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NRO

Neurones ENXTPA:NRO Stock Report

Last Price

€39.35

Market Cap

€953.2m

7D

3.7%

1Y

24.1%

Updated

14 Aug, 2022

Data

Company Financials +
NRO fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance4/6
Financial Health6/6
Dividends5/6

NRO Stock Overview

Neurones S.A., an information technology (IT) services company, provides infrastructure, application, and consulting services in France and internationally.

Neurones Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Neurones
Historical stock prices
Current Share Price€39.35
52 Week High€39.55
52 Week Low€30.20
Beta0.41
1 Month Change14.06%
3 Month Change8.25%
1 Year Change24.13%
3 Year Change83.88%
5 Year Change40.59%
Change since IPO354.91%

Recent News & Updates

Apr 28
Neurones (EPA:NRO) Will Pay A Smaller Dividend Than Last Year

Neurones (EPA:NRO) Will Pay A Smaller Dividend Than Last Year

Neurones S.A. ( EPA:NRO ) has announced it will be reducing its dividend payable on the 10th of June to €1.00. However...

Shareholder Returns

NROFR ITFR Market
7D3.7%1.2%1.3%
1Y24.1%-17.2%-6.4%

Return vs Industry: NRO exceeded the French IT industry which returned -17.2% over the past year.

Return vs Market: NRO exceeded the French Market which returned -6.4% over the past year.

Price Volatility

Is NRO's price volatile compared to industry and market?
NRO volatility
NRO Average Weekly Movement3.1%
IT Industry Average Movement4.7%
Market Average Movement4.9%
10% most volatile stocks in FR Market9.1%
10% least volatile stocks in FR Market2.9%

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

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

About the Company

FoundedEmployeesCEOWebsite
19845,869Luc de Chammardhttps://www.neurones.net

Neurones S.A., an information technology (IT) services company, provides infrastructure, application, and consulting services in France and internationally. Its infrastructure services include infrastructure management, clouds, user support, DevOps, cybersecurity, IT service management, information system governance, and automation. The company also provides application services in the areas of SAP integration and outsourcing; mobility, data, IoT, digital, agile, UX/UI, and DevOps; IT consulting for finance, big data, AI and blockchain; content management, business process management, paperless process; and IT training and working with change management.

Neurones Fundamentals Summary

How do Neurones's earnings and revenue compare to its market cap?
NRO fundamental statistics
Market Cap€953.23m
Earnings (TTM)€37.71m
Revenue (TTM)€579.88m

25.3x

P/E Ratio

1.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NRO income statement (TTM)
Revenue€579.88m
Cost of Revenue€323.30m
Gross Profit€256.58m
Other Expenses€218.87m
Earnings€37.71m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Sep 07, 2022

Earnings per share (EPS)1.56
Gross Margin44.25%
Net Profit Margin6.50%
Debt/Equity Ratio0.1%

How did NRO perform over the long term?

See historical performance and comparison

Dividends

2.5%

Current Dividend Yield

64%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 NRO?

Other financial metrics that can be useful for relative valuation.

NRO 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/Revenue1.3x
Enterprise Value/EBITDA11x
PEG Ratio2x

Price to Earnings Ratio vs Peers

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

NRO PE Ratio vs Peers
The above table shows the PE ratio for NRO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average20.1x
WAVE Wavestone
20x4.9%€1.0b
SII SII
16.9x7.2%€1.0b
AUB Aubay Société Anonyme
21x7.3%€721.2m
SWP Sword Group
22.4x-16.8%€394.8m
NRO Neurones
25.3x12.9%€953.2m

Price-To-Earnings vs Peers: NRO is expensive based on its Price-To-Earnings Ratio (25.3x) compared to the peer average (20.1x).


Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: NRO is expensive based on its Price-To-Earnings Ratio (25.3x) compared to the French IT industry average (22.1x)


Price to Earnings Ratio vs Fair Ratio

What is NRO'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.

NRO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.3x
Fair PE Ratio26.2x

Price-To-Earnings vs Fair Ratio: NRO is good value based on its Price-To-Earnings Ratio (25.3x) compared to the estimated Fair Price-To-Earnings Ratio (26.2x).


Share Price vs Fair Value

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

Below Fair Value: NRO (€39.35) is trading below our estimate of fair value (€70.06)

Significantly Below Fair Value: NRO 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 less than 20% higher than the current share price.


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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


12.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NRO's forecast earnings growth (12.9% per year) is above the savings rate (0.3%).

Earnings vs Market: NRO's earnings (12.9% per year) are forecast to grow faster than the French market (11.5% per year).

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

Revenue vs Market: NRO's revenue (7.8% per year) is forecast to grow faster than the French market (5.2% per year).

High Growth Revenue: NRO's revenue (7.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NRO's Return on Equity is forecast to be low in 3 years time (15.1%).


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Past Performance

How has Neurones performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


6.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NRO has high quality earnings.

Growing Profit Margin: NRO's current net profit margins (6.5%) are higher than last year (5.9%).


Past Earnings Growth Analysis

Earnings Trend: NRO's earnings have grown by 6.9% per year over the past 5 years.

Accelerating Growth: NRO's earnings growth over the past year (22%) exceeds its 5-year average (6.9% per year).

Earnings vs Industry: NRO earnings growth over the past year (22%) underperformed the IT industry 31.7%.


Return on Equity

High ROE: NRO's Return on Equity (12.2%) is considered low.


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Financial Health

How is Neurones's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: NRO's short term assets (€464.1M) exceed its short term liabilities (€184.6M).

Long Term Liabilities: NRO's short term assets (€464.1M) exceed its long term liabilities (€30.3M).


Debt to Equity History and Analysis

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

Reducing Debt: NRO's debt to equity ratio has reduced from 1.1% to 0.1% over the past 5 years.

Debt Coverage: NRO's debt is well covered by operating cash flow (15769.7%).

Interest Coverage: NRO earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


2.54%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NRO's dividend (2.54%) is higher than the bottom 25% of dividend payers in the French market (1.68%).

High Dividend: NRO's dividend (2.54%) is low compared to the top 25% of dividend payers in the French market (5.25%).


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (64.2%), NRO's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (41.8%), NRO's dividend payments are well covered by cash flows.


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Management

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

17.8yrs

Average board tenure


CEO

Luc de Chammard (68 yo)

no data

Tenure

€220,000

Compensation

Mr. Luc de Chammard serves as the Chairman, Chief Executive Officer and Chief Information Officer of Neurones S.A. and served as its Co-Chief Executive Officer. Mr. de Chammard has been a Director at Neuro...


CEO Compensation Analysis

Compensation vs Market: Luc's total compensation ($USD225.57K) is below average for companies of similar size in the French market ($USD610.54K).

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


Board Members

Experienced Board: NRO'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.


Top Shareholders

Company Information

Neurones S.A.'s employee growth, exchange listings and data sources


Key Information

  • Name: Neurones S.A.
  • Ticker: NRO
  • Exchange: ENXTPA
  • Founded: 1984
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Implied Market Cap: €953.234m
  • Shares outstanding: 24.22m
  • Website: https://www.neurones.net

Number of Employees


Location

  • Neurones S.A.
  • Immeuble “le Clemenceau 1”
  • 205, Avenue Georges
  • Nanterre
  • Ile-de-France
  • 92024
  • France

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/14 00:00
End of Day Share Price2022/08/12 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.