BME:CASH

Stock Analysis Report

Executive Summary

Prosegur Cash, S.A. provides cash logistics and cash management, and other outsourced services to financial institutions, retailers, government agencies and central banks, mints, jewelers, and other commercial operations worldwide.

Rewards

Trading at 27.8% below its fair value

Earnings are forecast to grow 7.18% per year

Risk Analysis

Has a high level of debt

Unstable dividend track record



Snowflake Analysis

Good value with moderate growth potential.

Share Price & News

How has Prosegur Cash's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CASH has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.4%

CASH

1.4%

ES Commercial Services

1.1%

ES Market


1 Year Return

-22.6%

CASH

14.4%

ES Commercial Services

7.6%

ES Market

Return vs Industry: CASH underperformed the Spanish Commercial Services industry which returned 15.1% over the past year.

Return vs Market: CASH underperformed the Spanish Market which returned 8.5% over the past year.


Shareholder returns

CASHIndustryMarket
7 Day6.4%1.4%1.1%
30 Day12.4%1.6%0.3%
90 Day25.8%8.7%3.5%
1 Year-19.6%-22.6%18.0%14.4%11.5%7.6%
3 Yearn/a16.1%5.8%15.8%4.7%
5 Yearn/a35.0%14.4%11.0%-7.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Prosegur Cash undervalued compared to its fair value and its price relative to the market?

25.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CASH (€1.49) is trading below our estimate of fair value (€2.06)

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


Price To Earnings Ratio

PE vs Industry: CASH is good value based on its PE Ratio (14.1x) compared to the Commercial Services industry average (18.4x).

PE vs Market: CASH is good value based on its PE Ratio (14.1x) compared to the Spanish market (17x).


Price to Earnings Growth Ratio

PEG Ratio: CASH is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: CASH is overvalued based on its PB Ratio (7.5x) compared to the XE Commercial Services industry average (1.7x).


Next Steps

Future Growth

How is Prosegur Cash forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

7.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CASH's forecast earnings growth (7.2% per year) is above the savings rate (0.4%).

Earnings vs Market: CASH's earnings (7.2% per year) are forecast to grow slower than the Spanish market (9% per year).

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

Revenue vs Market: CASH's revenue (3.8% per year) is forecast to grow faster than the Spanish market (3.4% per year).

High Growth Revenue: CASH's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CASH's Return on Equity is forecast to be high in 3 years time (39.2%)


Next Steps

Past Performance

How has Prosegur Cash performed over the past 5 years?

-6.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CASH has high quality earnings.

Growing Profit Margin: CASH's current net profit margins (8.7%) are lower than last year (11.6%).


Past Earnings Growth Analysis

Earnings Trend: CASH's earnings have declined by -6.6% per year over the past 5 years.

Accelerating Growth: CASH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CASH had negative earnings growth (-19%) over the past year, making it difficult to compare to the Commercial Services industry average (6.2%).


Return on Equity

High ROE: Whilst CASH's Return on Equity (52.91%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Prosegur Cash's financial position?


Financial Position Analysis

Short Term Liabilities: CASH's short term assets (€800.3M) exceed its short term liabilities (€669.3M).

Long Term Liabilities: CASH's short term assets (€800.3M) do not cover its long term liabilities (€887.0M).


Debt to Equity History and Analysis

Debt Level: CASH's debt to equity ratio (280.3%) is considered high.

Reducing Debt: Insufficient data to determine if CASH's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: CASH's debt is well covered by operating cash flow (24.1%).

Interest Coverage: CASH's interest payments on its debt are well covered by EBIT (11.7x coverage).


Balance Sheet

Inventory Level: CASH has a high level of physical assets or inventory.

Debt Coverage by Assets: CASH's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

What is Prosegur Cash's current dividend yield, its reliability and sustainability?

5.04%

Current Dividend Yield


Dividend Yield vs Market

company5.0%marketbottom25%2.2%markettop25%5.4%industryaverage2.9%forecastin3Years4.8%

Current dividend yield vs market & industry

Notable Dividend: CASH's dividend (5.28%) is higher than the bottom 25% of dividend payers in the Spanish market (2.22%).

High Dividend: CASH's dividend (5.28%) is low compared to the top 25% of dividend payers in the Spanish market (5.51%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, CASH has been paying a dividend for less than 10 years.

Growing Dividend: CASH's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (74.3%), CASH's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CASH's dividends in 3 years are forecast to be well covered by earnings (49.1% payout ratio).


Next Steps

Management

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

2.9yrs

Average board tenure


CEO

José Antonio Lasanta Luri 0

0yrs

Tenure

0

Mr. José Antonio Lasanta Luri serves as Chief Executive Officer at Prosegur Cash, S.A. and has been its Executive Director since December 19, 2016. He served as a Managing Director at Prosegur Cash, S.A. M ...


Board Age and Tenure

2.9yrs

Average Tenure

57yo

Average Age

Experienced Board: CASH's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Insider Trading

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.


Management Team

  • Christian Revoredo

    Chairman

    • Tenure: 3.1yrs
  • José Antonio Lasanta Luri

    CEO & Executive Director

    • Juan Cocci

      Managing Director of Latin America

      • Martín Matos

        Deputy Managing Director of Latin America

        • Gonzaga Higuero Robles

          Managing Director of European Region and AoA

          • Juan Luis Martín Carrera

            Human Resources Director

            • Pablo De La Morena Arranz

              Investor Relations Director

              • Javier Hergueta Vázquez

                Chief Financial Officer

                • Renata Mendaña Navarro

                  Secretary

                  • Roldán García Pereda

                    Vice Secretary


                    Board Members

                    • Pedro Guerrero Guerrero (66yo)

                      Deputy Chairman of the Board of Directors

                      • Antonio Rubio Merino (50yo)

                        Proprietary Director

                        • Tenure: 3.1yrs
                      • Claudio Aguirre Pemán

                        Independent Director

                        • Tenure: 2.9yrs
                      • Chantal Gut Revoredo

                        Proprietary Director

                        • Tenure: 2.9yrs
                      • Christian Revoredo

                        Chairman

                        • Tenure: 3.1yrs
                      • José Antonio Lasanta Luri

                        CEO & Executive Director

                        • Daniel Entrecanales Domecq

                          Independent Director

                          • Tenure: 2.9yrs
                        • Ana Inés Saínz de Vicuña Bemberg (57yo)

                          Independent Director

                          • Tenure: 2.9yrs
                        • María Benjumea Cabeza De Vaca

                          Independent Director

                          • Tenure: 2.9yrs

                        Company Information

                        Prosegur Cash, S.A.'s company bio, employee growth, exchange listings and data sources


                        Key Information

                        • Name: Prosegur Cash, S.A.
                        • Ticker: CASH
                        • Exchange: BME
                        • Founded: 2016
                        • Industry: Security and Alarm Services
                        • Sector: Commercial Services
                        • Market Cap: €2.338b
                        • Shares outstanding: 1.50b
                        • Website: https://www.prosegurcash.com

                        Number of Employees


                        Location

                        • Prosegur Cash, S.A.
                        • calle Santa Sabina, 8
                        • Madrid
                        • Madrid
                        • 28007
                        • Spain

                        Listings

                        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                        0RNOLSE (London Stock Exchange)YesOrdinary SharesGBEURMar 2017
                        CASHBME (Bolsas y Mercados Espanoles)YesOrdinary SharesESEURMar 2017
                        CASHEBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURMar 2017
                        PQNDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2017
                        CASH NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNMar 2017
                        PGUU.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2017
                        PGUC.YOTCPK (Pink Sheets LLC)UNSPONSRED ADSUSUSDSep 2019

                        Biography

                        Prosegur Cash, S.A. provides cash logistics and cash management, and other outsourced services to financial institutions, retailers, government agencies and central banks, mints, jewelers, and other commercial operations worldwide. The company’s services include local and international transport services, including pick-up, transport, safekeeping, delivery, and cash deposit services for cash and other high worth valuables, such as jewelry, art, precious metal, electronic devices, pharmaceuticals, voting cards, and judicial evidence. It also provides cash management services that include counting, processing, fitness determination, custody, and ATM replenishment, as well as preparation and delivery of notes and coins. In addition, the company offers outsourcing services comprising retail automation through self-service cash automatization machines, including cash deposit devices, recycling and distribution of coins and notes services, and bill payment services; ATM management services, such as forecasting, monitoring, first and second level maintenance, and balancing services; and added value outsourced services for financial institutions, including branch forecasting, reconciliation and settlement, and credit card support services. Prosegur Cash, S.A. was incorporated in 2016 and is based in Madrid, Spain. 


                        Company Analysis and Financial Data Status

                        All financial data provided by Standard & Poor's Capital IQ.
                        DataLast Updated (UTC time)
                        Company Analysis2020/01/19 22:03
                        End of Day Share Price2020/01/17 00:00
                        Earnings2019/09/30
                        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.