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TR1

TIER 1 TechnologyBME:TR1 Stock Report

Market Cap

€22.3m

7D

-0.9%

1Y

55.1%

Updated

23 Sep, 2021

Data

Company Financials +
TR1 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance5/6
Financial Health5/6
Dividends0/6

TR1 Overview

TIER 1 Technology, S.A. develops and implements software solutions.

Price History & Performance

Summary of all time highs, changes and price drops for TIER 1 Technology
Historical stock prices
Current Share Price€22.80
52 Week High€14.30
52 Week Low€23.40
Beta-0.0070
1 Month Change3.64%
3 Month Change29.55%
1 Year Change55.10%
3 Year Change26.67%
5 Year Changen/a
Change since IPO20.64%

Recent News & Updates

Shareholder Returns

TR1ES SoftwareES Market
7D-0.9%-1.2%1.5%
1Y55.1%14.6%27.9%

Return vs Industry: TR1 exceeded the Spanish Software industry which returned 12.8% over the past year.

Return vs Market: TR1 exceeded the Spanish Market which returned 26.5% over the past year.

Price Volatility

Is TR1's price volatile compared to industry and market?
TR1 volatility
TR1 Beta-0.0070
Industry Beta0.84
Market Beta1

Stable Share Price: TR1 is not significantly more volatile than the rest of Spanish stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: TR1's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2002208n/ahttps://www.tier1.es

TIER 1 Technology, S.A. develops and implements software solutions. The company offers ERP attractor software for business management; Engage software for the management and coordination of suppliers; comerzzia, a commerce software for retail management; Lustrum asset management software; and SecurInvoice, a software for creation and management of electronic invoice. It also provides infrastructure services, such as datacenter, cloud computing, monitoring, communications, security, mobility, technological consulting, data center construction, supply and asset management, queue management, and audiovisual services; ICT support, maintenance, and outsourcing services; and consulting and business process outsourcing services.

TIER 1 Technology Fundamentals Summary

How do TIER 1 Technology's earnings and revenue compare to its market cap?
TR1 fundamental statistics
Market Cap€22.26m
Earnings (TTM)€848.82k
Revenue (TTM)€12.87m

26.2x

P/E Ratio

1.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TR1 income statement (TTM)
Revenue€12.87m
Cost of Revenue€10.26m
Gross Profit€2.60m
Expenses€1.76m
Earnings€848.82k

Last Reported Earnings

Dec 31, 2020

Next Earnings Date

n/a

Earnings per share (EPS)0.87
Gross Margin20.24%
Net Profit Margin6.60%
Debt/Equity Ratio29.1%

How did TR1 perform over the long term?

See historical performance and comparison

Valuation

Is TIER 1 Technology 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: TR1 (€22.8) is trading below our estimate of fair value (€71.23)

Significantly Below Fair Value: TR1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TR1 is good value based on its PE Ratio (26.2x) compared to the European Software industry average (49.2x).

PE vs Market: TR1 is poor value based on its PE Ratio (26.2x) compared to the Spanish market (22.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TR1's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TR1 is overvalued based on its PB Ratio (6.2x) compared to the XE Software industry average (4.6x).


Future Growth

How is TIER 1 Technology forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

21.3%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if TR1's forecast earnings growth is above the savings rate (1%).

Earnings vs Market: Insufficient data to determine if TR1's earnings are forecast to grow faster than the Spanish market

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

Revenue vs Market: TR1's revenue (21.3% per year) is forecast to grow faster than the Spanish market (6.2% per year).

High Growth Revenue: TR1's revenue (21.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TR1's Return on Equity is forecast to be high in 3 years time (39.4%)


Past Performance

How has TIER 1 Technology performed over the past 5 years?

-2.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TR1 has high quality earnings.

Growing Profit Margin: TR1's current net profit margins (6.6%) are higher than last year (6.4%).


Past Earnings Growth Analysis

Earnings Trend: TR1's earnings have declined by 2.8% per year over the past 5 years.

Accelerating Growth: TR1's earnings growth over the past year (32.3%) exceeds its 5-year average (-2.8% per year).

Earnings vs Industry: TR1 earnings growth over the past year (32.3%) exceeded the Software industry 26.5%.


Return on Equity

High ROE: TR1's Return on Equity (24.3%) is considered high.


Financial Health

How is TIER 1 Technology's financial position?


Financial Position Analysis

Short Term Liabilities: TR1's short term assets (€6.9M) exceed its short term liabilities (€3.1M).

Long Term Liabilities: TR1's short term assets (€6.9M) exceed its long term liabilities (€1.1M).


Debt to Equity History and Analysis

Debt Level: TR1's debt to equity ratio (29.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if TR1's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: TR1's debt is well covered by operating cash flow (153.3%).

Interest Coverage: TR1's interest payments on its debt are well covered by EBIT (245.1x coverage).


Balance Sheet


Dividend

What is TIER 1 Technology current dividend yield, its reliability and sustainability?

3.94%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate TR1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate TR1'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 TR1's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TR1's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: TR1 is not paying a notable dividend for the Spanish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TR1's dividend in 3 years as they are not forecast to pay a notable one for the Spanish market.


Next Steps

Management

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

3.5yrs

Average board tenure


CEO

TIER 1 Technology has no CEO, or we have no data on them.


Board Members

Experienced Board: TR1's board of directors are considered experienced (3.5 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

TIER 1 Technology, S.A.'s employee growth, exchange listings and data sources


Key Information

  • Name: TIER 1 Technology, S.A.
  • Ticker: TR1
  • Exchange: BME
  • Founded: 2002
  • Industry: Application Software
  • Sector: Software
  • Market Cap: €22.265m
  • Shares outstanding: 976.52k
  • Website: https://www.tier1.es

Number of Employees


Location

  • TIER 1 Technology, S.A.
  • Vega Building 7
  • C / Boabdil 6
  • Camas
  • Andalusia
  • 41900
  • Spain

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 21:41
End of Day Share Price2021/09/23 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.