Eutelsat Communications (BATS-CHIXE:ETLP) - Share price, News & Analysis

ETLP fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	1/6
Financial Health	3/6
Dividends	5/6

ETLP Stock Overview

Eutelsat Communications S.A. engages in the operation of telecommunication satellites for the digital communications markets.

Rewards

Trading at 57.7% below our estimate of its fair value

Risk Analysis

Earnings are forecast to decline by an average of 11% per year for the next 3 years

Shares are highly illiquid

Has a high level of debt

Unstable dividend track record

Eutelsat Communications Competitors

AT&T

NYSE:T

US$143.4b

Deutsche Telekom

XTRA:DTE

€86.0b

Cellnex Telecom

BME:CLNX

€28.3b

BT Group

LSE:BT.A

UK£17.4b

Price History & Performance

Summary of all time highs, changes and price drops for Eutelsat Communications
Historical stock prices
Current Share Price	€10.64
52 Week High	€12.80
52 Week Low	€9.15
Beta	0.52
1 Month Change	10.70%
3 Month Change	n/a
1 Year Change	0.21%
3 Year Change	-33.23%
5 Year Change	-50.14%
Change since IPO	-60.44%

Shareholder Returns

	ETLP	GB Media	GB Market
7D	0%	-2.7%	-2.6%
1Y	0.2%	-11.7%	-5.2%

Return vs Industry: ETLP exceeded the UK Media industry which returned -11.7% over the past year.

Return vs Market: ETLP exceeded the UK Market which returned -5.2% over the past year.

Price Volatility

Is ETLP's price volatile compared to industry and market?
ETLP volatility
ETLP Average Weekly Movement	n/a
Media Industry Average Movement	6.8%
Market Average Movement	6.0%
10% most volatile stocks in GB Market	11.8%
10% least volatile stocks in GB Market	3.0%

Stable Share Price: Insufficient data to determine ETLP's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine ETLP's volatility change over the past year.

About the Company

Founded	Employees	CEO	Website
1977	1,132	Eva Merete Berneke	https://www.eutelsat.com

Eutelsat Communications S.A. engages in the operation of telecommunication satellites for the digital communications markets. It provides video services, such as broadcast DTH, distribution, HD and ultra HD channels, and occasional use services; connectivity services; and Internet of Things and low earth orbit solutions. The company offers its services under the Eutelsat brand directly and through distributors.

Eutelsat Communications Fundamentals Summary

How do Eutelsat Communications's earnings and revenue compare to its market cap?
ETLP fundamental statistics
Market Cap	€2.42b
Earnings (TTM)	€242.70m
Revenue (TTM)	€1.18b

10.0x

P/E Ratio

2.1x

P/S Ratio

Is ETLP overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ETLP income statement (TTM)
Revenue	€1.18b
Cost of Revenue	€93.70m
Gross Profit	€1.08b
Other Expenses	€841.20m
Earnings	€242.70m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 03, 2022

Earnings per share (EPS)	1.05
Gross Margin	92.04%
Net Profit Margin	20.61%
Debt/Equity Ratio	116.3%

How did ETLP perform over the long term?

See historical performance and comparison

Dividends

8.9%

Current Dividend Yield

88%

Payout Ratio

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: ETLP (€10.64) is trading below our estimate of fair value (€25.18)

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

Price To Earnings Ratio

PE vs Industry: ETLP is good value based on its PE Ratio (10x) compared to the UK Media industry average (26.7x).

PE vs Market: ETLP is good value based on its PE Ratio (10x) compared to the UK market (15.6x).

Price to Earnings Growth Ratio

PEG Ratio: ETLP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: ETLP is good value based on its PB Ratio (0.9x) compared to the GB Media industry average (1.9x).

Future Growth

How is Eutelsat Communications forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-11.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ETLP's earnings are forecast to decline over the next 3 years (-11% per year).

Earnings vs Market: ETLP's earnings are forecast to decline over the next 3 years (-11% per year).

High Growth Earnings: ETLP's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ETLP's revenue (0.1% per year) is forecast to grow slower than the UK market (4.2% per year).

High Growth Revenue: ETLP's revenue (0.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ETLP's Return on Equity is forecast to be low in 3 years time (9.5%).

Past Performance

How has Eutelsat Communications performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-6.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ETLP has high quality earnings.

Growing Profit Margin: ETLP's current net profit margins (20.6%) are lower than last year (23.2%).

Past Earnings Growth Analysis

Earnings Trend: ETLP's earnings have declined by 6.6% per year over the past 5 years.

Accelerating Growth: ETLP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ETLP had negative earnings growth (-17.5%) over the past year, making it difficult to compare to the Media industry average (61.7%).

Return on Equity

High ROE: ETLP's Return on Equity (9.6%) is considered low.

Financial Health

How is Eutelsat Communications's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ETLP's short term assets (€814.2M) do not cover its short term liabilities (€1.0B).

Long Term Liabilities: ETLP's short term assets (€814.2M) do not cover its long term liabilities (€3.7B).

Debt to Equity History and Analysis

Debt Level: ETLP's net debt to equity ratio (98.8%) is considered high.

Reducing Debt: ETLP's debt to equity ratio has reduced from 153.4% to 116.3% over the past 5 years.

Debt Coverage: ETLP's debt is well covered by operating cash flow (26.3%).

Interest Coverage: ETLP's interest payments on its debt are well covered by EBIT (6.7x coverage).

Balance Sheet

Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

8.87%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ETLP's dividend (8.87%) is higher than the bottom 25% of dividend payers in the UK market (1.78%).

High Dividend: ETLP's dividend (8.87%) is in the top 25% of dividend payers in the UK market (4.81%)

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (88.2%), ETLP's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (34.7%), ETLP's dividend payments are well covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Media industry.

Management

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

4.3yrs

Average management tenure

CEO

Eva Merete Berneke (52 yo)

0.33

Tenure

Ms. Eva Merete Søfelde Berneke is the Chief Executive Officer and Director of Eutelsat S.A. and Eutelsat Communications S.A. since January 1, 2022 respectively. She served as the Chief Executive Officer of...

Leadership Team

Experienced Management: ETLP's management team is considered experienced (4.3 years average tenure).

Board Members

Experienced Board: ETLP's board of directors are considered experienced (5 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/09 00:00
End of Day Share Price	2022/04/28 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30