DB:RDT1

Stock Analysis Report

Grupo Ezentis

Executive Summary

Grupo Ezentis, S.A. operates telecommunications and energy infrastructures primarily in Latin America.


Snowflake Analysis

High growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: RDT1's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.7%

RDT1

2.6%

DE Communications

2.0%

DE Market


1 Year Return

-34.1%

RDT1

11.2%

DE Communications

15.1%

DE Market

Return vs Industry: RDT1 underperformed the German Communications industry which returned 11.5% over the past year.

Return vs Market: RDT1 underperformed the German Market which returned 15% over the past year.


Shareholder returns

RDT1IndustryMarket
7 Day-7.7%2.6%2.0%
30 Day-15.7%2.5%1.0%
90 Day-26.1%-4.2%3.8%
1 Year-34.1%-34.1%11.8%11.2%18.6%15.1%
3 Yearn/a1.8%1.5%16.8%6.6%
5 Yearn/a107.2%106.8%23.7%6.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

26.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RDT1 (€0.36) is trading below our estimate of fair value (€0.49)

Significantly Below Fair Value: RDT1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RDT1 is unprofitable, so we can't compare its PE Ratio to the Communications industry average.

PE vs Market: RDT1 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RDT1's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RDT1 is overvalued based on its PB Ratio (5.5x) compared to the DE Communications industry average (3.1x).


Next Steps

Future Growth

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

59.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RDT1 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: RDT1 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: RDT1's is expected to become profitable in the next 3 years.

Revenue vs Market: RDT1's revenue (5.6% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: RDT1's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RDT1's Return on Equity is forecast to be high in 3 years time (21%)


Next Steps

Past Performance

How has Grupo Ezentis performed over the past 5 years?

10.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RDT1 is currently unprofitable.

Growing Profit Margin: RDT1 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RDT1 is unprofitable, but has reduced losses over the past 5 years at a rate of 10.2% per year.

Accelerating Growth: Unable to compare RDT1's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RDT1 is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (49.1%).


Return on Equity

High ROE: RDT1 has a negative Return on Equity (-41.54%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Grupo Ezentis's financial position?


Financial Position Analysis

Short Term Liabilities: RDT1's short term assets (€201.2M) do not cover its short term liabilities (€211.0M).

Long Term Liabilities: RDT1's short term assets (€201.2M) exceed its long term liabilities (€154.2M).


Debt to Equity History and Analysis

Debt Level: RDT1's debt to equity ratio (694.7%) is considered high.

Reducing Debt: RDT1's debt to equity ratio has increased from 209.3% to 694.7% over the past 5 years.


Balance Sheet

Inventory Level: RDT1 has a high level of physical assets or inventory.

Debt Coverage by Assets: RDT1's debt is covered by short term assets (assets are 1.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable RDT1 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: RDT1 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 51.6% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.3%markettop25%3.6%industryaverage1.9%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate RDT1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate RDT1's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RDT1's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RDT1's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: RDT1 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RDT1'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?

2.1yrs

Average management tenure


CEO

Fernando González Sánchez 0

€150,000

Compensation

Mr. Fernando González Sánchez serves as Chief Executive Officer and Executive Director at Grupo Ezentis S.A. since November, 2018. Mr. Sánchez had been Managing Director and Nominee Director – Executive at ...


CEO Compensation Analysis

Compensation vs Market: Fernando 's total compensation ($USD0.00) is below average for companies of similar size in the German market ($USD412.37K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Fernando González Sánchez
CEO & Executive Director0yrs€150.00k0.13% 159.4k
Sánchez de León García
Senior VP & Lead Director8.8yrs€46.00k0.063% 76.1k
Carlos Mariñas Lage
Corporate General Director & Nominee Director - Executive2.1yrs€150.00k0.27% 331.0k
Ignacio Barón López
Chief Financial Officer1.3yrsno datano data
Jorge de Casso Perez
Chief Corporate Legal Officer14yrsno datano data
Jose Maria Maldonado Carrasco
Chief Resources Officer0yrsno data0.082% 99.5k
Jesus Gil Pérez
Head of Wireless0yrsno datano data
Adrin de la Joya Ruiz de Velasco
Head of Media0yrsno datano data
Javier Domínguez López
Managing Director0yrsno datano data
Luis Fernando Caballero
Assistant Managing Director0yrsno datano data

2.1yrs

Average Tenure

Experienced Management: RDT1's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Fernando González Sánchez
CEO & Executive Director0yrs€150.00k0.13% 159.4k
Sánchez de León García
Senior VP & Lead Director8.8yrs€46.00k0.063% 76.1k
Carlos Mariñas Lage
Corporate General Director & Nominee Director - Executive2.1yrs€150.00k0.27% 331.0k
Emma Fernández Alonso
Independent Director3.7yrs€16.00k0.0092% 11.2k
Guillermo José Fernández Vidal
Non-Executive Chairman2.9yrs€154.00k0.18% 222.7k
Carmen Gómez de Barreda Tous de Monsalve
Independent Director3yrsno data0.0092% 11.2k
Ana María Sánchez Tejeda
Nominee Director6.2yrs€20.00k0.0092% 11.2k
Pedro María Azcárate Palacios
Independent Director4.1yrs€46.00k0.0092% 11.2k
Laura González-Molero
Independent Director3.7yrs€14.00k0.0092% 11.2k
Alfonso Alonso Durán
Director1.7yrsno data0.0092% 11.2k

3.3yrs

Average Tenure

55yo

Average Age

Experienced Board: RDT1's board of directors are considered experienced (3.3 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 been diluted in the past year, with total shares outstanding growing by 2.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: Grupo Ezentis, S.A.
  • Ticker: RDT1
  • Exchange: DB
  • Founded: 1959
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: €121.504m
  • Shares outstanding: 330.62m
  • Website: https://www.ezentis.com

Number of Employees


Location

  • Grupo Ezentis, S.A.
  • Calle Santa Leonor, 65
  • Parque Empresarial Avalon
  • Madrid
  • Madrid
  • 28037
  • Spain

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EZEBME (Bolsas y Mercados Espanoles)YesOrdinary SharesESEURJan 1992
RDT1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
0QIHLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
EZEEBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
EZEBME (Bolsas y Mercados Espanoles)EUR0.60(POST CONS)ESEURDec 2013
0QIHLSE (London Stock Exchange)EUR0.60(POST CONS)GBEURDec 2013

Biography

Grupo Ezentis, S.A. operates telecommunications and energy infrastructures primarily in Latin America. The company engages in the operation and maintenance service of fixed or mobile telecommunications infrastructure networks, such as fixed external networks, mobile towers, fixed and mobile internal plant, client support services, operation of networks for business, and operations support systems. It also offers operation and maintenance services for electricity transport, distribution, and commercialization networks, including distribution and transmission networks, substations and transmission platforms, commercial services, and smart grids. In addition, the company provides technology solutions, such as planning, design, engineering, and implementation of multiservice complex networks; maintenance, safety, and networks management; real time geo-location; geographic information systems (GIS); consultancy services and projects management; network design and systems development; and outsourcing services. It serves telecommunications, electricity, water, gas, oil, and mining sectors. Grupo Ezentis, S.A. was founded in 1959 and is based in Madrid, Spain. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 21:19
End of Day Share Price2020/02/17 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.