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NETC

Netcompany Group CPSE:NETC Stock Report

Last Price

kr.389.20

Market Cap

kr.19.1b

7D

5.9%

1Y

-44.8%

Updated

24 Jun, 2022

Data

Company Financials +
NETC fundamental analysis
Snowflake Score
Valuation4/6
Future Growth5/6
Past Performance3/6
Financial Health4/6
Dividends0/6

NETC Stock Overview

Netcompany Group A/S, an IT services company, delivers business critical IT solutions to public and private sector customers in Denmark, Norway, the United Kingdom, the Netherlands, Belgium, Luxembourg, Greece, Spain, and internationally.

Netcompany Group Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Netcompany Group
Historical stock prices
Current Share Pricekr.389.20
52 Week Highkr.861.50
52 Week Lowkr.338.00
Beta0.75
1 Month Change-2.55%
3 Month Change-12.03%
1 Year Change-44.76%
3 Year Change47.20%
5 Year Changen/a
Change since IPO93.63%

Recent News & Updates

Jun 16
Netcompany Group A/S' (CPH:NETC) Intrinsic Value Is Potentially 50% Above Its Share Price

Netcompany Group A/S' (CPH:NETC) Intrinsic Value Is Potentially 50% Above Its Share Price

Does the June share price for Netcompany Group A/S ( CPH:NETC ) reflect what it's really worth? Today, we will estimate...

Jun 01
Netcompany Group (CPH:NETC) Is Looking To Continue Growing Its Returns On Capital

Netcompany Group (CPH:NETC) Is Looking To Continue Growing Its Returns On Capital

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Typically, we'll want to notice a...

Shareholder Returns

NETCDK SoftwareDK Market
7D5.9%6.6%4.8%
1Y-44.8%-39.7%-1.2%

Return vs Industry: NETC underperformed the Danish Software industry which returned -41.3% over the past year.

Return vs Market: NETC underperformed the Danish Market which returned -4% over the past year.

Price Volatility

Is NETC's price volatile compared to industry and market?
NETC volatility
NETC Average Weekly Movement7.1%
Software Industry Average Movement9.0%
Market Average Movement6.5%
10% most volatile stocks in DK Market10.9%
10% least volatile stocks in DK Market3.5%

Stable Share Price: NETC is not significantly more volatile than the rest of Danish stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: NETC's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20006,513Andre Rogaczewskihttps://www.netcompany.com

Netcompany Group A/S, an IT services company, delivers business critical IT solutions to public and private sector customers in Denmark, Norway, the United Kingdom, the Netherlands, Belgium, Luxembourg, Greece, Spain, and internationally. It is involved in the development, maintenance, and operation of business-critical IT solutions for various areas, such as digital Web and self-service solutions, application development, cognitive computing, e-commerce and product information management (PIM), ERP, CRM and marketing, application management, case and document management, operation and infrastructure, data and insight, application and mobile, and organizational implementation. The company serves customers in finance, government, manufacturing and engineering, municipality, organization, region, retail and trade, service, unemployment insurance fund and union, telecommunication and media, and energy and utility markets.

Netcompany Group Fundamentals Summary

How do Netcompany Group's earnings and revenue compare to its market cap?
NETC fundamental statistics
Market Capkr.19.12b
Earnings (TTM)kr.510.00m
Revenue (TTM)kr.4.15b

37.5x

P/E Ratio

4.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NETC income statement (TTM)
Revenuekr.4.15b
Cost of Revenuekr.2.72b
Gross Profitkr.1.42b
Other Expenseskr.914.91m
Earningskr.510.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 11, 2022

Earnings per share (EPS)10.38
Gross Margin34.35%
Net Profit Margin12.29%
Debt/Equity Ratio71.4%

How did NETC perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is NETC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NETC?

Other financial metrics that can be useful for relative valuation.

NETC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.1x
Enterprise Value/EBITDA24.9x
PEG Ratio1.4x

Price to Earnings Ratio vs Peers

How does NETC's PE Ratio compare to its peers?

NETC PE Ratio vs Peers
The above table shows the PE ratio for NETC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average78.2x

Price-To-Earnings vs Peers: NETC is good value based on its Price-To-Earnings Ratio (37.5x) compared to the peer average (78.2x).


Price to Earnings Ratio vs Industry

How does NETC's PE Ratio compare vs other companies in the Software Industry?

Price-To-Earnings vs Industry: NETC is good value based on its Price-To-Earnings Ratio (37.5x) compared to the Danish Software industry average (109.9x)


Price to Earnings Ratio vs Fair Ratio

What is NETC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NETC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio37.5x
Fair PE Ratio32.2x

Price-To-Earnings vs Fair Ratio: NETC is expensive based on its Price-To-Earnings Ratio (37.5x) compared to the estimated Fair Price-To-Earnings Ratio (32.2x).


Share Price vs Fair Value

What is the Fair Price of NETC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NETC (DKK389.2) is trading below our estimate of fair value (DKK560.68)

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


Price to Earnings Growth Ratio

PEG Ratio: NETC is poor value based on its PEG Ratio (1.4x)


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Future Growth

How is Netcompany Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


26.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NETC's forecast earnings growth (26.9% per year) is above the savings rate (0.09%).

Earnings vs Market: NETC's earnings (26.9% per year) are forecast to grow faster than the Danish market (9.7% per year).

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

Revenue vs Market: NETC's revenue (17% per year) is forecast to grow faster than the Danish market (6.5% per year).

High Growth Revenue: NETC's revenue (17% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NETC's Return on Equity is forecast to be high in 3 years time (22.8%)


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Past Performance

How has Netcompany Group performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


29.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NETC has high quality earnings.

Growing Profit Margin: NETC's current net profit margins (12.3%) are lower than last year (14.3%).


Past Earnings Growth Analysis

Earnings Trend: NETC's earnings have grown significantly by 29.4% per year over the past 5 years.

Accelerating Growth: NETC's earnings growth over the past year (19%) is below its 5-year average (29.4% per year).

Earnings vs Industry: NETC earnings growth over the past year (19%) exceeded the Software industry 16.5%.


Return on Equity

High ROE: NETC's Return on Equity (16.2%) is considered low.


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Financial Health

How is Netcompany Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: NETC's short term assets (DKK2.7B) exceed its short term liabilities (DKK1.4B).

Long Term Liabilities: NETC's short term assets (DKK2.7B) exceed its long term liabilities (DKK2.5B).


Debt to Equity History and Analysis

Debt Level: NETC's net debt to equity ratio (61.1%) is considered high.

Reducing Debt: NETC's debt to equity ratio has reduced from 92.1% to 71.4% over the past 5 years.

Debt Coverage: NETC's debt is not well covered by operating cash flow (18.6%).

Interest Coverage: NETC's interest payments on its debt are well covered by EBIT (31.7x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.88%

Forecast Dividend Yield

Dividend Yield vs Market

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

High Dividend: Unable to evaluate NETC'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 NETC's dividends per share have been stable in the past.

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


Earnings Payout to Shareholders

Earnings Coverage: NETC is not paying a notable dividend for the Danish market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as NETC has not reported any payouts.


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Management

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

5.4yrs

Average management tenure


CEO

Andre Rogaczewski (53 yo)

22.42yrs

Tenure

kr.11,537,000

Compensation

Mr. Andre Rogaczewski has been an Independent Director of Spar Nord Bank A/S since April 7, 2021. Mr. Rogaczewski is the Co-Founder of Netcompany Group A/S in 2000 and serves as its Chief Executive Officer...


CEO Compensation Analysis

Compensation vs Market: Andre's total compensation ($USD1.64M) is about average for companies of similar size in the Danish market ($USD2.06M).

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


Leadership Team

Experienced Management: NETC's management team is seasoned and experienced (5.4 years average tenure).


Board Members

Experienced Board: NETC's board of directors are not considered experienced ( 2.6 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Netcompany Group A/S's 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
  • Implied Market Cap: kr.19.123b
  • Shares outstanding: 49.14m
  • Website: https://www.netcompany.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/24 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.