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WLN

Worldline ENXTPA:WLN Stock Report

Last Price

€44.92

Market Cap

€12.6b

7D

4.5%

1Y

-41.2%

Updated

11 Aug, 2022

Data

Company Financials +
WLN fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance4/6
Financial Health5/6
Dividends0/6

WLN Stock Overview

Worldline SA provides payments and transactional services to financial institutions, merchants, corporations, and government agencies in France, rest of Europe, and internationally.

Worldline Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Worldline
Historical stock prices
Current Share Price€44.92
52 Week High€77.26
52 Week Low€31.82
Beta1.31
1 Month Change25.55%
3 Month Change21.90%
1 Year Change-41.24%
3 Year Change-25.26%
5 Year Change29.40%
Change since IPO173.90%

Recent News & Updates

Jun 19
Is There An Opportunity With Worldline SA's (EPA:WLN) 38% Undervaluation?

Is There An Opportunity With Worldline SA's (EPA:WLN) 38% Undervaluation?

How far off is Worldline SA ( EPA:WLN ) from its intrinsic value? Using the most recent financial data, we'll take a...

Shareholder Returns

WLNFR ITFR Market
7D4.5%0.9%0.3%
1Y-41.2%-16.9%-6.3%

Return vs Industry: WLN underperformed the French IT industry which returned -17.5% over the past year.

Return vs Market: WLN underperformed the French Market which returned -6.3% over the past year.

Price Volatility

Is WLN's price volatile compared to industry and market?
WLN volatility
WLN Average Weekly Movement6.9%
IT Industry Average Movement4.7%
Market Average Movement5.0%
10% most volatile stocks in FR Market9.0%
10% least volatile stocks in FR Market2.8%

Stable Share Price: WLN is more volatile than 75% of French stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: WLN's weekly volatility (7%) has been stable over the past year, but is still higher than 75% of French stocks.

About the Company

FoundedEmployeesCEOWebsite
197321,363Gilles Grapinethttps://www.worldline.com

Worldline SA provides payments and transactional services to financial institutions, merchants, corporations, and government agencies in France, rest of Europe, and internationally. The company operates through Merchant Services; Financial Services; and Mobility & e-Transactional Services segments. The Merchant Services segment offers commercial acquiring, terminal, omnichannel payment acceptance, private label card and loyalty, and digital retail services.

Worldline Fundamentals Summary

How do Worldline's earnings and revenue compare to its market cap?
WLN fundamental statistics
Market Cap€12.63b
Earnings (TTM)€191.00m
Revenue (TTM)€4.02b

66.1x

P/E Ratio

3.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WLN income statement (TTM)
Revenue€4.02b
Cost of Revenue€1.41b
Gross Profit€2.60b
Other Expenses€2.41b
Earnings€191.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.68
Gross Margin64.86%
Net Profit Margin4.76%
Debt/Equity Ratio45.3%

How did WLN perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 WLN?

Other financial metrics that can be useful for relative valuation.

WLN 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/Revenue4.4x
Enterprise Value/EBITDA26.3x
PEG Ratio2x

Price to Earnings Ratio vs Peers

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

WLN PE Ratio vs Peers
The above table shows the PE ratio for WLN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average24.4x
EDEN Edenred
36.8x11.3%€12.9b
CAP Capgemini
23.7x14.6%€32.7b
ATE Alten
22.1x11.3%€4.6b
SOP Sopra Steria Group
15x13.6%€3.2b
WLN Worldline
66.1x33.6%€12.6b

Price-To-Earnings vs Peers: WLN is expensive based on its Price-To-Earnings Ratio (66.1x) compared to the peer average (24.4x).


Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: WLN is expensive based on its Price-To-Earnings Ratio (66.1x) compared to the French IT industry average (21.9x)


Price to Earnings Ratio vs Fair Ratio

What is WLN'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.

WLN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio66.1x
Fair PE Ratio42.7x

Price-To-Earnings vs Fair Ratio: WLN is expensive based on its Price-To-Earnings Ratio (66.1x) compared to the estimated Fair Price-To-Earnings Ratio (42.7x).


Share Price vs Fair Value

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

Below Fair Value: WLN (€44.92) is trading below our estimate of fair value (€59.7)

Significantly Below Fair Value: WLN 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 more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Worldline forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


33.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WLN's forecast earnings growth (33.6% per year) is above the savings rate (0.3%).

Earnings vs Market: WLN's earnings (33.6% per year) are forecast to grow faster than the French market (11.5% per year).

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

Revenue vs Market: WLN's revenue (9% per year) is forecast to grow faster than the French market (5.2% per year).

High Growth Revenue: WLN's revenue (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 (8%).


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Past Performance

How has Worldline 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


11.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: WLN has a large one-off loss of €429.9M impacting its June 30 2022 financial results.

Growing Profit Margin: WLN's current net profit margins (4.8%) are higher than last year (4.2%).


Past Earnings Growth Analysis

Earnings Trend: WLN's earnings have grown by 11.2% per year over the past 5 years.

Accelerating Growth: WLN's earnings growth over the past year (49.8%) exceeds its 5-year average (11.2% per year).

Earnings vs Industry: WLN earnings growth over the past year (49.8%) exceeded the IT industry 31.7%.


Return on Equity

High ROE: WLN's Return on Equity (2%) is considered low.


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Financial Health

How is Worldline's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: WLN's short term assets (€9.1B) exceed its short term liabilities (€7.8B).

Long Term Liabilities: WLN's short term assets (€9.1B) exceed its long term liabilities (€4.3B).


Debt to Equity History and Analysis

Debt Level: WLN's net debt to equity ratio (34.1%) is considered satisfactory.

Reducing Debt: WLN's debt to equity ratio has increased from 2.9% to 45.3% over the past 5 years.

Debt Coverage: WLN's debt is well covered by operating cash flow (21%).

Interest Coverage: WLN's interest payments on its debt are well covered by EBIT (20x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.59%

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 recent payouts.

High Dividend: Unable to evaluate WLN'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 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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as WLN has not reported any payouts.


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Management

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

6.6yrs

Average management tenure


CEO

Gilles Grapinet (59 yo)

9.08yrs

Tenure

€2,827,353

Compensation

Mr. Gilles Grapinet serves as Chairman and Director at Ingenico Group S.A. since October 2020. He served as the Chairman at Worldline S.A. since October 24, 2019 until October 25, 2021 and serves as Chairm...


CEO Compensation Analysis

Compensation vs Market: Gilles's total compensation ($USD2.92M) is about average for companies of similar size in the French market ($USD3.99M).

Compensation vs Earnings: Gilles's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: WLN's management team is seasoned and experienced (6.6 years average tenure).


Board Members

Experienced Board: WLN's board of directors are considered experienced (4.7 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

Worldline SA's employee growth, exchange listings and data sources


Key Information

  • Name: Worldline SA
  • Ticker: WLN
  • Exchange: ENXTPA
  • Founded: 1973
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Implied Market Cap: €12.627b
  • Shares outstanding: 281.10m
  • Website: https://www.worldline.com

Number of Employees


Location

  • Worldline SA
  • Tour Voltaire
  • 1, Place des DegrEs
  • Puteaux
  • Ile-de-France
  • 92800
  • France

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/11 00:00
End of Day Share Price2022/08/11 00:00
Earnings2022/06/30
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.