Netgem (ENXTPA:ALNTG) - Share price, News & Analysis

Q: What is the Fair Price of ALNTG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ALNTG (€1.26) is trading below our estimate of [[fair value]] (€3.87)

ALNTG fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	4/6
Past Performance	0/6
Financial Health	4/6
Dividends	1/6

ALNTG Stock Overview

Netgem SA develops, operates, and markets the NetgemTV digital entertainment platform in France and the United Kingdom.

Rewards

Trading at 67.5% below our estimate of its fair value

Earnings are forecast to grow 119.15% per year

Risk Analysis

Dividend of 2.38% is not well covered by earnings or forecast to be in the next 3 years

Does not have a meaningful market cap (€36M)

Netgem Competitors

IT Link

ENXTPA:ALITL

€46.9m

beaconsmind

ENXTPA:MLBMD

€23.6m

Prologue

ENXTPA:ALPRG

€24.2m

Wedia

ENXTPA:ALWED

€31.9m

Price History & Performance

Summary of all time highs, changes and price drops for Netgem
Historical stock prices
Current Share Price	€1.26
52 Week High	€1.72
52 Week Low	€1.08
Beta	0.97
1 Month Change	0.80%
3 Month Change	3.28%
1 Year Change	14.55%
3 Year Change	25.37%
5 Year Change	-48.99%
Change since IPO	-92.80%

Recent News & Updates

Jun 02

Health Check: How Prudently Does Netgem (EPA:ALNTG) Use Debt?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

	ALNTG	FR Software	FR Market
7D	2.4%	1.2%	0.7%
1Y	14.5%	-11.9%	-6.3%

Return vs Industry: ALNTG exceeded the French Software industry which returned -11.9% over the past year.

Return vs Market: ALNTG exceeded the French Market which returned -6.3% over the past year.

Price Volatility

Is ALNTG's price volatile compared to industry and market?
ALNTG volatility
ALNTG Average Weekly Movement	5.3%
Software Industry Average Movement	5.3%
Market Average Movement	5.0%
10% most volatile stocks in FR Market	9.0%
10% least volatile stocks in FR Market	2.9%

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

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

About the Company

Founded	Employees	CEO	Website
1996	69	Mathias Hautefort	https://www.netgem.com

Netgem SA develops, operates, and markets the NetgemTV digital entertainment platform in France and the United Kingdom. It offers Netgem TV, an OTT and multiscreen service accessible with or without a TV box, and on mobile devices and laptops; Videofutur, a VOD library; and SuperStream, a Wi-Fi mesh solution to manage the quality of Wi-Fi, as well as streaming services for media companies. The company was founded in 1996 and is based in Paris, France.

Netgem Fundamentals Summary

How do Netgem's earnings and revenue compare to its market cap?
ALNTG fundamental statistics
Market Cap	€35.64m
Earnings (TTM)	-€811.00k
Revenue (TTM)	€29.92m

1.2x

P/S Ratio

-45.0x

P/E Ratio

Is ALNTG overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ALNTG income statement (TTM)
Revenue	€29.92m
Cost of Revenue	€11.74m
Gross Profit	€18.18m
Other Expenses	€18.99m
Earnings	-€811.00k

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.028
Gross Margin	60.77%
Net Profit Margin	-2.71%
Debt/Equity Ratio	9.4%

How did ALNTG perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

-66%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is ALNTG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ALNTG?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ALNTG. This is calculated by dividing ALNTG's market cap by their current preferred multiple.
What is ALNTG's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€35.64m

ALNTG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.1x
Enterprise Value/EBITDA	13.5x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does ALNTG's PS Ratio compare to its peers?

ALNTG PS Ratio vs Peers

The above table shows the PS ratio for ALNTG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	8.1x
ALITL IT Link	0.8x	5.8%	€46.9m
MLBMD beaconsmind	31x	41.3%	€23.6m
ALPRG Prologue	0.3x	6.8%	€24.2m
ALWED Wedia	1.9x	12.4%	€31.9m
ALNTG Netgem	1.2x	17.5%	€35.6m

Price-To-Sales vs Peers: ALNTG is good value based on its Price-To-Sales Ratio (1.2x) compared to the peer average (8.1x).

Price to Earnings Ratio vs Industry

How does ALNTG's PE Ratio compare vs other companies in the FR Software Industry?

Price-To-Sales vs Industry: ALNTG is good value based on its Price-To-Sales Ratio (1.2x) compared to the French Software industry average (1.9x)

Price to Sales Ratio vs Fair Ratio

What is ALNTG's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ALNTG PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.2x
Fair PS Ratio	2x

Price-To-Sales vs Fair Ratio: ALNTG is good value based on its Price-To-Sales Ratio (1.2x) compared to the estimated Fair Price-To-Sales Ratio (2x).

Share Price vs Fair Value

What is the Fair Price of ALNTG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ALNTG (€1.26) is trading below our estimate of fair value (€3.87)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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Future Growth

How is Netgem forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

119.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALNTG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.3%).

Earnings vs Market: ALNTG is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ALNTG is expected to become profitable in the next 3 years.

Revenue vs Market: ALNTG's revenue (17.5% per year) is forecast to grow faster than the French market (5.2% per year).

High Growth Revenue: ALNTG's revenue (17.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ALNTG's Return on Equity is forecast to be low in 3 years time (3.9%).

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Past Performance

How has Netgem performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-27.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ALNTG is currently unprofitable.

Growing Profit Margin: ALNTG is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: ALNTG is unprofitable, and losses have increased over the past 5 years at a rate of 27.6% per year.

Accelerating Growth: Unable to compare ALNTG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ALNTG is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (23.5%).

Return on Equity

High ROE: ALNTG has a negative Return on Equity (-10.82%), as it is currently unprofitable.

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Financial Health

How is Netgem's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ALNTG's short term assets (€16.7M) do not cover its short term liabilities (€17.4M).

Long Term Liabilities: ALNTG's short term assets (€16.7M) exceed its long term liabilities (€531.0K).

Debt to Equity History and Analysis

Debt Level: ALNTG has more cash than its total debt.

Reducing Debt: ALNTG's debt to equity ratio has reduced from 13.5% to 9.4% over the past 5 years.

Debt Coverage: ALNTG's debt is well covered by operating cash flow (265.1%).

Interest Coverage: Insufficient data to determine if ALNTG's interest payments on its debt are well covered by EBIT.

Balance Sheet

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Dividend

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

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

2.38%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ALNTG's dividend (2.38%) is higher than the bottom 25% of dividend payers in the French market (1.67%).

High Dividend: ALNTG's dividend (2.38%) is low compared to the top 25% of dividend payers in the French market (5.26%).

Stability and Growth of Payments

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

Growing Dividend: ALNTG's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: ALNTG is paying a dividend but the company is unprofitable.

Cash Payout to Shareholders

Cash Flow Coverage: ALNTG is paying a dividend but the company has no free cash flows.

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Management

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

2.6yrs

Average management tenure

CEO

Mathias Hautefort (54 yo)

3.08yrs

Tenure

€242,144

Compensation

Mr. Mathias Hautefort serves as Independent Director of Ymagis Société Anonyme since August 2018. Mr. Hautefort serves as Chief Executive Officer at Netgem SA. and served as Managing Director and Head of t...

CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Mathias's total compensation is reasonable compared to companies of similar size in the French market.

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

Leadership Team

Experienced Management: ALNTG's management team is considered experienced (2.6 years average tenure).

Board Members

Experienced Board: ALNTG's board of directors are seasoned and experienced ( 17.8 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/11 00:00
End of Day Share Price	2022/08/11 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31