XTRA:PSAN

Stock Analysis Report

Executive Summary

PSI Software AG develops and sells software systems and products for the energy supply, production, infrastructure, software technology, Internet applications, and business consultancy sectors worldwide.

Snowflake

Flawless balance sheet with moderate growth potential.

Share Price & News

How has PSI Software's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.3%

PSAN

-0.6%

DE Software

-1.0%

DE Market


1 Year Return

20.4%

PSAN

31.1%

DE Software

9.1%

DE Market

Return vs Industry: PSAN underperformed the German Software industry which returned 31.1% over the past year.

Return vs Market: PSAN exceeded the German Market which returned 9.1% over the past year.


Shareholder returns

PSANIndustryMarket
7 Day-0.3%-0.6%-1.0%
30 Day0.3%5.6%4.4%
90 Day20.8%13.4%13.0%
1 Year22.1%20.4%32.9%31.1%12.5%9.1%
3 Year67.3%60.1%67.5%60.8%24.8%13.8%
5 Year78.9%68.5%145.4%128.0%39.1%20.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is PSI Software undervalued compared to its fair value and its price relative to the market?

27.69x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PSAN (€19.2) is trading above our estimate of fair value (€16.28)

Significantly Below Fair Value: PSAN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PSAN is good value based on its PE Ratio (27.7x) compared to the Software industry average (40x).

PE vs Market: PSAN is poor value based on its PE Ratio (27.7x) compared to the German market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: PSAN is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: PSAN is overvalued based on its PB Ratio (3.3x) compared to the DE Software industry average (3.2x).


Next Steps

Future Growth

How is PSI Software forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

16.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PSAN's forecast earnings growth (16.7% per year) is above the savings rate (0.2%).

Earnings vs Market: PSAN's earnings (16.7% per year) are forecast to grow faster than the German market (12.6% per year).

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

Revenue vs Market: PSAN's revenue (5.7% per year) is forecast to grow faster than the German market (4.9% per year).

High Growth Revenue: PSAN's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PSAN's Return on Equity is forecast to be low in 3 years time (15.1%).


Next Steps

Past Performance

How has PSI Software performed over the past 5 years?

17.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PSAN has high quality earnings.

Growing Profit Margin: PSAN's current net profit margins (5%) are lower than last year (6.1%).


Past Earnings Growth Analysis

Earnings Trend: PSAN's earnings have grown by 17.2% per year over the past 5 years.

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

Earnings vs Industry: PSAN had negative earnings growth (-7.7%) over the past year, making it difficult to compare to the Software industry average (14.8%).


Return on Equity

High ROE: PSAN's Return on Equity (12%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is PSI Software's financial position?


Financial Position Analysis

Short Term Liabilities: PSAN's short term assets (€127.7M) exceeds its short term liabilities (€67.7M)

Long Term Liabilities: PSAN's short term assets (127.7M) exceeds its long term liabilities (77.8M)


Debt to Equity History and Analysis

Debt Level: PSAN's debt to equity ratio (1.2%) is considered satisfactory

Reducing Debt: PSAN's debt to equity ratio has reduced from 10% to 1.2% over the past 5 years.

Debt Coverage: PSAN's debt is well covered by operating cash flow (1288.7%).

Interest Coverage: PSAN's interest payments on its debt are well covered by EBIT (13.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: PSAN's debt is covered by short term assets (assets are 121.2x debt).


Next Steps

Dividend

What is PSI Software's current dividend yield, its reliability and sustainability?

1.30%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years1.8%

Current dividend yield vs market & industry

Notable Dividend: PSAN's dividend (1.3%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: PSAN's dividend (1.3%) is low compared to the top 25% of dividend payers in the German market (3.67%).


Stability and Growth of Payments

Stable Dividend: PSAN's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.1%), PSAN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PSAN's dividends in 3 years are forecast to be well covered by earnings (36% payout ratio).


Next Steps

Management

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

4.1yrs

Average board tenure


CEO

Harald Schrimpf (55yo)

6.3yrs

Tenure

€1,121,000

Compensation

Dr. Harald Schrimpf has been the Chairman at PSI Aktiengesellschaft für Produkte und Systeme der Informationstechnologie (PSI AG) since June 30, 2013. Dr. Schrimpf has been Chief Executive Officer of PSI A ...


CEO Compensation Analysis

Compensation vs Market: Harald's total compensation ($USD1.23M) is above average for companies of similar size in the German market ($USD801.23K).

Compensation vs Earnings: Harald's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Age and Tenure

4.1yrs

Average Tenure

57yo

Average Age

Experienced Board: PSAN's board of directors are considered experienced (4.1 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

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


Management Team

  • Harald Schrimpf (55yo)

    Chairman of Executive Board & CEO

    • Tenure: 6.3yrs
    • Compensation: €1.12m
  • Karsten Pierschke

    Head of Investor Relations & Corporate Communications

    • Tenure: 0yrs
  • Harald Fuchs (54yo)

    CFO & Member of Executive Board

    • Tenure: 3.8yrs
    • Compensation: €658.00k

Board Members

  • Karsten Trippel (57yo)

    Chairman of Supervisory Board

    • Tenure: 3.8yrs
  • Uwe Hack (57yo)

    Member of Supervisory Board

    • Tenure: 2.5yrs
  • Elena Günzler

    Employee Representative Member of the Supervisory Board

    • Tenure: 7.6yrs
  • Ulrich Jaroni (68yo)

    Deputy Chairman of Supervisory Board

    • Tenure: 5.5yrs
  • Uwe Seidel (53yo)

    Employee Representative Member of the Supervisory Board

    • Tenure: 4.5yrs
  • Andreas Böwing (64yo)

    Member of Supervisory Board

    • Tenure: 3.8yrs

Company Information

PSI Software AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PSI Software AG
  • Ticker: PSAN
  • Exchange: XTRA
  • Founded: 1969
  • Industry: Application Software
  • Sector: Software
  • Market Cap: €300.688m
  • Shares outstanding: 15.66m
  • Website: https://www.psi.de

Number of Employees


Location

  • PSI Software AG
  • Dircksenstrasse 42– 44
  • Berlin
  • Berlin
  • 10178
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PSANDB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 1998
PSANXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURAug 1998
0KURLSE (London Stock Exchange)YesOrdinary SharesGBEURAug 1998
PSANDBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURAug 1998
PSANSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFAug 1998

Biography

PSI Software AG develops and sells software systems and products for the energy supply, production, infrastructure, software technology, Internet applications, and business consultancy sectors worldwide. T ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/14 20:59
End of Day Share Price2019/11/14 00:00
Earnings2019/09/30
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.