ENXTPA:WLN

Stock Analysis Report

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Executive Summary

Worldline SA provides electronic payment and transactional services to financial institutions, merchants, corporations, and government agencies in Europe, Latin America, and Asia.


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

5.0%

WLN

0.7%

FR IT

2.3%

FR Market


1 Year Return

24.0%

WLN

-2.3%

FR IT

-8.7%

FR Market

Return vs Industry: WLN exceeded the French IT industry which returned -1.9% over the past year.

Return vs Market: WLN exceeded the French Market which returned -8.6% over the past year.


Shareholder returns

WLNIndustryMarket
7 Day5.0%0.7%2.3%
30 Day10.7%7.1%-0.3%
90 Day55.6%42.3%21.3%
1 Year24.0%24.0%-1.7%-2.3%-7.1%-8.7%
3 Year135.5%135.5%21.2%8.6%11.2%2.1%
5 Year303.5%303.5%79.7%58.2%28.6%11.4%

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?

45.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WLN (€78.28) is trading above our estimate of fair value (€46.87)

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 (45.8x) compared to the IT industry average (16.2x).

PE vs Market: WLN is poor value based on its PE Ratio (45.8x) compared to the French market (15x).


Price to Earnings Growth Ratio

PEG Ratio: WLN is poor value based on its PEG Ratio (6.3x)


Price to Book Ratio

PB vs Industry: WLN is overvalued based on its PB Ratio (4.4x) compared to the FR IT industry average (1.7x).


Next Steps

Future Growth

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

7.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WLN's forecast earnings growth (7.3% per year) is above the savings rate (0.6%).

Earnings vs Market: WLN's earnings (7.3% per year) are forecast to grow slower than the French market (13.5% per year).

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

Revenue vs Market: WLN's revenue (5.8% per year) is forecast to grow faster than the French market (3.9% per year).

High Growth Revenue: WLN's revenue (5.8% 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%).


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 4%.


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 current dividend yield, its reliability and sustainability?

0.11%

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.


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?

4.0yrs

Average management tenure


CEO

Gilles Grapinet (57yo)

7yrs

Tenure

€2,610,118

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 ($USD2.93M) is about average for companies of similar size in the French market ($USD3.90M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gilles Grapinet
Chairman & CEO7yrs€2.61m0.043% 6.2m
Marc-Henri Desportes
Deputy Chief Executive Officer7yrs€1.37mno data
Eric Heurtaux
Chief Financial Officer3.58yrsno datano data
Christophe Duquenne
CTO & COO7yrsno datano data
David Pierre-Kahn
Head of Investors Relationsno datano datano data
Charles-Henri de Taffin
Head of Legal3yrsno datano data
Tiphaine Hecketsweiler
Head of Communications Worldlineno datano datano data
Pascal Mauze
Head of Sales & Marketing3.5yrsno datano data
Olivier Burger
Head of Human Resources1.75yrsno datano data
Vincent Roland
Head of Global Business Line (GBL) Merchant Services4.5yrsno datano data

4.0yrs

Average Tenure

47yo

Average Age

Experienced Management: WLN's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gilles Grapinet
Chairman & CEO7yrs€2.61m0.043% 6.2m
Aldo Cardoso
Independent Director6.08yrs€82.00k0.00082% 117.4k
Susan Tolson
Independent Director6.08yrs€56.00k0.00082% 117.4k
Danielle Lagarde
Independent Director3.58yrs€52.00k0.00082% 117.4k
Daniel Schmucki
Director0.33yr€54.00kno data
Luc Rémont
Independent Director6.08yrs€63.00k0.00082% 117.4k
Giulia Fitzpatrick
Director1.67yrs€59.00k0.00041% 58.7k
Georges Pauget
Lead Independent Directorno data€29.33kno data
Mette Kamsvåg
Independent Director1.25yrs€36.33kno data
Lorenz von Lothringen
Director1.25yrs€43.08kno data

1.7yrs

Average Tenure

59yo

Average Age

Experienced Board: WLN's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: WLN 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

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: €14.320b
  • Shares outstanding: 182.93m
  • 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 in Europe, Latin America, and Asia. The company operates through Merchant Services, Financial Services, and Mobility & e-Transactional Services segment. Its Merchant Services segment offers commercial acquiring, terminal, omnichannel payment acceptance, private label card loyalty, and digital retail services, as well as security and fraud risk management, merchant wallet, and data and analytics services. 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; law enforcement; e-Government online and data; digital signature, digital preservation, and digital identity; healthcare information; 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/03 20:48
End of Day Share Price2020/07/03 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.