ENXTPA:WLN

Stock Analysis Report

Executive Summary

Worldline SA provides electronic payment and transactional services to financial institutions, merchants, corporations, and government agencies worldwide.


Snowflake Analysis

Excellent balance sheet with solid track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

23.3%

WLN

10.7%

FR IT

6.9%

FR Market


1 Year Return

9.3%

WLN

-17.1%

FR IT

-17.0%

FR Market

Return vs Industry: WLN exceeded the French IT industry which returned -21.4% over the past year.

Return vs Market: WLN exceeded the French Market which returned -19.6% over the past year.


Shareholder returns

WLNIndustryMarket
7 Day23.3%10.7%6.9%
30 Day5.6%-3.4%-3.0%
90 Day-4.8%-20.9%-23.7%
1 Year9.3%9.3%-12.1%-17.1%-14.1%-17.0%
3 Year112.5%112.5%6.8%-5.3%4.1%-5.6%
5 Year223.3%223.3%56.3%36.3%10.7%-4.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

36.26x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WLN (€56.82) is trading above our estimate of fair value (€55.44)

Significantly Below Fair Value: WLN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WLN is poor value based on its PE Ratio (33.2x) compared to the IT industry average (12.7x).

PE vs Market: WLN is poor value based on its PE Ratio (33.2x) compared to the French market (13.6x).


Price to Earnings Growth Ratio

PEG Ratio: WLN is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: WLN is overvalued based on its PB Ratio (3.2x) compared to the FR IT industry average (1.5x).


Next Steps

Future Growth

How is Worldline forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

5.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WLN's forecast earnings growth (12.8% per year) is above the savings rate (-0.1%).

Earnings vs Market: WLN's earnings (12.8% per year) are forecast to grow faster than the French market (12.2% per year).

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

Revenue vs Market: WLN's revenue (5.9% per year) is forecast to grow faster than the French market (3.5% per year).

High Growth Revenue: WLN's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WLN's Return on Equity is forecast to be low in 3 years time (10.3%).


Next Steps

Past Performance

How has Worldline performed over the past 5 years?

15.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WLN has high quality earnings.

Growing Profit Margin: WLN's current net profit margins (13.1%) are higher than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: WLN's earnings have grown by 15% per year over the past 5 years.

Accelerating Growth: WLN's earnings growth over the past year (209.7%) exceeds its 5-year average (15% per year).

Earnings vs Industry: WLN earnings growth over the past year (209.7%) exceeded the IT industry 9%.


Return on Equity

High ROE: WLN's Return on Equity (10.5%) is considered low.


Next Steps

Financial Health

How is Worldline's financial position?


Financial Position Analysis

Short Term Liabilities: WLN's short term assets (€2.2B) exceed its short term liabilities (€2.0B).

Long Term Liabilities: WLN's short term assets (€2.2B) exceed its long term liabilities (€1.6B).


Debt to Equity History and Analysis

Debt Level: WLN's debt to equity ratio (35.5%) is considered satisfactory.

Reducing Debt: WLN's debt to equity ratio has increased from 1.7% to 35.5% over the past 5 years.

Debt Coverage: WLN's debt is well covered by operating cash flow (37.4%).

Interest Coverage: WLN's interest payments on its debt are well covered by EBIT (48.4x coverage).


Balance Sheet


Next Steps

Dividend

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

0.12%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate WLN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WLN's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: WLN is not paying a notable dividend for the French market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WLN'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?

3.8yrs

Average management tenure


CEO

Gilles Grapinet (56yo)

6.75s

Tenure

€1,791,566

Compensation

Mr. Gilles Grapinet has been Chairman of Worldline S.A. and Worldline S.A./N.V. since October 24, 2019. He has been the Chief Executive Officer of Worldline S.A. and Worldline S.A./N.V. since July 2013. Mr ...


CEO Compensation Analysis

Compensation vs Market: Gilles's total compensation ($USD1.95M) is below average for companies of similar size in the French market ($USD3.94M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gilles Grapinet
Chairman & CEO6.75yrs€1.79m0.043% 4.9m
Marc-Henri Desportes
Deputy Chief Executive Officer6.75yrs€952.87kno data
Eric Heurtaux
Chief Financial Officer3.33yrsno datano data
Christophe Duquenne
CTO, COO & Director of the Merchant Services Global Business Line6.75yrsno datano data
David Pierre-Kahn
Head of Investors Relationsno datano datano data
Charles-Henri de Taffin
Head of Legal2.75yrsno datano data
Tiphaine Hecketsweiler
Head of Communications Worldlineno datano datano data
Pascal Mauze
Head of Sales & Marketing3.25yrsno datano data
Olivier Burger
Group Human Resource Director1.5yrsno datano data
Vincent Roland
Managing Director of Merchant Services4.25yrsno datano data

3.8yrs

Average Tenure

46yo

Average Age

Experienced Management: WLN's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gilles Grapinet
Chairman & CEO6.75yrs€1.79m0.043% 4.9m
Aldo Cardoso
Independent Director5.83yrs€42.25k0.00082% 92.5k
Romeo Lacher
Director1.42yrs€3.67k0.00041% 46.3k
Susan Tolson
Independent Director5.83yrs€38.50k0.00082% 92.5k
Gilles Arditti
Director6yrsno data0.00082% 92.5k
Danielle Lagarde
Independent Director3.33yrs€3.67k0.00082% 92.5k
Ursula Morgenstern
Director6yrsno data0.00082% 92.5k
Luc Rémont
Independent Director5.83yrs€37.00k0.00082% 92.5k
Sophie Houssiaux
Director3.33yrsno data0.00082% 92.5k
Lorenz von Lothringen
Director1yrno datano data

4.6yrs

Average Tenure

57yo

Average Age

Experienced Board: WLN's board of directors are considered experienced (4.6 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 been diluted in the past year, with total shares outstanding growing by 32.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: Worldline S.A.
  • Ticker: WLN
  • Exchange: ENXTPA
  • Founded: 1973
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: €11.286b
  • Shares outstanding: 182.02m
  • Website: https://www.worldline.com

Number of Employees


Location

  • Worldline S.A.
  • 80 Quai Voltaire
  • River Ouest
  • Bezons
  • Ile-de-France
  • 95870
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WLNENXTPA (Euronext Paris)YesCommon StockFREURJun 2014
WO6DB (Deutsche Boerse AG)YesCommon StockDEEURJun 2014
WLNPBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURJun 2014
0QVILSE (London Stock Exchange)YesCommon StockGBEURJun 2014
WWLN.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJun 2014
WRDL.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDMar 2016

Biography

Worldline SA provides electronic payment and transactional services to financial institutions, merchants, corporations, and government agencies worldwide. Its Merchant Services segment offers commercial acquiring services, as well as ancillary value added services; payment terminals solutions; omni-channel payment and acceptance services, merchant wallets, digital signage, and online payment gateways; private label cards; and loyalty programs and related solutions, such as sales promotion services and self-service kiosks. The company’s Financial Services segment provides issuing services, such as issuing and managing debit, credit, prepaid, and commercial cards, as well as digital enablement, and identity, trust, and authentication services; acquiring processing, fraud risk management, and ATM management; instant payments channel, payments processing back-office, and clearing and settlement services; digital banking platform, mobile and open banking, and trading system and financial information services; and payment software licensing, hosting, application management, and business process outsourcing. Its Mobility & e-Transactional Services segment offers solutions and services, including e-ticketing; e-contracts and electronic invoicing, and legal archiving solutions; e-safe services; and cloud contact and consumer cloud services, and connected living solutions. The company was formerly known as Atos Worldline S.A.S. and changed its name to Worldline SA in April 2014. The company was founded in 1973 and is headquartered in Bezons, France. Worldline SA is a subsidiary of Atos SE. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 05:35
End of Day Share Price2020/04/09 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.