ENXTPA:TES

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Tessi SA provides business process services in Europe and Latin America.


Snowflake Analysis

Proven track record and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

11.7%

TES

6.2%

FR IT

8.7%

FR Market


1 Year Return

-10.7%

TES

3.3%

FR IT

-2.4%

FR Market

Return vs Industry: TES underperformed the French IT industry which returned 2.1% over the past year.

Return vs Market: TES underperformed the French Market which returned -4.4% over the past year.


Shareholder returns

TESIndustryMarket
7 Day11.7%6.2%8.7%
30 Day21.4%11.8%15.9%
90 Day-2.4%4.5%1.3%
1 Year-10.7%-10.7%4.1%3.3%-0.7%-2.4%
3 Year-14.2%-37.9%13.9%1.6%11.2%2.2%
5 Year83.3%7.3%81.1%59.0%31.1%14.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

16.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TES (€100.5) is trading below our estimate of fair value (€120.45)

Significantly Below Fair Value: TES is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TES is good value based on its PE Ratio (8x) compared to the IT industry average (15.3x).

PE vs Market: TES is good value based on its PE Ratio (8x) compared to the French market (15x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TES is overvalued based on its PB Ratio (1.8x) compared to the FR IT industry average (1.7x).


Next Steps

Future Growth

How is Tessi forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.5%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Tessi has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Tessi performed over the past 5 years?

2.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TES has a large one-off gain of €12.3M impacting its December 31 2019 financial results.

Growing Profit Margin: TES's current net profit margins (7.9%) are higher than last year (4.2%).


Past Earnings Growth Analysis

Earnings Trend: TES's earnings have grown by 2.2% per year over the past 5 years.

Accelerating Growth: TES's earnings growth over the past year (97.3%) exceeds its 5-year average (2.2% per year).

Earnings vs Industry: TES earnings growth over the past year (97.3%) exceeded the IT industry 9%.


Return on Equity

High ROE: TES's Return on Equity (19.3%) is considered low.


Next Steps

Financial Health

How is Tessi's financial position?


Financial Position Analysis

Short Term Liabilities: TES's short term assets (€332.7M) exceed its short term liabilities (€295.6M).

Long Term Liabilities: TES's short term assets (€332.7M) exceed its long term liabilities (€279.4M).


Debt to Equity History and Analysis

Debt Level: TES's debt to equity ratio (119.7%) is considered high.

Reducing Debt: TES's debt to equity ratio has increased from 97.9% to 119.7% over the past 5 years.

Debt Coverage: TES's debt is not well covered by operating cash flow (16.6%).

Interest Coverage: TES's interest payments on its debt are well covered by EBIT (6.4x coverage).


Balance Sheet


Next Steps

Dividend

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

23.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TES's dividend (23.33%) is higher than the bottom 25% of dividend payers in the French market (1.66%).

High Dividend: TES's dividend (23.33%) is in the top 25% of dividend payers in the French market (4.93%)


Stability and Growth of Payments

Stable Dividend: TES's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (187.8%), TES's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Claire Fistarol

3.42yrs

Tenure

€728,470

Compensation

Ms. Claire Fistarol has been the Chief Executive Officer of Tessi SA since January 17, 2017 and serves as its Chairwoman of Management Board and Member of Management Board since February 22, 2017. Ms. Fist ...


CEO Compensation Analysis

Compensation vs Market: Claire's total compensation ($USD825.18K) is above average for companies of similar size in the French market ($USD543.03K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Claire Fistarol
CEO & Chairwoman of the Management Board3.42yrs€728.47kno data
Olivier Jolland
GM & Member of the Management Boardno data€563.89kno data
Patrick Peillon
Director of Information Systems1.58yrsno datano data
Claire Mutel
Legal Director1.58yrsno datano data
Emmanuelle Ertel
Director of Communication & Digital Innovation1.58yrsno datano data
Benoit Bourg
Director of Human Resources1.58yrsno datano data
Jean-François Daumas
Internal Audit Directorno datano datano data
Bruno De Kervenoael
Director of External Growth and Partnershipno datano datano data
Jesús Gómez
General Manager of Business Process Outsourcing division - Tessi Iberiano datano datano data
Cécile Devin
Chief Executive Officer of Marketing & Customer Relations Division - Tessi Franceno datano datano data

1.6yrs

Average Tenure

Experienced Management: TES's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Michel Angé
Independent Member of the Supervisory Board3.33yrs€35.00kno data
Henri Dufer
Member of the Supervisory Board3.33yrs€35.00kno data
Vincent Ménez
Chairman of the Supervisory Board3.33yrsno datano data
Jean-Louis Savoye
Vice-Chairman of the Supervisory Board3.17yrsno datano data
Nathalie Gak
Member of the Supervisory Board3.33yrsno datano data
Marine Dentressangle
Member of the Supervisory Board3.33yrsno datano data
Jean-Hubert Vial
Member of the Supervisory Board3.17yrsno datano data
Anne Canel
Member of the Supervisory Board3.33yrsno datano data
Daniel Aquaba
Member of the Supervisory Board1.58yrsno datano data
Alix Guillon
Member of the Supervisory Board1.25yrsno datano data

3.3yrs

Average Tenure

Experienced Board: TES's board of directors are considered experienced (3.3 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 been diluted in the past year, with total shares outstanding growing by 16%.


Top Shareholders

Company Information

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


Key Information

  • Name: Tessi SA
  • Ticker: TES
  • Exchange: ENXTPA
  • Founded: 1971
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: €327.472m
  • Shares outstanding: 3.26m
  • Website: https://www.tessi.fr

Number of Employees


Location

  • Tessi SA
  • 177 cours de la Libération
  • Cedex 2
  • Grenoble
  • Rhône-Alpes
  • 38029
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TESENXTPA (Euronext Paris)YesOrdinary SharesFREURJul 2001
0ODJLSE (London Stock Exchange)YesOrdinary SharesGBEURJul 2001
YTEBST (Boerse-Stuttgart)YesOrdinary SharesDEEURJul 2001

Biography

Tessi SA provides business process services in Europe and Latin America. It operates through Tessi Documents Services and Tessi Customer Marketing segments. The Tessi Documents Services segment is involved in the inbound information/document automation, such as multi-sector business process outsourcing, advanced financial services, customer relationship management, banking back office operations, cashless payments, and payment and receipts processing; transactional mail printing, automated processing of individual, registered and paperless correspondence, and paperless invoice processing; remote customer relationship management; and outsourced insurance policy administration solutions. This segment also engages in the development and integration of hardware and software solutions for processing payments, hybrid documents, and electronic communications; and cyber security solutions comprising authentication, cryptography, encryption, SSL, electronic signature, and timestamping solutions. The Tessi Customer Marketing segment offers promotional marketing, promotional logistics, and direct marketing services. Tessi SA was founded in 1971 and is based in Grenoble, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 21:05
End of Day Share Price2020/06/04 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.