DB:CSH

Stock Analysis Report

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Executive Summary

CENIT Aktiengesellschaft operates as an IT consultancy and software firm for manufacturing and financial service industries.


Snowflake Analysis

Very undervalued with flawless balance sheet and pays a dividend.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.2%

CSH

-1.2%

DE Software

-3.6%

DE Market


1 Year Return

-16.7%

CSH

23.3%

DE Software

3.7%

DE Market

Return vs Industry: CSH underperformed the German Software industry which returned 23.2% over the past year.

Return vs Market: CSH underperformed the German Market which returned 3.6% over the past year.


Shareholder returns

CSHIndustryMarket
7 Day-0.2%-1.2%-3.6%
30 Day-1.0%3.3%-2.0%
90 Day0.4%23.0%13.3%
1 Year-16.7%-16.7%25.0%23.3%6.0%3.7%
3 Year-50.3%-54.6%55.2%49.0%1.1%-6.9%
5 Year-31.5%-43.1%125.4%109.8%7.8%-6.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

46.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CSH (€9.62) is trading below our estimate of fair value (€17.86)

Significantly Below Fair Value: CSH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CSH is good value based on its PE Ratio (11.9x) compared to the DE Software industry average (25.7x).

PE vs Market: CSH is good value based on its PE Ratio (11.9x) compared to the German market (20.8x).


Price to Earnings Growth Ratio

PEG Ratio: CSH is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: CSH is good value based on its PB Ratio (1.9x) compared to the DE Software industry average (3.3x).


Next Steps

Future Growth

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

21.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CSH's forecast earnings growth (21.9% per year) is above the savings rate (0.2%).

Earnings vs Market: CSH's earnings (21.9% per year) are forecast to grow slower than the German market (23% per year).

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

Revenue vs Market: CSH's revenue (3.6% per year) is forecast to grow slower than the German market (5.8% per year).

High Growth Revenue: CSH's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CSH's Return on Equity is forecast to be low in 3 years time (9.2%).


Next Steps

Past Performance

How has CENIT performed over the past 5 years?

-2.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CSH has high quality earnings.

Growing Profit Margin: CSH's current net profit margins (4%) are higher than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: CSH's earnings have declined by 2.4% per year over the past 5 years.

Accelerating Growth: CSH's earnings growth over the past year (21.7%) exceeds its 5-year average (-2.4% per year).

Earnings vs Industry: CSH earnings growth over the past year (21.7%) underperformed the Software industry 31%.


Return on Equity

High ROE: CSH's Return on Equity (16.6%) is considered low.


Next Steps

Financial Health

How is CENIT's financial position?


Financial Position Analysis

Short Term Liabilities: CSH's short term assets (€65.8M) exceed its short term liabilities (€43.0M).

Long Term Liabilities: CSH's short term assets (€65.8M) exceed its long term liabilities (€12.8M).


Debt to Equity History and Analysis

Debt Level: CSH is debt free.

Reducing Debt: CSH had no debt 5 years ago.

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

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


Balance Sheet


Next Steps

Dividend

What is CENIT current dividend yield, its reliability and sustainability?

4.61%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CSH's dividend (4.61%) is higher than the bottom 25% of dividend payers in the German market (1.26%).

High Dividend: CSH's dividend (4.61%) is in the top 25% of dividend payers in the German market (3.84%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.8%), CSH's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CSH's dividends in 3 years are forecast to be covered by earnings (57.6% payout ratio).


Next Steps

Management

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

2.3yrs

Average board tenure


CEO

Kurt Bengel (58 yo)

no data

Tenure

€576,000

Compensation

Dipl.-Ing. Kurt Bengel has been the Member of Management Board of CENIT AG Systemhaus since January 1, 2007 and served as its Chairman of The Management Board and serves as its Head of Operations, Investor ...


CEO Compensation Analysis

Compensation vs Market: Kurt's total compensation ($USD681.41K) is above average for companies of similar size in the German market ($USD467.22K).

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


Board Members

NamePositionTenureCompensationOwnership
Oliver Riedel
Chairman of Supervisory Board2.25yrs€30.00k0.00096%
€ 784.0
Stephan Gier
Deputy Chairman of Supervisory Board2.25yrs€22.50kno data
Ricardo Malta
Member of Supervisory Board2.25yrs€15.00kno data

2.3yrs

Average Tenure

Experienced Board: CSH's board of directors are not considered experienced ( 2.3 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.


Top Shareholders

Company Information

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


Key Information

  • Name: CENIT Aktiengesellschaft
  • Ticker: CSH
  • Exchange: DB
  • Founded: 1988
  • Industry: Application Software
  • Sector: Software
  • Market Cap: €81.669m
  • Shares outstanding: 8.37m
  • Website: https://www.cenit.com

Number of Employees


Location

  • CENIT Aktiengesellschaft
  • Industriestrasse 52-54
  • Stuttgart
  • Baden-Württemberg
  • 70565
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CSHDB (Deutsche Boerse AG)YesBearer SharesDEEURMay 1998
CSHXTRA (XETRA Trading Platform)YesBearer SharesDEEURMay 1998
0MUFLSE (London Stock Exchange)YesBearer SharesGBEURMay 1998
CSHSWX (SIX Swiss Exchange)YesBearer SharesCHCHFMay 1998
CSHdBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEURMay 1998

Biography

CENIT Aktiengesellschaft operates as an IT consultancy and software firm for manufacturing and financial service industries. The company operates in two segments, Enterprise Information Management (EIM) an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/02 20:41
End of Day Share Price2020/07/31 00:00
Earnings2020/03/31
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.