ENXTPA:ENX

Stock Analysis Report

Executive Summary

Euronext N.V., together with its subsidiaries, operates securities and derivatives exchanges in Continental Europe and Ireland.

Rewards

Trading at 16.7% below its fair value

Earnings are forecast to grow 16.41% per year

Earnings grew by 2.8% over the past year

Risk Analysis

Unstable dividend track record



Snowflake Analysis

Reasonable growth potential with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.9%

ENX

0.9%

FR Capital Markets

1.4%

FR Market


1 Year Return

51.3%

ENX

6.0%

FR Capital Markets

17.0%

FR Market

Return vs Industry: ENX exceeded the French Capital Markets industry which returned 7% over the past year.

Return vs Market: ENX exceeded the French Market which returned 17.2% over the past year.


Shareholder returns

ENXIndustryMarket
7 Day0.9%0.9%1.4%
30 Day3.8%7.3%-0.02%
90 Day15.1%9.2%3.9%
1 Year55.0%51.3%20.1%6.0%21.1%17.0%
3 Year112.5%95.1%21.4%-3.4%44.4%30.8%
5 Year195.2%157.0%28.7%-9.7%56.1%34.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

16.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ENX (€80.95) is trading below our estimate of fair value (€97.21)

Significantly Below Fair Value: ENX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ENX is poor value based on its PE Ratio (25.4x) compared to the Capital Markets industry average (25.4x).

PE vs Market: ENX is poor value based on its PE Ratio (25.4x) compared to the French market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: ENX is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: ENX is overvalued based on its PB Ratio (6.1x) compared to the FR Capital Markets industry average (1.4x).


Next Steps

Future Growth

How is Euronext forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

16.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ENX's forecast earnings growth (16.4% per year) is above the savings rate (-0.1%).

Earnings vs Market: ENX's earnings (16.4% per year) are forecast to grow faster than the French market (13.4% per year).

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

Revenue vs Market: ENX's revenue (8.6% per year) is forecast to grow faster than the French market (4.5% per year).

High Growth Revenue: ENX's revenue (8.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ENX's Return on Equity is forecast to be high in 3 years time (24.6%)


Next Steps

Past Performance

How has Euronext performed over the past 5 years?

9.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ENX has high quality earnings.

Growing Profit Margin: ENX's current net profit margins (32.7%) are lower than last year (35.1%).


Past Earnings Growth Analysis

Earnings Trend: ENX's earnings have grown by 9.7% per year over the past 5 years.

Accelerating Growth: ENX's earnings growth over the past year (2.8%) is below its 5-year average (9.7% per year).

Earnings vs Industry: ENX earnings growth over the past year (2.8%) exceeded the Capital Markets industry -1.4%.


Return on Equity

High ROE: Whilst ENX's Return on Equity (24.13%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Euronext's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

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

Debt Coverage by Assets: ENX's debt is not covered by short term assets (assets are 0.5x debt).


Financial Institutions Analysis

Asset Level: ENX's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if ENX has a sufficient allowance for bad loans.

Low Risk Liabilities: ENX reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if ENX has an acceptable proportion of non-loan assets held.

Low Risk Deposits: ENX has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if ENX has an appropriate level of bad loans.


Next Steps

Dividend

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

1.96%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%1.5%markettop25%4.5%industryaverage5.4%forecastin3Years2.7%

Current dividend yield vs market & industry

Notable Dividend: ENX's dividend (1.96%) is higher than the bottom 25% of dividend payers in the French market (1.53%).

High Dividend: ENX's dividend (1.96%) is low compared to the top 25% of dividend payers in the French market (4.48%).


Stability and Growth of Payments

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

Growing Dividend: ENX's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.9%), ENX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ENX's dividends in 3 years are forecast to be well covered by earnings (47.5% payout ratio).


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Stéphane Boujnah (54yo)

4.3yrs

Tenure

€2,324,000

Compensation

Mr. Stéphane Boujnah has been the Chairman of Managing Board and Chief Executive Officer of Euronext N.V. since November 04, 2015. Mr. Boujnah serves as Non-Executive Chairman of Irish Stock Exchange Plc.  ...


CEO Compensation Analysis

Compensation vs Market: Stéphane's total compensation ($USD2.52M) is about average for companies of similar size in the French market ($USD2.64M).

Compensation vs Earnings: Stéphane's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Stéphane Boujnah
Chairman of the Managing Board & CEO4.3yrs€2.32m0.018% 1.0m
Anthony Attia
Global Head of Listing and Post Trade5.9yrs€980.00k0.049% 2.8m
Vincent Van Dessel
Member of Managing Board & CEO of Euronext Brussels5.9yrs€683.00k0.0098% 550.6k
Maurice Van Tilburg
Head of Market Ops. & Client Centricity4.8yrs€817.00k0.013% 724.1k
Chris Topple
CEO of Euronext London1.3yrs€795.97k0.040% 2.2m
Daryl Byrne
CEO of Euronext Dublin1.3yrs€422.31k0.0021% 116.1k
Giorgio Modica
Chief Financial Officer3.8yrsno datano data
Isabel Ucha
Member of Managing Board1.1yrsno data0.013% 720.2k
Alain Courbebaisse
Chief Information & Technology Officer2.7yrsno datano data
Aurélie Cohen
Head of Investor Relations2.4yrsno datano data

3.2yrs

Average Tenure

49yo

Average Age

Experienced Management: ENX's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Manuel da Silva
Independent Member of Supervisory Board7.2yrsno datano data
Jim Gollan
Independent Member of Supervisory Board4.6yrsno datano data
Padraic O'Connor
Member of the Supervisory Board1.7yrsno datano data
Dick Sluimers
Independent Chairman of the Supervisory Board1.8yrsno datano data
Morten Thorsrud
Independent Member of Supervisory Board0.3yrsno data0.00072% 40.6k
Franck Silvent
Supervisory Board Member2.3yrsno datano data
Godelieve Mostrey
Non-Independent Member of Supervisory Board5.2yrsno datano data
Nathalie Rachou
Independent Member of Supervisory Board0.3yrsno datano data
Kerstin Günther
Independent Member of Supervisory Board3.6yrsno datano data
Luc Keuleneer
Member of the Supervisory Board1.7yrsno datano data

2.0yrs

Average Tenure

60.5yo

Average Age

Experienced Board: ENX's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


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

Euronext N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Euronext N.V.
  • Ticker: ENX
  • Exchange: ENXTPA
  • Founded: 2000
  • Industry: Financial Exchanges and Data
  • Sector: Diversified Financials
  • Market Cap: €5.635b
  • Shares outstanding: 69.61m
  • Website: https://www.euronext.com

Number of Employees


Location

  • Euronext N.V.
  • Beursplein 5
  • Amsterdam
  • Noord-Holland
  • 1012 JW
  • Netherlands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ENXENXTPA (Euronext Paris)YesOrdinary SharesFREURJun 2014
ENXBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2014
ENXPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJun 2014
0QVJLSE (London Stock Exchange)YesOrdinary SharesGBEURJun 2014
EUXT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2014

Biography

Euronext N.V., together with its subsidiaries, operates securities and derivatives exchanges in Continental Europe and Ireland. The company offers a range of exchange and corporate services, including security listings, cash and derivatives trading, and market data dissemination. It also provides listing venues and cash equities trading venues; and various marketplaces, including multilateral trading facilities for investors, broker-dealers, and other market participants to meet directly to buy and sell cash equities, fixed income securities, and exchange traded products. In addition, the company offers options contracts based on the blue-chip equities listed on Euronext; commodity derivatives, such as milling wheat futures contracts; and post-trade services, as well as distributes and sells real-time, historic, and reference data to data vendors, and financial institutions and individual investors. Further, it provides equity, debts, funds, and exchange traded funds listing services; and investors, foreign exchange trading, and advanced data services. Additionally, the company offers technology solutions and services to exchanges and venue operators; software support and maintenance services for the legacy trading platforms; software licensing services; trading software in the form of managed services; network connectivity and server colocation services to market participants; information technology hosting services to third-party market operators; connection services; and other services. The company was formerly known as Euronext Group N.V. and changed its name to Euronext N.V. in May 2014. Euronext N.V. was founded in 2000 and is headquartered in Amsterdam, the Netherlands. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 22:14
End of Day Share Price2020/02/17 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.