Groupe CRIT (ENXTPA:CEN) - Share price, News & Analysis

Q: What is the Fair Price of CEN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

CEN (€61.4) is trading below our estimate of [[fair value]] (€173.21)

CEN fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	3/6
Past Performance	4/6
Financial Health	6/6
Dividends	3/6

CEN Stock Overview

Rewards

Trading at 64.6% below our estimate of its fair value

Earnings are forecast to grow 15.03% per year

Earnings grew by 2730.2% over the past year

Risk Analysis

No risks detected for CEN from our risk checks.

Groupe CRIT Competitors

Synergie

ENXTPA:SDG

€686.0m

Freelance.com

ENXTPA:ALFRE

€359.6m

DLSI

ENXTPA:ALDLS

€26.3m

Assystem

ENXTPA:ASY

€526.7m

Price History & Performance

Summary of all time highs, changes and price drops for Groupe CRIT
Historical stock prices
Current Share Price	€61.40
52 Week High	€76.30
52 Week Low	€53.90
Beta	0.80
1 Month Change	5.86%
3 Month Change	-4.06%
1 Year Change	-10.37%
3 Year Change	-4.21%
5 Year Change	-24.02%
Change since IPO	923.33%

Recent News & Updates

Jun 23

Groupe CRIT (EPA:CEN) Has A Rock Solid Balance Sheet

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Mar 24

Are Investors Undervaluing Groupe CRIT SA (EPA:CEN) By 42%?

In this article we are going to estimate the intrinsic value of Groupe CRIT SA ( EPA:CEN ) by projecting its future...

Dec 19

Groupe CRIT (EPA:CEN) Has A Pretty Healthy Balance Sheet

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...

Nov 30

There Are Reasons To Feel Uneasy About Groupe CRIT's (EPA:CEN) Returns On Capital

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? In a perfect world...

Shareholder Returns

	CEN	FR Professional Services	FR Market
7D	0.7%	-3.4%	0.2%
1Y	-10.4%	-10.2%	-6.7%

Return vs Industry: CEN matched the French Professional Services industry which returned -10.2% over the past year.

Return vs Market: CEN underperformed the French Market which returned -6.7% over the past year.

Price Volatility

Is CEN's price volatile compared to industry and market?
CEN volatility
CEN Average Weekly Movement	2.8%
Professional Services Industry Average Movement	4.0%
Market Average Movement	5.0%
10% most volatile stocks in FR Market	9.0%
10% least volatile stocks in FR Market	2.9%

Stable Share Price: CEN is less volatile than 75% of French stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: CEN's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1962	7,204	Nathalie Jaoui	https://www.groupe-crit.com

Groupe CRIT SA provides temporary staffing and recruitment services to the small and medium-sized businesses and industries in France, the United States, the United Kingdom, Spain, Portugal, Africa, and internationally. It operates through three segments: Temporary Staffing and Recruitment, Airport Services, and Other Services. The company offers services for recruitment; job placement; consulting; HR management digitization; and first-time employment support, including support and advice to job seekers, redeployment and retraining for workers made redundant, engineering consulting for finding employment for recent graduates, employment support and advice for disabled workers, audits and advice for companies, etc. It also provides airport services, such as check-in, boarding, and ticketing; aircraft assistance services consisting of towing, parking, chocking, electrical connections, baggage and cargo handling, checking tanks, cleaning, and aircraft pushouts; traffic services comprising monitoring flight plans, drawing up weight and balance forms, weather tracking, etc.; and cargo services that include transfer of cargo and mail from runway and storage.

Groupe CRIT Fundamentals Summary

How do Groupe CRIT's earnings and revenue compare to its market cap?
CEN fundamental statistics
Market Cap	€681.56m
Earnings (TTM)	€44.07m
Revenue (TTM)	€2.03b

15.5x

P/E Ratio

0.3x

P/S Ratio

Is CEN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CEN income statement (TTM)
Revenue	€2.03b
Cost of Revenue	€1.91b
Gross Profit	€118.81m
Other Expenses	€74.74m
Earnings	€44.07m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Sep 13, 2022

Earnings per share (EPS)	3.97
Gross Margin	5.85%
Net Profit Margin	2.17%
Debt/Equity Ratio	5.1%

How did CEN perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

25%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is CEN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CEN?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for CEN. This is calculated by dividing CEN's market cap by their current preferred multiple.
What is CEN's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€681.56m

CEN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.2x
Enterprise Value/EBITDA	4.2x
PEG Ratio	1x

Price to Earnings Ratio vs Peers

How does CEN's PE Ratio compare to its peers?

CEN PE Ratio vs Peers

The above table shows the PE ratio for CEN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	17.9x
SDG Synergie	9.7x	9.6%	€686.0m
ALFRE Freelance.com	36.4x	31.2%	€359.6m
ALDLS DLSI	9x	n/a	€26.3m
ASY Assystem	16.7x	12.7%	€526.7m
CEN Groupe CRIT	15.5x	15.0%	€681.6m

Price-To-Earnings vs Peers: CEN is good value based on its Price-To-Earnings Ratio (15.5x) compared to the peer average (17.9x).

Price to Earnings Ratio vs Industry

How does CEN's PE Ratio compare vs other companies in the European Professional Services Industry?

Price-To-Earnings vs Industry: CEN is good value based on its Price-To-Earnings Ratio (15.5x) compared to the French Professional Services industry average (16.1x)

Price to Earnings Ratio vs Fair Ratio

What is CEN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CEN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	15.5x
Fair PE Ratio	21.5x

Price-To-Earnings vs Fair Ratio: CEN is good value based on its Price-To-Earnings Ratio (15.5x) compared to the estimated Fair Price-To-Earnings Ratio (21.5x).

Share Price vs Fair Value

What is the Fair Price of CEN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CEN (€61.4) is trading below our estimate of fair value (€173.21)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Future Growth

How is Groupe CRIT forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

15.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CEN's forecast earnings growth (15% per year) is above the savings rate (0.3%).

Earnings vs Market: CEN's earnings (15% per year) are forecast to grow faster than the French market (11.5% per year).

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

Revenue vs Market: CEN's revenue (6.2% per year) is forecast to grow faster than the French market (5.3% per year).

High Growth Revenue: CEN's revenue (6.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: CEN's Return on Equity is forecast to be low in 3 years time (8.9%).

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Past Performance

How has Groupe CRIT performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-24.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CEN has high quality earnings.

Growing Profit Margin: CEN's current net profit margins (2.2%) are higher than last year (0.09%).

Past Earnings Growth Analysis

Earnings Trend: CEN's earnings have declined by 24.6% per year over the past 5 years.

Accelerating Growth: CEN's earnings growth over the past year (2730.2%) exceeds its 5-year average (-24.6% per year).

Earnings vs Industry: CEN earnings growth over the past year (2730.2%) exceeded the Professional Services industry 53.4%.

Return on Equity

High ROE: CEN's Return on Equity (6.6%) is considered low.

Discover strong past performing companies

Financial Health

How is Groupe CRIT's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CEN's short term assets (€877.7M) exceed its short term liabilities (€488.4M).

Long Term Liabilities: CEN's short term assets (€877.7M) exceed its long term liabilities (€104.6M).

Debt to Equity History and Analysis

Debt Level: CEN has more cash than its total debt.

Reducing Debt: CEN's debt to equity ratio has reduced from 22.6% to 5.1% over the past 5 years.

Debt Coverage: CEN's debt is well covered by operating cash flow (366.7%).

Interest Coverage: CEN earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Groupe CRIT current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

1.63%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CEN's dividend (1.63%) isn’t notable compared to the bottom 25% of dividend payers in the French market (1.68%).

High Dividend: CEN's dividend (1.63%) is low compared to the top 25% of dividend payers in the French market (5.27%).

Stability and Growth of Payments

Stable Dividend: CEN's dividend payments have been volatile in the past 10 years.

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

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (25.2%), CEN's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (9.5%), CEN's dividend payments are thoroughly covered by cash flows.

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Management

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

33.9yrs

Average board tenure

CEO

Nathalie Jaoui (58 yo)

0.50

Tenure

€306,924

Compensation

Mrs. Nathalie Jaoui serves as Chairman of the board and Chief Executive Officer at Groupe CRIT SA since February 24, 2022. She served as Executive Vice President and President of the Temporary Staffing & R...

CEO Compensation Analysis

Compensation vs Market: Nathalie's total compensation ($USD311.72K) is below average for companies of similar size in the French market ($USD572.57K).

Compensation vs Earnings: Nathalie's compensation has been consistent with company performance over the past year.

Board Members

Experienced Board: CEN's board of directors are seasoned and experienced ( 33.9 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/07 00:00
End of Day Share Price	2022/08/05 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31