Ordina (ENXTAM:ORDI) - Share price, News & Analysis

ORDI fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	2/6
Past Performance	3/6
Financial Health	6/6
Dividends	3/6

ORDI Stock Overview

Ordina N.V. provides IT services in the Netherlands, Belgium, and Luxembourg.

Rewards

Trading at 62.5% below our estimate of its fair value

Earnings are forecast to grow 13.86% per year

Earnings have grown 40.7% per year over the past 5 years

Risk Analysis

Unstable dividend track record

Ordina Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Ordina
Historical stock prices
Current Share Price	€4.71
52 Week High	€4.95
52 Week Low	€3.16
Beta	1.29
1 Month Change	1.29%
3 Month Change	-0.42%
1 Year Change	23.78%
3 Year Change	161.67%
5 Year Change	200.38%
Change since IPO	365.51%

Recent News & Updates

Mar 08

Is Now The Time To Look At Buying Ordina N.V. (AMS:ORDI)?

Ordina N.V. ( AMS:ORDI ), is not the largest company out there, but it saw a double-digit share price rise of over 10...

Feb 01

Returns Are Gaining Momentum At Ordina (AMS:ORDI)

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. One common...

Shareholder Returns

	ORDI	NL IT	NL Market
7D	3.4%	13.7%	4.3%
1Y	23.8%	-29.2%	-21.3%

Return vs Industry: ORDI exceeded the Dutch IT industry which returned -33.9% over the past year.

Return vs Market: ORDI exceeded the Dutch Market which returned -24% over the past year.

Price Volatility

Is ORDI's price volatile compared to industry and market?
ORDI volatility
ORDI Average Weekly Movement	4.2%
IT Industry Average Movement	6.1%
Market Average Movement	5.1%
10% most volatile stocks in NL Market	7.9%
10% least volatile stocks in NL Market	3.0%

Stable Share Price: ORDI is not significantly more volatile than the rest of Dutch stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ORDI's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1973	2,428	Jo Maes	https://www.ordina.nl

Ordina N.V. provides IT services in the Netherlands, Belgium, and Luxembourg. It engages in the development and implementation of software solutions, as well as designing and managing IT landscapes. The company also provides consulting, technology, and outsourcing services.

Ordina Fundamentals Summary

How do Ordina's earnings and revenue compare to its market cap?
ORDI fundamental statistics
Market Cap	€439.24m
Earnings (TTM)	€24.60m
Revenue (TTM)	€394.47m

17.9x

P/E Ratio

1.1x

P/S Ratio

Is ORDI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ORDI income statement (TTM)
Revenue	€394.47m
Cost of Revenue	€328.43m
Gross Profit	€66.04m
Other Expenses	€41.44m
Earnings	€24.60m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 02, 2022

Earnings per share (EPS)	0.26
Gross Margin	16.74%
Net Profit Margin	6.24%
Debt/Equity Ratio	0%

How did ORDI perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

60%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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 ORDI?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ORDI. This is calculated by dividing ORDI's market cap by their current preferred multiple.
What is ORDI's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€439.24m

ORDI 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	1.1x
Enterprise Value/EBITDA	10.8x
PEG Ratio	1.3x

Price to Earnings Ratio vs Peers

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

ORDI PE Ratio vs Peers

The above table shows the PE ratio for ORDI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	40.5x

Forward PE

Price-To-Earnings vs Peers: ORDI is good value based on its Price-To-Earnings Ratio (17.9x) compared to the peer average (40.5x).

Price to Earnings Ratio vs Industry

How does ORDI's PE Ratio compare vs other companies in the IT Industry?

Price-To-Earnings vs Industry: ORDI is good value based on its Price-To-Earnings Ratio (17.9x) compared to the European IT industry average (20x)

Price to Earnings Ratio vs Fair Ratio

What is ORDI'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.

ORDI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	17.9x
Fair PE Ratio	14.9x

Price-To-Earnings vs Fair Ratio: ORDI is expensive based on its Price-To-Earnings Ratio (17.9x) compared to the estimated Fair Price-To-Earnings Ratio (14.9x).

Share Price vs Fair Value

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

Below Fair Value: ORDI (€4.71) is trading below our estimate of fair value (€12.55)

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

Price to Earnings Growth Ratio

PEG Ratio: ORDI is poor value based on its PEG Ratio (1.3x)

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Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

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

13.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ORDI's forecast earnings growth (13.9% per year) is above the savings rate (0.09%).

Earnings vs Market: ORDI's earnings (13.9% per year) are forecast to grow faster than the Dutch market (-0.9% per year).

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

Revenue vs Market: ORDI's revenue (7.1% per year) is forecast to grow slower than the Dutch market (8.1% per year).

High Growth Revenue: ORDI's revenue (7.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ORDI's Return on Equity is forecast to be low in 3 years time (18.1%).

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Past Performance

How has Ordina performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

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

40.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ORDI has high quality earnings.

Growing Profit Margin: ORDI's current net profit margins (6.2%) are higher than last year (6%).

Past Earnings Growth Analysis

Earnings Trend: ORDI's earnings have grown significantly by 40.7% per year over the past 5 years.

Accelerating Growth: ORDI's earnings growth over the past year (10.4%) is below its 5-year average (40.7% per year).

Earnings vs Industry: ORDI earnings growth over the past year (10.4%) underperformed the IT industry 24.7%.

Return on Equity

High ROE: ORDI's Return on Equity (13.7%) is considered low.

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Financial Health

How is Ordina'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: ORDI's short term assets (€111.6M) exceed its short term liabilities (€87.0M).

Long Term Liabilities: ORDI's short term assets (€111.6M) exceed its long term liabilities (€26.9M).

Debt to Equity History and Analysis

Debt Level: ORDI is debt free.

Reducing Debt: ORDI has no debt compared to 5 years ago when its debt to equity ratio was 0.06%.

Debt Coverage: ORDI has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ORDI has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

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

3.35%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ORDI's dividend (3.35%) is higher than the bottom 25% of dividend payers in the Dutch market (2.31%).

High Dividend: ORDI's dividend (3.35%) is low compared to the top 25% of dividend payers in the Dutch market (6.45%).

Stability and Growth of Payments

Stable Dividend: ORDI has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: ORDI's dividend payments have increased, but the company has only paid a dividend for 5 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (59.9%), ORDI's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (39.4%), ORDI's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

3.2yrs

Average management tenure

CEO

Jo Maes (53 yo)

5.42yrs

Tenure

€1,066,000

Compensation

Mr. Jo G. Maes has been Chief Executive Officer, Chairman of Management Board and Member of the Management Board of Ordina N.V. since April 1, 2017. Mr. Maes has been Chief Executive Officer at Ordina Belg...

CEO Compensation Analysis

Compensation vs Market: Jo's total compensation ($USD1.12M) is about average for companies of similar size in the Dutch market ($USD1.09M).

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

Leadership Team

Experienced Management: ORDI's management team is considered experienced (3.2 years average tenure).

Board Members

Experienced Board: ORDI's board of directors are not considered experienced ( 2 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	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31