LSE:NETW

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Network International Holdings

Executive Summary

Network International Holdings plc operates as a digital commerce enabler in the Middle East and Africa.


Snowflake Analysis

High growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Network International Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

6.7%

NETW

-0.3%

GB IT

2.5%

GB Market


1 Year Return

-16.4%

NETW

-7.4%

GB IT

-12.4%

GB Market

Return vs Industry: NETW underperformed the UK IT industry which returned -7.5% over the past year.

Return vs Market: NETW underperformed the UK Market which returned -11.7% over the past year.


Shareholder returns

NETWIndustryMarket
7 Day6.7%-0.3%2.5%
30 Day12.0%6.4%2.8%
90 Day-13.5%-4.2%-7.2%
1 Year-16.4%-16.4%-6.4%-7.4%-8.2%-12.4%
3 Yearn/a64.7%54.6%-5.9%-17.5%
5 Yearn/a103.4%87.4%12.5%-12.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Network International Holdings undervalued compared to its fair value and its price relative to the market?

22.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NETW (£4.65) is trading below our estimate of fair value (£6.01)

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


Price To Earnings Ratio

PE vs Industry: NETW is poor value based on its PE Ratio (48x) compared to the IT industry average (25.7x).

PE vs Market: NETW is poor value based on its PE Ratio (48x) compared to the UK market (14.7x).


Price to Earnings Growth Ratio

PEG Ratio: NETW is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: NETW is overvalued based on its PB Ratio (11.9x) compared to the GB IT industry average (2.8x).


Next Steps

Future Growth

How is Network International Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

35.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NETW's forecast earnings growth (35.5% per year) is above the savings rate (1.2%).

Earnings vs Market: NETW's earnings (35.5% per year) are forecast to grow faster than the UK market (20.3% per year).

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

Revenue vs Market: NETW's revenue (7.7% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: NETW's revenue (7.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NETW's Return on Equity is forecast to be high in 3 years time (30.8%)


Next Steps

Past Performance

How has Network International Holdings performed over the past 5 years?

20.4%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: NETW has a large one-off loss of $41.6M impacting its December 31 2019 financial results.

Growing Profit Margin: NETW's current net profit margins (17.8%) are higher than last year (16.6%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if NETW's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare NETW's past year earnings growth to its 5-year average.

Earnings vs Industry: NETW earnings growth over the past year (20.4%) exceeded the IT industry 10%.


Return on Equity

High ROE: Whilst NETW's Return on Equity (24.72%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Network International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: NETW's short term assets ($373.5M) do not cover its short term liabilities ($460.3M).

Long Term Liabilities: NETW's short term assets ($373.5M) exceed its long term liabilities ($238.0M).


Debt to Equity History and Analysis

Debt Level: NETW's debt to equity ratio (157.4%) is considered high.

Reducing Debt: Insufficient data to determine if NETW's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: NETW's debt is well covered by operating cash flow (34.9%).

Interest Coverage: NETW's interest payments on its debt are well covered by EBIT (5.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Network International Holdings's current dividend yield, its reliability and sustainability?

0.54%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NETW's dividend (0.54%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2.04%).

High Dividend: NETW's dividend (0.54%) is low compared to the top 25% of dividend payers in the UK market (5.73%).


Stability and Growth of Payments

Stable Dividend: NETW is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: NETW is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: NETW is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NETW's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Simon Haslam (58yo)

no data

Tenure

Mr. Simon Haslam has been Group Chief Executive Officer of Network International LLC since January 2017 and its Director since February 27, 2019. Mr. Haslam is Chief Executive Officer of Network Internatio ...


Leadership Team

NamePositionTenureCompensationOwnership
Simon Haslam
Group CEO & Directorno datano datano data
Rohit Malhotra
Group Chief Financial Officer4.75yrsno datano data
Mark Diamond
Group Chief Digital0.17yrno datano data
Amie Gramlick
Head of Investor Relationsno datano datano data
Mona Ghurair
Group Chief Marketing Officer3.33yrsno datano data
Samer Soliman
Managing Director of Middle East2.33yrsno datano data
Paul Clarke
Head of Product & Innovation2.92yrsno datano data
Jaishree Razzaq
Chief Risk Officer & Group Company Secretary0.75yrno datano data
Andrew Hocking
Group Chief of Strategy & Analytics Officer1.75yrsno datano data
Andrew Key
Managing Director of Africa2.33yrsno datano data

2.3yrs

Average Tenure

45yo

Average Age

Experienced Management: NETW's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Simon Haslam
Group CEO & Directorno datano datano data
Victoria Hull
Independent Non-Executive Director1.17yrsno datano data
Rohinton Kalifa
Independent Chairmanno datano data0.11% $2.6m
Darren Pope
Senior Independent Non-Executive Director1.17yrsno datano data
Anil Dua
Independent Non-Executive Director0.33yrno datano data
Suryanarayan Subramanian
Non-Executive Director1.17yrsno datano data
Ali Zaynalabidin Mazanderani
Independent Non-Executive Director0.33yrno datano data
Habib Al Mulla
Independent Non-Executive Director1.17yrsno datano data

1.2yrs

Average Tenure

58yo

Average Age

Experienced Board: NETW's board of directors are not considered experienced ( 1.2 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: 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

Network International Holdings plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Network International Holdings plc
  • Ticker: NETW
  • Exchange: LSE
  • Founded: 1994
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: UK£2.323b
  • Shares outstanding: 500.00m
  • Website: https://www.network.ae

Number of Employees


Location

  • Network International Holdings plc
  • Network Building
  • Level 1
  • Dubai
  • United Arab Emirates

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NETWLSE (London Stock Exchange)YesOrdinary SharesGBGBPApr 2019
NIHDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2019
NETWLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPApr 2019
NWKL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDApr 2019
NWIT.YOTCPK (Pink Sheets LLC)UNSPONSRED ADSUSUSDAug 2019

Biography

Network International Holdings plc operates as a digital commerce enabler in the Middle East and Africa. The company provides technology-enabled payments solutions to merchants and financial institutions. It offers issuer solutions, including customer onboarding, card issuing, core processing, scheme and settlement reconciliation, and chargeback and dispute management service; and merchant solutions comprising payment acceptance products and solutions to merchants through direct merchant acquiring and acquirer processing solutions. The company provides value added services, such as loyalty programmes, dynamic currency conversion and multi-currency pricing, easy payment plans, smartview interactive dashboard and performance reports, 3DSecure, digital onboarding, data analytics, advanced fraud solutions, ATM solutions, card control, instant card issuance, and electronic billing services. It delivers its products and services through its integrated omni-channel platforms, including Network One and Network Lite, as well as N-Genius, a payment acceptance platform. Network International Holdings plc was founded in 1994 and is headquartered in Dubai, the United Arab Emirates. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/30 02:30
End of Day Share Price2020/05/29 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.