LSE:NETW

Stock Analysis Report

Network International Holdings

Executive Summary

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

Snowflake

High growth potential and good value.


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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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.9%

NETW

4.5%

GB IT

-0.5%

GB Market


1 Year Return

n/a

NETW

17.3%

GB IT

3.7%

GB Market

Return vs Industry: Insufficient data to determine how NETW performed against the UK IT industry.

Return vs Market: Insufficient data to determine how NETW performed against the UK Market.


Shareholder returns

NETWIndustryMarket
7 Day0.9%4.5%-0.5%
30 Day-2.6%5.8%1.4%
90 Day-10.1%-0.5%3.1%
1 Yearn/a19.9%17.3%9.2%3.7%
3 Yearn/a93.9%79.4%23.5%7.8%
5 Yearn/a77.6%61.1%34.4%3.8%

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?

6.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NETW (£5.35) is trading below our estimate of fair value (£5.73)

Significantly Below Fair Value: NETW is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: NETW is good value based on its PE Ratio (0.1x) compared to the IT industry average (25.9x).

PE vs Market: NETW is good value based on its PE Ratio (0.1x) compared to the UK market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: NETW is good value based on its PEG Ratio (0x)


Price to Book Ratio

PB vs Industry: NETW is overvalued based on its PB Ratio (16.4x) compared to the GB IT industry average (2.6x).


Next Steps

Future Growth

How is Network International Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

48.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NETW's forecast earnings growth (48.9% per year) is above the savings rate (1.2%).

Earnings vs Market: NETW's earnings (48.9% per year) are forecast to grow faster than the UK market (12.7% per year).

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

Revenue vs Market: NETW's revenue (13% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: NETW's revenue (13% 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 (39.4%)


Next Steps

Past Performance

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

-54.0%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: NETW has large one-off items impacting its financial results.

Growing Profit Margin: NETW's current net profit margins (9.6%) are lower than last year (23.4%).


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

Earnings vs Industry: NETW had negative earnings growth (-54%) over the past year, making it difficult to compare to the IT industry average (7.3%).


Return on Equity

High ROE: NETW's Return on Equity (13%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Network International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: NETW's short term assets ($451.5M) do not cover its short term liabilities ($508.7M)

Long Term Liabilities: NETW's short term assets (451.5M) exceeds its long term liabilities (268.1M)


Debt to Equity History and Analysis

Debt Level: NETW's debt to equity ratio (204%) 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 not well covered by operating cash flow (5.3%).

Interest Coverage: NETW's interest payments on its debt are well covered by EBIT (4.8x coverage).


Balance Sheet

Inventory Level: NETW has a low level of unsold assets or inventory.

Debt Coverage by Assets: NETW's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

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

0.48%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.3%industryaverage2.4%forecastin3Years0.5%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate NETW'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 NETW's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


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

What is the CEO of Network International Holdings's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Simon Haslam (58yo)

0yrs

Tenure

0

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 ...


Management Age and Tenure

1.8yrs

Average Tenure

45yo

Average Age

Experienced Management: NETW's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

0.7yrs

Average Tenure

58yo

Average Age

Experienced Board: NETW's board of directors are not considered experienced ( 0.7 years average tenure), which suggests a new board.


Insider Trading

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.


Management Team

  • Simon Haslam (58yo)

    CEO & Director

    • Tenure: 0yrs
  • Samer Soliman (44yo)

    Managing Director of Middle East

    • Tenure: 1.8yrs
  • Matt Sinclair (52yo)

    Chief Information Officer

    • Tenure: 3.6yrs
  • Hend Ali (42yo)

    Head of Human Resources & Facilities

    • Tenure: 1.8yrs
  • Andrew Key (46yo)

    Managing Director of Africa

    • Tenure: 1.8yrs
  • Rohit Malhotra (42yo)

    Chief Financial Officer

    • Tenure: 4.3yrs
  • Andrew Hocking (43yo)

    Chief of Strategy & Analytics Officer

    • Tenure: 1.3yrs
  • Jay Razzaq (49yo)

    Chief Risk Officer & Group Company Secretary

    • Tenure: 0.3yrs
  • Paul Clarke (48yo)

    Head of Product & Innovation

    • Tenure: 2.4yrs
  • Mona Ghurair (43yo)

    Chief Marketing Officer

    • Tenure: 2.8yrs

Board Members

  • Victoria Hull (57yo)

    Independent Non-Executive Director

    • Tenure: 0.7yrs
  • Aaron Goldman

    Non-Executive Director

    • Tenure: 0.7yrs
  • Shayne Nelson (60yo)

    Non-Executive Director

    • Tenure: 0.7yrs
  • Ron Kalifa (58yo)

    Independent Chairman

    • Tenure: 0yrs
  • Daniel Zilberman (45yo)

    Non-Executive Director

    • Tenure: 0.7yrs
  • Darren Pope (54yo)

    Senior Independent Non-Executive Director

    • Tenure: 0.7yrs
  • Simon Haslam (58yo)

    CEO & Director

    • Tenure: 0yrs
  • Suryanarayan Subramanian (58yo)

    Non-Executive Director

    • Tenure: 0.7yrs
  • Habib Al Mulla (58yo)

    Independent Non-Executive Director

    • Tenure: 0.7yrs

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£2.675b
  • 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
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 region. The company provides technology-enabled payments solutions to merchants and financial institu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/11 21:55
End of Day Share Price2019/11/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.