DB:ORA

Stock Analysis Report

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Executive Summary

Ordina N.V. provides IT services in the Netherlands, Belgium, and Luxembourg.


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

5.8%

ORA

6.8%

DE IT

4.3%

DE Market


1 Year Return

11.4%

ORA

-12.1%

DE IT

0.3%

DE Market

Return vs Industry: ORA exceeded the German IT industry which returned -12.1% over the past year.

Return vs Market: ORA exceeded the German Market which returned 0.3% over the past year.


Shareholder returns

ORAIndustryMarket
7 Day5.8%6.8%4.3%
30 Day0.9%6.5%7.4%
90 Day-17.1%-0.1%-0.2%
1 Year11.4%11.4%-11.7%-12.1%2.0%0.3%
3 Year23.3%18.9%70.5%66.1%-5.0%-12.3%
5 Year20.9%15.1%208.4%194.7%4.2%-9.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ORA (€1.9) is trading below our estimate of fair value (€7.04)

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


Price To Earnings Ratio

PE vs Industry: ORA is good value based on its PE Ratio (11.9x) compared to the IT industry average (24.9x).

PE vs Market: ORA is good value based on its PE Ratio (11.9x) compared to the German market (18.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ORA is good value based on its PB Ratio (1.1x) compared to the DE IT industry average (3.8x).


Next Steps

Future Growth

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

-0.5%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if ORA's forecast earnings growth is above the savings rate (0.2%).

Earnings vs Market: Insufficient data to determine if ORA's earnings are forecast to grow faster than the German market

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

Revenue vs Market: ORA's revenue is expected to decline over the next 3 years (-0.5% per year).

High Growth Revenue: ORA's revenue is forecast to decline over the next 3 years (-0.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ORA's Return on Equity is forecast to be low in 3 years time (15%).


Next Steps

  • Explore growth companies in the Software industry.

Past Performance

How has Ordina performed over the past 5 years?

53.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ORA has high quality earnings.

Growing Profit Margin: ORA's current net profit margins (4%) are higher than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: ORA has become profitable over the past 5 years, growing earnings by 53.2% per year.

Accelerating Growth: ORA's earnings growth over the past year (116.4%) exceeds its 5-year average (53.2% per year).

Earnings vs Industry: ORA earnings growth over the past year (116.4%) exceeded the IT industry 4.8%.


Return on Equity

High ROE: ORA's Return on Equity (9.1%) is considered low.


Next Steps

Financial Health

How is Ordina's financial position?


Financial Position Analysis

Short Term Liabilities: ORA's short term assets (€92.1M) exceed its short term liabilities (€85.0M).

Long Term Liabilities: ORA's short term assets (€92.1M) exceed its long term liabilities (€29.4M).


Debt to Equity History and Analysis

Debt Level: ORA is debt free.

Reducing Debt: ORA has no debt compared to 5 years ago when its debt to equity ratio was 0.1%.

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

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


Balance Sheet


Next Steps

Dividend

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

5.02%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ORA's dividend (5.02%) is higher than the bottom 25% of dividend payers in the German market (1.3%).

High Dividend: ORA's dividend (5.02%) is in the top 25% of dividend payers in the German market (3.94%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ORA has been paying a dividend for less than 10 years.

Growing Dividend: ORA's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (59.6%), ORA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ORA's dividends in 3 years are forecast to be covered by earnings (59.4% payout ratio).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Jo Maes (51yo)

3.08yrs

Tenure

€891,000

Compensation

Mr. Jo G. Maes has been Chief Executive Officer, Chairman of Management Board and Member of the Management Board of Ordina N.V. since April 1, 2017. Mr. Maes has been Chief Executive Officer at Ordina Belg ...


CEO Compensation Analysis

Compensation vs Market: Jo's total compensation ($USD985.07K) is above average for companies of similar size in the German market ($USD711.07K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jo Maes
Chairman of Management Board & CEO3.08yrs€891.00k0.60% 1.1m
Annemieke Otter
CFO & Member of Management Board3.67yrs€609.00k0.35% 620.0k
Hilde Mulder
Company Secretaryno datano datano data
Jeroen Hellenberg
Director of Communications5.5yrsno datano data
Lieven Verhaevert
Chief Executive Officer of Belgium & Luxembourg2.83yrsno datano data

3.4yrs

Average Tenure

Experienced Management: ORA's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dirk Anbeek
Independent Member of Supervisory Board8yrs€48.00k0.038% 66.2k
Jan G. H. Niessen
Member of Supervisory Board4.5yrs€45.00kno data
Johan van Hall
Independent Chairman of Supervisory Board1.33yrs€65.00kno data
Caroline Princen
Independent Vice-Chairman of Supervisory Boardno data€47.00kno data

4.5yrs

Average Tenure

56yo

Average Age

Experienced Board: ORA's board of directors are considered experienced (4.5 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

Ordina N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ordina N.V.
  • Ticker: ORA
  • Exchange: DB
  • Founded: 1973
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: €176.440m
  • Shares outstanding: 93.26m
  • Website: https://www.ordina.nl

Number of Employees


Location

  • Ordina N.V.
  • Ringwade 1
  • Nieuwegein
  • Utrecht
  • 3439 LM
  • Netherlands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ORDIENXTAM (Euronext Amsterdam)YesOrdinary SharesNLEURJan 1992
ORADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
0OOJLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
ORDIABATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992

Biography

Ordina N.V. provides IT services in the Netherlands, Belgium, and Luxembourg. The company builds and manages technological applications in the public, financial services, industrial, and healthcare sectors. It offers management of IT applications, cloud infrastructures, and workstations. The company also provides consulting services. It offers its products and services under the Ordina, SourcePower and Clockwork brands. Ordina N.V. was founded in 1973 and is headquartered in Nieuwegein, the Netherlands. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/29 12:25
End of Day Share Price2020/05/28 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.