ENXTPA:ETL

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Eutelsat Communications

Executive Summary

Eutelsat Communications S.A. provides satellite related services.


Snowflake Analysis

Undervalued established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

4.6%

ETL

2.9%

FR Media

3.2%

FR Market


1 Year Return

-43.9%

ETL

-29.9%

FR Media

0.2%

FR Market

Return vs Industry: ETL underperformed the French Media industry which returned -29.9% over the past year.

Return vs Market: ETL underperformed the French Market which returned 0.2% over the past year.


Shareholder returns

ETLIndustryMarket
7 Day4.6%2.9%3.2%
30 Day6.2%6.2%0.6%
90 Day-8.8%7.7%16.0%
1 Year-39.1%-43.9%-28.9%-29.9%2.3%0.2%
3 Year-55.1%-63.7%-44.4%-49.5%12.1%2.5%
5 Year-55.5%-67.5%-42.5%-50.7%33.2%15.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Eutelsat Communications 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: ETL (€8.82) is trading below our estimate of fair value (€25.2)

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


Price To Earnings Ratio

PE vs Industry: ETL is good value based on its PE Ratio (6.9x) compared to the FR Media industry average (10.3x).

PE vs Market: ETL is good value based on its PE Ratio (6.9x) compared to the French market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: ETL is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: ETL is good value based on its PB Ratio (0.8x) compared to the FR Media industry average (1x).


Next Steps

Future Growth

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

6.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ETL's forecast earnings growth (6.7% per year) is above the savings rate (0.6%).

Earnings vs Market: ETL's earnings (6.7% per year) are forecast to grow slower than the French market (23.4% per year).

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

Revenue vs Market: ETL's revenue is expected to decline over the next 3 years (-1.7% per year).

High Growth Revenue: ETL's revenue is forecast to decline over the next 3 years (-1.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ETL's Return on Equity is forecast to be low in 3 years time (10.4%).


Next Steps

Past Performance

How has Eutelsat Communications performed over the past 5 years?

-4.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ETL has high quality earnings.

Growing Profit Margin: ETL's current net profit margins (23.3%) are lower than last year (25.8%).


Past Earnings Growth Analysis

Earnings Trend: ETL's earnings have declined by 4% per year over the past 5 years.

Accelerating Growth: ETL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ETL had negative earnings growth (-12.6%) over the past year, making it difficult to compare to the Media industry average (-12.6%).


Return on Equity

High ROE: ETL's Return on Equity (11.1%) is considered low.


Next Steps

Financial Health

How is Eutelsat Communications's financial position?


Financial Position Analysis

Short Term Liabilities: ETL's short term assets (€1.3B) exceed its short term liabilities (€1.3B).

Long Term Liabilities: ETL's short term assets (€1.3B) do not cover its long term liabilities (€3.5B).


Debt to Equity History and Analysis

Debt Level: ETL's debt to equity ratio (119.9%) is considered high.

Reducing Debt: ETL's debt to equity ratio has reduced from 129.6% to 119.9% over the past 5 years.

Debt Coverage: ETL's debt is well covered by operating cash flow (23.2%).

Interest Coverage: ETL's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet


Next Steps

Dividend

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

10.09%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: ETL's dividend (10.09%) is higher than the bottom 25% of dividend payers in the French market (1.44%).

High Dividend: ETL's dividend (10.09%) is in the top 25% of dividend payers in the French market (4.85%)


Stability and Growth of Payments

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

Growing Dividend: ETL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (69.4%), ETL's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ETL's dividends in 3 years are forecast to be covered by earnings (78% payout ratio).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Rodolphe Belmer (51 yo)

4.42yrs

Tenure

€1,952,445

Compensation

Mr. Rodolphe Belmer has been the Chief Executive Officer of Eutelsat Communications S.A. and Eutelsat S.A. since March 1, 2016. Mr. Belmer serves as the Chief Operating Officer and Member of the Executive ...


CEO Compensation Analysis

Compensation vs Market: Rodolphe's total compensation ($USD2.31M) is above average for companies of similar size in the French market ($USD1.72M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Rodolphe Belmer
CEO & Director4.42yrs€1.95mno data
Yohann Leroy
Deputy CEO & CTO6.08yrs€475.11kno data
Michel Azibert
Deputy Chief Executive Officer8.92yrs€1.23mno data
Sandrine Téran
Chief Financial Officer3.58yrsno datano data
Manuel Serrano
Deputy Chief Technology Officer and Director of Operationsno datano datano data
Joanna Darlington
Head of Investor Relationsno datano datano data
Julie Burguburu
General Counsel & Company Secretary0.58yrno datano data
Marie-Sophie Ecuer
Corporate Communications Director2.58yrsno datano data
Marie-Sophie Rouzaud
Group Chief Human Resources Officer0.58yrno datano data
Jakub Brzeczkowski
President of Eutelsat Polandno datano datano data
Markus Fritz
Executive Vice President of Commercial Development & Strategic Partnerships4.83yrsno datano data
Jean-Hubert Lenotte
Chief Strategy & Resources Officer4.08yrsno datano data

4.1yrs

Average Tenure

51.5yo

Average Age

Experienced Management: ETL's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rodolphe Belmer
CEO & Director4.42yrs€1.95mno data
Giuliano Berretta
Chairman8.75yrs€315.00kno data
Agnes Audier
Independent Director3.75yrs€72.86kno data
Ross McInnes
Independent Director7.5yrs€87.39kno data
Ana María García Fau
Independent Director4.75yrs€75.00kno data
Dominique D'Hinnin
Independent Chairman of the Board2.75yrs€228.29kno data
Piotr Dmochowski-Lipski
Board Observer2.75yrsno datano data
Paul-Francois Fournier
Director2.75yrs€46.00kno data
Stéphanie Frachet
Independent Director9.5yrs€54.00kno data
Esther Gaide
Independent Director2.75yrs€70.86kno data
Didier Leroy
Independent Director2.75yrs€57.86kno data
Cynthia Gordon
Independent Director0.75yrno datano data

3.3yrs

Average Tenure

58yo

Average Age

Experienced Board: ETL's board of directors are considered experienced (3.3 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

Eutelsat Communications S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Eutelsat Communications S.A.
  • Ticker: ETL
  • Exchange: ENXTPA
  • Founded: 1977
  • Industry: Cable and Satellite
  • Sector: Media
  • Market Cap: €2.030b
  • Shares outstanding: 230.15m
  • Website: https://www.eutelsat.com

Number of Employees


Location

  • Eutelsat Communications S.A.
  • 70, rue Balard
  • Paris
  • Ile-de-France
  • 75015
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ETLENXTPA (Euronext Paris)YesCommon StockFREURDec 2005
E3BDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2005
0JNILSE (London Stock Exchange)YesCommon StockGBEURDec 2005
EUTL.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDDec 2005
ETLPBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURDec 2005
ETL NBMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNDec 2005
E3BETLX (Eurotlx)YesCommon StockITEURDec 2005
ETCM.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDNov 2011

Biography

Eutelsat Communications S.A. provides satellite related services. It offers video services, such as broadcast DTH, distribution, and HD and ultra HD channels; and secure and rapidly deployed communications ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 10:08
End of Day Share Price2020/08/13 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.