BME:PSG

Stock Analysis Report

Prosegur Compañía de Seguridad

Executive Summary

Prosegur Compañía de Seguridad, S.A. operates in the private security sector in Europe, Asia-Oceania-Africa, and Ibero-America.


Snowflake Analysis

Undervalued established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.6%

PSG

0.8%

ES Commercial Services

-2.8%

ES Market


1 Year Return

-55.5%

PSG

-30.8%

ES Commercial Services

-27.7%

ES Market

Return vs Industry: PSG underperformed the Spanish Commercial Services industry which returned -30.8% over the past year.

Return vs Market: PSG underperformed the Spanish Market which returned -27.7% over the past year.


Shareholder returns

PSGIndustryMarket
7 Day-4.6%0.8%-2.8%
30 Day-36.8%-28.4%-22.6%
90 Day-41.8%-35.7%-29.4%
1 Year-54.5%-55.5%-28.6%-30.8%-25.1%-27.7%
3 Year-56.2%-60.9%-30.8%-36.7%-27.0%-33.8%
5 Year-52.7%-59.8%-21.4%-32.8%-29.2%-40.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Prosegur Compañía de Seguridad undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PSG (€2.2) is trading below our estimate of fair value (€4.47)

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


Price To Earnings Ratio

PE vs Industry: PSG is good value based on its PE Ratio (11.5x) compared to the Commercial Services industry average (12.6x).

PE vs Market: PSG is good value based on its PE Ratio (11.5x) compared to the Spanish market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: PSG is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: PSG is overvalued based on its PB Ratio (1.5x) compared to the XE Commercial Services industry average (1.3x).


Next Steps

Future Growth

How is Prosegur Compañía de Seguridad forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

13.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PSG's forecast earnings growth (13.5% per year) is above the savings rate (0.4%).

Earnings vs Market: PSG's earnings (13.5% per year) are forecast to grow faster than the Spanish market (10.6% per year).

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

Revenue vs Market: PSG's revenue (2.1% per year) is forecast to grow slower than the Spanish market (4% per year).

High Growth Revenue: PSG's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PSG's Return on Equity is forecast to be low in 3 years time (16.7%).


Next Steps

Past Performance

How has Prosegur Compañía de Seguridad performed over the past 5 years?

-9.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PSG has high quality earnings.

Growing Profit Margin: PSG's current net profit margins (2.7%) are lower than last year (3.4%).


Past Earnings Growth Analysis

Earnings Trend: PSG's earnings have declined by -9.1% per year over the past 5 years.

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

Earnings vs Industry: PSG had negative earnings growth (-13.9%) over the past year, making it difficult to compare to the Commercial Services industry average (8.9%).


Return on Equity

High ROE: PSG's Return on Equity (17.8%) is considered low.


Next Steps

Financial Health

How is Prosegur Compañía de Seguridad's financial position?


Financial Position Analysis

Short Term Liabilities: PSG's short term assets (€2.0B) exceed its short term liabilities (€1.3B).

Long Term Liabilities: PSG's short term assets (€2.0B) exceed its long term liabilities (€1.8B).


Debt to Equity History and Analysis

Debt Level: PSG's debt to equity ratio (180.5%) is considered high.

Reducing Debt: PSG's debt to equity ratio has increased from 107.4% to 180.5% over the past 5 years.

Debt Coverage: PSG's debt is well covered by operating cash flow (22.6%).

Interest Coverage: PSG's interest payments on its debt are well covered by EBIT (15x coverage).


Balance Sheet

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

Debt Coverage by Assets: PSG's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

What is Prosegur Compañía de Seguridad's current dividend yield, its reliability and sustainability?

6.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PSG's dividend (6%) is higher than the bottom 25% of dividend payers in the Spanish market (3.01%).

High Dividend: PSG's dividend (6%) is low compared to the top 25% of dividend payers in the Spanish market (8.08%).


Stability and Growth of Payments

Stable Dividend: PSG's dividends per share have been stable in the past 10 years.

Growing Dividend: PSG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (68.8%), PSG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PSG's dividends in 3 years are forecast to be covered by earnings (58.4% payout ratio).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Christian Revoredo

12.25s

Tenure

€1,336,000

Compensation

Mr. Christian Gut Revoredo has been Chairman at Prosegur Cash, S.A. since December 2016 & serves as its Executive Director. Mr. Revoredo has been the Chief Executive Officer of Prosegur Compañía de Segurid ...


CEO Compensation Analysis

Compensation vs Market: Christian's total compensation ($USD0.00) is below average for companies of similar size in the Spanish market ($USD1.03M).

Compensation vs Earnings: Insufficient data to compare Christian's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Helena Revoredo Delvecchio
Chairman16.25yrs€620.00k0.038% 467.0k
Christian Revoredo
CEO, MD12.25yrs€1.34mno data
Isidro Fernández Barreiro
Non-Executive Vice Chairman2.92yrs€296.00kno data
Antonio Rubio Merino
Chief Financial Officerno datano datano data
Antonio de Cárcer
Head of Investor Relationsno datano datano data
José Antonio Lasanta Luri
Global Director of Strategy & Business Developmentno datano datano data
Miguel Ángel Bandrés Gutiérrez
Corporate Director of Human Resourcesno datano datano data
Rodrigo Zulueta Galilea
Chairman of Prosegur Latamno datano datano data
Arnau Tapias Monne
Non-board Member Secretary2.25yrsno datano data
María Caño Cadahía
Non-board Member Vice Secretary2.25yrsno datano data

2.6yrs

Average Tenure

Experienced Management: PSG's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Helena Revoredo Delvecchio
Chairman16.25yrs€620.00k0.038% 467.0k
Christian Revoredo
CEO, MD12.25yrs€1.34mno data
Isidro Fernández Barreiro
Non-Executive Vice Chairman2.92yrs€296.00kno data
Eugenio Ruiz-Gálvez Priego
External Director14.83yrs€142.00kno data
Ángel Durández Adeva
External Independent Director2.83yrsno data0.00093% 11.5k
Fernando D'Ornellas Silva
External Independent Director4yrsno datano data
Chantal Gut Revoredo
Proprietary Director22.83yrs€117.00kno data
Fernando Vives Ruiz
External Independent Director7.92yrs€105.00kno data

11.4yrs

Average Tenure

72yo

Average Age

Experienced Board: PSG's board of directors are seasoned and experienced ( 11.4 years average tenure).


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

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


Key Information

  • Name: Prosegur Compañía de Seguridad, S.A.
  • Ticker: PSG
  • Exchange: BME
  • Founded: 1976
  • Industry: Security and Alarm Services
  • Sector: Commercial Services
  • Market Cap: €1.241b
  • Shares outstanding: 568.60m
  • Website: https://www.prosegur.com

Number of Employees


Location

  • Prosegur Compañía de Seguridad, S.A.
  • Calle Pajaritos, no. 24
  • Madrid
  • Madrid
  • 28007
  • Spain

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PRHADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1988
PSGBME (Bolsas y Mercados Espanoles)YesOrdinary SharesESEURJul 1988
0Q8PLSE (London Stock Exchange)YesOrdinary SharesGBEURJul 1988
PSGEBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJul 1988
PSG NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJul 1988

Biography

Prosegur Compañía de Seguridad, S.A. operates in the private security sector in Europe, Asia-Oceania-Africa, and Ibero-America. The company operates through Security, Cash, and Alarms segments. The Security segment offers control center, global risk advisory, and consulting services; CCTV and video processing and management, access control, intrusion detection, fire protection, interphones and PA, integrated security, and fleet tracking systems, as well as maintenance services; on-site manned guarding, mobility, personal protection, indoor geolocation, cargo tracking, and goods in transit custody services; and legal assistance, inventories and logistic processes, receptionists, telephone operators, concierges, and events services. It also provides cybersecurity solutions comprising managed and digital security, audits and ethical hacking, and consulting. The Cash segment offers securities logistics and cash management, and outsourcing services for the banking and distribution sectors. The Alarms segment installs and maintains home alarms, as well as provides alarm monitoring services for families and businesses. The company was founded in 1976 and is headquartered in Madrid, Spain. Prosegur Compañía de Seguridad, S.A. is a subsidiary of Gubel, S.L. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 23:12
End of Day Share Price2020/04/02 00:00
Earnings2019/12/31
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.