ENXTPA:DEC

Stock Analysis Report

Executive Summary

JCDecaux SA engages in outdoor advertising activities worldwide.

Rewards

PE ratio (18.2x) is below the French market (18.7x)

Earnings are forecast to grow 7.1% per year

Earnings grew by 54.7% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record



Snowflake Analysis

Solid track record second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.4%

DEC

0.1%

FR Media

0.4%

FR Market


1 Year Return

-17.7%

DEC

-13.3%

FR Media

16.7%

FR Market

Return vs Industry: DEC underperformed the French Media industry which returned -13% over the past year.

Return vs Market: DEC underperformed the French Market which returned 17% over the past year.


Shareholder returns

DECIndustryMarket
7 Day-2.4%0.1%0.4%
30 Day-14.4%-5.0%-0.5%
90 Day-10.9%-4.5%3.6%
1 Year-15.9%-17.7%-9.4%-13.3%20.8%16.7%
3 Year-19.8%-24.6%-18.8%-27.1%43.2%29.7%
5 Year-24.6%-31.2%-25.6%-37.4%54.8%32.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

18.36x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DEC (€22.58) is trading above our estimate of fair value (€17.15)

Significantly Below Fair Value: DEC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DEC is poor value based on its PE Ratio (18.2x) compared to the Media industry average (16.4x).

PE vs Market: DEC is good value based on its PE Ratio (18.2x) compared to the French market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: DEC is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: DEC is overvalued based on its PB Ratio (2.3x) compared to the FR Media industry average (1.3x).


Next Steps

Future Growth

How is JCDecaux forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

7.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DEC's forecast earnings growth (7.1% per year) is above the savings rate (-0.1%).

Earnings vs Market: DEC's earnings (7.1% per year) are forecast to grow slower than the French market (13.4% per year).

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

Revenue vs Market: DEC's revenue (4.1% per year) is forecast to grow slower than the French market (4.5% per year).

High Growth Revenue: DEC's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DEC's Return on Equity is forecast to be low in 3 years time (13.1%).


Next Steps

Past Performance

How has JCDecaux performed over the past 5 years?

6.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DEC has high quality earnings.

Growing Profit Margin: DEC's current net profit margins (7.8%) are higher than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: DEC's earnings have grown by 6.1% per year over the past 5 years.

Accelerating Growth: DEC's earnings growth over the past year (54.7%) exceeds its 5-year average (6.1% per year).

Earnings vs Industry: DEC earnings growth over the past year (54.7%) exceeded the Media industry 4%.


Return on Equity

High ROE: DEC's Return on Equity (13.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is JCDecaux's financial position?


Financial Position Analysis

Short Term Liabilities: DEC's short term assets (€1.5B) do not cover its short term liabilities (€2.6B).

Long Term Liabilities: DEC's short term assets (€1.5B) do not cover its long term liabilities (€5.7B).


Debt to Equity History and Analysis

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

Reducing Debt: DEC's debt to equity ratio has increased from 29.2% to 71% over the past 5 years.

Debt Coverage: DEC's debt is well covered by operating cash flow (35.4%).

Interest Coverage: DEC's interest payments on its debt are well covered by EBIT (13.2x coverage).


Balance Sheet

Inventory Level: DEC has a high level of physical assets or inventory.

Debt Coverage by Assets: DEC's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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

2.54%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%1.5%markettop25%4.4%industryaverage5.2%forecastin3Years3.0%

Current dividend yield vs market & industry

Notable Dividend: DEC's dividend (2.57%) is higher than the bottom 25% of dividend payers in the French market (1.52%).

High Dividend: DEC's dividend (2.57%) is low compared to the top 25% of dividend payers in the French market (4.49%).


Stability and Growth of Payments

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

Growing Dividend: DEC's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.7%), DEC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DEC's dividends in 3 years are forecast to be well covered by earnings (45.7% payout ratio).


Next Steps

Management

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

5.1yrs

Average management tenure


CEO

Jean-François Decaux (60yo)

€2,025,085

Compensation

Mr. Jean-François Decaux serves as Co-Chief Executive Officer and Member of Executive Board at JCDecaux SA and served as its Chairman of the Executive Board of JCDecaux SA since May 11, 2017. He served as  ...


CEO Compensation Analysis

Compensation vs Market: Jean-François's total compensation ($USD2.19M) is about average for companies of similar size in the French market ($USD2.63M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jean-François Decaux
Co-CEO & Member of Executive Board0yrs€2.03m0.19% 9.1m
Jean-Charles Decaux
Co-CEO & Chairman of Executive Board2.8yrs€1.97m0.55% 26.3m
David Bourg
Chief Financial & Administrative Officer and Member of the Executive Board5.1yrs€855.17k0.00048% 23.1k
Emmanuel Bastide
Member of Executive Board5.4yrs€1.08m0.0023% 110.1k
Daniel Hofer
Member of Executive Board5.4yrs€1.35m0.0024% 113.0k
Stéphane Prigent
Corporate Finance Director8.7yrsno datano data
Arnaud Courtial
Head of Investor Relations & Financial Communication5yrsno datano data
Bertrand Allain
Group General Counsel3.7yrsno datano data
Agathe Albertini
Vice President of Communications0yrsno datano data
Jean-Michel Geffroy
Chief Executive Officer of Finance0yrsno datano data

5.1yrs

Average Tenure

56yo

Average Age

Experienced Management: DEC's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michel Bleitrach
Independent Member of Supervisory Board6.8yrs€32.00k0.00047% 22.6k
Pierre-Alain Pariente
Member of Supervisory Board19.3yrs€27.00k0.00048% 23.1k
Gerard Degonse
Chairman of Supervisory Board6.8yrs€47.00k0.024% 1.1m
Jean-Pierre Decaux
Vice-Chairman of Supervisory Board19.3yrs€23.50k0.00074% 35.6k
Xavier de Sarrau
Member of Supervisory Board16.8yrs€42.00k0.014% 677.4k
Marie-Laure de Chalon
Member of Supervisory Board2.8yrs€27.00k0.00047% 22.6k
Pierre Mutz
Independent Member of Supervisory Board10.8yrs€40.50k0.00047% 22.6k
Alexia Decaux-Lefort
Member of Supervisory Board6.8yrs€23.50k0.00047% 22.6k
Leila Turner
Member of Supervisory Board2.8yrs€27.00k0.00047% 22.6k
Bénédicte Hautefort
Member of Supervisory Board2.8yrs€34.50k0.00047% 22.6k

6.8yrs

Average Tenure

70yo

Average Age

Experienced Board: DEC's board of directors are considered experienced (6.8 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

JCDecaux SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: JCDecaux SA
  • Ticker: DEC
  • Exchange: ENXTPA
  • Founded: 1964
  • Industry: Advertising
  • Sector: Media
  • Market Cap: €4.807b
  • Shares outstanding: 212.90m
  • Website: https://www.jcdecaux.com

Number of Employees


Location

  • JCDecaux SA
  • 17, rue Soyer
  • Cedex
  • Neuilly-sur-Seine
  • Ile-de-France
  • 92200
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JCDX.FOTCPK (Pink Sheets LLC)YesBearer SharesUSUSDJun 2001
DECENXTPA (Euronext Paris)YesBearer SharesFREURJun 2001
DCSDB (Deutsche Boerse AG)YesBearer SharesDEEURJun 2001
0MGOLSE (London Stock Exchange)YesBearer SharesGBEURJun 2001
DECPBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEURJun 2001
DCSETLX (Eurotlx)YesBearer SharesITEURJun 2001
JCDX.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2008

Biography

JCDecaux SA engages in outdoor advertising activities worldwide. The company operates in three segments: Street Furniture, Transport, and Billboard. The Street Furniture segment is involved in advertising in shopping malls; renting street furniture; selling and renting equipment; and the provision of cleaning, maintenance, and other services. The Transport segment provides advertising services in public transport systems, such as airports, subways, buses, tramways, and trains. The Billboard segment is involved in advertising on private property, including traditional large format or back-light billboards; and the provision of neon-light billboards and advertising wraps. The company has a strategic partnership with PlayPlay to accelerate the development of its digital products and services. The company was founded in 1964 and is headquartered in Neuilly-sur-Seine, France. JCDecaux SA is a subsidiary of JCDecaux Holding (SAS). 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 21:00
End of Day Share Price2020/02/19 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.