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.

Snowflake

Fundamentals

Mediocre balance sheet with limited growth.

Risks

  • City Service has significant price volatility in the past 3 months.
  • City Service is not covered by any analysts.

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


Market Performance


7 Day Return

0.01%

WSE:CTS

-0.4%

PL Commercial Services

-1.7%

PL Market


1 Year Return

-6.7%

WSE:CTS

-7.8%

PL Commercial Services

-8.1%

PL Market

CTS matched the Commercial Services industry (-6.9%) over the past year.

CTS matched the Poland Market (-7.2%) over the past year.


Share holder returns

CTSIndustryMarket
7 Day0.01%-0.4%-1.7%
30 Day6.6%-0.6%-8.3%
90 Day-26.5%-0.8%-5.0%
1 Year-6.7%-6.7%-6.3%-7.8%-5.2%-8.1%
3 Year79.6%17.7%-5.8%-10.2%9.1%1.0%
5 Yearn/a18.8%13.7%-1.9%-14.4%

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 based on future cash flows and its price relative to the stock market?

22.22x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

City Service's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

City Service's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

City Service is overvalued based on earnings compared to the PL Commercial Services industry average.

City Service is overvalued based on earnings compared to the Poland market.


Price Based on Expected Growth

Unable to calculate PEG ratio for City Service, we can't assess if its growth is good value.


Price Based on Value of Assets

City Service is overvalued based on assets compared to the PL Commercial Services industry average.


Next Steps

Future Growth

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

12.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if City Service is high growth as no revenue estimate data is available.

City Service's earnings are expected to grow by 12.1% yearly, however this is not considered high growth (20% yearly).

Unable to compare City Service's revenue growth to the Poland market average as no estimate data is available.

City Service's earnings growth is expected to exceed the Poland market average.

City Service's earnings growth is expected to exceed the low risk savings rate of 2.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if City Service will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has City Service performed over the past 5 years?

-12.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

City Service's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

City Service's 1-year earnings growth is negative, it can't be compared to the 5-year average.

City Service's 1-year earnings growth is negative, it can't be compared to the PL Commercial Services industry average.


Return on Equity

City Service has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

City Service used its assets less efficiently than the PL Commercial Services industry average last year based on Return on Assets.


Return on Capital Employed

City Service has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is City Service's financial position?


Financial Position Analysis

City Service is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

City Service's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

City Service's level of debt (60.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (30.1% vs 60.4% today).

Debt is not well covered by operating cash flow (15.4%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 10.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.7x debt.


Next Steps

Dividend

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

13.92%

Current Dividend Yield


Dividend Yield and Payments Analysis

City Service's pays a higher dividend yield than the bottom 25% of dividend payers in Poland (2.86%).

City Service's dividend is above the markets top 25% of dividend payers in Poland (7.34%).

City Service has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but City Service only paid a dividend in the past 4 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.3x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Arturas Gudelis (42yo)

2.2yrs

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

2.2yrs

Average Tenure

42.5yo

Average Age

The tenure for the City Service management team is about average.


Board Age and Tenure

2.6yrs

Average Tenure

47yo

Average Age

The average tenure for the City Service board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Vytautas Turonis (47yo)

    Member of the Management Board & GM of UAB Mano Bustas

    • Tenure: 2.2yrs
  • Edvinas Paulauskas (43yo)

    Member of the Management Board

    • Tenure: 2.2yrs
    • Compensation: €82.00k
  • Irena Veligor

    Chief Accountant

    • Tenure: 0.0yrs
  • Anna Górecka-Kolasa (44yo)

    Head of the Group Companies Operating in Poland

    • Tenure: 0.0yrs
  • Matas Likauskas

    Financial Controller

    • Tenure: 0.0yrs
  • Arturas Gudelis (42yo)

    Chairman of the Management Board

    • Tenure: 2.2yrs
  • Tomas Kleiva (40yo)

    Member of the Management Board

    • Tenure: 2.5yrs
  • Alge Jablonskiene (48yo)

    Member of the Management Board

    • Tenure: 2.2yrs
  • Ignas Krasauskas (36yo)

    Member of Management Board

    • Tenure: 1.8yrs
  • Dalius Šimaitis (42yo)

    Member of the Management Board

    • Tenure: 0.5yrs

Board Members

  • Gintautas Jaugielavicius (48yo)

    Member of Supervisory Board

    • Tenure: 4.3yrs
  • Andrius Janukonis (48yo)

    Chairman of Supervisory Board

    • Tenure: 4.3yrs
  • Larijus Lapinskas (47yo)

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

    • Tenure: 2.6yrs
  • Tomas Kleiva (40yo)

    Member of the Management Board

    • Tenure: 2.5yrs
  • Evgenij Grachiov (34yo)

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

    • Tenure: 2.6yrs

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: zł306.649m
  • 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 Analysis2019/08/20 21:53
End of Day Share Price2019/08/20 00:00
Earnings2019/03/31
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.