DB:WO6

Stock Analysis Report

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Executive Summary

Worldline SA provides electronic payment and transactional services to financial institutions, merchants, corporations, and government agencies in Europe, Latin America, and Asia. More Details


Snowflake Analysis

Reasonable growth potential with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: WO6 is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: WO6's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

0.3%

WO6

4.6%

DE IT

0.4%

DE Market


1 Year Return

8.8%

WO6

23.0%

DE IT

4.9%

DE Market

Return vs Industry: WO6 underperformed the German IT industry which returned 23% over the past year.

Return vs Market: WO6 exceeded the German Market which returned 4.9% over the past year.


Shareholder returns

WO6IndustryMarket
7 Day0.3%4.6%0.4%
30 Day-4.7%5.4%4.8%
90 Day5.7%-9.3%12.2%
1 Year8.8%8.8%27.7%23.0%8.2%4.9%
3 Year63.4%63.4%82.7%69.7%6.5%-2.8%
5 Year239.5%239.5%57.5%51.1%45.0%24.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

60.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WO6 (€73.4) is trading above our estimate of fair value (€57.77)

Significantly Below Fair Value: WO6 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WO6 is poor value based on its PE Ratio (60.3x) compared to the DE IT industry average (31.1x).

PE vs Market: WO6 is poor value based on its PE Ratio (60.3x) compared to the German market (24.6x).


Price to Earnings Growth Ratio

PEG Ratio: WO6 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: WO6 is overvalued based on its PB Ratio (4.1x) compared to the DE IT industry average (3.6x).


Next Steps

Future Growth

How is Worldline forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

52.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WO6's forecast earnings growth (52.5% per year) is above the savings rate (0.07%).

Earnings vs Market: WO6's earnings (52.5% per year) are forecast to grow faster than the German market (25.1% per year).

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

Revenue vs Market: WO6's revenue (17.8% per year) is forecast to grow faster than the German market (6% per year).

High Growth Revenue: WO6's revenue (17.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WO6's Return on Equity is forecast to be low in 3 years time (11.5%).


Next Steps

Past Performance

How has Worldline performed over the past 5 years?

18.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WO6 has a large one-off loss of €102.8M impacting its June 30 2020 financial results.

Growing Profit Margin: WO6's current net profit margins (9.6%) are higher than last year (9%).


Past Earnings Growth Analysis

Earnings Trend: WO6's earnings have grown by 18.2% per year over the past 5 years.

Accelerating Growth: WO6's earnings growth over the past year (20.1%) exceeds its 5-year average (18.2% per year).

Earnings vs Industry: WO6 earnings growth over the past year (20.1%) exceeded the IT industry 9.1%.


Return on Equity

High ROE: WO6's Return on Equity (7.1%) is considered low.


Next Steps

Financial Health

How is Worldline's financial position?


Financial Position Analysis

Short Term Liabilities: WO6's short term assets (€3.2B) exceed its short term liabilities (€1.9B).

Long Term Liabilities: WO6's short term assets (€3.2B) exceed its long term liabilities (€2.6B).


Debt to Equity History and Analysis

Debt Level: WO6's debt to equity ratio (65.9%) is considered high.

Reducing Debt: WO6's debt to equity ratio has increased from 2.9% to 65.9% over the past 5 years.

Debt Coverage: WO6's debt is well covered by operating cash flow (20.7%).

Interest Coverage: WO6's interest payments on its debt are well covered by EBIT (35.2x coverage).


Balance Sheet


Next Steps

Dividend

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

0.20%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate WO6's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate WO6's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WO6's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WO6's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: WO6 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WO6's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Gilles Grapinet (57 yo)

7.5yrs

Tenure

€2,610,118

Compensation

Mr. Gilles Grapinet serves as Chairman and Director at Ingenico Group S.A. since October 2020. He serves as a Chairman at Worldline S.A. and Worldline S.A./N.V. since October 24, 2019. He serves as the Chi...


CEO Compensation Analysis

Compensation vs Market: Gilles's total compensation ($USD3.17M) is below average for companies of similar size in the German market ($USD5.40M).

Compensation vs Earnings: Gilles's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gilles Grapinet
Chairman & CEO7.5yrs€2.61m0.055%
€ 11.3m
Marc-Henri Desportes
Deputy Chief Executive Officer7.5yrs€1.37m0.021%
€ 4.3m
Eric Heurtaux
Group Chief Financial Officer4.08yrsno data0.0040%
€ 830.4k
Christophe Duquenne
Group Chief Technology & Operations Officer7.5yrsno datano data
David Pierre-Kahn
Head of Investors Relationsno datano datano data
Charles-Henri de Taffin
Group Head of Legal & Contract Management3.5yrsno datano data
Tiphaine Hecketsweiler
Head of Communications Worldlineno datano datano data
Pascal Mauze
Group Head of Communication4yrsno datano data
Olivier Burger
Group Head of Human Resources2.25yrsno datano data
Vincent Roland
Head of Global Business Line (GBL) Merchant Services5yrsno datano data
Wolf Kunisch
Head of Strategy5yrsno datano data
Sarah Bokobza
Head of French Corporate PRno datano datano data

5.0yrs

Average Tenure

47yo

Average Age

Experienced Management: WO6's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gilles Grapinet
Chairman & CEO7.5yrs€2.61m0.055%
€ 11.3m
Aldo Cardoso
Independent Director6.58yrs€82.00kno data
Susan Tolson
Independent Director6.58yrs€56.00kno data
Gilles Arditti
Directorno datano datano data
Danielle Lagarde
Independent Director4.08yrs€52.00kno data
Daniel Schmucki
Director0.83yr€54.00kno data
Luc Rémont
Independent Director6.58yrs€63.00kno data
Marie-Christine Lebert
Employee Representative Director1.67yrsno data0.000040%
€ 8.2k
Giulia Fitzpatrick
Director2.17yrs€59.00kno data
Georges Pauget
Lead Independent Directorno data€29.33kno data
Mette Kamsvåg
Independent Director1.75yrs€36.33kno data
Lorenz von Lothringen
Director1.75yrs€43.08kno data

2.0yrs

Average Tenure

59yo

Average Age

Experienced Board: WO6's board of directors are not considered experienced ( 2 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: WO6 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 52.7%.


Top Shareholders

Company Information

Worldline S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Worldline S.A.
  • Ticker: WO6
  • Exchange: DB
  • Founded: 1973
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: €20.607b
  • Shares outstanding: 279.15m
  • Website: https://www.worldline.com

Number of Employees


Location

  • Worldline S.A.
  • 80 Quai Voltaire
  • River Ouest
  • Bezons
  • Ile-de-France
  • 95870
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WLNENXTPA (Euronext Paris)YesCommon StockFREURJun 2014
WO6DB (Deutsche Boerse AG)YesCommon StockDEEURJun 2014
WLNPBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURJun 2014
0QVILSE (London Stock Exchange)YesCommon StockGBEURJun 2014
WWLN.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJun 2014
WRDL.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDMar 2016

Biography

Worldline SA provides electronic payment and transactional services to financial institutions, merchants, corporations, and government agencies in Europe, Latin America, and Asia. The company operates thro...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/22 01:21
End of Day Share Price2021/01/21 00:00
Earnings2020/06/30
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.