CPSE:NETC

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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, Poland, and Vietnam.


Snowflake Analysis

Solid track record with high growth potential.


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

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


Market Performance


7 Day Return

-0.7%

NETC

0.9%

DK Software

-0.4%

DK Market


1 Year Return

81.8%

NETC

49.9%

DK Software

28.0%

DK Market

Return vs Industry: NETC exceeded the Danish Software industry which returned 49.9% over the past year.

Return vs Market: NETC exceeded the Danish Market which returned 28% over the past year.


Shareholder returns

NETCIndustryMarket
7 Day-0.7%0.9%-0.4%
30 Day-3.8%0.2%2.6%
90 Day27.4%23.7%13.0%
1 Year81.8%81.8%51.3%49.9%30.5%28.0%
3 Yearn/a53.9%45.8%50.1%37.2%
5 Yearn/a118.1%100.6%51.5%32.6%

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 compared to its fair value and its price relative to the market?

58.45x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NETC (DKK456.2) is trading above our estimate of fair value (DKK323.57)

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


Price To Earnings Ratio

PE vs Industry: NETC is poor value based on its PE Ratio (58.5x) compared to the XE Software industry average (29.7x).

PE vs Market: NETC is poor value based on its PE Ratio (58.5x) compared to the Danish market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: NETC is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: NETC is good value based on its PB Ratio (10.3x) compared to the DK Software industry average (18.2x).


Next Steps

Future Growth

How is Netcompany Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

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 (0.3%).

Earnings vs Market: NETC's earnings (26.9% per year) are forecast to grow faster than the Danish market (13.2% per year).

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

Revenue vs Market: NETC's revenue (15% per year) is forecast to grow faster than the Danish market (6.1% per year).

High Growth Revenue: NETC's revenue (15% 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 (24.6%)


Next Steps

Past Performance

How has Netcompany Group performed over the past 5 years?

31.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NETC has high quality earnings.

Growing Profit Margin: NETC's current net profit margins (15%) are higher than last year (10.8%).


Past Earnings Growth Analysis

Earnings Trend: NETC's earnings have grown significantly by 31% per year over the past 5 years.

Accelerating Growth: NETC's earnings growth over the past year (66.6%) exceeds its 5-year average (31% per year).

Earnings vs Industry: NETC earnings growth over the past year (66.6%) exceeded the Software industry 19.8%.


Return on Equity

High ROE: NETC's Return on Equity (17.6%) is considered low.


Next Steps

Financial Health

How is Netcompany Group's financial position?


Financial Position Analysis

Short Term Liabilities: NETC's short term assets (DKK1.1B) exceed its short term liabilities (DKK533.6M).

Long Term Liabilities: NETC's short term assets (DKK1.1B) exceed its long term liabilities (DKK1.1B).


Debt to Equity History and Analysis

Debt Level: NETC's debt to equity ratio (44.2%) is considered high.

Reducing Debt: NETC's debt to equity ratio has increased from 0.2% to 44.2% over the past 5 years.

Debt Coverage: NETC's debt is well covered by operating cash flow (50.6%).

Interest Coverage: NETC's interest payments on its debt are well covered by EBIT (24.8x coverage).


Balance Sheet


Next Steps

Dividend

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

0.73%

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.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

20.6yrs

Average management tenure


CEO

André Rogaczewski

20.58yrs

Tenure

ø10,267,000

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

Compensation vs Market: André's total compensation ($USD1.62M) is about average for companies of similar size in the Danish market ($USD1.62M).

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


Leadership Team

NamePositionTenureCompensationOwnership
André Rogaczewski
Co-Founder20.58yrsø10.27m5.24%
DKK 1.2b
Thomas Johansen
CFO & Member of Executive Board3.58yrsø5.71m0.029%
DKK 6.6m
Claus Jørgensen
COO & Member of Executive Board20.58yrsø10.27m5.24%
DKK 1.2b
Tine Boye
General Counselno datano datano data
Gustaf Löfberg
Country Managing Partnerno datano datano data

20.6yrs

Average Tenure

Experienced Management: NETC's management team is seasoned and experienced (20.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Juha Christensen
Deputy Independent Chairman of the Board0.42yrø623.00k0.055%
DKK 12.5m
Bo Rygaard
Independent Chairman of the Board of Director1yrø661.00k0.021%
DKK 4.7m
Scanes Bentley
Independent Director1.58yrsø394.00kno data
Robbert Kuppens
Independent Director1yrø169.00kno data

1.0yrs

Average Tenure

55.5yo

Average Age

Experienced Board: NETC's board of directors are not considered experienced ( 1 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 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: ø22.478b
  • Shares outstanding: 49.10m
  • Website: https://www.netcompany.com

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, delivers business critical IT solutions to public and private sector customers in Denmark, Norway, the United Kingdom, the Netherlands, Poland, and Vietnam. It ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/04 22:37
End of Day Share Price2020/08/04 00:00
Earnings2020/03/31
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.