ENXTPA:PROL

Stock Analysis Report

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Executive Summary

Prologue S.A. delivers cloud, IP communications, and enterprise content management (ECM) and exchange (EDI) solutions in France and internationally.


Snowflake Analysis

Reasonable growth potential and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PROL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

PROL

1.2%

FR Software

-1.0%

FR Market


1 Year Return

-50.2%

PROL

18.3%

FR Software

-3.3%

FR Market

Return vs Industry: PROL underperformed the French Software industry which returned 20.8% over the past year.

Return vs Market: PROL underperformed the French Market which returned -3.4% over the past year.


Shareholder returns

PROLIndustryMarket
7 Day0%1.2%-1.0%
30 Day-3.4%-0.7%-2.4%
90 Day-7.3%12.3%10.0%
1 Year-50.2%-50.2%18.9%18.3%-1.3%-3.3%
3 Year-74.2%-74.2%74.5%71.3%7.7%-1.5%
5 Year-88.0%-88.0%121.9%114.6%21.8%4.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PROL (€0.23) is trading below our estimate of fair value (€0.7)

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


Price To Earnings Ratio

PE vs Industry: PROL is unprofitable, so we can't compare its PE Ratio to the FR Software industry average.

PE vs Market: PROL is unprofitable, so we can't compare its PE Ratio to the French market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PROL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PROL is good value based on its PB Ratio (0.8x) compared to the FR Software industry average (2.2x).


Next Steps

Future Growth

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

90.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PROL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.6%).

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

High Growth Earnings: PROL's is expected to become profitable in the next 3 years.

Revenue vs Market: PROL's revenue (3% per year) is forecast to grow slower than the French market (6.1% per year).

High Growth Revenue: PROL's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PROL's Return on Equity is forecast to be high in 3 years time (21.3%)


Next Steps

Past Performance

How has Prologue performed over the past 5 years?

8.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PROL is currently unprofitable.

Growing Profit Margin: PROL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PROL is unprofitable, but has reduced losses over the past 5 years at a rate of 8.1% per year.

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

Earnings vs Industry: PROL is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (-3.2%).


Return on Equity

High ROE: PROL has a negative Return on Equity (-7.98%), as it is currently unprofitable.


Next Steps

Financial Health

How is Prologue's financial position?


Financial Position Analysis

Short Term Liabilities: PROL's short term assets (€41.9M) exceed its short term liabilities (€36.9M).

Long Term Liabilities: PROL's short term assets (€41.9M) exceed its long term liabilities (€19.2M).


Debt to Equity History and Analysis

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

Reducing Debt: PROL's debt to equity ratio has increased from 11.7% to 80.8% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: PROL has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if PROL has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

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

25.6yrs

Average management tenure


CEO

Georges Seban (91 yo)

4.08yrs

Tenure

€48,000

Compensation

Mr. Georges Seban is the Founder of Prologue S.A. and serves as its Chairman. Mr. Seban serves as Chief Executive Officer of Prologue S.A. since July 21, 2016. Mr. Seban serves as Chief Executive officer o ...


CEO Compensation Analysis

Compensation vs Market: Georges's total compensation ($USD0.00) is below average for companies of similar size in the French market ($USD312.43K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Georges Seban
Founder4.08yrs€48.00k4.71%
€ 498.1k
Ramendra Das
Chief Financial Officerno data€26.02kno data
John Namee
Chief Operating Officerno datano datano data
Scott Finkle
VP & Technical Directorno datano datano data
Annik Bonnefemme
Director of the Communication27.58yrsno datano data
Christian Léonetti
Managing Director25.58yrs€519.61kno data
Najah Naffah
Managing Directorno datano datano data
Jaime Guevara
International Chief Executive Officerno datano datano data
Benjamin Arragon
Group General Secretaryno datano datano data

25.6yrs

Average Tenure

68yo

Average Age

Experienced Management: PROL's management team is seasoned and experienced (25.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Georges Seban
Founder4.08yrs€48.00k4.71%
€ 498.1k
Michel Seban
Director9.17yrs€13.00kno data
Annik Harmand
Independent Director2.17yrs€8.00kno data
Elsa Perdomo
Director5.58yrs€6.00kno data
Jean-Claude Canioni
Independent Director2.92yrs€16.00kno data
Sophie Rigollot
Independent Director2.17yrs€4.00kno data

4.3yrs

Average Tenure

Experienced Board: PROL's board of directors are considered experienced (4.3 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

Prologue S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Prologue S.A.
  • Ticker: PROL
  • Exchange: ENXTPA
  • Founded:
  • Industry: Application Software
  • Sector: Software
  • Market Cap: €10.571m
  • Shares outstanding: 45.96m
  • Website: https://www.prologue.fr

Number of Employees


Location

  • Prologue S.A.
  • 101, Avenue Laurent Cély
  • Gennevilliers
  • Ile-de-France
  • 92230
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
0FPJLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 2007
PROLPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 2007
PROLENXTPA (Euronext Paris)YesOrdinary SharesFREURJan 2007
69PBST (Boerse-Stuttgart)YesOrdinary SharesDEEURJan 2007

Biography

Prologue S.A. delivers cloud, IP communications, and enterprise content management (ECM) and exchange (EDI) solutions in France and internationally. It offers cloud computing solutions with a brokering pla ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/04 22:25
End of Day Share Price2020/08/04 00:00
Earnings2019/12/31
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.