BIT:CAI

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Cairo Communication

Executive Summary

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


Snowflake Analysis

Good value with moderate growth potential.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-5.5%

CAI

-1.2%

IT Media

-2.0%

IT Market


1 Year Return

-48.8%

CAI

-30.1%

IT Media

-15.4%

IT Market

Return vs Industry: CAI underperformed the Italian Media industry which returned -29.8% over the past year.

Return vs Market: CAI underperformed the Italian Market which returned -14.9% over the past year.


Shareholder returns

CAIIndustryMarket
7 Day-5.5%-1.2%-2.0%
30 Day-2.1%-5.1%-2.1%
90 Day-19.2%-2.8%-6.6%
1 Year-48.8%-48.8%-29.5%-30.1%-13.2%-15.4%
3 Year-70.3%-72.5%-38.0%-41.5%-11.5%-19.7%
5 Year-70.0%-73.6%-47.0%-50.8%-7.5%-28.9%

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 compared to its fair value and its price relative to the market?

39.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CAI (€1.22) is trading below our estimate of fair value (€2)

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


Price To Earnings Ratio

PE vs Industry: CAI is poor value based on its PE Ratio (31.5x) compared to the IT Media industry average (27.3x).

PE vs Market: CAI is poor value based on its PE Ratio (31.5x) compared to the Italian market (17x).


Price to Earnings Growth Ratio

PEG Ratio: CAI is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: CAI is good value based on its PB Ratio (0.4x) compared to the IT Media industry average (1x).


Next Steps

Future Growth

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

57.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CAI's forecast earnings growth (57.3% per year) is above the savings rate (2%).

Earnings vs Market: CAI's earnings (57.3% per year) are forecast to grow faster than the Italian market (23.9% per year).

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

Revenue vs Market: CAI's revenue (3% per year) is forecast to grow slower than the Italian market (3.6% per year).

High Growth Revenue: CAI's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CAI's Return on Equity is forecast to be low in 3 years time (5.8%).


Next Steps

Past Performance

How has Cairo Communication performed over the past 5 years?

23.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CAI has a large one-off loss of €11.8M impacting its June 30 2020 financial results.

Growing Profit Margin: CAI's current net profit margins (0.5%) are lower than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: CAI's earnings have grown significantly by 23% 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 (-90.5%) over the past year, making it difficult to compare to the Media industry average (-0.6%).


Return on Equity

High ROE: CAI's Return on Equity (1.7%) is considered low.


Next Steps

Financial Health

How is Cairo Communication's financial position?


Financial Position Analysis

Short Term Liabilities: CAI's short term assets (€358.9M) do not cover its short term liabilities (€479.2M).

Long Term Liabilities: CAI's short term assets (€358.9M) do not cover its long term liabilities (€541.4M).


Debt to Equity History and Analysis

Debt Level: CAI's debt to equity ratio (25.2%) is considered satisfactory.

Reducing Debt: CAI's debt to equity ratio has increased from 20.2% to 25.2% over the past 5 years.

Debt Coverage: CAI's debt is well covered by operating cash flow (68%).

Interest Coverage: CAI's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet


Next Steps

Dividend

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

3.77%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: CAI is not paying a notable dividend for the Italian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CAI'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?

16.1yrs

Average board tenure


CEO

Uberto Fornara (61 yo)

no data

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 ($USD0.00) is below average for companies of similar size in the Italian market ($USD525.62K).

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


Board Members

NamePositionTenureCompensationOwnership
Urbano Cairo
Chairmanno data€1.03m9.6%
€ 15.5m
Uberto Fornara
Vice Chairmanno data€755.00kno data
Marco Pompignoli
CFO, Financial Reporting Manager & Executive Director17.42yrs€895.00kno data
Stefania Bedogni
Executive Directorno datano datano data
Roberto Cairo
Non-Executive Director21.5yrs€20.00kno data
Giuseppe di Civesio
Independent Directorno datano datano data
Maspes Pia
Statutory Auditor14.75yrs€37.00kno data
Paola Mignani
Independent Directorno data€4.00kno data
Laura Cairo
Non-Executive Director6.5yrs€20.00kno data
Massimo Ferrari
Independent Directorno datano datano data
Michele Paolillo
Chairman of the Board of Statutory Auditorsno datano datano data
Daniela Bartoli
Independent Directorno datano datano data

16.1yrs

Average Tenure

54yo

Average Age

Experienced Board: CAI's board of directors are seasoned and experienced ( 16.1 years average tenure).


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

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: €161.299m
  • 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 Analysis2020/10/20 21:27
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
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.