ENXTPA:OPN

Stock Analysis Report

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Executive Summary

Groupe Open engages in digital and industrial transformation business in France, Romania, the Netherlands, and Luxembourg. More Details

Rewards

Trading at 42.1% below our estimate of its fair value

Earnings are forecast to grow 56.52% per year

Risk Analysis

No risks detected for OPN from our risk checks.


Snowflake Analysis

Flawless balance sheet and good value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: OPN is less volatile than 75% of French stocks over the past 3 months, typically moving +/- 1% a week.

Volatility Over Time: OPN's weekly volatility has decreased from 9% to 1% over the past year.


Market Performance


7 Day Return

0.4%

OPN

2.8%

FR IT

1.5%

FR Market


1 Year Return

38.4%

OPN

14.1%

FR IT

-1.8%

FR Market

Return vs Industry: OPN exceeded the French IT industry which returned 14.1% over the past year.

Return vs Market: OPN exceeded the French Market which returned -1.8% over the past year.


Shareholder returns

OPNIndustryMarket
7 Day0.4%2.8%1.5%
30 Day0.8%22.2%19.4%
90 Day1.5%3.9%13.3%
1 Year38.4%38.4%14.7%14.1%0.2%-1.8%
3 Year-46.4%-48.3%30.4%18.4%18.9%9.0%
5 Year7.9%1.5%89.6%68.4%50.4%30.0%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

42.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OPN (€15) is trading below our estimate of fair value (€25.93)

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


Price To Earnings Ratio

PE vs Industry: OPN is poor value based on its PE Ratio (25.2x) compared to the FR IT industry average (20.4x).

PE vs Market: OPN is poor value based on its PE Ratio (25.2x) compared to the French market (21.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: OPN is good value based on its PB Ratio (1.1x) compared to the FR IT industry average (2x).


Next Steps

Future Growth

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

56.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OPN's forecast earnings growth (56.5% per year) is above the savings rate (0.6%).

Earnings vs Market: OPN's earnings (56.5% per year) are forecast to grow faster than the French market (25.4% per year).

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

Revenue vs Market: OPN's revenue (2.3% per year) is forecast to grow slower than the French market (7.3% per year).

High Growth Revenue: OPN's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OPN's Return on Equity is forecast to be low in 3 years time (8.4%).


Next Steps

  • Explore growth companies in the Software industry.

Past Performance

How has Groupe Open performed over the past 5 years?

-10.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OPN has high quality earnings.

Growing Profit Margin: OPN's current net profit margins (1.6%) are lower than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: OPN's earnings have declined by 10.9% per year over the past 5 years.

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

Earnings vs Industry: OPN had negative earnings growth (-32.3%) over the past year, making it difficult to compare to the IT industry average (-2.1%).


Return on Equity

High ROE: OPN's Return on Equity (4.3%) is considered low.


Next Steps

Financial Health

How is Groupe Open's financial position?


Financial Position Analysis

Short Term Liabilities: OPN's short term assets (€109.6M) exceed its short term liabilities (€107.7M).

Long Term Liabilities: OPN's short term assets (€109.6M) exceed its long term liabilities (€33.7M).


Debt to Equity History and Analysis

Debt Level: OPN's debt to equity ratio (10.9%) is considered satisfactory.

Reducing Debt: OPN's debt to equity ratio has reduced from 16.2% to 10.9% over the past 5 years.

Debt Coverage: OPN's debt is well covered by operating cash flow (208.1%).

Interest Coverage: OPN's interest payments on its debt are well covered by EBIT (15.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Groupe Open current dividend yield, its reliability and sustainability?

1.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OPN's dividend (1.33%) isn’t notable compared to the bottom 25% of dividend payers in the French market (1.37%).

High Dividend: OPN's dividend (1.33%) is low compared to the top 25% of dividend payers in the French market (4.68%).


Stability and Growth of Payments

Stable Dividend: OPN has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: OPN's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.6%), OPN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OPN's dividends in 3 years are forecast to be covered by earnings (66.4% payout ratio).


Next Steps

Management

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

12.2yrs

Average board tenure


CEO

Frederic Sebag (54 yo)

no data

Tenure

€313,270

Compensation

Mr. Frédéric Sebag founded Groupe Open in 1989 and has been its Co-Chairman of the Board since August 9, 1991 and serves as its Chief Executive Officer. Mr. Sebag serves as Managing Director of Groupe Open...


CEO Compensation Analysis

Compensation vs Market: Frederic's total compensation ($USD374.55K) is above average for companies of similar size in the French market ($USD264.53K).

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


Board Members

NamePositionTenureCompensationOwnership
Frederic Sebag
Co-President of the Boardno data€313.27k14.97%
€ 18.1m
Guy Mamou-Mani
Co-President of the Board12.17yrs€306.93k4.42%
€ 5.4m
Valerie Benvenuto
CFO, Director - Operations & Finance12.17yrs€237.38k1.5%
€ 1.8m
Laurent Sadoun
Executive Director & Member of the Digital Advisory Board22.17yrs€39.00k11.25%
€ 13.6m
Souad Hibatallah
Director & Project Manager1.17yrsno datano data
Robert Morin
Chairman of TEAMLOGno datano datano data
Dominique Malige
Independent Director12.17yrs€14.00k0.0062%
€ 7.5k
Lara Rouyres
Member of the Digital Advisory Boardno datano datano data
Nathalie Andrieux
Member of the Digital Advisory Boardno datano datano data
Michel Cosnard
Member of the Digital Advisory Boardno datano datano data
Gilles Babinet
Member of the Digital Advisory Boardno datano datano data
Raphaël Giraud
Member of the Digital Advisory Boardno datano datano data

12.2yrs

Average Tenure

56yo

Average Age

Experienced Board: OPN's board of directors are seasoned and experienced ( 12.2 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Groupe Open
  • Ticker: OPN
  • Exchange: ENXTPA
  • Founded: 1989
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: €121.180m
  • Shares outstanding: 8.08m
  • Website: https://www.open.global

Number of Employees


Location

  • Groupe Open
  • 24 Rue Jacques Ibert
  • Levallois-perret
  • Ile-de-France
  • 92309
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OPNENXTPA (Euronext Paris)YesOrdinary SharesFREURMay 1998
OPNPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURMay 1998
0O1TLSE (London Stock Exchange)YesOrdinary SharesGBEURMay 1998
G19DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 1998

Biography

Groupe Open engages in digital and industrial transformation business in France, Romania, the Netherlands, and Luxembourg. The company offers consultancy for technology and digital transformation, applicat...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/29 19:56
End of Day Share Price2020/11/27 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.