Cegedim (ENXTPA:CGM) - Share price, News & Analysis

CGM fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	1/6
Past Performance	5/6
Financial Health	3/6
Dividends	3/6

CGM Stock Overview

Rewards

Trading at 59.1% below our estimate of its fair value

Earnings are forecast to grow 5.71% per year

Earnings grew by 142% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Cegedim Competitors

Oracle

NYSE:ORCL

US$194.2b

DocuSign

NasdaqGS:DOCU

US$17.2b

CompuGroup Medical SE KGaA

XTRA:COP

€2.7b

Esker

ENXTPA:ALESK

€846.3m

Price History & Performance

Summary of all time highs, changes and price drops for Cegedim
Historical stock prices
Current Share Price	€24.50
52 Week High	€29.80
52 Week Low	€20.00
Beta	1.31
1 Month Change	-0.41%
3 Month Change	16.39%
1 Year Change	1.03%
3 Year Change	-5.41%
5 Year Change	-18.98%
Change since IPO	142.86%

Recent News & Updates

Mar 03

Is Now The Time To Put Cegedim (EPA:CGM) On Your Watchlist?

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Shareholder Returns

	CGM	FR Healthcare Services	FR Market
7D	0%	3.0%	3.7%
1Y	1.0%	-8.3%	-3.7%

Return vs Industry: CGM exceeded the French Healthcare Services industry which returned -21.4% over the past year.

Return vs Market: CGM exceeded the French Market which returned -5.9% over the past year.

Price Volatility

Is CGM's price volatile compared to industry and market?
CGM volatility
CGM Average Weekly Movement	7.4%
Healthcare Services Industry Average Movement	7.5%
Market Average Movement	5.9%
10% most volatile stocks in FR Market	10.0%
10% least volatile stocks in FR Market	3.4%

Stable Share Price: CGM is not significantly more volatile than the rest of French stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: CGM's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1969	5,494	Jean-Claude Labrune	https://www.cegedim.com

Cegedim SA operates as a technology and services company in the digital data flow management for healthcare ecosystem and B2B, and business software publisher for healthcare and insurance professionals worldwide. It operates in two divisions, Health Insurance, HR and e-Services; and Healthcare Professionals. The Health Insurance, HR and e-Services division markets various products and services to insurance companies, mutual insurers, personal protection insurers, and insurance brokers, as well as engages in the interactions between these entities and healthcare professionals.

Cegedim Fundamentals Summary

How do Cegedim's earnings and revenue compare to its market cap?
CGM fundamental statistics
Market Cap	€335.71m
Earnings (TTM)	€26.22m
Revenue (TTM)	€524.71m

12.8x

P/E Ratio

0.6x

P/S Ratio

Is CGM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CGM income statement (TTM)
Revenue	€524.71m
Cost of Revenue	€305.98m
Gross Profit	€218.73m
Other Expenses	€192.50m
Earnings	€26.22m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Sep 20, 2022

Earnings per share (EPS)	1.91
Gross Margin	41.69%
Net Profit Margin	5.00%
Debt/Equity Ratio	81.4%

How did CGM perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

26%

Payout Ratio

Does CGM pay a reliable dividends?

See CGM dividend history and benchmarks

When do you need to buy CGM by to receive an upcoming dividend?
Cegedim dividend dates
Ex Dividend Date	Jun 29 2022
Dividend Pay Date	Jul 01 2022
Days until Ex dividend	31 days
Days until Dividend pay date	33 days

Does CGM pay a reliable dividends?

See CGM dividend history and benchmarks

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: CGM (€24.5) is trading below our estimate of fair value (€59.88)

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

Price To Earnings Ratio

PE vs Industry: CGM is good value based on its Price-To-Earnings Ratio (12.8x) compared to the European Healthcare Services industry average (34.8x).

PE vs Market: CGM is good value based on its Price-To-Earnings Ratio (12.8x) compared to the French market (16.2x).

Price to Earnings Growth Ratio

PEG Ratio: CGM is poor value based on its PEG Ratio (2.2x)

Price to Book Ratio

PB vs Industry: CGM is good value based on its Price-To-Book Ratio (1.4x) compared to the FR Healthcare Services industry average (2.7x).

Future Growth

How is Cegedim forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

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

5.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CGM's forecast earnings growth (5.7% per year) is above the savings rate (0.3%).

Earnings vs Market: CGM's earnings (5.7% per year) are forecast to grow slower than the French market (11.9% per year).

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

Revenue vs Market: CGM's revenue (4% per year) is forecast to grow slower than the French market (5.8% per year).

High Growth Revenue: CGM's revenue (4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: CGM's Return on Equity is forecast to be low in 3 years time (10.7%).

Past Performance

How has Cegedim performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

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

61.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CGM has high quality earnings.

Growing Profit Margin: CGM's current net profit margins (5%) are higher than last year (2.2%).

Past Earnings Growth Analysis

Earnings Trend: CGM has become profitable over the past 5 years, growing earnings by 61.7% per year.

Accelerating Growth: CGM's earnings growth over the past year (142%) exceeds its 5-year average (61.7% per year).

Earnings vs Industry: CGM earnings growth over the past year (142%) exceeded the Healthcare Services industry -3%.

Return on Equity

High ROE: CGM's Return on Equity (11.3%) is considered low.

Financial Health

How is Cegedim's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

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

Financial Position Analysis

Short Term Liabilities: CGM's short term assets (€232.7M) do not cover its short term liabilities (€263.7M).

Long Term Liabilities: CGM's short term assets (€232.7M) do not cover its long term liabilities (€301.5M).

Debt to Equity History and Analysis

Debt Level: CGM's net debt to equity ratio (71%) is considered high.

Reducing Debt: CGM's debt to equity ratio has reduced from 132.2% to 81.4% over the past 5 years.

Debt Coverage: CGM's debt is well covered by operating cash flow (50.7%).

Interest Coverage: CGM's interest payments on its debt are well covered by EBIT (4.8x coverage).

Balance Sheet

Dividend

What is Cegedim 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
Future Dividend Coverage

2.04%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: CGM's dividend (2.04%) is higher than the bottom 25% of dividend payers in the French market (1.72%).

High Dividend: CGM's dividend (2.04%) is low compared to the top 25% of dividend payers in the French market (5.01%).

Stability and Growth of Payments

Stable Dividend: Too early to tell whether CGM's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if CGM's dividend payments are increasing as they only just started paying a dividend.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (26.3%), CGM's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (21.9%), CGM's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

16.2yrs

Average management tenure

CEO

Jean-Claude Labrune

53.33yrs

Tenure

€274,000

Compensation

Mr. Jean-Claude Labrune has been the Chief Executive Officer of Cegedim SA since August 18, 1994. Mr. Labrune serves as President of S.A.S. He founded Cegedim SA in 1969 and served as its Managing Director...

CEO Compensation Analysis

Compensation vs Market: Jean-Claude's total compensation ($USD293.55K) is below average for companies of similar size in the French market ($USD479.65K).

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

Leadership Team

Experienced Management: CGM's management team is seasoned and experienced (16.2 years average tenure).

Board Members

Experienced Board: CGM's board of directors are considered experienced (5.9 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	2022/05/27 00:00
End of Day Share Price	2022/05/27 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31