CPSE:NETC

Stock Analysis Report

Executive Summary

Netcompany Group A/S, an IT services company, focuses on delivering business critical IT solutions to public and private sector customers in Denmark, Norway, the United Kingdom, Poland, and Vietnam.

Snowflake

Fundamentals

Exceptional growth potential with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.6%

CPSE:NETC

1.9%

DK Software

-1.2%

DK Market


1 Year Return

24.4%

CPSE:NETC

16.8%

DK Software

-1.0%

DK Market

NETC outperformed the Software industry which returned 15.5% over the past year.

NETC outperformed the Market in Denmark which returned -0.6% over the past year.


Share holder returns

NETCIndustryMarket
7 Day3.6%1.9%-1.2%
30 Day16.9%2.8%-0.8%
90 Day18.3%2.4%0.6%
1 Year24.4%24.4%17.7%16.8%2.3%-1.0%
3 Yearn/a83.4%76.2%18.9%8.9%
5 Yearn/a252.4%226.4%56.2%33.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Netcompany Group undervalued based on future cash flows and its price relative to the stock market?

60.71x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Netcompany Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Netcompany Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Netcompany Group is overvalued based on earnings compared to the Europe Software industry average.

Netcompany Group is overvalued based on earnings compared to the Denmark market.


Price Based on Expected Growth

Netcompany Group is poor value based on expected growth next year.


Price Based on Value of Assets

Netcompany Group is overvalued based on assets compared to the DK Software industry average.


Next Steps

Future Growth

How is Netcompany Group expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

35.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Netcompany Group's revenue is expected to grow significantly at over 20% yearly.

Netcompany Group's earnings are expected to grow significantly at over 20% yearly.

Netcompany Group's revenue growth is expected to exceed the Denmark market average.

Netcompany Group's earnings growth is expected to exceed the Denmark market average.

Netcompany Group's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Netcompany Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Netcompany Group performed over the past 5 years?

8.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Netcompany Group's year on year earnings growth rate has been positive over the past 5 years.

Netcompany Group's 1-year earnings growth exceeds its 5-year average (45.8% vs 8.1%)

Netcompany Group's earnings growth has exceeded the Europe Software industry average in the past year (45.8% vs 17.1%).


Return on Equity

Netcompany Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Netcompany Group used its assets more efficiently than the Europe Software industry average last year based on Return on Assets.


Return on Capital Employed

Netcompany Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Netcompany Group's financial position?


Financial Position Analysis

Netcompany Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Netcompany Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Netcompany Group's level of debt (62.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (22.1% vs 62.5% today).

Debt is not well covered by operating cash flow (17.8%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.8x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.9x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Netcompany Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Netcompany Group's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Netcompany Group has not reported any payouts.

Unable to verify if Netcompany Group's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Netcompany Group has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Netcompany Group's dividends in 3 years as they are not expected to pay a notable one for Denmark.


Next Steps

Management

What is the CEO of Netcompany Group's salary, the management and board of directors tenure and is there insider trading?

19.5yrs

Average management tenure


CEO

André Rogaczewski

19.5yrs

Tenure

ø7,982,000

Compensation

Mr. André Rogaczewski is the Co-Founder of Netcompany Group A/S and serves as its Chief Executive Officer and Member of Executive Board. 


CEO Compensation Analysis

André's remuneration is about average for companies of similar size in Denmark.

André's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

19.5yrs

Average Tenure

The average tenure for the Netcompany Group management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

3.5yrs

Average Tenure

54.5yo

Average Age

The tenure for the Netcompany Group board of directors is about average.


Insider Trading

No 3 month individual insider trading information.


Recent Insider Transactions

Sellø7,150,01608 Nov 18
FSN Capital Partners AS
EntityCompany
Shares7,150,000
Max Priceø1.00

Ownership Breakdown


Management Team

  • Thomas Johansen (49yo)

    CFO & Member of Executive Board

    • Tenure: 2.5yrs
    • Compensation: DKK5.86m
  • André Rogaczewski

    Co-Founder

    • Tenure: 19.5yrs
    • Compensation: DKK7.98m
  • Claus Jørgensen

    COO & Member of Executive Board

    • Tenure: 19.5yrs
    • Compensation: DKK7.98m
  • Tine Boye

    General Counsel

  • Lars Johannesen

    Group HR Director

  • Gustaf Löfberg

    Country Managing Partner


Board Members

  • Juha Christensen (55yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: DKK503.00k
  • Pekka Ala-Pietilä (62yo)

    Chairman of the Board

    • Compensation: DKK1.06m
  • Bo Rygaard (54yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: DKK438.00k
  • Pernille Fabricius (53yo)

    Vice Chairman of the Board

    • Tenure: 0.3yrs
    • Compensation: DKK546.00k
  • Scanes Bentley (62yo)

    Independent Director

    • Tenure: 0.5yrs
  • Carsten Gomard (53yo)

    Director

    • Tenure: 3.5yrs

Company Information

Netcompany Group A/S's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Netcompany Group A/S
  • Ticker: NETC
  • Exchange: CPSE
  • Founded: 2000
  • Industry: application software
  • Sector: software
  • Market Cap: ø13.738b
  • Shares outstanding: 49.10m
  • Website: Click here

Number of Employees


Location

  • Netcompany Group A/S
  • Gronningen 17
  • Copenhagen
  • Capital Region of Denmark
  • 1270
  • Denmark

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NETCCPSE (OMX Nordic Exchange Copenhagen)YesOrdinary SharesDKDKKJun 2018
60NDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2018
0YH9LSE (London Stock Exchange)YesOrdinary SharesGBDKKJun 2018
NETCCBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBDKKJun 2018

Biography

Netcompany Group A/S, an IT services company, focuses on delivering business critical IT solutions to public and private sector customers in Denmark, Norway, the United Kingdom, Poland, and Vietnam. It is  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/17 22:38
End of Day Share Price2019/07/17 00:00
Earnings2019/03/31
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.