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Network International Holdings

Market Cap

UK£2.1b

Last Updated

2021/05/16 03:17 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Reasonable 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 is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: NETW's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of UK stocks.


Market Performance


7 Day Return

-5.5%

NETW

-3.2%

GB IT

-1.2%

GB Market


1 Year Return

13.7%

NETW

51.6%

GB IT

27.6%

GB Market

Return vs Industry: NETW underperformed the UK IT industry which returned 51.6% over the past year.

Return vs Market: NETW underperformed the UK Market which returned 27.6% over the past year.


Shareholder returns

NETWIndustryMarket
7 Day-5.5%-3.2%-1.2%
30 Day-12.2%-6.8%0.6%
90 Day5.3%7.0%5.3%
1 Year13.7%13.7%54.3%51.6%33.1%27.6%
3 Yearn/a70.1%61.4%11.1%-1.6%
5 Yearn/a180.0%152.8%48.7%20.7%

Long-Term 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?

18.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NETW (£3.86) is trading below our estimate of fair value (£4.7)

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 poor value based on its PE Ratio (459.8x) compared to the UK IT industry average (52.3x).

PE vs Market: NETW is poor value based on its PE Ratio (459.8x) compared to the UK market (25.7x).


Price to Earnings Growth Ratio

PEG Ratio: NETW is poor value based on its PEG Ratio (7.5x)


Price to Book Ratio

PB vs Industry: NETW is overvalued based on its PB Ratio (6x) compared to the GB IT industry average (4.6x).


Future Growth

How is Network International Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

61.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NETW's forecast earnings growth (61.1% per year) is above the savings rate (0.9%).

Earnings vs Market: NETW's earnings (61.1% per year) are forecast to grow faster than the UK market (17.6% per year).

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

Revenue vs Market: NETW's revenue (16% per year) is forecast to grow faster than the UK market (5.3% per year).

High Growth Revenue: NETW's revenue (16% 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 low in 3 years time (18.5%).


Past Performance

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

-23.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NETW has a large one-off loss of $18.1M impacting its December 31 2020 financial results.

Growing Profit Margin: NETW's current net profit margins (2.2%) are lower than last year (17.3%).


Past Earnings Growth Analysis

Earnings Trend: NETW's earnings have declined by 23.5% per year 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 (-89.4%) over the past year, making it difficult to compare to the IT industry average (6.1%).


Return on Equity

High ROE: NETW's Return on Equity (1.1%) is considered low.


Financial Health

How is Network International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: NETW's short term assets ($684.6M) exceed its short term liabilities ($358.3M).

Long Term Liabilities: NETW's short term assets ($684.6M) exceed its long term liabilities ($392.4M).


Debt to Equity History and Analysis

Debt Level: NETW's debt to equity ratio (87.1%) 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 (24.8%).

Interest Coverage: NETW's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet


Dividend

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

0.50%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate NETW'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 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

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

0.3yrs

Average management tenure


CEO

Nandan Mer

0.25

Tenure

Mr. Nandan Mer serves as Group Chief Executive Officer of Network International Holdings plc and Network International LLC since February 1, 2021 and serves as its Director. Mr. Mer serves as Head of Strat...


Leadership Team

Experienced Management: NETW's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: NETW's board of directors are not considered experienced ( 1.3 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10%.


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£2.121b
  • Shares outstanding: 550.00m
  • Website: https://www.network.ae

Number of Employees


Location

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

Listings


Biography

Network International Holdings plc operates as a digital commerce enabler in the Middle East and Africa. The company provides technology-enabled payment solutions to merchants and financial institutions. I...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/16 03:17
End of Day Share Price2021/05/14 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.