ENXTPA:INEA

Stock Analysis Report

Executive Summary

Fonciere Inea S.A., a real estate investment company, engages in owning and managing business real estate properties in France.

Rewards

Trading at 14.8% below its fair value

Earnings grew by 11.6% over the past year

Pays a reliable dividend of 5.26%

Risk Analysis

Dividend of 5.26% is not well covered by earnings

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Good value average dividend payer.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.5%

INEA

0.6%

FR REITs

0.3%

FR Market


1 Year Return

7.0%

INEA

25.3%

FR REITs

24.8%

FR Market

Return vs Industry: INEA underperformed the French REITs industry which returned 25.2% over the past year.

Return vs Market: INEA underperformed the French Market which returned 24.9% over the past year.


Shareholder returns

INEAIndustryMarket
7 Day0.5%0.6%0.3%
30 Day-1.0%4.3%2.0%
90 Day4.5%7.3%7.8%
1 Year13.3%7.0%33.7%25.3%29.3%24.8%
3 Year28.3%9.8%46.1%22.7%43.9%30.2%
5 Year55.2%22.5%64.3%24.7%66.6%42.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

15.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: INEA (€41.8) is trading below our estimate of fair value (€49.06)

Significantly Below Fair Value: INEA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: INEA is good value based on its PE Ratio (7.7x) compared to the REITs industry average (11.9x).

PE vs Market: INEA is good value based on its PE Ratio (7.7x) compared to the French market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate INEA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: INEA is good value based on its PB Ratio (0.9x) compared to the FR REITs industry average (1x).


Next Steps

Future Growth

How is Fonciere Inea forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-3.5%

Forecasted Real Estate industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Fonciere Inea has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Fonciere Inea performed over the past 5 years?

40.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INEA has a large one-off gain of €17.4M impacting its June 30 2019 financial results.

Growing Profit Margin: INEA's current net profit margins (79.5%) are lower than last year (80.7%).


Past Earnings Growth Analysis

Earnings Trend: INEA's earnings have grown significantly by 40.2% per year over the past 5 years.

Accelerating Growth: INEA's earnings growth over the past year (11.6%) is below its 5-year average (40.2% per year).

Earnings vs Industry: INEA earnings growth over the past year (11.6%) exceeded the REITs industry 11.5%.


Return on Equity

High ROE: INEA's Return on Equity (8.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Fonciere Inea's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

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

Debt Coverage by Assets: INEA's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: INEA's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if INEA has a sufficient allowance for bad loans.

Low Risk Liabilities: INEA reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if INEA has an acceptable proportion of non-loan assets held.

Low Risk Deposits: INEA has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if INEA has an appropriate level of bad loans.


Next Steps

Dividend

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

5.31%

Current Dividend Yield


Dividend Yield vs Market

company5.3%marketbottom25%1.5%markettop25%4.4%industryaverage4.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: INEA's dividend (5.26%) is higher than the bottom 25% of dividend payers in the French market (1.46%).

High Dividend: INEA's dividend (5.26%) is in the top 25% of dividend payers in the French market (4.43%)


Stability and Growth of Payments

Stable Dividend: INEA's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (103.6%), INEA's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Fonciere Inea's salary, the management and board of directors tenure and is there insider trading?

5.2yrs

Average board tenure


CEO

Philippe Rosio 0

5.2yrs

Tenure

0

Mr. Philippe Rosio has been Chairman of the Board and Chief Executive Officer of Fonciere Inea S.A. since November 18, 2014. Mr. Rosio served as the Chairman of Executive Board at Fonciere Inea S.A. Mr. Ro ...


Board Age and Tenure

5.2yrs

Average Tenure

61.5yo

Average Age

Experienced Board: INEA's board of directors are considered experienced (5.2 years average tenure).


Insider Trading

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 been diluted in the past year, with total shares outstanding growing by 4.3%.


Management Team

  • Philippe Rosio

    Chairman & CEO

    • Tenure: 5.2yrs
  • Arline Gaujal-Kempler

    Deputy CEO & Director

    • Tenure: 5.2yrs
  • Karine Dachary

    Chief Financial Officer


    Board Members

    • Eric Grabli

      Independent Director

      • Tenure: 5.2yrs
      • Compensation: €3.90k
    • Pierre Adier (54yo)

      Director

      • Tenure: 5.2yrs
      • Compensation: €15.60k
    • Daniel Fruchart (73yo)

      Independent Director

      • Tenure: 5.2yrs
      • Compensation: €12.45k
    • Hélène Martel-Massignac (57yo)

      Director

      • Tenure: 5.2yrs
    • Philippe Rosio

      Chairman & CEO

      • Tenure: 5.2yrs
    • Arline Gaujal-Kempler

      Deputy CEO & Director

      • Tenure: 5.2yrs
    • Guy Charlot (66yo)

      Independent Director

      • Tenure: 5.2yrs
      • Compensation: €3.90k
    • Jean Belmudes

      Independent Director

      • Tenure: 5.2yrs
      • Compensation: €6.50k
    • Alessandra Ertan

      Director

      • Tenure: 0.6yrs
    • Arnault Dumont

      Director

      • Tenure: 0.6yrs

    Company Information

    Fonciere Inea S.A.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Fonciere Inea S.A.
    • Ticker: INEA
    • Exchange: ENXTPA
    • Founded: 2005
    • Industry: Office REITs
    • Sector: Real Estate
    • Market Cap: €348.574m
    • Shares outstanding: 8.42m
    • Website: https://www.inea-sa.eu

    Location

    • Fonciere Inea S.A.
    • 7 rue du Fossé Blanc
    • Gennevilliers
    • Ile-de-France
    • 92230
    • France

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    INEAENXTPA (Euronext Paris)YesCommon StockFREURDec 2006
    0IDGLSE (London Stock Exchange)YesCommon StockGBEURDec 2006
    INEAPBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURDec 2006

    Biography

    Fonciere Inea S.A., a real estate investment company, engages in owning and managing business real estate properties in France. As of December 31, 2010, its property portfolio consisted of 111 buildings. The company was founded in 2005 and is based in Paris, France. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/16 21:03
    End of Day Share Price2020/01/16 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.