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CAD IT

BIT:CAD
Snowflake Description

Undervalued with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CAD
BIT
€38M
Market Cap
  1. Home
  2. IT
  3. Software
Company description

CAD IT S.p.A., together with its subsidiaries, operates as a technology company in Italy, Switzerland, Germany, the United Kingdom, Spain, Portugal, Austria, Saudi Arabia, China, the Czech Republic, and the United States. The last earnings update was 19 days ago. More info.


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CAD Share Price and Events
7 Day Returns
-15.1%
BIT:CAD
0.6%
IT Software
2%
IT Market
1 Year Returns
-0.4%
BIT:CAD
-20.3%
IT Software
-25.5%
IT Market
CAD Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
CAD IT (CAD) -15.1% -8% -17.7% -0.4% 2.9% -6.8%
IT Software 0.6% -4.8% -15.8% -20.3% 21% 48.9%
IT Market 2% -1.4% -6.3% -25.5% -72% -99.1%
1 Year Return vs Industry and Market
  • CAD outperformed the Software industry which returned -20.3% over the past year.
  • CAD outperformed the Market in Italy which returned -25.5% over the past year.
Price Volatility
CAD
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of CAD IT to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for CAD IT.

BIT:CAD Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 9.7%
Perpetual Growth Rate 10-Year IT Government Bond Rate 1.8%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BIT:CAD
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IT Govt Bond Rate 1.8%
Equity Risk Premium S&P Global 8.2%
Software Unlevered Beta Simply Wall St/ S&P Global 0.81
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.813 (1 + (1- 24%) (24.73%))
0.966
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.97
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.79% + (0.966 * 8.22%)
9.72%

Discounted Cash Flow Calculation for BIT:CAD using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for CAD IT is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

BIT:CAD DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (EUR, Millions) 18.69 19.34 20.01 20.71 21.43
Source Est @ 3.48% Est @ 3.48% Est @ 3.48% Est @ 3.48% Est @ 3.48%
Present Value
Discounted (@ 9.72%)
17.03 16.06 15.15 14.29 13.48
Present value of next 5 years cash flows €76.01
BIT:CAD DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= €21.43 × (1 + 1.79%) ÷ (9.72% – 1.79%)
€274.82
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= €274.82 ÷ (1 + 9.72%)5
€172.81
BIT:CAD Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= €76.01 + €172.81
€248.83
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €248.83 / 8.98
€27.71
BIT:CAD Discount to Share Price
Calculation Result
Value per share (EUR) From above. €27.71
Current discount Discount to share price of €4.28
= -1 x (€4.28 - €27.71) / €27.71
84.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price CAD IT is available for.
Intrinsic value
>50%
Share price is €4.28 vs Future cash flow value of €27.71
Current Discount Checks
For CAD IT to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • CAD IT's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • CAD IT's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for CAD IT's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are CAD IT's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BIT:CAD PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in EUR €0.60
BIT:CAD Share Price ** BIT (2018-11-30) in EUR €4.28
Italy Software Industry PE Ratio Median Figure of 5 Publicly-Listed Software Companies 14.66x
Italy Market PE Ratio Median Figure of 228 Publicly-Listed Companies 14.77x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of CAD IT.

BIT:CAD PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BIT:CAD Share Price ÷ EPS (both in EUR)

= 4.28 ÷ 0.60

7.11x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CAD IT is good value based on earnings compared to the IT Software industry average.
  • CAD IT is good value based on earnings compared to the Italy market.
Price based on expected Growth
Does CAD IT's expected growth come at a high price?
Raw Data
BIT:CAD PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 7.11x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
8.5%per year
Europe Software Industry PEG Ratio Median Figure of 74 Publicly-Listed Software Companies 1.47x
Italy Market PEG Ratio Median Figure of 159 Publicly-Listed Companies 1.07x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for CAD IT, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on CAD IT's assets?
Raw Data
BIT:CAD PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in EUR €6.53
BIT:CAD Share Price * BIT (2018-11-30) in EUR €4.28
Italy Software Industry PB Ratio Median Figure of 8 Publicly-Listed Software Companies 2.25x
Italy Market PB Ratio Median Figure of 295 Publicly-Listed Companies 1.43x
BIT:CAD PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BIT:CAD Share Price ÷ Book Value per Share (both in EUR)

= 4.28 ÷ 6.53

0.66x

* Primary Listing of CAD IT.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CAD IT is good value based on assets compared to the IT Software industry average.
X
Value checks
We assess CAD IT's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. CAD IT has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is CAD IT expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover CAD IT, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is CAD IT expected to grow at an attractive rate?
  • CAD IT's earnings growth is expected to exceed the low risk savings rate of 1.8%.
Growth vs Market Checks
  • CAD IT's earnings growth is positive but not above the Italy market average.
  • Unable to compare CAD IT's revenue growth to the Italy market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
BIT:CAD Future Growth Rates Data Sources
Data Point Source Value (per year)
BIT:CAD Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 8.5%
Italy Software Industry Earnings Growth Rate Market Cap Weighted Average 41.8%
Italy Software Industry Revenue Growth Rate Market Cap Weighted Average 11.3%
Italy Market Earnings Growth Rate Market Cap Weighted Average 9.9%
Italy Market Revenue Growth Rate Market Cap Weighted Average 3.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BIT:CAD Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BIT:CAD Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2018-09-30 66 20 5
2018-06-30 65 19 5
2018-03-31 64 21 4
2017-12-31 62 14 4
2017-09-30 58 6 2
2017-06-30 57 9 2
2017-03-31 57 2 1
2016-12-31 57 5 1
2016-09-30 58 6 1
2016-06-30 59 2 1
2016-03-31 59 6 1
2015-12-31 60 6 1

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • CAD IT's earnings are expected to grow by 8.5% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if CAD IT is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BIT:CAD Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from CAD IT Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BIT:CAD Past Financials Data
Date (Data in EUR Millions) EPS *
2018-09-30 0.60
2018-06-30 0.55
2018-03-31 0.47
2017-12-31 0.41
2017-09-30 0.23
2017-06-30 0.20
2017-03-31 0.14
2016-12-31 0.13
2016-09-30 0.16
2016-06-30 0.15
2016-03-31 0.14
2015-12-31 0.13

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if CAD IT will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess CAD IT's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Italy market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Italy market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
CAD IT has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has CAD IT performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare CAD IT's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • CAD IT has delivered over 20% year on year earnings growth in the past 5 years.
  • CAD IT's 1-year earnings growth exceeds its 5-year average (157.7% vs 59%)
  • CAD IT's earnings growth has exceeded the IT Software industry average in the past year (157.7% vs 23.3%).
Earnings and Revenue History
CAD IT's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from CAD IT Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BIT:CAD Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 66.20 5.40 2.80
2018-06-30 64.86 4.95 2.77
2018-03-31 63.53 4.22 2.82
2017-12-31 62.32 3.70 2.89
2017-09-30 58.00 2.10 2.91
2017-06-30 57.36 1.81 2.92
2017-03-31 56.88 1.22 2.94
2016-12-31 57.18 1.15 2.95
2016-09-30 58.00 1.42 3.04
2016-06-30 59.13 1.38 3.00
2016-03-31 59.47 1.25 3.04
2015-12-31 59.82 1.12 2.98
2015-09-30 59.48 1.02 3.19
2015-06-30 58.63 0.98 2.74
2015-03-31 58.12 0.57 2.57
2014-12-31 56.73 0.64 2.59
2014-09-30 54.85 -0.71 2.50
2014-06-30 54.17 -0.15 2.52
2014-03-31 52.96 -0.35 2.54
2013-12-31 52.20 -0.30 2.55
2013-09-30 53.61 0.36 2.90
2013-06-30 54.71 2.63 3.18
2013-03-31 54.82 2.65 2.95
2012-12-31 55.40 3.25 2.95
2012-09-30 56.55 2.28 2.69
2012-06-30 56.61 2.21 2.71
2012-03-31 56.56 1.91 2.78
2011-12-31 56.37 1.86 2.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • CAD IT has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • CAD IT used its assets more efficiently than the IT Software industry average last year based on Return on Assets.
  • CAD IT has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess CAD IT's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
CAD IT has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is CAD IT's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up CAD IT's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • CAD IT is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • CAD IT's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of CAD IT's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 5.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from CAD IT Company Filings, last reported 2 months ago.

BIT:CAD Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 61.65 9.50 23.72
2018-06-30 60.32 5.73 24.68
2018-03-31 59.17 7.93 24.87
2017-12-31 58.02 5.61 14.15
2017-09-30 55.97 4.96 5.66
2017-06-30 55.04 4.07 7.89
2017-03-31 55.94 3.16 4.97
2016-12-31 55.34 4.19 4.39
2016-09-30 54.62 4.71 5.84
2016-06-30 54.33 4.08 5.81
2016-03-31 56.42 4.01 10.57
2015-12-31 56.02 4.08 6.61
2015-09-30 55.25 3.77 7.31
2015-06-30 54.82 2.02 9.17
2015-03-31 55.58 2.04 9.62
2014-12-31 55.04 2.01 5.59
2014-09-30 56.12 5.47 4.72
2014-06-30 54.65 4.06 6.07
2014-03-31 55.94 4.56 4.68
2013-12-31 55.53 6.38 3.81
2013-09-30 57.15 4.94 3.56
2013-06-30 56.06 2.00 4.82
2013-03-31 59.29 0.48 6.08
2012-12-31 58.99 2.09 5.98
2012-09-30 59.40 2.57 6.13
2012-06-30 56.24 0.77 10.59
2012-03-31 58.98 1.00 8.31
2011-12-31 57.85 1.82 7.11
  • CAD IT's level of debt (15.4%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (8.7% vs 15.4% today).
  • Debt is well covered by operating cash flow (208%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 141.7x coverage).
X
Financial health checks
We assess CAD IT's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. CAD IT has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.67%
Current annual income from CAD IT dividends.
If you bought €2,000 of CAD IT shares you are expected to receive €93 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • CAD IT's pays a higher dividend yield than the bottom 25% of dividend payers in Italy (2.16%).
  • CAD IT's dividend is above the markets top 25% of dividend payers in Italy (4.63%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BIT:CAD Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Europe Software Industry Average Dividend Yield Market Cap Weighted Average of 79 Stocks 1.5%
Italy Market Average Dividend Yield Market Cap Weighted Average of 170 Stocks 4.6%
Italy Minimum Threshold Dividend Yield 10th Percentile 1.1%
Italy Bottom 25% Dividend Yield 25th Percentile 2.2%
Italy Top 25% Dividend Yield 75th Percentile 4.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BIT:CAD Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2017-05-02 0.200 4.232
2016-03-29 0.150 4.012
2016-03-14 0.150 3.930
2015-03-27 0.130 3.120
2015-03-12 0.130 2.963
2014-11-12 0.000 0.000
2014-08-28 0.000 0.000
2014-08-27 0.000 0.000
2014-05-15 0.000 0.000
2014-05-14 0.000 0.000
2014-03-28 0.000 0.000
2014-03-13 0.000 0.000
2013-03-14 0.300 6.662
2012-03-30 0.240 5.928
2012-03-14 0.240 6.058
2011-11-14 0.000 0.000
2011-08-29 0.000 0.000
2011-05-13 0.000 0.000
2011-03-24 0.000 0.000
2011-03-23 0.000 0.000
2010-03-16 0.250 5.838
2010-03-12 0.250 4.907
2009-08-27 0.500 9.061
2009-05-15 0.500 10.539
2009-03-16 0.500 9.763
2008-12-04 0.700 14.714

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of CAD IT's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as CAD IT has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess CAD IT's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can CAD IT afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. CAD IT has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Paolo Dal Cortivo
COMPENSATION €194,376
CEO Bio

Mr. Paolo Dal Cortivo has been Chairman of CAD IT SpA since January 19, 2018 and serves as Managing Director of CAD IT SpA since 2018. Mr. Dal Cortivo served as Chief Executive Officer of CAD IT SpA till 2018 and has been its Director since April 30, 2001.

CEO Compensation
  • Paolo's compensation has been consistent with company performance over the past year.
  • Paolo's remuneration is lower than average for companies of similar size in Italy.
Management Team

Paolo Dal Cortivo

TITLE
Chairman & MD
COMPENSATION
€194K

Giulia Cortivo

TITLE
Vice Chairman & MD
COMPENSATION
€19K

Michele Miazzi

TITLE
COMPENSATION
€95K
TENURE
4.2 yrs
Board of Directors Tenure

Average tenure of the CAD IT board of directors in years:

0.9
Average Tenure
  • The average tenure for the CAD IT board of directors is less than 3 years, this suggests a new board.
Board of Directors

Giulia Cortivo

TITLE
Vice Chairman & MD
COMPENSATION
€19K
TENURE
0.9 yrs

Chiara Benciolini

TITLE
Chairman of Statutory Auditor

Paolo Dal Cortivo

TITLE
Chairman & MD
COMPENSATION
€194K
TENURE
0.9 yrs

Debora Cremasco

TITLE
Non-Executive Independent Director
TENURE
2.2 yrs

Lamberto Lambertini

TITLE
Non Executive Director
COMPENSATION
€22K

Cecilia Rossignoli

TITLE
Non Executive Director
AGE
60
TENURE
0.9 yrs

Flavio Piva

TITLE
Non-Executive Independent Director
TENURE
0.9 yrs

Luigi Libroia

TITLE
Non-Executive Independent Director
TENURE
0.9 yrs

Renato Tengattini

TITLE
Statutory Auditor
COMPENSATION
€17K

Gian Ranocchi

TITLE
Statutory Auditor
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
02. Aug 18 Buy Palladio Holding S.p.a. Company 11. Jul 18 11. Jul 18 1,000 €5.38 €5,376
05. Jun 18 Buy Palladio Holding S.p.a. Company 02. May 18 17. May 18 48,307 €5.44 €260,582
09. May 18 Buy Palladio Holding S.p.a. Company 17. Apr 18 30. Apr 18 135,430 €25.04 €907,173
20. Apr 18 Sell DXC Technology Company Company 13. Apr 18 13. Apr 18 -898,000 €5.30 €-4,759,400
X
Management checks
We assess CAD IT's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. CAD IT has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

External News
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Simply Wall St News

Does CAD IT SpA (BIT:CAD)'s Capital Return Make The Cut?

Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … Your return is tied to CAD’s ability to do this because the amount earned is used to invest in opportunities to grow the business or payout dividends, which are the two sources of return on investment. … Thus, to understand how your money can grow by investing in CAD IT, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

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What You Must Know About CAD IT SpA's (BIT:CAD) Financial Strength

Investors are always looking for growth in small-cap stocks like CAD IT SpA (BIT:CAD), with a market cap of €46.52m. … However, an important fact which most ignore is: how financially healthy is the business? … Evaluating financial health as part of your investment thesis is

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A Holistic Look At CAD IT SpA (BIT:CAD)

I've been keeping an eye on CAD IT SpA (BIT:CAD) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe CAD has a lot to offer. … trading at a great value.

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Who Really Owns CAD IT Sp.A. (BIT:CAD)?

Check out our latest analysis for CAD IT BIT:CAD Ownership_summary May 31st 18 Institutional Ownership In CAD's case, institutional ownership stands at 17.89%, significant enough to cause considerable price moves in the case of large institutional transactions, especially when there is a low level of public shares available on the market to trade. … Insider Ownership Insiders form another group of important ownership types as they manage the company's operations and decide the best use of capital. … Thus, investors should dig deeper into CAD's business relations with these companies and how it can affect shareholder returns in the long-term.Next Steps: CAD's considerably high level of institutional ownership calls for further analysis into its margin of safety.

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What You Must Know About CAD IT Sp.A.'s (BIT:CAD) Market Risks

Based on this beta value, CAD appears to be a stock that an investor with a high-beta portfolio would look for to reduce risk exposure to the market. … A market capitalisation of €48.13M puts CAD in the category of small-cap stocks, which tends to possess higher beta than larger companies. … How CAD's assets could affect its beta An asset-heavy company tends to have a higher beta because the risk associated with running fixed assets during a downturn is highly expensive.

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Should You Be Tempted To Buy CAD IT Sp.A. (BIT:CAD) Because Of Its PE Ratio?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for CAD Price per share = €5.4 Earnings per share = €0.412 ∴ Price-Earnings Ratio = €5.4 ÷ €0.412 = 13.1x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … For example, if you accidentally compared higher growth firms with CAD, then CAD’s P/E would naturally be lower since investors would reward its peers’ higher growth with a higher price. … Alternatively, if you inadvertently compared less risky firms with CAD, CAD’s P/E would again be lower since investors would reward its peers’ lower risk with a higher price as well.

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What You Must Know About CAD IT Sp.A.'s (BIT:CAD) 7.94% ROE

View our latest analysis for CAD IT Breaking down ROE — the mother of all ratios Return on Equity (ROE) weighs CAD IT’s profit against the level of its shareholders’ equity. … Since CAD IT’s return does not cover its cost, with a difference of -0.73%, this means its current use of equity is not efficient and not sustainable. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity BIT:CAD Last Perf Apr 5th 18 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient the business is with its cost management.

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CAD IT Sp.A. (BIT:CAD): Has Recent Earnings Growth Beaten Long-Term Trend?

After reading CAD IT Sp.A.'s (BIT:CAD) most recent earnings announcement (30 September 2017), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … For the most up-to-date info, I use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. … Inspecting growth from a sector-level, the IT software industry has been relatively flat in terms of earnings growth in the previous twelve months, levelling off from a solid 11.29% over the last five years.

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What Investors Should Know About CAD IT Sp.A.'s (BIT:CAD) Financial Strength

At this constant level of debt, the current cash and short-term investment levels stands at €4.39M , ready to deploy into the business. … Additionally, CAD has generated cash from operations of €4.78M during the same period of time, leading to an operating cash to total debt ratio of 114.11%, meaning that CAD’s operating cash is sufficient to cover its debt. … For CAD, the ratio of 80.4x suggests that interest is comfortably covered, which means that debtors may be willing to loan the company more money, giving CAD ample headroom to grow its debt facilities.Next Steps: CAD’s high cash coverage and low debt levels indicate its ability to utilise its borrowings efficiently in order to generate ample cash flow.

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Company Info

Map
Description

CAD IT S.p.A., together with its subsidiaries, operates as a technology company in Italy, Switzerland, Germany, the United Kingdom, Spain, Portugal, Austria, Saudi Arabia, China, the Czech Republic, and the United States. It operates through Finance segment and Manufacturing segment. The Finance segment offers computer applications for the management of intermediary activities on securities, funds, and derivate instruments; management of services in the credit sector, such as the collection, treasury, and monitoring of credit procedures; service allocation for trading online; and management of integrated banking computer systems. This segment also provides Area Finanza, a securities trading and post-trading process management system; and project management, system integration, consultancy and training, customization and change management, application monitoring and support, multi-lingual help desk, regulatory support, application development, application maintenance, private cloud, and business processing services. The Manufacturing segment develops and markets instruments and software applications; and offers services that allow companies to manage various company processes, including outsourcing. The company serves banking groups, national authorities, local authorities, consumer goods companies, insurance companies, outsource service providers, and foundations. CAD IT S.p.A. was founded in 1977 and is headquartered in Verona, Italy. As of April 6, 2018, CAD IT S.p.A. operates as a subsidiary of Quarantacinque S.r.l.

Details
Name: CAD IT S.p.A.
CAD
Exchange: BIT
Founded: 1977
€38,434,400
8,980,000
Website: http://www.caditgroup.com
Address: CAD IT S.p.A.
Via Torricelli, 44/A,
Verona,
Verona, 37136,
Italy
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BIT CAD Ordinary Shares Borsa Italiana IT EUR 26. Oct 2000
LSE 0N7H Ordinary Shares London Stock Exchange GB EUR 26. Oct 2000
BATS-CHIXE CADM Ordinary Shares BATS 'Chi-X Europe' GB EUR 26. Oct 2000
Number of employees
Current staff
Staff numbers
672
CAD IT employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/12/03 18:34
End of day share price update: 2018/11/30 00:00
Last earnings filing: 2018/11/14
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.