WSE:CTS

Stock Analysis Report

Executive Summary

City Service SE, together with its subsidiaries, provides facility management and integrated utility services in Lithuania, Poland, Spain, Latvia, and Russia.

Risk Analysis

Earnings have declined by -13.95% per year over past 5 years

Has a high level of debt

Dividend of 14.62% is not well covered by earnings

Profit margins (1.1%) are lower than last year (3.8%)

+ 2 more risks


Snowflake Analysis

Adequate balance sheet unattractive dividend payer.


Similar Companies

Share Price & News

How has City Service's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.1%

CTS

0.3%

PL Commercial Services

1.1%

PL Market


1 Year Return

-19.8%

CTS

10.7%

PL Commercial Services

-7.1%

PL Market

Return vs Industry: CTS underperformed the Polish Commercial Services industry which returned 10.7% over the past year.

Return vs Market: CTS underperformed the Polish Market which returned -7.1% over the past year.


Shareholder returns

CTSIndustryMarket
7 Day-0.1%0.3%1.1%
30 Day-2.6%-0.4%-3.1%
90 Day-7.1%6.5%-2.8%
1 Year-19.8%-19.8%11.3%10.7%-4.3%-7.1%
3 Year40.3%-8.0%0.7%-4.5%5.8%-2.0%
5 Yearn/a22.3%18.0%3.3%-9.6%

Price Volatility Vs. Market

How volatile is City Service's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is City Service undervalued compared to its fair value and its price relative to the market?

39.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CTS (PLN9.06) is trading above our estimate of fair value (PLN6.99)

Significantly Below Fair Value: CTS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CTS is poor value based on its PE Ratio (39.5x) compared to the Commercial Services industry average (11.3x).

PE vs Market: CTS is poor value based on its PE Ratio (39.5x) compared to the Polish market (11x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CTS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CTS is overvalued based on its PB Ratio (1.3x) compared to the PL Commercial Services industry average (1x).


Next Steps

Future Growth

How is City Service forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.5%

Forecasted Commercial Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as City Service has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has City Service performed over the past 5 years?

-14.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTS has high quality earnings.

Growing Profit Margin: CTS's current net profit margins (1.1%) are lower than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: CTS's earnings have declined by -14% per year over the past 5 years.

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

Earnings vs Industry: CTS had negative earnings growth (-70.1%) over the past year, making it difficult to compare to the Commercial Services industry average (-8.4%).


Return on Equity

High ROE: CTS's Return on Equity (3.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is City Service's financial position?


Financial Position Analysis

Short Term Liabilities: CTS's short term assets (€51.1M) exceed its short term liabilities (€46.1M).

Long Term Liabilities: CTS's short term assets (€51.1M) exceed its long term liabilities (€34.7M).


Debt to Equity History and Analysis

Debt Level: CTS's debt to equity ratio (50.1%) is considered high.

Reducing Debt: CTS's debt to equity ratio has increased from 29.1% to 50.1% over the past 5 years.

Debt Coverage: CTS's debt is well covered by operating cash flow (37.4%).

Interest Coverage: CTS's interest payments on its debt are well covered by EBIT (5.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: CTS's debt is covered by short term assets (assets are 2x debt).


Next Steps

Dividend

What is City Service's current dividend yield, its reliability and sustainability?

14.62%

Current Dividend Yield


Dividend Yield vs Market

company14.6%marketbottom25%2.6%markettop25%7.2%industryaverage7.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: CTS's dividend (14.62%) is higher than the bottom 25% of dividend payers in the Polish market (2.58%).

High Dividend: CTS's dividend (14.62%) is in the top 25% of dividend payers in the Polish market (7.22%)


Stability and Growth of Payments

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

Growing Dividend: CTS's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (576.9%), CTS's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Arturas Gudelis (42yo)

2.5yrs

Tenure

0

Mr. Arturas Gudelis has been the Financial Director at ICOR since 2006. Mr. Gudelis has served as the Chairman of the Management Board since June 26, 2017 and served as a Member of Supervisory Board at Cit ...


Management Age and Tenure

2.5yrs

Average Tenure

42yo

Average Age

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


Board Age and Tenure

3.8yrs

Average Tenure

47.5yo

Average Age

Experienced Board: CTS's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

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 been diluted in the past year, with total shares outstanding growing by 8.3%.


Management Team

  • Vytautas Turonis (47yo)

    Member of the Management Board & GM of UAB Mano Bustas

    • Tenure: 2.5yrs
  • Edvinas Paulauskas (43yo)

    Member of the Management Board

    • Tenure: 2.5yrs
    • Compensation: €82.00k
  • Irena Veligor

    Chief Accountant

    • Tenure: 0yrs
  • Matas Likauskas

    Financial Controller

    • Tenure: 0yrs
  • Arturas Gudelis (42yo)

    Chairman of the Management Board

    • Tenure: 2.5yrs
  • Tomas Kleiva (40yo)

    Member of Management Board

    • Tenure: 2.8yrs
  • Alge Jablonskiene (48yo)

    Member of the Management Board

    • Tenure: 2.5yrs
  • Ignas Krasauskas (36yo)

    Member of Management Board

    • Tenure: 2.2yrs
  • Dalius Šimaitis (42yo)

    Member of the Management Board

    • Tenure: 0.8yrs
  • Aivaras Šimkus (36yo)

    Member of the Management Board

    • Tenure: 0.3yrs

Board Members

  • Gintautas Jaugielavicius (48yo)

    Member of Supervisory Board

    • Tenure: 4.7yrs
  • Andrius Janukonis (48yo)

    Chairman of Supervisory Board

    • Tenure: 4.7yrs
  • Larijus Lapinskas (47yo)

    Chairman of the Board for the City Service Group Companies Operating in St. Petersburg

    • Tenure: 2.9yrs
  • Evgenij Grachiov (34yo)

    Chairman of the Board of Grupo Aresi De Inversiones S.L Operating in Spain

    • Tenure: 2.9yrs

Company Information

City Service SE's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: City Service SE
  • Ticker: CTS
  • Exchange: WSE
  • Founded:
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: zł286.387m
  • Shares outstanding: 31.61m
  • Website: https://www.cityservice.eu

Number of Employees


Location

  • City Service SE
  • Narva mnt. 5
  • Tallinn
  • 10117
  • Estonia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CTSWSE (Warsaw Stock Exchange)YesOrdinary Registered SharesPLPLNJun 2007

Biography

City Service SE, together with its subsidiaries, provides facility management and integrated utility services in Lithuania, Poland, Spain, Latvia, and Russia. The company offers facility maintenance servic ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/15 22:27
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.