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TOM2

TomTom ENXTAM:TOM2 Stock Report

Last Price

€8.77

Market Cap

€1.1b

7D

-1.6%

1Y

28.6%

Updated

15 Aug, 2022

Data

Company Financials +
TOM2 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance0/6
Financial Health6/6
Dividends0/6

TOM2 Stock Overview

TomTom N.V. develops and sells navigation and location-based products and services worldwide.

TomTom Competitors

Price History & Performance

Summary of all time highs, changes and price drops for TomTom
Historical stock prices
Current Share Price€8.77
52 Week High€9.36
52 Week Low€5.95
Beta1.22
1 Month Change4.53%
3 Month Change6.89%
1 Year Change28.61%
3 Year Change-16.84%
5 Year Change-44.21%
Change since IPO-73.18%

Recent News & Updates

Shareholder Returns

TOM2NL SoftwareNL Market
7D-1.6%0.6%0.8%
1Y28.6%-26.2%-14.8%

Return vs Industry: TOM2 exceeded the Dutch Software industry which returned -26.2% over the past year.

Return vs Market: TOM2 exceeded the Dutch Market which returned -14.8% over the past year.

Price Volatility

Is TOM2's price volatile compared to industry and market?
TOM2 volatility
TOM2 Average Weekly Movement7.0%
Software Industry Average Movement6.4%
Market Average Movement5.0%
10% most volatile stocks in NL Market8.1%
10% least volatile stocks in NL Market3.0%

Stable Share Price: TOM2 is more volatile than 75% of Dutch stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: TOM2's weekly volatility (7%) has been stable over the past year, but is still higher than 75% of Dutch stocks.

About the Company

FoundedEmployeesCEOWebsite
19914,400Harold C. Goddijnhttps://www.tomtom.com

TomTom N.V. develops and sells navigation and location-based products and services worldwide. The company operates in two segments, Location Technology and Consumer. It offers standard definition, advanced driver assistance system (ADAS), high definition (HD) maps, and map data, as well as places for map products; traffic and travel information products, including real-time traffic, hazard warning, speed camera, speed profile, road analytics, fuel and weather services, electric vehicle (EV) and parking services, and routing; and navigation products, such as navigation engine, traffic and travel information, navigation user interface, EV routing and range, and maps for automotive.

TomTom Fundamentals Summary

How do TomTom's earnings and revenue compare to its market cap?
TOM2 fundamental statistics
Market Cap€1.12b
Earnings (TTM)-€136.03m
Revenue (TTM)€503.66m

2.2x

P/S Ratio

-8.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TOM2 income statement (TTM)
Revenue€503.66m
Cost of Revenue€86.91m
Gross Profit€416.75m
Other Expenses€552.78m
Earnings-€136.03m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 14, 2022

Earnings per share (EPS)-1.06
Gross Margin82.74%
Net Profit Margin-27.01%
Debt/Equity Ratio0%

How did TOM2 perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is TOM2 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TOM2?

Other financial metrics that can be useful for relative valuation.

TOM2 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/Revenue1.6x
Enterprise Value/EBITDA-9x
PEG Ration/a

Price to Sales Ratio vs Peers

How does TOM2's PS Ratio compare to its peers?

TOM2 PS Ratio vs Peers
The above table shows the PS ratio for TOM2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average3.9x
CMCOM CM.com
1.4x22.7%€358.2m
MTRK MotorK
3.6x24.9%€115.4m
GOJXN GeoJunxion
9.2xn/a€8.5m
MAJ Majorel Group Luxembourg
1.3x9.1%€2.4b
TOM2 TomTom
2.2x6.2%€1.1b

Price-To-Sales vs Peers: TOM2 is good value based on its Price-To-Sales Ratio (2.2x) compared to the peer average (3.9x).


Price to Earnings Ratio vs Industry

How does TOM2's PE Ratio compare vs other companies in the European Software Industry?

Price-To-Sales vs Industry: TOM2 is good value based on its Price-To-Sales Ratio (2.2x) compared to the Dutch Software industry average (3.6x)


Price to Sales Ratio vs Fair Ratio

What is TOM2's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TOM2 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.2x
Fair PS Ratio5.9x

Price-To-Sales vs Fair Ratio: TOM2 is good value based on its Price-To-Sales Ratio (2.2x) compared to the estimated Fair Price-To-Sales Ratio (5.9x).


Share Price vs Fair Value

What is the Fair Price of TOM2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TOM2 (€8.77) is trading below our estimate of fair value (€30.65)

Significantly Below Fair Value: TOM2 is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is TomTom forecast to perform in the next 1 to 3 years based on estimates from 4 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


68.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TOM2 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.1%).

Earnings vs Market: TOM2 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: TOM2 is expected to become profitable in the next 3 years.

Revenue vs Market: TOM2's revenue (6.2% per year) is forecast to grow slower than the Dutch market (7.5% per year).

High Growth Revenue: TOM2's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TOM2's Return on Equity is forecast to be low in 3 years time (6.8%).


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Past Performance

How has TomTom performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-1.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TOM2 is currently unprofitable.

Growing Profit Margin: TOM2 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TOM2 is unprofitable, and losses have increased over the past 5 years at a rate of 1.6% per year.

Accelerating Growth: Unable to compare TOM2's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TOM2 is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (12.6%).


Return on Equity

High ROE: TOM2 has a negative Return on Equity (-62.35%), as it is currently unprofitable.


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Financial Health

How is TomTom's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: TOM2's short term assets (€505.4M) exceed its short term liabilities (€316.8M).

Long Term Liabilities: TOM2's short term assets (€505.4M) exceed its long term liabilities (€310.8M).


Debt to Equity History and Analysis

Debt Level: TOM2 is debt free.

Reducing Debt: TOM2 has no debt compared to 5 years ago when its debt to equity ratio was 0.3%.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable TOM2 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: TOM2 is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 17.4% per year.


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate TOM2's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate TOM2'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 TOM2's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TOM2's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as TOM2 has not reported any payouts.


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Management

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

7.0yrs

Average management tenure


CEO

Harold C. Goddijn (62 yo)

31.58yrs

Tenure

€1,365,000

Compensation

Mr. Harold C. A. Goddijn has been the Chief Executive Officer of Tomtom International B.V., since 2001 and serves as its Member of Management Board. Mr. Goddijn has been the Chief Executive Officer at TomT...


CEO Compensation Analysis

Compensation vs Market: Harold C.'s total compensation ($USD1.39M) is about average for companies of similar size in the Dutch market ($USD1.13M).

Compensation vs Earnings: Harold C.'s compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: TOM2's management team is seasoned and experienced (7 years average tenure).


Board Members

Experienced Board: TOM2's board of directors are considered experienced (4.6 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.


Ownership Breakdown

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


Top Shareholders

Company Information

TomTom N.V.'s employee growth, exchange listings and data sources


Key Information

  • Name: TomTom N.V.
  • Ticker: TOM2
  • Exchange: ENXTAM
  • Founded: 1991
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: €1.123b
  • Shares outstanding: 128.12m
  • Website: https://www.tomtom.com

Number of Employees


Location

  • TomTom N.V.
  • De Ruijterkade 154
  • Amsterdam
  • Noord-Holland
  • 1011 AC
  • Netherlands

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/15 00:00
End of Day Share Price2022/08/15 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.