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.
Rewards
Risk Analysis
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
| NETC | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.7% | 0.9% | -0.4% |
| 30 Day | -3.8% | 0.2% | 2.6% |
| 90 Day | 27.4% | 23.7% | 13.0% |
| 1 Year | 81.8%81.8% | 51.3%49.9% | 30.5%28.0% |
| 3 Year | n/a | 53.9%45.8% | 50.1%37.2% |
| 5 Year | n/a | 118.1%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
1 week ago | Simply Wall St
The Price Is Right For Netcompany Group A/S (CPH:NETC)3 weeks ago | Simply Wall St
What Is The Ownership Structure Like For Netcompany Group A/S (CPH:NETC)?1 month ago | Simply Wall St
Here's Why I Think Netcompany Group (CPH:NETC) Is An Interesting StockValuation
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | 20.58yrs | ø10.27m | 5.24% DKK 1.2b | |
| CFO & Member of Executive Board | 3.58yrs | ø5.71m | 0.029% DKK 6.6m | |
| COO & Member of Executive Board | 20.58yrs | ø10.27m | 5.24% DKK 1.2b | |
| General Counsel | no data | no data | no data | |
| Country Managing Partner | no data | no data | no data |
20.6yrs
Average Tenure
Experienced Management: NETC's management team is seasoned and experienced (20.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Deputy Independent Chairman of the Board | 0.42yr | ø623.00k | 0.055% DKK 12.5m | |
| Independent Chairman of the Board of Director | 1yr | ø661.00k | 0.021% DKK 4.7m | |
| Independent Director | 1.58yrs | ø394.00k | no data | |
| Independent Director | 1yr | ø169.00k | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NETC | CPSE (OMX Nordic Exchange Copenhagen) | Yes | Ordinary Shares | DK | DKK | Jun 2018 |
| 60N | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jun 2018 |
| 0YH9 | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | DKK | Jun 2018 |
| NETCC | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | DKK | Jun 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/08/04 22:37 |
| End of Day Share Price | 2020/08/04 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.