ENXTLS:CTT

Stock Analysis Report

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CTT - Correios De Portugal

Executive Summary

CTT - Correios De Portugal, S.A., together with its subsidiaries, provides postal and financial services worldwide. More Details


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has CTT - Correios De Portugal's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CTT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-9.5%

CTT

-3.1%

PT Logistics

-3.8%

PT Market


1 Year Return

-15.9%

CTT

26.0%

PT Logistics

-7.6%

PT Market

Return vs Industry: CTT underperformed the Portuguese Logistics industry which returned 29.5% over the past year.

Return vs Market: CTT underperformed the Portuguese Market which returned -5.7% over the past year.


Shareholder returns

CTTIndustryMarket
7 Day-9.5%-3.1%-3.8%
30 Day-6.1%2.4%4.7%
90 Day-2.0%15.1%-3.1%
1 Year-15.9%-15.9%28.7%26.0%-4.1%-7.6%
3 Year-47.6%-55.8%22.3%12.1%3.3%-8.1%
5 Year-70.3%-78.4%73.6%49.5%9.5%7.4%

Price Volatility Vs. Market

How volatile is CTT - Correios De Portugal's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CTT - Correios De Portugal undervalued compared to its fair value and its price relative to the market?

25.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CTT (€2.24) is trading below our estimate of fair value (€3)

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


Price To Earnings Ratio

PE vs Industry: CTT is poor value based on its PE Ratio (18.4x) compared to the XE Logistics industry average (18.2x).

PE vs Market: CTT is poor value based on its PE Ratio (18.4x) compared to the Portuguese market (15.9x).


Price to Earnings Growth Ratio

PEG Ratio: CTT is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: CTT is overvalued based on its PB Ratio (2.6x) compared to the XE Logistics industry average (2x).


Next Steps

Future Growth

How is CTT - Correios De Portugal forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

28.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTT's forecast earnings growth (28.3% per year) is above the savings rate (2.1%).

Earnings vs Market: CTT's earnings (28.3% per year) are forecast to grow faster than the Portuguese market (15% per year).

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

Revenue vs Market: CTT's revenue (1.1% per year) is forecast to grow slower than the Portuguese market (5.4% per year).

High Growth Revenue: CTT's revenue (1.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CTT's Return on Equity is forecast to be high in 3 years time (21.9%)


Next Steps

Past Performance

How has CTT - Correios De Portugal performed over the past 5 years?

-30.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTT has a large one-off loss of €17.7M impacting its June 30 2020 financial results.

Growing Profit Margin: CTT's current net profit margins (2.5%) are lower than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: CTT's earnings have declined by 30.3% per year over the past 5 years.

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

Earnings vs Industry: CTT had negative earnings growth (-21.3%) over the past year, making it difficult to compare to the Logistics industry average (-22.3%).


Return on Equity

High ROE: CTT's Return on Equity (14.2%) is considered low.


Next Steps

Financial Health

How is CTT - Correios De Portugal's financial position?


Financial Position Analysis

Short Term Liabilities: CTT's short term assets (€775.4M) do not cover its short term liabilities (€2.0B).

Long Term Liabilities: CTT's short term assets (€775.4M) exceed its long term liabilities (€497.3M).


Debt to Equity History and Analysis

Debt Level: CTT's debt to equity ratio (117.5%) is considered high.

Reducing Debt: CTT's debt to equity ratio has increased from 1.7% to 117.5% over the past 5 years.

Debt Coverage: CTT's debt is well covered by operating cash flow (173%).

Interest Coverage: CTT's interest payments on its debt are well covered by EBIT (6.7x coverage).


Balance Sheet


Next Steps

Dividend

What is CTT - Correios De Portugal current dividend yield, its reliability and sustainability?

4.32%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: CTT is not paying a notable dividend for the Portuguese market.


Future Payout to Shareholders

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


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

João Afonso Ramalho Sopas Bento (60 yo)

1.42yrs

Tenure

€535,220

Compensation

Prof. João Afonso Ramalho Sopas Pereira Bento serves as the Chief Executive Officer of Efacec Capital, S.G.P.S., SA. Prof. Bento served as Head of Companhia de Concessoes Rodoviarias and Head of Elos - Lig ...


CEO Compensation Analysis

Compensation vs Market: João Afonso Ramalho Sopas's total compensation ($USD632.50K) is about average for companies of similar size in the Portuguese market ($USD757.14K).

Compensation vs Earnings: João Afonso Ramalho Sopas's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
João Afonso Ramalho Sopas Bento
CEO & Executive Director1.42yrs€535.22k0.017%
€ 58.2k
Guy Patrick Guimarães de Pacheco
CFO & Executive Director2.83yrs€439.78k0.0053%
€ 17.9k
João Carlos Sousa
COO & Executive Director1.08yrs€107.65k0.0019%
€ 6.4k
António Ferreira Vaz da Silva
CCO of Retail & Executive Director3.5yrs€409.25k0.0047%
€ 15.7k
Peter Tsvetkov
Director of Investor Relationsno datano datano data
Miguel Alexandre Ferreira Salema Garção
Director of Brand & Communicationno datano datano data
João Miguel da Silva
Executive Director0.75yrno data0.0076%
€ 25.6k
Ana Baião Matos
Director of Accounting and Treasuryno datano datano data
Maria Da Graça F. De E Sousa Góis
Company Secretary and General Secretariatno datano datano data
Maria da Graça de Carvalho
Secretary of the Companyno datano datano data
Luís Miguel Rodrigues
Director of Physical Resources & Security and Executive Director Mozambiqueno datano datano data

1.3yrs

Average Tenure

45yo

Average Age

Experienced Management: CTT's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
João Afonso Ramalho Sopas Bento
CEO & Executive Director1.42yrs€535.22k0.017%
€ 58.2k
Guy Patrick Guimarães de Pacheco
CFO & Executive Director2.83yrs€439.78k0.0053%
€ 17.9k
João Carlos Sousa
COO & Executive Director1.08yrs€107.65k0.0019%
€ 6.4k
António Ferreira Vaz da Silva
CCO of Retail & Executive Director3.5yrs€409.25k0.0047%
€ 15.7k
João Miguel da Silva
Executive Director0.75yrno data0.0076%
€ 25.6k
José Manuel Fino
Independent Non-Executive Director5.83yrs€60.13kno data
Céline Dora Abecassis-Moedas
Independent Non-Executive Director4.17yrs€60.13kno data
Nuno De Carvalho Thomaz
Independent Non-Executive Director6.58yrs€69.38kno data
Maria Belén Corbi
Independent Non-Executive Director3.5yrs€69.38kno data
Maria Luísa Coutinho Ferreira Leite Castro Anacoreta Correia
Independent Non-Executive Director3.5yrs€83.25kno data
Rafael Caldeira de Valverde
Independent Non-Executive Director3.5yrs€60.13kno data
Raúl l Galamba de Oliveira
Non-Executive & Independent Chairman0.50yrno data0.013%
€ 44.8k

3.5yrs

Average Tenure

54.5yo

Average Age

Experienced Board: CTT's board of directors are considered experienced (3.5 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

CTT - Correios De Portugal, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CTT - Correios De Portugal, S.A.
  • Ticker: CTT
  • Exchange: ENXTLS
  • Founded: 1520
  • Industry: Air Freight and Logistics
  • Sector: Transportation
  • Market Cap: €336.000m
  • Shares outstanding: 150.00m
  • Website: https://www.ctt.pt

Number of Employees


Location

  • CTT - Correios De Portugal, S.A.
  • Av. D. JoAo II, n.o 13
  • Lisbon
  • Lisbon
  • 1999-001
  • Portugal

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CTTENXTLS (Euronext Lisbon)YesOrdinary SharesPTEURDec 2013
CTTUBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURDec 2013
C7TDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2013
0QIMLSE (London Stock Exchange)YesOrdinary SharesGBEURDec 2013
CTT NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNDec 2013
CTTO.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2013
CTTP.YOTCPK (Pink Sheets LLC)ADRUSUSDJan 2015

Biography

CTT - Correios De Portugal, S.A., together with its subsidiaries, provides postal and financial services worldwide. The company operates through Mail, Express & Parcels, Financial Services, and Banco CTT s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 22:08
End of Day Share Price2020/10/26 00:00
Earnings2020/06/30
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.