ENXTAM:NEWAY

Stock Analysis Report

Neways Electronics International

Executive Summary

Neways Electronics International N.V. operates as an electronic manufacturing service company that provides integrated electronic components and systems worldwide.


Snowflake Analysis

Very undervalued with flawless balance sheet.


Similar Companies

Share Price & News

How has Neways Electronics International's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-5.8%

NEWAY

-3.9%

NL Electronic

-5.0%

NL Market


1 Year Return

-36.8%

NEWAY

22.1%

NL Electronic

4.1%

NL Market

Return vs Industry: NEWAY underperformed the Dutch Electronic industry which returned 22.1% over the past year.

Return vs Market: NEWAY underperformed the Dutch Market which returned 4.1% over the past year.


Shareholder returns

NEWAYIndustryMarket
7 Day-5.8%-3.9%-5.0%
30 Day-6.8%-0.8%-3.5%
90 Day-12.0%4.5%-1.2%
1 Year-34.6%-36.8%24.3%22.1%8.4%4.1%
3 Year-10.5%-17.6%48.3%41.0%29.8%15.5%
5 Year-3.8%-12.8%93.5%76.6%42.4%14.4%

Price Volatility Vs. Market

How volatile is Neways Electronics International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Neways Electronics International undervalued compared to its fair value and its price relative to the market?

26.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NEWAY (€8.5) is trading below our estimate of fair value (€11.61)

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


Price To Earnings Ratio

PE vs Industry: NEWAY is good value based on its PE Ratio (12.1x) compared to the Electronic industry average (18.2x).

PE vs Market: NEWAY is good value based on its PE Ratio (12.1x) compared to the Dutch market (18.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: NEWAY is good value based on its PB Ratio (1x) compared to the XE Electronic industry average (2.2x).


Next Steps

Future Growth

How is Neways Electronics International forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

30.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NEWAY's forecast earnings growth (30.1% per year) is above the savings rate (-0.2%).

Earnings vs Market: NEWAY's earnings (30.1% per year) are forecast to grow faster than the Dutch market (12.5% per year).

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

Revenue vs Market: NEWAY's revenue (3.9% per year) is forecast to grow slower than the Dutch market (6.9% per year).

High Growth Revenue: NEWAY's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NEWAY's Return on Equity is forecast to be low in 3 years time (12.7%).


Next Steps

Past Performance

How has Neways Electronics International performed over the past 5 years?

17.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NEWAY has high quality earnings.

Growing Profit Margin: NEWAY's current net profit margins (1.6%) are lower than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: NEWAY's earnings have grown by 17.5% per year over the past 5 years.

Accelerating Growth: NEWAY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NEWAY had negative earnings growth (-41.1%) over the past year, making it difficult to compare to the Electronic industry average (9%).


Return on Equity

High ROE: NEWAY's Return on Equity (8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Neways Electronics International's financial position?


Financial Position Analysis

Short Term Liabilities: NEWAY's short term assets (€187.2M) exceed its short term liabilities (€134.7M).

Long Term Liabilities: NEWAY's short term assets (€187.2M) exceed its long term liabilities (€36.8M).


Debt to Equity History and Analysis

Debt Level: NEWAY's debt to equity ratio (34.7%) is considered satisfactory.

Reducing Debt: NEWAY's debt to equity ratio has reduced from 55.5% to 34.7% over the past 5 years.

Debt Coverage: NEWAY's debt is well covered by operating cash flow (80%).

Interest Coverage: NEWAY's interest payments on its debt are well covered by EBIT (5.5x coverage).


Balance Sheet

Inventory Level: NEWAY has a high level of physical assets or inventory.

Debt Coverage by Assets: NEWAY's debt is covered by short term assets (assets are 5.1x debt).


Next Steps

Dividend

What is Neways Electronics International's current dividend yield, its reliability and sustainability?

3.29%

Current Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%2.2%markettop25%5.9%industryaverage1.6%forecastin3Years5.3%

Current dividend yield vs market & industry

Notable Dividend: NEWAY's dividend (3.29%) is higher than the bottom 25% of dividend payers in the Dutch market (2.22%).

High Dividend: NEWAY's dividend (3.29%) is low compared to the top 25% of dividend payers in the Dutch market (5.92%).


Stability and Growth of Payments

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

Growing Dividend: NEWAY's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40%), NEWAY's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NEWAY's dividends in 3 years are forecast to be well covered by earnings (38.5% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Eric Stodel 0

0.08yrs

Tenure

0

Mr. Eric Stodel is the CEO and Chairman of the Executive Board at Neways Electronics International N.V. since January 1, 2020. He served as Chief Executive Officer of Marinoffs. Mr. Stodel has held various ...


Leadership Team

NamePositionTenureCompensationOwnership
Paul H. de Koning
CFO & Director4.8yrs€515.00k0.16% 169.4k
Adrie A. van Bragt
COO & Director5.1yrs€515.00k0.14% 143.9k
Huub W. van der Vrande
Senior Vice President0.08yrs€617.00k0.23% 241.0k
Eric Stodel
CEO & Chairman of the Board of Directors0.08yrsno datano data
Jack Kromhof
Director of Cable0yrsno datano data
Ruud Meeren
Corporate Head of Legal Affairs0yrsno datano data
Joan Leeuwenburg
Corporate Head of Human Resources0yrsno datano data
Hans Ketelaars
Managing Director of Neways Technologies0yrsno datano data
Michel Postma
Managing Director of Neways Leeuwarden B.V.0yrsno datano data
Bob Konings
Managing Director of Neways Industrial Systems B.V.0yrsno datano data

2.5yrs

Average Tenure

54yo

Average Age

Experienced Management: NEWAY's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rene de Vries
Vice Chairman of Supervisory Board 4.8yrsno datano data
Petrus Antonius van Bommel
Member of Supervisory Board4.8yrsno datano data
Henk Scheepers
Chairman of Supervisory Board4.8yrsno datano data

4.8yrs

Average Tenure

65yo

Average Age

Experienced Board: NEWAY's board of directors are considered experienced (4.8 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 been diluted in the past year, with total shares outstanding growing by 2.5%.


Top Shareholders

Company Information

Neways Electronics International N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Neways Electronics International N.V.
  • Ticker: NEWAY
  • Exchange: ENXTAM
  • Founded: 1969
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: €103.271m
  • Shares outstanding: 12.15m
  • Website: https://www.newayselectronics.com

Number of Employees


Location

  • Neways Electronics International N.V.
  • Science Park Eindhoven 5010
  • Son
  • Noord-Brabant
  • 5692 EA
  • Netherlands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NEWAYENXTAM (Euronext Amsterdam)YesOrdinary SharesNLEURJan 1992
0NEBLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
NEWAYABATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992

Biography

Neways Electronics International N.V. operates as an electronic manufacturing service company that provides integrated electronic components and systems worldwide. It offers development and design services, such as hardware, software, electronic, mechanical, and electro mechanical design, as well as system architecture and environmental testing services. The company also provides printed circuit board assembly, box build, cable and wire, and system integration services, as well as hybrid microelectronics. Its solutions are used in various sectors, including the automotive, medical, defense, industrial, and semiconductor, as well as other industries. The company was founded in 1969 and is headquartered in Son, the Netherlands. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 20:50
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
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.