DB:C7T

Stock Analysis Report

CTT - Correios De Portugal

Executive Summary

CTT - Correios De Portugal, S.A., together with its subsidiaries, provides postal and financial services worldwide.

Rewards

Trading at 39.3% below its fair value

Earnings are forecast to grow 18.79% per year

Earnings grew by 35.8% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Highly volatile share price over past 3 months

Large one-off items impacting financial results



Snowflake Analysis

Undervalued average dividend payer.


Similar Companies

Share Price & News

How has CTT - Correios De Portugal's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: C7T's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.2%

C7T

7.6%

DE Logistics

7.3%

DE Market


1 Year Return

-19.1%

C7T

-13.8%

DE Logistics

-17.7%

DE Market

Return vs Industry: C7T underperformed the German Logistics industry which returned -13.8% over the past year.

Return vs Market: C7T underperformed the German Market which returned -17.5% over the past year.


Shareholder returns

C7TIndustryMarket
7 Day7.2%7.6%7.3%
30 Day-12.3%-14.3%-17.9%
90 Day-35.5%-27.3%-25.8%
1 Year-15.3%-19.1%-11.1%-13.8%-15.1%-17.7%
3 Year-47.4%-59.5%-7.5%-16.1%-18.7%-25.6%
5 Year-70.6%-79.7%5.8%-10.0%-17.7%-29.0%

Price Volatility Vs. Market

How volatile is CTT - Correios De Portugal's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is CTT - Correios De Portugal undervalued compared to its fair value and its price relative to the market?

39.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: C7T (€2.04) is trading below our estimate of fair value (€3.36)

Significantly Below Fair Value: C7T is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: C7T is good value based on its PE Ratio (10.5x) compared to the Logistics industry average (11.3x).

PE vs Market: C7T is good value based on its PE Ratio (10.5x) compared to the German market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: C7T is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: C7T is overvalued based on its PB Ratio (2.3x) compared to the XE Logistics industry average (1.8x).


Next Steps

Future Growth

How is CTT - Correios De Portugal forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

18.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: C7T's forecast earnings growth (18.8% per year) is above the savings rate (-0.4%).

Earnings vs Market: C7T's earnings (18.8% per year) are forecast to grow faster than the German market (14.2% per year).

High Growth Earnings: C7T's earnings are forecast to grow, but not significantly.

Revenue vs Market: C7T's revenue (0.5% per year) is forecast to grow slower than the German market (4.2% per year).

High Growth Revenue: C7T's revenue (0.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: C7T's Return on Equity is forecast to be high in 3 years time (26%)


Next Steps

Past Performance

How has CTT - Correios De Portugal performed over the past 5 years?

-30.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: C7T has a large one-off loss of €20.2M impacting its December 31 2019 financial results.

Growing Profit Margin: C7T's current net profit margins (4%) are higher than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: C7T's earnings have declined by -30.5% per year over the past 5 years.

Accelerating Growth: C7T's earnings growth over the past year (35.8%) exceeds its 5-year average (-30.5% per year).

Earnings vs Industry: C7T earnings growth over the past year (35.8%) exceeded the Logistics industry 12.8%.


Return on Equity

High ROE: Whilst C7T's Return on Equity (22.28%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is CTT - Correios De Portugal's financial position?


Financial Position Analysis

Short Term Liabilities: C7T's short term assets (€778.8M) do not cover its short term liabilities (€1.9B).

Long Term Liabilities: C7T's short term assets (€778.8M) exceed its long term liabilities (€512.8M).


Debt to Equity History and Analysis

Debt Level: C7T's debt to equity ratio (127.5%) is considered high.

Reducing Debt: C7T's debt to equity ratio has increased from 0.4% to 127.5% over the past 5 years.

Debt Coverage: C7T's debt is well covered by operating cash flow (182.7%).

Interest Coverage: C7T's interest payments on its debt are well covered by EBIT (9.6x coverage).


Balance Sheet

Inventory Level: C7T has a low level of unsold assets or inventory.

Debt Coverage by Assets: C7T's debt is covered by short term assets (assets are 4.6x debt).


Next Steps

Dividend

What is CTT - Correios De Portugal's current dividend yield, its reliability and sustainability?

5.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: C7T's dividend (5.36%) is higher than the bottom 25% of dividend payers in the German market (1.71%).

High Dividend: C7T's dividend (5.36%) is in the top 25% of dividend payers in the German market (4.98%)


Stability and Growth of Payments

Stable Dividend: C7T has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: C7T has only been paying a dividend for 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.5%), C7T's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: C7T's dividends in 3 years are forecast to be covered by earnings (58.6% payout ratio).


Next Steps

Management

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

0.7yrs

Average management tenure


CEO

João Afonso Ramalho Sopas Bento (59yo)

0.83

Tenure

€535,220

Compensation

Prof. João Afonso Ramalho Sopas Pereira Bento serves as the Chief Executive Officer of Efacec Capital, S.G.P.S., SA. Prof. Bento served as Head of Companhia de Concessoes Rodoviarias and Head of Elos - Lig ...


CEO Compensation Analysis

Compensation vs Market: João Afonso Ramalho Sopas's total compensation ($USD593.44K) is below average for companies of similar size in the German market ($USD1.03M).

Compensation vs Earnings: João Afonso Ramalho Sopas's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
João Afonso Ramalho Sopas Bento
CEO & Executive Director0.83yr€535.22k0.017% 53.3k
Guy Patrick Guimarães de Pacheco
CFO & Executive Director2.25yrs€439.78k0.0053% 16.4k
João Carlos Sousa
COO & Executive Director0.50yr€107.65kno data
António Ferreira Vaz da Silva
CCO of Retail & Executive Director2.92yrs€409.25k0.0023% 7.2k
Peter Tsvetkov
Director of Investor Relationsno datano datano data
Miguel Alexandre Ferreira Salema Garção
Director of Brand & Communicationno datano datano data
João Miguel da Silva
Executive Director0.17yrno datano data
Ana Baião Matos
Director of Accounting and Treasuryno datano datano data
Maria Da Graça F. De E Sousa Góis
Company Secretary and General Secretariatno datano datano data
Maria da Graça de Carvalho
Secretary of the Companyno datano datano data

0.7yrs

Average Tenure

44yo

Average Age

Experienced Management: C7T's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
João Afonso Ramalho Sopas Bento
CEO & Executive Director0.83yr€535.22k0.017% 53.3k
Guy Patrick Guimarães de Pacheco
CFO & Executive Director2.25yrs€439.78k0.0053% 16.4k
João Carlos Sousa
COO & Executive Director0.50yr€107.65kno data
António Ferreira Vaz da Silva
CCO of Retail & Executive Director2.92yrs€409.25k0.0023% 7.2k
João Miguel da Silva
Executive Director0.17yrno datano data
José Manuel Fino
Independent Non-Executive Director5.25yrs€60.13kno data
António Sarmento Mota
Non-Executive Chairman & Lead Independent Director6.17yrs€306.25kno data
Céline Dora Abecassis-Moedas
Independent Non-Executive Director3.58yrs€60.13kno data
Nuno De Carvalho Thomaz
Independent Non-Executive Director6yrs€69.38kno data
Maria Luísa Coutinho Ferreira Leite Castro Anacoreta Correia
Independent Non-Executive Director2.92yrs€83.25kno data

2.9yrs

Average Tenure

52.5yo

Average Age

Experienced Board: C7T's board of directors are not considered experienced ( 2.9 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

CTT - Correios De Portugal, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CTT - Correios De Portugal, S.A.
  • Ticker: C7T
  • Exchange: DB
  • Founded: 1520
  • Industry: Air Freight and Logistics
  • Sector: Transportation
  • Market Cap: €307.800m
  • Shares outstanding: 150.00m
  • Website: https://www.ctt.pt

Number of Employees


Location

  • CTT - Correios De Portugal, S.A.
  • Av. D. JoAo II, n.o 13
  • Lisbon
  • Lisbon
  • 1999-001
  • Portugal

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CTTENXTLS (Euronext Lisbon)YesOrdinary SharesPTEURDec 2013
CTTUBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURDec 2013
C7TDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2013
0QIMLSE (London Stock Exchange)YesOrdinary SharesGBEURDec 2013
CTT NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNDec 2013
C7TBRSE (Berne Stock Exchange)YesOrdinary SharesCHCHFDec 2013
CTTO.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2013
CTTP.YOTCPK (Pink Sheets LLC)ADRUSUSDJan 2015

Biography

CTT - Correios De Portugal, S.A., together with its subsidiaries, provides postal and financial services worldwide. The company operates through Mail, Express & Parcels, Financial Services, and Banco CTT segments. It offers addressed mail, transactional mail, international inbound and outbound mail, and advertising mail distribution related services; CTT Logística, a platform for the creation of product catalogue, storage, order preparation, and distribution to the final consumer which allows customers to focus on the development and sale of their products; banking services; courier; transport solutions; payment network management services through Payshop; and documental services. The company operates a retail network of 2,370 contact points with 539 post offices; 1,831 postal agencies; and 1,933 stamp sale points, as well as 117 automatic stamp vending machines and 14 automatic postal product vending machines. It also operates a sorting network of three production and logistics centers, 5 logistics and delivery centers, and a transport network with 3,697 vehicles. The company was formerly known as Correio Publico. CTT - Correios De Portugal, S.A. was founded in 1520 and is headquartered in Lisbon, Portugal. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 23:22
End of Day Share Price2020/03/27 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.