ENXTPA:HCO

Stock Analysis Report

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Executive Summary

High Co. SA provides marketing solutions to various retailers and brands worldwide. More Details

Rewards

Trading at 52.9% below our estimate of its fair value

Earnings are forecast to grow 19.24% per year

Risk Analysis

No risks detected for HCO from our risk checks.


Snowflake Analysis

Undervalued with excellent balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: HCO is not significantly more volatile than the rest of French stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: HCO's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

5.0%

HCO

-0.03%

FR Media

0.4%

FR Market


1 Year Return

-15.7%

HCO

-13.9%

FR Media

-3.0%

FR Market

Return vs Industry: HCO underperformed the French Media industry which returned -13.9% over the past year.

Return vs Market: HCO underperformed the French Market which returned -3% over the past year.


Shareholder returns

HCOIndustryMarket
7 Day5.0%-0.03%0.4%
30 Day3.2%18.5%13.2%
90 Day9.0%20.5%11.0%
1 Year-15.7%-15.7%-11.5%-13.9%-1.0%-3.0%
3 Year4.5%-1.8%-28.1%-35.4%16.6%6.9%
5 Year42.7%28.7%-27.9%-39.6%44.5%24.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is High 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: HCO (€4.84) is trading below our estimate of fair value (€10.27)

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


Price To Earnings Ratio

PE vs Industry: HCO is poor value based on its PE Ratio (14.5x) compared to the FR Media industry average (12.2x).

PE vs Market: HCO is good value based on its PE Ratio (14.5x) compared to the French market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: HCO is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: HCO is good value based on its PB Ratio (1.1x) compared to the FR Media industry average (1.2x).


Next Steps

Future Growth

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

19.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HCO's forecast earnings growth (19.2% per year) is above the savings rate (0.6%).

Earnings vs Market: HCO's earnings (19.2% per year) are forecast to grow slower than the French market (25.3% per year).

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

Revenue vs Market: HCO's revenue is expected to decline over the next 3 years (-16.9% per year).

High Growth Revenue: HCO's revenue is forecast to decline over the next 3 years (-16.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HCO's Return on Equity is forecast to be low in 3 years time (9.1%).


Next Steps

Past Performance

How has High performed over the past 5 years?

9.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HCO has high quality earnings.

Growing Profit Margin: HCO's current net profit margins (4.3%) are lower than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: HCO's earnings have grown by 9.5% per year over the past 5 years.

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

Earnings vs Industry: HCO had negative earnings growth (-21.5%) over the past year, making it difficult to compare to the Media industry average (-21.5%).


Return on Equity

High ROE: HCO's Return on Equity (8.5%) is considered low.


Next Steps

Financial Health

How is High's financial position?


Financial Position Analysis

Short Term Liabilities: HCO's short term assets (€158.3M) exceed its short term liabilities (€152.1M).

Long Term Liabilities: HCO's short term assets (€158.3M) exceed its long term liabilities (€24.7M).


Debt to Equity History and Analysis

Debt Level: HCO's debt to equity ratio (36.7%) is considered satisfactory.

Reducing Debt: HCO's debt to equity ratio has increased from 21.5% to 36.7% over the past 5 years.

Debt Coverage: HCO's debt is well covered by operating cash flow (60.5%).

Interest Coverage: HCO's interest payments on its debt are well covered by EBIT (36.1x coverage).


Balance Sheet


Next Steps

Dividend

What is High current dividend yield, its reliability and sustainability?

2.52%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate HCO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate HCO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HCO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HCO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: HCO is not paying a notable dividend for the French market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HCO's dividend in 3 years as they are not forecast to pay a notable one for the French market.


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Didier Chabassieu (51 yo)

1.67yrs

Tenure

€700,000

Compensation

Mr. Didier Chabassieu has been Chairman of the Management Board of High Co. SA since March 21, 2019. Mr. Chabassieu served as Managing Director at High Co. SA since September 13, 2017 until March 21, 2019....


CEO Compensation Analysis

Compensation vs Market: Didier's total compensation ($USD833.43K) is above average for companies of similar size in the French market ($USD267.19K).

Compensation vs Earnings: Didier's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Didier Chabassieu
Chairman of the Management Board1.67yrs€700.00k1.31%
€ 1.3m
Celine Dargent
Director of Marketing & Communication and Member of Management Board3.17yrs€221.00k0.45%
€ 461.6k
Cécile Collina-Hue
Director General & Member of Management Board3.58yrs€460.00k0.40%
€ 410.6k
Frédéric Chevalier
Founder & Chairmanno datano datano data
Jonathan Campos
Financial Controllerno datano datano data
Jean-François Baisnée
Legal Directorno datano datano data
Harrald Zwart
Managing Director of Shopper Spain11.83yrsno datano data
Bernice Lovell-Clark
Head of Development at Communications Divisionno data€121.60kno data
Olivier Hublau
Managing Director of Highco Data-Franceno datano datano data
Luis Castañeda
Managing Director of the Marketing House Espagneno datano datano data
Gerrit Van Reeth
Managing Director of Highco Shopper Beneluxno datano datano data
Richard Bastin
Managing Director of Shelf Serviceno datano datano data

3.4yrs

Average Tenure

52yo

Average Age

Experienced Management: HCO's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Caillat
President of the Supervisory Board7.42yrs€335.00k0.39%
€ 396.7k
Gerard de Bartillat
Independent Member of Supervisory Board8.42yrs€4.00k5.48%
€ 5.6m
Nicolas Butin
Independent Vice President of Supervisory Board14.83yrs€31.00k0.043%
€ 43.9k
Dominic Grainger
Representative Member of Supervisory Board21.08yrs€2.00kno data
Nathalie Bidermann
Independent Member of Supervisory Board7.42yrs€7.00k0.000010%
€ 10.1
Cécile Lejeune
Member of Supervisory Board0.17yrno datano data

7.9yrs

Average Tenure

55yo

Average Age

Experienced Board: HCO's board of directors are considered experienced (7.9 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.


Top Shareholders

Company Information

High Co. SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: High Co. SA
  • Ticker: HCO
  • Exchange: ENXTPA
  • Founded: 1990
  • Industry: Advertising
  • Sector: Media
  • Market Cap: €101.471m
  • Shares outstanding: 20.79m
  • Website: https://www.highco.com

Number of Employees


Location

  • High Co. SA
  • 365 Avenue Archimède
  • CEDEX 3
  • Aix-en-Provence
  • Provence-Alpes-Côte d'Azur
  • 13799
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HCOENXTPA (Euronext Paris)YesOrdinary SharesFREURApr 1996
0O9YLSE (London Stock Exchange)YesOrdinary SharesGBEURApr 1996
HCOPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURApr 1996

Biography

High Co. SA provides marketing solutions to various retailers and brands worldwide. The company offers brand platform, communication strategy, social media engagement, and media strategy services; and serv...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 19:40
End of Day Share Price2020/11/26 00:00
Earnings2020/06/30
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.