Management Board

    • Tenure: 12.7yrs
    • Compensation: €258.00k

Board Members

  • Hans Liebl (69yo)

    Member of Supervisory Board

    • Tenure: 2.7yrs
    • Compensation: €11.95k
  • Michael Krämer (70yo)

    Member of the Supervisory Board

    • Tenure: 2.3yrs
    • Compensation: €5.97k
  • Dieter Gauglitz

    Member of Supervisory Board

    • Tenure: 0yrs

Company Information

NorCom Information Technology GmbH & Co. KGaA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NorCom Information Technology GmbH & Co. KGaA
  • Ticker: NC5A
  • Exchange: XTRA
  • Founded: 1989
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: €26.240m
  • Shares outstanding: 2.00m
  • Website: https://www.norcom.de

Number of Employees


Location

  • NorCom Information Technology GmbH & Co. KGaA
  • Gabelsbergerstrasse 4
  • Munich
  • Bavaria
  • 80333
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NC5ADB (Deutsche Boerse AG)YesBearer SharesDEEUROct 1999
NC5AXTRA (XETRA Trading Platform)YesBearer SharesDEEUROct 1999
0QY2LSE (London Stock Exchange)YesBearer SharesGBEUROct 1999
NC5ADBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEUROct 1999

Biography

NorCom Information Technology GmbH & Co. KGaA provides software and consulting services in Germany and internationally. The company offers EAGLE, a knowledge and assistance-based communication platform; an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 20:55
End of Day Share Price2019/10/15 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.