ENXTPA:CTRG

Stock Analysis Report

Catering International & Services Société Anonyme

Executive Summary

Catering International & Services Société Anonyme and its subsidiaries provide catering, accommodation, and facilities management services for oil and gas, mining, construction, civil engineering, and armed forces sectors.

Rewards

Trading at 82% below its fair value

Earnings are forecast to grow 3.03% per year

Earnings grew by 2.4% over the past year

Risk Analysis

Has a high level of debt

Highly volatile share price over past 3 months

Latest financial reports are more than 6 months old

Does not have a meaningful market cap (€55M)



Snowflake Analysis

Good value with proven track record.

Share Price & News

How has Catering International & Services Société Anonyme's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

5.8%

CTRG

0.04%

FR Commercial Services

2.5%

FR Market


1 Year Return

-37.6%

CTRG

-37.8%

FR Commercial Services

-18.6%

FR Market

Return vs Industry: CTRG matched the French Commercial Services industry which returned -37.8% over the past year.

Return vs Market: CTRG underperformed the French Market which returned -18.6% over the past year.


Shareholder returns

CTRGIndustryMarket
7 Day5.8%0.04%2.5%
30 Day-32.8%-31.4%-17.0%
90 Day-47.7%-40.3%-25.0%
1 Year-37.0%-37.6%-35.6%-37.8%-15.7%-18.6%
3 Year-62.6%-63.2%-48.8%-53.5%0.8%-8.6%
5 Year-64.5%-65.7%-41.8%-50.9%10.8%-6.9%

Price Volatility Vs. Market

How volatile is Catering International & Services Société Anonyme's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Catering International & Services Société Anonyme 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: CTRG (€6.96) is trading below our estimate of fair value (€38.77)

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


Price To Earnings Ratio

PE vs Industry: CTRG is good value based on its PE Ratio (11.2x) compared to the Commercial Services industry average (12.1x).

PE vs Market: CTRG is good value based on its PE Ratio (11.2x) compared to the French market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: CTRG is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: CTRG is overvalued based on its PB Ratio (1x) compared to the FR Commercial Services industry average (0.9x).


Next Steps

Future Growth

How is Catering International & Services Société Anonyme forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

3.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTRG's forecast earnings growth (3% per year) is above the savings rate (-0.1%).

Earnings vs Market: CTRG's earnings (3% per year) are forecast to grow slower than the French market (12.1% per year).

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

Revenue vs Market: CTRG's revenue (4.2% per year) is forecast to grow faster than the French market (3.5% per year).

High Growth Revenue: CTRG's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CTRG's Return on Equity is forecast to be low in 3 years time (8.7%).


Next Steps

Past Performance

How has Catering International & Services Société Anonyme performed over the past 5 years?

-8.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTRG has high quality earnings.

Growing Profit Margin: CTRG's current net profit margins (2.1%) are higher than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: CTRG's earnings have declined by -8.9% per year over the past 5 years.

Accelerating Growth: CTRG's earnings growth over the past year (2.4%) exceeds its 5-year average (-8.9% per year).

Earnings vs Industry: CTRG earnings growth over the past year (2.4%) exceeded the Commercial Services industry 2%.


Return on Equity

High ROE: CTRG's Return on Equity (9.5%) is considered low.


Next Steps

Financial Health

How is Catering International & Services Société Anonyme's financial position?


Financial Position Analysis

Short Term Liabilities: CTRG's short term assets (€131.5M) exceed its short term liabilities (€80.8M).

Long Term Liabilities: CTRG's short term assets (€131.5M) exceed its long term liabilities (€26.0M).


Debt to Equity History and Analysis

Debt Level: CTRG's debt to equity ratio (45.7%) is considered high.

Reducing Debt: CTRG's debt to equity ratio has increased from 22.2% to 45.7% over the past 5 years.

Debt Coverage: CTRG's debt is well covered by operating cash flow (23.1%).

Interest Coverage: CTRG's interest payments on its debt are well covered by EBIT (40.8x coverage).


Balance Sheet

Inventory Level: CTRG has a low level of unsold assets or inventory.

Debt Coverage by Assets: CTRG's debt is covered by short term assets (assets are 4.9x debt).


Next Steps

Dividend

What is Catering International & Services Société Anonyme's current dividend yield, its reliability and sustainability?

1.72%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CTRG's dividend (1.72%) isn’t notable compared to the bottom 25% of dividend payers in the French market (2.07%).

High Dividend: CTRG's dividend (1.72%) is low compared to the top 25% of dividend payers in the French market (6.43%).


Stability and Growth of Payments

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

Growing Dividend: CTRG's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.3%), CTRG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CTRG's dividends in 3 years are forecast to be well covered by earnings (19.4% payout ratio).


Next Steps

Management

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

7.7yrs

Average board tenure


CEO

Régis Arnoux

no data

Tenure

€366,000

Compensation

Mr. Régis Arnoux Founded Catering International & Services SA in 1992 and serves as its Chairman and Chief Executive Officer. Mr. Arnoux served as Managing Director of Catering International & Services SA. 


CEO Compensation Analysis

Compensation vs Market: Régis's total compensation ($USD403.80K) is about average for companies of similar size in the French market ($USD319.20K).

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


Board Members

NamePositionTenureCompensationOwnership
Régis Arnoux
Founderno data€366.00k7.2% 3.9m
Frédérique Salamon
Advisor to the Chairman & Director28yrs€59.00kno data
Florence Arnoux
Key Accounts Manager & Director9.67yrs€180.00kno data
Gonzague de Blignières
Independent Director5.67yrs€15.00kno data
Yves-Louis Darricarrere
Independent Director3.67yrs€15.00kno data
Frédéric Bedin
Independent Director8.83yrs€15.00kno data
Henri de Bodinat
Independent Director3.25yrs€15.00kno data
Monique Arnoux
Director28yrs€30.00kno data
Sophie Le de Rancourt
Independent Director3.25yrs€20.00kno data
Pierre-François Forissier
Independent Director7.67yrs€20.00kno data

7.7yrs

Average Tenure

65.5yo

Average Age

Experienced Board: CTRG's board of directors are considered experienced (7.7 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

Catering International & Services Société Anonyme's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Catering International & Services Société Anonyme
  • Ticker: CTRG
  • Exchange: ENXTPA
  • Founded: 1992
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: €54.658m
  • Shares outstanding: 7.85m
  • Website: https://www.cis-integratedservices.com/fr

Number of Employees


Location

  • Catering International & Services Société Anonyme
  • 40 c, avenue de Hambourg
  • BP 184
  • Marseille
  • Provence-Alpes-Côte d'Azur
  • 13268
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CTRGENXTPA (Euronext Paris)YesOrdinary SharesFREURJul 1998
0J6ULSE (London Stock Exchange)YesOrdinary SharesGBEURJul 1998
CTRGPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJul 1998

Biography

Catering International & Services Société Anonyme and its subsidiaries provide catering, accommodation, and facilities management services for oil and gas, mining, construction, civil engineering, and armed forces sectors. The company offers sourcing and logistics services; and reception, accommodation management, laundry, cleaning and housekeeping, and concierge services. It also engages in cleaning; design, engineering, and construction; water treatment; shipchandling and procurement; fleet management; skilled personnel recruitment; personnel transport; recreational and leisure; waste management; landscaping; and pest control activities, as well as the provision of access control, maintenance, and fire safety services. In addition, the company offers SystemONE, a combined integrated digital solution that enhances the daily management of sites and well-being of residents. It has operations in Africa, the Middle-East, Commonwealth of Independent States, the Americas, Asia, and Oceania. Catering International & Services Société Anonyme was founded in 1992 is headquartered in Marseille, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 23:39
End of Day Share Price2020/03/31 00:00
Earnings2019/06/30
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.