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 Analysis

Adequate balance sheet and fair value.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

CTS

-4.2%

PL Commercial Services

-1.5%

PL Market


1 Year Return

-56.3%

CTS

-5.8%

PL Commercial Services

-33.0%

PL Market

Return vs Industry: CTS underperformed the Polish Commercial Services industry which returned -5.2% over the past year.

Return vs Market: CTS underperformed the Polish Market which returned -32.6% over the past year.


Shareholder returns

CTSIndustryMarket
7 Day0%-4.2%-1.5%
30 Day-21.2%-17.2%-19.6%
90 Day-34.8%-13.2%-27.9%
1 Year-56.3%-56.3%-5.1%-5.8%-31.0%-33.0%
3 Year-12.0%-42.3%-21.9%-25.6%-32.5%-37.3%
5 Yearn/a-4.5%-7.8%-29.2%-38.2%

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 (PLN5.95) is trading below our estimate of fair value (PLN20.61)

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 (14.6x) compared to the Commercial Services industry average (10.5x).

PE vs Market: CTS is poor value based on its PE Ratio (14.6x) compared to the Polish market (8.9x).


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 is good value based on its PB Ratio (0.8x) compared to the PL Commercial Services industry average (0.9x).


Next Steps

Future Growth

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

14.4%

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.


Next Steps

Past Performance

How has City Service performed over the past 5 years?

-13.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTS has high quality earnings.

Growing Profit Margin: CTS's current net profit margins (1.7%) are lower than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: CTS's earnings have declined by -13.2% 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 (-22.5%) over the past year, making it difficult to compare to the Commercial Services industry average (6.7%).


Return on Equity

High ROE: CTS's Return on Equity (5.6%) is considered low.


Next Steps

Financial Health

How is City Service's financial position?


Financial Position Analysis

Short Term Liabilities: CTS's short term assets (€51.7M) exceed its short term liabilities (€47.2M).

Long Term Liabilities: CTS's short term assets (€51.7M) exceed its long term liabilities (€33.3M).


Debt to Equity History and Analysis

Debt Level: CTS's debt to equity ratio (47.4%) is considered high.

Reducing Debt: CTS's debt to equity ratio has increased from 33.1% to 47.4% over the past 5 years.

Debt Coverage: CTS's debt is well covered by operating cash flow (37.5%).

Interest Coverage: CTS's interest payments on its debt are well covered by EBIT (6.1x 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 2.1x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate CTS's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CTS's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: CTS is not paying a notable dividend for the Polish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CTS's dividend in 3 years as they are not forecast to pay a notable one for the Polish market.


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Arturas Gudelis (42yo)

2.75s

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

NamePositionTenureCompensationOwnership
Arturas Gudelis
Chairman of the Management Board2.75yrsno datano data
Matas Likauskas
Financial Controllerno datano datano data
Vytautas Turonis
Member of the Management Board & GM of UAB Mano Bustas2.75yrsno datano data
Tomas Kleiva
Member of the Management Board3.08yrsno datano data
Ignas Krasauskas
Member of Management Board2.42yrsno datano data
Dalius Šimaitis
Member of the Management Board1.08yrsno datano data
Aivaras Šimkus
Member of the Management Board0.58yrno datano data
Irena Veligor
Chief Accountantno datano datano data
Anna Górecka-Kolasa
Head of the Group Companies Operating in Polandno datano datano data
Lina Žilakauskiene
Chief Executive Officer of Aresi Gestion de Fincas0.50yrno datano data

2.4yrs

Average Tenure

42yo

Average Age

Experienced Management: CTS's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gintautas Jaugielavicius
Member of Supervisory Board4.92yrsno datano data
Andrius Janukonis
Chairman of Supervisory Board4.92yrsno datano data
Larijus Lapinskas
Chairman of the Board for the City Service Group Companies Operating in St. Petersburg3.17yrsno datano data
Evgenij Grachiov
Chairman of the Board of Grupo Aresi De Inversiones S.L Operating in Spain3.17yrsno datano data

4.0yrs

Average Tenure

47.5yo

Average Age

Experienced Board: CTS's board of directors are considered experienced (4 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 been diluted in the past year, with total shares outstanding growing by 3.2%.


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:
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: zł188.080m
  • 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 services for residential buildings, such as apartment building administration, engineering equipment and structures maintenance, project administration renovation, cleaning, and emergency services, as well as undertakes apartment buildings repair works. It also provides facility management services for commercial, industrial, and public buildings, including facility management process administration, engineering system maintenance, cleaning, security, emergency, building structure maintenance, and other services. In addition, the company offers maintenance and cleaning services to apartment buildings, as well as commercial, public, and industrial objects; energy resources management and renovation services; buildings’ technical and energetic auditing services; territory cleaning; and security, and debt administration and collection services. Further, it is involved in the production and supply of thermal energy; installation of boiler rooms; and retail of electric energy. Additionally, City Service SE provides administration services for dwelling houses; real estate management; rental of bio toilets and sewage disposal services; and elevator installation and technical support services. The company is based in Tallinn, the Republic of Estonia. City Service SE is a subsidiary of UAB ICOR. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 22:49
End of Day Share Price2020/03/20 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.