BIT:CIRC

Stock Analysis Report

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Executive Summary

Circle S.p.A. provides process and management consulting services, technological solutions, and digital marketing solutions for transport and logistics sector.


Snowflake Analysis

High growth potential with adequate balance sheet.

Share Price & News

How has Circle's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CIRC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.7%

CIRC

11.1%

IT Professional Services

6.0%

IT Market


1 Year Return

4.0%

CIRC

-9.8%

IT Professional Services

-8.6%

IT Market

Return vs Industry: CIRC exceeded the Italian Professional Services industry which returned -7.8% over the past year.

Return vs Market: CIRC exceeded the Italian Market which returned -9.7% over the past year.


Shareholder returns

CIRCIndustryMarket
7 Day4.7%11.1%6.0%
30 Day4.0%3.9%6.7%
90 Day8.6%6.4%-12.5%
1 Year4.0%4.0%-9.4%-9.8%-6.3%-8.6%
3 Yearn/a23.9%14.4%-5.8%-14.2%
5 Yearn/a68.7%46.7%-9.4%-41.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CIRC (€2.89) is trading below our estimate of fair value (€10.44)

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


Price To Earnings Ratio

PE vs Industry: Insufficient data to calculate CIRC's PE Ratio to determine if it is good value compared to the Professional Services industry average.

PE vs Market: Insufficient data to calculate CIRC's PE Ratio to determine if it is good value compared to the Italian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CIRC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: Insufficient data to calculate CIRC's PB Ratio to determine if it is good value.


Next Steps

Future Growth

How is Circle forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

36.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CIRC's forecast earnings growth (36.1% per year) is above the savings rate (2%).

Earnings vs Market: CIRC's earnings (36.1% per year) are forecast to grow faster than the Italian market (24.1% per year).

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

Revenue vs Market: CIRC's revenue (23.1% per year) is forecast to grow faster than the Italian market (4% per year).

High Growth Revenue: CIRC's revenue (23.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CIRC's Return on Equity is forecast to be low in 3 years time (17.5%).


Next Steps

Past Performance

How has Circle performed over the past 5 years?

6.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CIRC has a high level of non-cash earnings.

Growing Profit Margin: CIRC's current net profit margins (7.8%) are lower than last year (11.3%).


Past Earnings Growth Analysis

Earnings Trend: CIRC's earnings have grown by 6.9% per year over the past 5 years.

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

Earnings vs Industry: CIRC had negative earnings growth (-17%) over the past year, making it difficult to compare to the Professional Services industry average (-2.6%).


Return on Equity

High ROE: CIRC's Return on Equity (11.1%) is considered low.


Next Steps

Financial Health

How is Circle's financial position?


Financial Position Analysis

Short Term Liabilities: CIRC's short term assets (€5.3M) exceed its short term liabilities (€2.5M).

Long Term Liabilities: CIRC's short term assets (€5.3M) exceed its long term liabilities (€1.2M).


Debt to Equity History and Analysis

Debt Level: CIRC's debt to equity ratio (15%) is considered satisfactory.

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

Debt Coverage: CIRC's debt is not well covered by operating cash flow (0.4%).

Interest Coverage: CIRC's interest payments on its debt are well covered by EBIT (4735.4x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if CIRC'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 CIRC's dividend in 3 years as they are not forecast to pay a notable one for the Italian market.


Next Steps

Management

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


CEO

Luca Abatello (44yo)

8.42yrs

Tenure

Mr. Luca Abatello serves as President of the Board at Circle S. p. A. and also has been its Chief Executive Officer since 2012. Mr. Abatello has a previous experience in the ICT, business advice and digita ...


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Circle S.p.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Circle S.p.A.
  • Ticker: CIRC
  • Exchange: BIT
  • Founded: 2012
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: €10.021m
  • Shares outstanding: 3.47m
  • Website: https://www.circletouch.eu

Location

  • Circle S.p.A.
  • Via Bombrini 13/3
  • Genoa
  • Genoa
  • 16149
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CIRCBIT (Borsa Italiana)YesOrdinary SharesITEUROct 2018

Biography

Circle S.p.A. provides process and management consulting services, technological solutions, and digital marketing solutions for transport and logistics sector. It offers Milos, a modular software for the optimization of transport of containers, trailers, vehicles, and various types of goods along the supply chain; Sinfomar, a port community system; and Connecting EU that assists public actors and private companies in developing new businesses through specific instruments of project anticipation and EU branding. The company also provides digital multichannel marketing services. Circle S.p.A. was founded in 2012 and is based in Genoa, Italy. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/03 01:40
End of Day Share Price2020/06/02 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.