New Risk • May 22
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 93% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Shareholders have been substantially diluted in the past year (93% increase in shares outstanding). Market cap is less than US$10m (€6.47m market cap, or US$7.50m). Board Change • Dec 08
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 3 non-independent directors. Independent Director Tom Frost was the last independent director to join the board, commencing their role in 2018. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Nov 26
COIL Approves Board Appointments COIL announced that all proposed resolutions presented at the Extraordinary General Meeting held on November 20, 2023 were unanimously approved by shareholders. The General Meeting decided to dismiss Finance and Management International, represented by Timothy Hutton, from its position as director with immediate effect. At the same time, the General Meeting approved the appointments of CBP Holding represented by Patrick Chassagne, as Non-Executive Director, and Christopher Clarke, as Non-Executive Director. Appointment of Christopher Clarke as Non-Executive Director: The Board announced the appointment of Christopher Clarke as a new Non-Executive Director who has more than five years of hands-on experience in the surface engineering sector; professional accreditation as a Member of the Institute of Materials Finishing (MIMF); a Master of Business Administration (MBA) from Alliance Manchester Business School; and standing as solicitor (non-practicing) following his Master of Law (LLM) from the University of Law. Following these appointments and taking into account mandates already in place, COIL’s Board of Directors is now composed of: EMC Surface Technologies Limited, represented by Jim Clarke, Managing Director (CEO) and Chairman of the Board; CBP Holding, represented by Patrick Chassagne, Non-Executive Director; Christopher Clarke, Non-Executive Director. Announcement • Nov 01
Coil S.A./N.V. Provides Earnings Guidance for the Full Year 2025 Coil S.A./N.V. provided earnings guidance for the full year 2025. In a persistently uncertain economic environment, particularly in Europe, COIL expects a decline in revenue and earnings for the full year 2025. Announcement • Oct 25
Coil S.A./N.V. Announces Executive Changes Coil S.A./N.V. announced that the board appointed Jean Schroyen (representing SIMAC Solutions BV) and Jan Robeyns (representing J2Fix BV) as Managing Directors, in charge of day-to-day operations and the implementation of the recovery plan currently underway.Deeply rooted in COIL’s history and industrial culture, Jean Schroyen and Jan Robeyns together bring more than forty years of experience within the Company and the aluminium anodising sector. Their complementary profiles combine strategic vision, technical expertise and hands-on leadership. New Risk • Jul 15
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of French stocks, typically moving 6.8% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 28% per year over the past 5 years. Market cap is less than US$10m (€6.59m market cap, or US$7.70m). Minor Risk Share price has been volatile over the past 3 months (6.8% average weekly change). Reported Earnings • May 05
Full year 2024 earnings: Revenues miss analyst expectations Full year 2024 results: Revenue: €24.1m (up 10% from FY 2023). Net loss: €3.20m (loss widened 44% from FY 2023). Revenue missed analyst estimates by 3.0%. New Risk • Jan 27
New major risk - Revenue and earnings growth Earnings have declined by 32% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 32% per year over the past 5 years. Market cap is less than US$10m (€8.49m market cap, or US$8.92m). Buy Or Sell Opportunity • Dec 02
Now 24% undervalued after recent price drop Over the last 90 days, the stock has fallen 32% to €3.08. The fair value is estimated to be €4.03, however this is not to be taken as a buy recommendation but rather should be used as a guide only. New Risk • Nov 22
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: €9.02m (US$9.37m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. This is currently the only risk that has been identified for the company. Buy Or Sell Opportunity • May 09
Now 22% undervalued Over the last 90 days, the stock has risen 5.2% to €4.84. The fair value is estimated to be €6.17, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Price Target Changed • May 05
Price target increased by 14% to €4.10 Up from €3.60, the current price target is provided by 1 analyst. New target price is 20% below last closing price of €5.12. Stock is down 14% over the past year. Reported Earnings • May 02
Full year 2023 earnings released Full year 2023 results: Revenue: €21.8m (down 18% from FY 2022). Net loss: €2.20m (loss narrowed 26% from FY 2022). Buy Or Sell Opportunity • Mar 04
Now 22% undervalued Over the last 90 days, the stock has risen 9.7% to €5.20. The fair value is estimated to be €6.67, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company became loss making. Reported Earnings • Nov 06
First half 2023 earnings released First half 2023 results: Revenue: €11.8m (down 16% from 1H 2022). Net loss: €110.0k (down 114% from profit in 1H 2022). Over the last 3 years on average, earnings per share has increased by 47% per year but the company’s share price has fallen by 28% per year, which means it is significantly lagging earnings. New Risk • Jul 30
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 65% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Dividend per share is over 6x cash flows per share. Earnings have declined by 33% per year over the past 5 years. Shareholders have been substantially diluted in the past year (65% increase in shares outstanding). Minor Risk Market cap is less than US$100m (€20.8m market cap, or US$22.9m). New Risk • Jul 02
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. The company is paying a dividend despite being loss-making. Cash payout ratio: 416% Dividend yield: 21% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Cash payout ratio: 416% Earnings have declined by 33% per year over the past 5 years. Minor Risk Market cap is less than US$100m (€13.1m market cap, or US$14.3m). Valuation Update With 7 Day Price Move • May 08
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to €5.58, the stock trades at a trailing P/E ratio of 8.2x. Average trailing P/E is 7x in the Metals and Mining industry in France. Total loss to shareholders of 40% over the past three years. Price Target Changed • Feb 01
Price target decreased by 15% to €8.50 Down from €10.00, the current price target is provided by 1 analyst. New target price is 26% above last closing price of €6.72. Stock is down 25% over the past year. The company posted earnings per share of €0.74 last year. Board Change • Nov 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. 1 highly experienced director. Independent Director Tom Frost was the last director to join the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Buying Opportunity • Oct 17
Now 24% undervalued after recent price drop Over the last 90 days, the stock is down 9.9%. The fair value is estimated to be €9.11, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Buying Opportunity • Sep 29
Now 23% undervalued after recent price drop Over the last 90 days, the stock is down 2.5%. The fair value is estimated to be €9.97, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Upcoming Dividend • Sep 21
Upcoming dividend of €1.00 per share Eligible shareholders must have bought the stock before 28 September 2022. Payment date: 30 September 2022. Trailing yield: 11%. Within top quartile of French dividend payers (5.8%). In line with average of industry peers (10%). Valuation Update With 7 Day Price Move • Aug 30
Investor sentiment improved over the past week After last week's 36% share price gain to €10.45, the stock trades at a trailing P/E ratio of 13.9x. Average trailing P/E is 10x in the Metals and Mining industry in France. Total returns to shareholders of 25% over the past three years. Announcement • Aug 30
Coil S.A./N.V. Proposes Interim Dividend, Payable on September 30, 2022 The Board of Directors of COIL has decided to convene a special general meeting on September 14, 2022 to propose the payment of an interim dividend of EUR 1.00 gross per share. This interim dividend would be payable as of September 30, 2022. Buying Opportunity • Aug 01
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 2.3%. The fair value is estimated to be €9.74, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Buying Opportunity • Jun 07
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 1.3%. The fair value is estimated to be €9.82, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Price Target Changed • Apr 27
Price target increased to €11.00 Up from €10.00, the current price target is provided by 1 analyst. New target price is 44% above last closing price of €7.66. Stock is down 30% over the past year. The company is forecast to post earnings per share of €0.67 next year compared to a net loss per share of €1.16 last year. Board Change • Apr 27
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. 1 highly experienced director. Independent Director Tom Frost was the last director to join the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Price Target Changed • Feb 01
Price target increased to €11.00 Up from €10.00, the current price target is provided by 1 analyst. New target price is 23% above last closing price of €8.96. Stock is down 10% over the past year. The company is forecast to post earnings per share of €0.43 next year compared to a net loss per share of €1.16 last year. Reported Earnings • Nov 03
First half 2021 earnings released The company reported a strong first half result with improved earnings, revenues and profit margins. First half 2021 results: Revenue: €12.5m (up 6.5% from 1H 2020). Net income: €950.0k (up €3.02m from 1H 2020). Profit margin: 7.6% (up from net loss in 1H 2020). Price Target Changed • Aug 04
Price target decreased to €8.80 Down from €10.00, the current price target is provided by 1 analyst. New target price is 5.0% above last closing price of €8.38. Stock is down 22% over the past year. Reported Earnings • May 02
Full year 2020 earnings released The company reported a poor full year result with weaker earnings, revenues and control over costs. Full year 2020 results: Revenue: €23.0m (down 23% from FY 2019). Net loss: €3.30m (down 432% from profit in FY 2019). Is New 90 Day High Low • Feb 10
New 90-day low: €9.84 The company is down 4.0% from its price of €10.20 on 11 November 2020. The French market is up 6.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Metals and Mining industry, which is up 48% over the same period. Price Target Changed • Dec 11
Price target raised to €11.50 Up from €10.00, the current price target is provided by 1 analyst. The new target price is 16% above the current share price of €9.90. As of last close, the stock is down 23% over the past year. Valuation Update With 7 Day Price Move • Nov 13
Market bids up stock over the past week After last week's 19% share price gain to €10.65, the stock is trading at a trailing P/E ratio of 29.9x, up from the previous P/E ratio of 25.2x. This compares to an average P/E of 13x in the Metals and Mining industry in Europe. Total return to shareholders over the past three years is a loss of 43%. Valuation Update With 7 Day Price Move • Nov 04
Market pulls back on stock over the past week After last week's 29% share price decline to €8.84, the stock is trading at a trailing P/E ratio of 24.8x, down from the previous P/E ratio of 35.1x. This compares to an average P/E of 12x in the Metals and Mining industry in Europe. Total return to shareholders over the past three years is a loss of 53%. Is New 90 Day High Low • Oct 24
New 90-day high: €13.20 The company is up 21% from its price of €10.90 on 24 July 2020. The French market is up 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Metals and Mining industry, which is down 8.0% over the same period. Announcement • Aug 02
Coil S.A./N.V. to Report First Half, 2020 Results on Oct 28, 2020 Coil S.A./N.V. announced that they will report first half, 2020 results on Oct 28, 2020