WSE:CTS

Stock Analysis Report

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Market Cap

zł439.4m

Last Updated

2021/06/17 22:22 UTC

Data Sources

Company Financials

Executive Summary

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


Snowflake Analysis

Excellent balance sheet with proven track record.

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 is more volatile than 75% of Polish stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: CTS's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of Polish stocks.


Market Performance


7 Day Return

13.5%

CTS

-2.9%

PL Commercial Services

-0.6%

PL Market


1 Year Return

36.3%

CTS

48.1%

PL Commercial Services

32.1%

PL Market

Return vs Industry: CTS underperformed the Polish Commercial Services industry which returned 48.1% over the past year.

Return vs Market: CTS exceeded the Polish Market which returned 32.1% over the past year.


Shareholder returns

CTSIndustryMarket
7 Day13.5%-2.9%-0.6%
30 Day1.8%-1.5%3.3%
90 Day50.3%6.8%11.9%
1 Year72.7%36.3%57.6%48.1%33.9%32.1%
3 Year83.5%27.5%92.4%77.1%18.5%11.7%
5 Year272.1%92.5%148.8%123.2%35.9%22.2%

Long-Term 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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CTS (PLN13.9) is trading below our estimate of fair value (PLN145.44)

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


Price To Earnings Ratio

PE vs Industry: CTS is poor value based on its PE Ratio (19.4x) compared to the Polish Commercial Services industry average (12x).

PE vs Market: CTS is poor value based on its PE Ratio (19.4x) compared to the Polish market (14.9x).


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's PB Ratio (2x) is in line with the PL Commercial Services industry average.


Future Growth

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

28.4%

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.


Past Performance

How has City Service performed over the past 5 years?

-0.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTS has high quality earnings.

Growing Profit Margin: CTS's current net profit margins (3.3%) are higher than last year (1%).


Past Earnings Growth Analysis

Earnings Trend: CTS's earnings have declined by 0.1% per year over the past 5 years.

Accelerating Growth: CTS's earnings growth over the past year (176.4%) exceeds its 5-year average (-0.1% per year).

Earnings vs Industry: CTS earnings growth over the past year (176.4%) exceeded the Commercial Services industry 104.1%.


Return on Equity

High ROE: CTS's Return on Equity (9.6%) is considered low.


Financial Health

How is City Service's financial position?


Financial Position Analysis

Short Term Liabilities: CTS's short term assets (€57.6M) exceed its short term liabilities (€40.9M).

Long Term Liabilities: CTS's short term assets (€57.6M) exceed its long term liabilities (€28.7M).


Debt to Equity History and Analysis

Debt Level: CTS's debt to equity ratio (39.9%) is considered satisfactory.

Reducing Debt: CTS's debt to equity ratio has increased from 29.3% to 39.9% over the past 5 years.

Debt Coverage: CTS's debt is well covered by operating cash flow (94.7%).

Interest Coverage: CTS's interest payments on its debt are well covered by EBIT (17.1x coverage).


Balance Sheet


Dividend

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

2.94%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CTS's dividend (2.94%) is higher than the bottom 25% of dividend payers in the Polish market (1.96%).

High Dividend: CTS's dividend (2.94%) is low compared to the top 25% of dividend payers in the Polish market (5.88%).


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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (57.2%), CTS's dividend payments are 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

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

3.8yrs

Average management tenure


CEO

Arturas Gudelis (44 yo)

4yrs

Tenure

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...


Leadership Team

Experienced Management: CTS's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: CTS's board of directors are considered experienced (5.3 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

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


Key Information

  • Name: City Service SE
  • Ticker: CTS
  • Exchange: WSE
  • Founded: NaN
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: zł439.379m
  • Shares outstanding: 31.61m
  • Website: https://www.cityservice.eu

Number of Employees


Location

  • City Service SE
  • Ozo str. 12A
  • Vilnius
  • 8200
  • Lithuania

Listings


Biography

City Service SE, together with its subsidiaries, provides facility management and integrated utility services in Lithuania, Poland, Spain, Latvia, and Russia. The company engages in the administration of c...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/17 22:22
End of Day Share Price2021/06/17 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.