Esprinet (BIT:PRT) - Share price, News & Analysis

Q: What is the Fair Price of PRT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

PRT (€7.23) is trading below our estimate of [[fair value]] (€18.54)

PRT fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	3/6
Past Performance	4/6
Financial Health	6/6
Dividends	5/6

PRT Stock Overview

Esprinet S.p.A., together with its subsidiaries, engages in the wholesale distribution of information technology (IT) and consumer electronics primarily in Italy, Spain, Portugal, and rest of Europe.

Rewards

Trading at 61% below our estimate of its fair value

Earnings are forecast to grow 18.54% per year

Earnings have grown 15.7% per year over the past 5 years

Risk Analysis

Unstable dividend track record

Volatile share price over the past 3 months

Esprinet Competitors

SeSa

BIT:SES

€1.9b

Itway

BIT:ITW

€12.7m

SAES Getters

BIT:SG

€338.9m

Datalogic

BIT:DAL

€414.0m

Price History & Performance

Summary of all time highs, changes and price drops for Esprinet
Historical stock prices
Current Share Price	€7.23
52 Week High	€16.98
52 Week Low	€7.07
Beta	1.51
1 Month Change	-10.91%
3 Month Change	-24.84%
1 Year Change	-51.22%
3 Year Change	139.40%
5 Year Change	12.01%
Change since IPO	409.87%

Recent News & Updates

May 25

Is Esprinet (BIT:PRT) A Risky Investment?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

	PRT	IT Electronic	IT Market
7D	-1.5%	-0.1%	0.6%
1Y	-51.2%	-28.9%	-15.0%

Return vs Industry: PRT underperformed the Italian Electronic industry which returned -28.9% over the past year.

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

Price Volatility

Is PRT's price volatile compared to industry and market?
PRT volatility
PRT Average Weekly Movement	6.1%
Electronic Industry Average Movement	5.7%
Market Average Movement	5.1%
10% most volatile stocks in IT Market	7.4%
10% least volatile stocks in IT Market	3.4%

Stable Share Price: PRT is more volatile than 75% of Italian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: PRT's weekly volatility (6%) has been stable over the past year, but is still higher than 75% of Italian stocks.

About the Company

Founded	Employees	CEO	Website
n/a	1,747	Alessandro Cattani	https://www.esprinet.com

Esprinet S.p.A., together with its subsidiaries, engages in the wholesale distribution of information technology (IT) and consumer electronics primarily in Italy, Spain, Portugal, and rest of Europe. The company distributes home, leisure, and office products, such as air conditioning, audio, DIY and gardening, electricity and lighting, gaming, mobility, navigation, networking, printing, sports and leisure, TV and home cinema, and video surveillance and access control products. It also offers bags, backpacks, and suitcases; drones; home appliances; mobile phones and landline phones; monitors; musical instruments and DJ mixers; notebooks and tablets; papers and consumables; and photo and video devices.

Esprinet Fundamentals Summary

How do Esprinet's earnings and revenue compare to its market cap?
PRT fundamental statistics
Market Cap	€353.47m
Earnings (TTM)	€44.02m
Revenue (TTM)	€4.66b

8.0x

P/E Ratio

0.1x

P/S Ratio

Is PRT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PRT income statement (TTM)
Revenue	€4.66b
Cost of Revenue	€4.43b
Gross Profit	€233.29m
Other Expenses	€189.27m
Earnings	€44.02m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.90
Gross Margin	5.00%
Net Profit Margin	0.94%
Debt/Equity Ratio	45.6%

How did PRT perform over the long term?

See historical performance and comparison

Dividends

7.5%

Current Dividend Yield

61%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is PRT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PRT?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for PRT. This is calculated by dividing PRT's market cap by their current preferred multiple.
What is PRT's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€353.47m

PRT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.1x
Enterprise Value/EBITDA	6.1x
PEG Ratio	0.4x

Price to Earnings Ratio vs Peers

How does PRT's PE Ratio compare to its peers?

PRT PE Ratio vs Peers

The above table shows the PE ratio for PRT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	21.8x
SES SeSa	27.6x	14.6%	€1.9b
ITW Itway	17.5x	n/a	€12.7m
SG SAES Getters	29x	26.8%	€338.9m
DAL Datalogic	13.1x	25.1%	€414.0m
PRT Esprinet	8x	18.5%	€353.5m

Forward PE

Price-To-Earnings vs Peers: PRT is good value based on its Price-To-Earnings Ratio (8x) compared to the peer average (21.8x).

Price to Earnings Ratio vs Industry

How does PRT's PE Ratio compare vs other companies in the European Electronic Industry?

Price-To-Earnings vs Industry: PRT is good value based on its Price-To-Earnings Ratio (8x) compared to the Italian Electronic industry average (13.6x)

Price to Earnings Ratio vs Fair Ratio

What is PRT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PRT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	8x
Fair PE Ratio	19.3x

Price-To-Earnings vs Fair Ratio: PRT is good value based on its Price-To-Earnings Ratio (8x) compared to the estimated Fair Price-To-Earnings Ratio (19.3x).

Share Price vs Fair Value

What is the Fair Price of PRT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PRT (€7.23) is trading below our estimate of fair value (€18.54)

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

Price to Earnings Growth Ratio

PEG Ratio: PRT is good value based on its PEG Ratio (0.4x)

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Future Growth

How is Esprinet forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

18.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRT's forecast earnings growth (18.5% per year) is above the savings rate (1.7%).

Earnings vs Market: PRT's earnings (18.5% per year) are forecast to grow faster than the Italian market (10.1% per year).

High Growth Earnings: PRT's earnings are forecast to grow, but not significantly.

Revenue vs Market: PRT's revenue (6.7% per year) is forecast to grow faster than the Italian market (0.3% per year).

High Growth Revenue: PRT's revenue (6.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: PRT's Return on Equity is forecast to be low in 3 years time (14.9%).

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Past Performance

How has Esprinet performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

15.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PRT has high quality earnings.

Growing Profit Margin: PRT's current net profit margins (0.9%) are higher than last year (0.8%).

Past Earnings Growth Analysis

Earnings Trend: PRT's earnings have grown by 15.7% per year over the past 5 years.

Accelerating Growth: PRT's earnings growth over the past year (17%) exceeds its 5-year average (15.7% per year).

Earnings vs Industry: PRT earnings growth over the past year (17%) underperformed the Electronic industry 20.6%.

Return on Equity

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

Discover strong past performing companies

Financial Health

How is Esprinet's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: PRT's short term assets (€1.5B) exceed its short term liabilities (€1.1B).

Long Term Liabilities: PRT's short term assets (€1.5B) exceed its long term liabilities (€224.5M).

Debt to Equity History and Analysis

Debt Level: PRT has more cash than its total debt.

Reducing Debt: PRT's debt to equity ratio has reduced from 86.5% to 45.6% over the past 5 years.

Debt Coverage: PRT's debt is well covered by operating cash flow (23.4%).

Interest Coverage: PRT's interest payments on its debt are well covered by EBIT (11.5x coverage).

Balance Sheet

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Dividend

What is Esprinet current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

7.47%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PRT's dividend (7.47%) is higher than the bottom 25% of dividend payers in the Italian market (1.7%).

High Dividend: PRT's dividend (7.47%) is in the top 25% of dividend payers in the Italian market (5.11%)

Stability and Growth of Payments

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

Growing Dividend: PRT's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (60.6%), PRT's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (51.4%), PRT's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

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

1.4yrs

Average board tenure

CEO

Alessandro Cattani (58 yo)

18yrs

Tenure

€744,000

Compensation

Mr. Alessandro Cattani has been Regional Deputy Chairman for Europe at Global Technology Distribution Council since July 2014. Mr. Cattani has been the Chief Executive Officer of Esprinet SpA since June 28...

CEO Compensation Analysis

Compensation vs Market: Alessandro's total compensation ($USD778.98K) is about average for companies of similar size in the Italian market ($USD738.11K).

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

Board Members

Experienced Board: PRT's board of directors are not considered experienced ( 1.4 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.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/29 00:00
End of Day Share Price	2022/06/29 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31