ENXTPA:ALPRO

Stock Analysis Report

Executive Summary

Prodware engages in the publishing-integration and hosting of sectoral and business IT solutions in France and internationally.

Rewards

Trading at 46.2% below its fair value

Earnings are forecast to grow 23.77% per year

Risk Analysis

Interest payments are not well covered by earnings

Highly volatile share price over past 3 months

Large one-off items impacting financial results

Profit margins (3.7%) are lower than last year (7.3%)

+ 1 more risk


Snowflake Analysis

Very undervalued with moderate growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ALPRO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.1%

ALPRO

2.2%

FR IT

0.3%

FR Market


1 Year Return

-25.8%

ALPRO

29.3%

FR IT

24.8%

FR Market

Return vs Industry: ALPRO underperformed the French IT industry which returned 32.5% over the past year.

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


Shareholder returns

ALPROIndustryMarket
7 Day3.1%2.2%0.3%
30 Day5.4%4.6%2.0%
90 Day23.9%10.3%7.8%
1 Year-25.4%-25.8%37.3%29.3%29.3%24.8%
3 Year13.5%11.9%53.1%35.7%43.9%30.2%
5 Year13.3%10.6%137.7%105.4%66.6%42.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

43.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ALPRO (€7.27) is trading below our estimate of fair value (€13.52)

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


Price To Earnings Ratio

PE vs Industry: ALPRO is good value based on its PE Ratio (8.5x) compared to the IT industry average (18.7x).

PE vs Market: ALPRO is good value based on its PE Ratio (8.5x) compared to the French market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: ALPRO is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: ALPRO is good value based on its PB Ratio (0.4x) compared to the FR IT industry average (2.1x).


Next Steps

Future Growth

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

23.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALPRO's forecast earnings growth (23.8% per year) is above the savings rate (-0.1%).

Earnings vs Market: ALPRO's earnings (23.8% per year) are forecast to grow faster than the French market (11.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ALPRO's revenue (1.3% per year) is forecast to grow slower than the French market (4.7% per year).

High Growth Revenue: ALPRO's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ALPRO's Return on Equity is forecast to be low in 3 years time (7.8%).


Next Steps

Past Performance

How has Prodware performed over the past 5 years?

11.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALPRO has a large one-off gain of €1.2M impacting its June 30 2019 financial results.

Growing Profit Margin: ALPRO's current net profit margins (3.7%) are lower than last year (7.3%).


Past Earnings Growth Analysis

Earnings Trend: ALPRO's earnings have grown by 11.2% per year over the past 5 years.

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

Earnings vs Industry: ALPRO had negative earnings growth (-47.4%) over the past year, making it difficult to compare to the IT industry average (9.5%).


Return on Equity

High ROE: ALPRO's Return on Equity (4.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Prodware's financial position?


Financial Position Analysis

Short Term Liabilities: ALPRO's short term assets (€103.1M) do not cover its short term liabilities (€115.1M).

Long Term Liabilities: ALPRO's short term assets (€103.1M) exceed its long term liabilities (€91.0M).


Debt to Equity History and Analysis

Debt Level: ALPRO's debt to equity ratio (80.8%) is considered high.

Reducing Debt: ALPRO's debt to equity ratio has increased from 46.7% to 80.8% over the past 5 years.

Debt Coverage: ALPRO's debt is well covered by operating cash flow (21.2%).

Interest Coverage: ALPRO's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet

Inventory Level: ALPRO has a low level of unsold assets or inventory.

Debt Coverage by Assets: ALPRO's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

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

0.52%

Current Dividend Yield


Dividend Yield vs Market

company0.5%marketbottom25%1.5%markettop25%4.4%industryaverage1.7%forecastin3Years1.5%

Current dividend yield vs market & industry

Notable Dividend: ALPRO's dividend (0.55%) isn’t notable compared to the bottom 25% of dividend payers in the French market (1.46%).

High Dividend: ALPRO's dividend (0.55%) is low compared to the top 25% of dividend payers in the French market (4.43%).


Stability and Growth of Payments

Stable Dividend: ALPRO is not paying a notable dividend for the French market, therefore no need to check if payments are stable.

Growing Dividend: ALPRO is not paying a notable dividend for the French market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

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

€203k

CEO Compensation


CEO

Alain Conrard 0

0yrs

Tenure

€202,862

Compensation

Mr. Alain Conrard has been the Chief Executive Officer and Director of Prodware since 2003 and also serves as its Managing Director. 


CEO Compensation Analysis

Compensation vs Market: Alain's total compensation ($USD225.68K) is about average for companies of similar size in the French market ($USD313.00K).

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


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 not been meaningfully diluted in the past year.


Management Team

  • Alain Conrard

    MD. CEO & Director

    • Compensation: €202.86k
  • Stéphane Conrard

    Deputy MD & Director

    • Compensation: €347.00k

Board Members

  • Frédéric Zablocki (51yo)

    Non-Voting Director

    • Philippe Bouaziz

      Chairman of the Board

      • Compensation: €230.13k
    • Jean-Gérard Bouaziz

      Director

      • Compensation: €144.00k
    • Viviane Neiter (61yo)

      Independent Director

      • Compensation: €5.00k
    • Alain Conrard

      MD. CEO & Director

      • Compensation: €202.86k
    • Stéphane Conrard

      Deputy MD & Director

      • Compensation: €347.00k
    • Klara Fouchet

      Director

      Company Information

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


      Key Information

      • Name: Prodware
      • Ticker: ALPRO
      • Exchange: ENXTPA
      • Founded: 1989
      • Industry: IT Consulting and Other Services
      • Sector: Software
      • Market Cap: €59.074m
      • Shares outstanding: 7.74m
      • Website: https://www.prodware.fr

      Number of Employees


      Location

      • Prodware
      • 45, quai de la Seine
      • Paris
      • Ile-de-France
      • 75019
      • France

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      ALPROENXTPA (Euronext Paris)YesOrdinary SharesFREURApr 2006

      Biography

      Prodware engages in the publishing-integration and hosting of sectoral and business IT solutions in France and internationally. It offers software solutions for accounting and financial management, payroll, and human resources. The company also provides Microsoft Dynamics enterprise resource planning, Microsoft Dynamics CRM, Microsoft Dynamics 365, business intelligence, cloud, and infrastructure solutions. In addition, it offers BIM software for architecture, engineering, and construction projects; PDM data management software; GreenITude solutions; e-business suite; mobility suite; and WMS logistics suite, as well as Dropbox business solutions. The company serves manufacturing, process, food, life sciences, professional services, construction, engineering, retail, wholesale, distribution, and wine and spirit industries. Prodware was founded in 1989 and is headquartered in Paris, France. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/17 20:50
      End of Day Share Price2020/01/17 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.