Witbe (ENXTPA:ALWIT) - Share price, News & Analysis

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

ALWIT (€7.95) is trading below our estimate of [[fair value]] (€21.45)

ALWIT fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	5/6
Past Performance	3/6
Financial Health	5/6
Dividends	0/6

ALWIT Stock Overview

Witbe SA provides services to telecom operators, broadcasters, and application developers worldwide.

Rewards

Trading at 62.9% below our estimate of its fair value

Earnings are forecast to grow 35.35% per year

Became profitable this year

Risk Analysis

High level of non-cash earnings

Does not have a meaningful market cap (€33M)

Witbe Competitors

Nextedia

ENXTPA:ALNXT

€35.6m

Micropole

ENXTPA:MUN

€34.0m

HITECHPROS Société anonyme

ENXTPA:ALHIT

€27.1m

Keyrus

ENXTPA:ALKEY

€64.5m

Price History & Performance

Summary of all time highs, changes and price drops for Witbe
Historical stock prices
Current Share Price	€7.95
52 Week High	€8.35
52 Week Low	€5.05
Beta	1.54
1 Month Change	16.91%
3 Month Change	14.39%
1 Year Change	9.81%
3 Year Change	96.78%
5 Year Change	-2.45%
Change since IPO	-18.04%

Recent News & Updates

May 03

The Witbe S.A. (EPA:ALWIT) Analyst Just Boosted Their Forecasts By A Notable Amount

Witbe S.A. ( EPA:ALWIT ) shareholders will have a reason to smile today, with the covering analyst making substantial...

Sep 27

Would Witbe (EPA:ALWIT) Be Better Off With Less Debt?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it seems the smart money knows that...

Shareholder Returns

	ALWIT	FR IT	FR Market
7D	-0.4%	0.9%	0.3%
1Y	9.8%	-16.9%	-6.3%

Return vs Industry: ALWIT exceeded the French IT industry which returned -16.9% over the past year.

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

Price Volatility

Is ALWIT's price volatile compared to industry and market?
ALWIT volatility
ALWIT Average Weekly Movement	3.2%
IT Industry Average Movement	4.7%
Market Average Movement	5.0%
10% most volatile stocks in FR Market	9.0%
10% least volatile stocks in FR Market	2.8%

Stable Share Price: ALWIT is less volatile than 75% of French stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ALWIT's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2000	137	Mathieu Planche	https://www.witbe.net

Witbe SA provides services to telecom operators, broadcasters, and application developers worldwide. It offers QoE Monitoring Robots, combination of hardware and software that able to reproduce end user behavior, and rent a movie on a VOD storefront; watch live TV and report on the quality of the video; make phone calls across the countries; send texts and emails to other Robots; and log in to Facebook and share an update or to Twitter and tweet. The company also provides Witbe Central System, a nervous system of the Witbe Galaxy, transforming raw data into exploitable information; and offers services for real-time alerting, live troubleshooting, and exploitable data.

Witbe Fundamentals Summary

How do Witbe's earnings and revenue compare to its market cap?
ALWIT fundamental statistics
Market Cap	€32.53m
Earnings (TTM)	€2.11m
Revenue (TTM)	€22.78m

15.3x

P/E Ratio

1.4x

P/S Ratio

Is ALWIT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ALWIT income statement (TTM)
Revenue	€22.78m
Cost of Revenue	€16.85m
Gross Profit	€5.93m
Other Expenses	€3.81m
Earnings	€2.11m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.52
Gross Margin	26.02%
Net Profit Margin	9.28%
Debt/Equity Ratio	70.9%

How did ALWIT perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is ALWIT 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-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings 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 ALWIT?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ALWIT. This is calculated by dividing ALWIT's market cap by their current preferred multiple.
What is ALWIT's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€32.53m

ALWIT 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	1.5x
Enterprise Value/EBITDA	22.7x
PEG Ratio	0.4x

Price to Earnings Ratio vs Peers

How does ALWIT's PE Ratio compare to its peers?

ALWIT PE Ratio vs Peers

The above table shows the PE ratio for ALWIT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	16.6x
ALNXT Nextedia	23.7x	18.9%	€35.6m
MUN Micropole	11.8x	n/a	€34.0m
ALHIT HITECHPROS Société anonyme	14.5x	n/a	€27.1m
ALKEY Keyrus	16.6x	n/a	€64.5m
ALWIT Witbe	15.3x	35.4%	€32.5m

Price-To-Earnings vs Peers: ALWIT is good value based on its Price-To-Earnings Ratio (15.3x) compared to the peer average (16.6x).

Price to Earnings Ratio vs Industry

How does ALWIT's PE Ratio compare vs other companies in the FR IT Industry?

Price-To-Earnings vs Industry: ALWIT is good value based on its Price-To-Earnings Ratio (15.3x) compared to the French IT industry average (22.1x)

Price to Earnings Ratio vs Fair Ratio

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

ALWIT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	15.3x
Fair PE Ratio	26.2x

Price-To-Earnings vs Fair Ratio: ALWIT is good value based on its Price-To-Earnings Ratio (15.3x) compared to the estimated Fair Price-To-Earnings Ratio (26.2x).

Share Price vs Fair Value

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

Below Fair Value: ALWIT (€7.95) is trading below our estimate of fair value (€21.45)

Significantly Below Fair Value: ALWIT 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: Insufficient data to show price forecast.

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Future Growth

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

Future Growth Score

5/6

Future Growth Score 5/6

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

35.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALWIT's forecast earnings growth (35.4% per year) is above the savings rate (0.3%).

Earnings vs Market: ALWIT's earnings (35.4% per year) are forecast to grow faster than the French market (11.5% per year).

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

Revenue vs Market: ALWIT's revenue (8.2% per year) is forecast to grow faster than the French market (5.2% per year).

High Growth Revenue: ALWIT's revenue (8.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ALWIT's Return on Equity is forecast to be high in 3 years time (34.8%)

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Past Performance

How has Witbe performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

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

32.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ALWIT has a high level of non-cash earnings.

Growing Profit Margin: ALWIT became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: ALWIT has become profitable over the past 5 years, growing earnings by 32.9% per year.

Accelerating Growth: ALWIT has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ALWIT has become profitable in the last year, making it difficult to compare its past year earnings growth to the IT industry (31.7%).

Return on Equity

High ROE: ALWIT's Return on Equity (35%) is considered high.

Discover strong past performing companies

Financial Health

How is Witbe's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

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

Financial Position Analysis

Short Term Liabilities: ALWIT's short term assets (€17.4M) exceed its short term liabilities (€8.3M).

Long Term Liabilities: ALWIT's short term assets (€17.4M) exceed its long term liabilities (€12.1M).

Debt to Equity History and Analysis

Debt Level: ALWIT's net debt to equity ratio (26.8%) is considered satisfactory.

Reducing Debt: ALWIT's debt to equity ratio has increased from 32.3% to 70.9% over the past 5 years.

Debt Coverage: ALWIT's debt is well covered by operating cash flow (107.4%).

Interest Coverage: ALWIT's interest payments on its debt are well covered by EBIT (44.1x coverage).

Balance Sheet

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

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

Dividend Yield vs Market

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

High Dividend: Unable to evaluate ALWIT'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 ALWIT's dividends per share have been stable in the past.

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

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ALWIT has not reported any payouts.

Discover strong dividend paying companies

Management

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

9.5yrs

Average management tenure

CEO

Mathieu Planche

3.58yrs

Tenure

Mr. Mathieu Planche has been Chief Executive Officer of Witbe SA since 2019. Mr. Planche served as Chief Product Officer of Witbe SA since 2019 until 2019. Mr. Planche served as Deputy Chief Executive Offi...

Leadership Team

Experienced Management: ALWIT's management team is seasoned and experienced (9.5 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	2022/08/12 00:00
End of Day Share Price	2022/08/12 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31