BIT:CAI

Stock Analysis Report

Cairo Communication

Executive Summary

Cairo Communication S.p.A. operates as a multimedia publishing company in Italy and Spain.

Snowflake

Fundamentals

Good value average dividend payer.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

4.2%

CAI

2.0%

IT Media

2.3%

IT Market


1 Year Return

-17.5%

CAI

3.1%

IT Media

10.0%

IT Market

Return vs Industry: CAI underperformed the Italian Media industry which returned 3.1% over the past year.

Return vs Market: CAI underperformed the Italian Market which returned 10% over the past year.


Share holder returns

CAIIndustryMarket
7 Day4.2%2.0%2.3%
30 Day-3.1%-1.8%-0.8%
90 Day-16.7%-2.6%-1.4%
1 Year-13.4%-17.5%5.0%3.1%14.8%10.0%
3 Year-29.3%-35.2%4.9%-0.8%31.5%13.3%
5 Year-44.1%-53.4%-15.9%-21.9%25.0%-24.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Cairo Communication undervalued based on future cash flows and its price relative to the stock market?

23%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: CAI (€2.34) is trading below our estimate of fair value (€3.05)

Significantly Undervalued: CAI is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: CAI is good value based on its PE Ratio (5.7x) compared to the Media industry average (15.6x).

PE vs Market: CAI is good value based on its PE Ratio (5.7x) compared to the Italian market (16.8x).


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: CAI is good value based on its PB Ratio (0.7x) compared to the IT Media industry average (1.2x).


Next Steps

Future Growth

How is Cairo Communication expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

-1.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: CAI's earnings are forecast to decline over the next 3 years (-1.9% per year).

Earnings vs Market: CAI's earnings are forecast to decline over the next 3 years (-1.9% per year).

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

Revenue vs Market: CAI's revenue is expected to decline over the next 3 years (-1.7% per year).

High Growth Revenue: CAI's revenue is forecast to decline over the next 3 years (-1.7%).


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: CAI's Return on Equity is forecast to be low in 3 years time (9.6%).


Next Steps

Past Performance

How has Cairo Communication performed over the past 5 years?

32.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CAI's earnings have grown significantly by 32.2% per year over the past 5 years.

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

Earnings vs Industry: CAI had negative earnings growth (-10.7%) over the past year, making it difficult to compare to the Media industry average (-4.6%).


Return on Equity

High ROE: CAI's Return on Equity (12.3%) is considered low.


Return on Assets

ROA vs Industry: CAI's Return on Assets is below or equal to the Media industry average last year.


Return on Capital Employed

ROCE Improving: CAI has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Cairo Communication's financial position?


Financial Position Analysis

Short Term Liabilities: CAI's short term assets (€414.5M) do not cover its short term liabilities (€566.6M)

Long Term Liabilities: CAI's short term assets (414.5M) do not cover its long term liabilities (562.0M)


Debt to Equity History and Analysis

Debt Level: CAI's debt to equity ratio (32.1%) is considered satisfactory

Reducing Debt: CAI's debt to equity ratio has increased from 0.2% to 32.1% over the past 5 years.

Debt Coverage: CAI's debt is well covered by operating cash flow (61.2%).

Interest Coverage: CAI's interest payments on its debt are well covered by EBIT (16.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: CAI's debt is covered by short term assets (assets are 1.788950x debt).


Next Steps

Dividend

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

6.95%

Expected Dividend Yield


Dividend Yield vs Market

company6.0%marketbottom25%2.1%markettop25%4.4%industryaverage4.9%forecastin3Years7.0%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: CAI's dividend (5.98%) is higher than the bottom 25% of dividend payers in the Italian market (2.1%).

High Dividend: CAI's dividend (5.98%) is in the top 25% of dividend payers in the Italian market (4.42%)

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

Growing Dividend: CAI's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.3%), CAI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CAI's dividends in 3 years are forecast to be well covered by earnings (46.7% payout ratio).


Next Steps

Management

What is the CEO of Cairo Communication's salary, the management and board of directors tenure and is there insider trading?

16.4yrs

Average board tenure


CEO

Uberto Fornara (60yo)

0yrs

Tenure

€755,000

Compensation

Dr. Uberto Fornara serves as Director at RCS MediaGroup S.p.A. since 2019. Dr. Fornara serves as the Chief Executive Officer and Managing Director of Cairo Communication SpA. Dr. Fornara has worked within  ...


CEO Compensation Analysis

Compensation vs. Market: Uberto's total compensation ($USD0.00) is too low to compare against companies of similar size in the Italian market ($USD0.00).

Compensation vs Earnings: Uberto's compensation has been consistent with company performance over the past year.


Board Age and Tenure

16.4yrs

Average Tenure

53.5yo

Average Age

Experienced Board: CAI's board of directors are seasoned and experienced ( 16.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy€360,00024 Sep 19
UT Communications SPA
EntityCompany
Shares160,000
Max Price€2.25
Buy€327,78027 Aug 19
UT Communications SPA
EntityCompany
Shares150,000
Max Price€2.19
Buy€218,18019 Aug 19
UT Communications SPA
EntityCompany
Shares100,000
Max Price€2.18
Buy€223,89014 Aug 19
UT Communications SPA
EntityCompany
Shares100,000
Max Price€2.24
Buy€455,02013 Aug 19
UT Communications SPA
EntityCompany
Shares200,000
Max Price€2.28

Ownership Breakdown


Management Team

  • Uberto Fornara (60yo)

    Vice Chairman

    • Tenure: 0yrs
    • Compensation: €755.00k
  • Urbano Cairo (62yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: €1.03m
  • Marco Pompignoli (52yo)

    CFO, Financial Reporting Manager & Executive Director

    • Tenure: 16.4yrs
    • Compensation: €895.00k
  • Marco Bisceglia

    Secretary & Chairman of Supervisory Board

    • Tenure: 0yrs

Board Members

  • Uberto Fornara (60yo)

    Vice Chairman

    • Tenure: 0yrs
    • Compensation: €755.00k
  • Urbano Cairo (62yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: €1.03m
  • Roberto Cairo (54yo)

    Non-Executive Director

    • Tenure: 20.5yrs
    • Compensation: €20.00k
  • Marco Pompignoli (52yo)

    CFO, Financial Reporting Manager & Executive Director

    • Tenure: 16.4yrs
    • Compensation: €895.00k
  • Paola Mignani (53yo)

    Independent Director

    • Tenure: 0yrs
    • Compensation: €4.00k
  • Laura Cairo (46yo)

    Non-Executive Director

    • Tenure: 5.5yrs
    • Compensation: €20.00k
  • Massimo Ferrari

    Independent Director

    • Tenure: 0yrs
  • Michele Paolillo

    Chairman of the Board of Statutory Auditors

    • Tenure: 0yrs
  • Marella Caramazza

    Independent Director

    • Tenure: 0yrs
  • Daniela Bartoli

    Independent Director

    • Tenure: 0yrs

Company Information

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


Key Information

  • Name: Cairo Communication S.p.A.
  • Ticker: CAI
  • Exchange: BIT
  • Founded:
  • Industry: Advertising
  • Sector: Media
  • Market Cap: €314.533m
  • Shares outstanding: 134.42m
  • Website: https://www.cairocommunication.it

Number of Employees


Location

  • Cairo Communication S.p.A.
  • Corso Magenta 55
  • Milan
  • Milan
  • 20123
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CAIBIT (Borsa Italiana)YesCommon StockITEURJul 2000
0N7ILSE (London Stock Exchange)YesCommon StockGBEURJul 2000
CAIMBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURJul 2000
CI1ADB (Deutsche Boerse AG)YesCommon StockDEEURJul 2000

Biography

Cairo Communication S.p.A. operates as a multimedia publishing company in Italy and Spain. The company operates in six segments: Magazine Publishing Cairo Editore, RCS, Advertising, TV Publishing (La7), Ne ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 20:50
End of Day Share Price2019/10/11 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.

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