DB:DV6

Stock Analysis Report

Executive Summary

Devoteam SA provides technology consulting and cloud solutions in Europe and the Middle East.


Snowflake Analysis

Undervalued with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: DV6's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.7%

DV6

4.7%

DE IT

-0.6%

DE Market


1 Year Return

-40.3%

DV6

-1.4%

DE IT

-20.9%

DE Market

Return vs Industry: DV6 underperformed the German IT industry which returned 3% over the past year.

Return vs Market: DV6 underperformed the German Market which returned -20.4% over the past year.


Shareholder returns

DV6IndustryMarket
7 Day0.7%4.7%-0.6%
30 Day-24.4%-11.5%-18.6%
90 Day-35.9%-12.5%-26.2%
1 Year-39.7%-40.3%-0.7%-1.4%-18.6%-20.9%
3 Yearn/a74.1%68.9%-19.0%-25.8%
5 Yearn/a154.5%143.8%-21.2%-31.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

27.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DV6 (€59.4) is trading below our estimate of fair value (€84.41)

Significantly Below Fair Value: DV6 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DV6 is good value based on its PE Ratio (11.9x) compared to the IT industry average (26.6x).

PE vs Market: DV6 is good value based on its PE Ratio (11.9x) compared to the German market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: DV6 is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: DV6 is good value based on its PB Ratio (2.5x) compared to the DE IT industry average (3.2x).


Next Steps

Future Growth

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

4.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DV6's forecast earnings growth (4.2% per year) is above the savings rate (-0.4%).

Earnings vs Market: DV6's earnings (4.2% per year) are forecast to grow slower than the German market (14.3% per year).

High Growth Earnings: DV6's earnings are forecast to grow, but not significantly.

Revenue vs Market: DV6's revenue (2.7% per year) is forecast to grow slower than the German market (4% per year).

High Growth Revenue: DV6's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DV6's Return on Equity is forecast to be low in 3 years time (17.9%).


Next Steps

Past Performance

How has Devoteam performed over the past 5 years?

28.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DV6 has high quality earnings.

Growing Profit Margin: DV6's current net profit margins (5.5%) are lower than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: DV6's earnings have grown significantly by 28.2% per year over the past 5 years.

Accelerating Growth: DV6's earnings growth over the past year (9%) is below its 5-year average (28.2% per year).

Earnings vs Industry: DV6 earnings growth over the past year (9%) exceeded the IT industry 2.5%.


Return on Equity

High ROE: DV6's Return on Equity (22.5%) is considered high.


Next Steps

Financial Health

How is Devoteam's financial position?


Financial Position Analysis

Short Term Liabilities: DV6's short term assets (€369.3M) exceed its short term liabilities (€283.3M).

Long Term Liabilities: DV6's short term assets (€369.3M) exceed its long term liabilities (€89.9M).


Debt to Equity History and Analysis

Debt Level: DV6's debt to equity ratio (15.9%) is considered satisfactory.

Reducing Debt: DV6's debt to equity ratio has increased from 7.6% to 15.9% over the past 5 years.

Debt Coverage: DV6's debt is well covered by operating cash flow (214.5%).

Interest Coverage: DV6's interest payments on its debt are well covered by EBIT (21.8x coverage).


Balance Sheet

Inventory Level: DV6 has a low level of unsold assets or inventory.

Debt Coverage by Assets: DV6's debt is covered by short term assets (assets are 11x debt).


Next Steps

Dividend

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

1.60%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DV6's dividend (1.66%) is higher than the bottom 25% of dividend payers in the German market (1.65%).

High Dividend: DV6's dividend (1.66%) is low compared to the top 25% of dividend payers in the German market (4.86%).


Stability and Growth of Payments

Stable Dividend: DV6's dividend payments have been volatile in the past 10 years.

Growing Dividend: DV6's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.6%), DV6's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DV6's dividends in 3 years are forecast to be well covered by earnings (25.4% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Godefroy de Bentzmann

3.58s

Tenure

€751,528

Compensation

Mr. Godefroy de Bentzmann is Co-Founder of Devoteam S.A and serves as its Chief Executive Officer and Member of Management Board. Mr. de Bentzmann served as Co-Chief Executive Officer at Devoteam S.A since ...


CEO Compensation Analysis

Compensation vs Market: Godefroy's total compensation ($USD817.50K) is about average for companies of similar size in the German market ($USD1.11M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Godefroy de Bentzmann
Co-Founder3.58yrs€751.53kno data
Stanislas de Bentzmann
Co-Founderno data€748.64kno data
Roland de Laage de Meux
General Secretary & Non-Independent Member of Supervisory Board21.25yrs€356.73kno data
Gregoire Cayatte
Chief Financial Officer6.58yrsno datano data
Sébastien Chevrel
Chief Operating Officer6.42yrsno datano data
Nicole Anschutz
Director of Group Marketing & Communications3.25yrsno datano data
Osama Ghoul
Executive Vice President of the Middle Eastno datano datano data
Victor Farroco
Deputy Chief Financial Officerno datano datano data
Regis Tatala
Executive Vice-Presidentno datano datano data

3.8yrs

Average Tenure

49yo

Average Age

Experienced Management: DV6's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Roland de Laage de Meux
General Secretary & Non-Independent Member of Supervisory Board21.25yrs€356.73kno data
Yves de Talhouët
Non-Independent Member of Supervisory Board19.25yrs€11.00k5.05% 25.9m
Bertrand de Bentzmann
Honorary Chairman of the Supervisory Boardno data€8.00kno data
Michel Bon
Chairman of the Supervisory Boardno data€52.00kno data
Vincent Montagne
Independent Member of Supervisory Board12.25yrs€11.50kno data
Carole Desport
Independent Member of Supervisory Board4.83yrs€12.00kno data
Elisabeth de Maulde
Independent Member of Supervisory Board8yrs€11.00kno data
Valérie Kniazeff
Independent Member of Supervisory Board3.67yrs€10.00kno data

10.1yrs

Average Tenure

60yo

Average Age

Experienced Board: DV6's board of directors are seasoned and experienced ( 10.1 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

Devoteam SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Devoteam SA
  • Ticker: DV6
  • Exchange: DB
  • Founded: 1995
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: €512.555m
  • Shares outstanding: 8.19m
  • Website: https://www.devoteam.com

Number of Employees


Location

  • Devoteam SA
  • 73, rue Anatole France
  • Levallois-Perret
  • Ile-de-France
  • 92300
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DVTENXTPA (Euronext Paris)YesOrdinary SharesFREURNov 1999
DV6DB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 1999
0E7SLSE (London Stock Exchange)YesOrdinary SharesGBEURNov 1999
DVTPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURNov 1999

Biography

Devoteam SA provides technology consulting and cloud solutions in Europe and the Middle East. It offers transformation management, agile IT, cyber security, digital workplace, data as a service, business process excellence, and customer experience services. The company was founded in 1995 and is headquartered in Levallois-Perret, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 03:43
End of Day Share Price2020/04/03 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.