NasdaqGS:CATM

Stock Analysis Report

Executive Summary

Cardtronics plc provides automated consumer financial services through its network of automated teller machines (ATMs) and multi-function financial services kiosks.

Snowflake

Fundamentals

Reasonable growth potential and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

5.9%

CATM

0.4%

US IT

1.8%

US Market


1 Year Return

15.6%

CATM

23.2%

US IT

7.3%

US Market

Return vs Industry: CATM underperformed the US IT industry which returned 23.2% over the past year.

Return vs Market: CATM exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

CATMIndustryMarket
7 Day5.9%0.4%1.8%
30 Day9.5%-0.3%-0.7%
90 Day16.8%-2.7%0.06%
1 Year15.6%15.6%24.4%23.2%9.7%7.3%
3 Year-33.1%-33.1%96.4%88.4%46.3%36.9%
5 Year-6.2%-6.2%152.6%129.5%64.5%46.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

15.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: CATM ($32.88) is trading below our estimate of fair value ($38.68)

Significantly Undervalued: CATM is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CATM is poor value based on its PE Ratio (86.9x) compared to the IT industry average (36.9x).

PE vs Market: CATM is poor value based on its PE Ratio (86.9x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: CATM is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: CATM is good value based on its PB Ratio (4.1x) compared to the US IT industry average (4.3x).


Next Steps

Future Growth

How is Cardtronics forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

33.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CATM's forecast earnings growth (33.1% per year) is above the savings rate (2.7%).

Earnings vs Market: CATM's earnings (33.1% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: CATM's revenue (3.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: CATM's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: CATM's Return on Equity is forecast to be high in 3 years time (22.6%)


Next Steps

Past Performance

How has Cardtronics performed over the past 5 years?

-34.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CATM's earnings have declined by -34.4% per year over the past 5 years.

Accelerating Growth: CATM has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CATM has become profitable in the last year, making it difficult to compare its past year earnings growth to the IT industry (8.4%).


Return on Equity

High ROE: CATM's Return on Equity (4.8%) is considered low.


Return on Assets

ROA vs Industry: CATM's Return on Assets is below or equal to the IT industry average last year.


Return on Capital Employed

ROCE Improving: CATM's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Cardtronics's financial position?


Financial Position Analysis

Short Term Liabilities: CATM's short term assets ($305.8M) do not cover its short term liabilities ($418.1M)

Long Term Liabilities: CATM's short term assets (305.8M) do not cover its long term liabilities (998.0M)


Debt to Equity History and Analysis

Debt Level: CATM's debt to equity ratio (215.1%) is considered high

Reducing Debt: CATM's debt to equity ratio has increased from 171.6% to 215.1% over the past 5 years.

Debt Coverage: CATM's debt is well covered by operating cash flow (35.9%).

Interest Coverage: CATM's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet

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

Debt Coverage by Assets: CATM's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Ed West (52yo)

1.8yrs

Tenure

US$12,059,896

Compensation

Mr. Edward H. West, also known as Ed, has been the Chief Executive Officer and Director at Cardtronics plc since January 1, 2018. He was the Chief Operations Officer of Cardtronics Plc since July 7, 2016 u ...


CEO Compensation Analysis

Compensation vs. Market: Ed has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Ed's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.4yrs

Average Tenure

51yo

Average Age

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


Board Age and Tenure

6.0yrs

Average Tenure

61yo

Average Age

Experienced Board: CATM's board of directors are considered experienced (6 years average tenure).


Insider Trading

Insider Buying: CATM insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$97,47013 Aug 19
Dan Antilley
EntityIndividual
Role
Senior Key Executive
Chief Information Security Officer
Shares3,000
Max PriceUS$32.49
SellUS$40,08012 Aug 19
Paul Gullo
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares1,200
Max PriceUS$33.40
SellUS$334,30008 Aug 19
Stuart MacKinnon
EntityIndividual
Role
Chief Operating Officer
Executive VP of Technology & Operations and Chief Information Officer
Shares10,000
Max PriceUS$33.43
SellUS$156,55014 Dec 18
Dan Antilley
EntityIndividual
Role
Senior Key Executive
Chief Information Security Officer
Shares5,000
Max PriceUS$31.31
SellUS$94,62030 Nov 18
J. Arnoult
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,000
Max PriceUS$31.54

Ownership Breakdown


Management Team

  • Ed West (52yo)

    CEO & Director

    • Tenure: 1.8yrs
    • Compensation: US$12.06m
  • Gary Ferrera (56yo)

    Chief Financial Officer

    • Tenure: 1.9yrs
    • Compensation: US$2.89m
  • Marc Terry (57yo)

    Executive VP & MD of International

    • Tenure: 2.1yrs
    • Compensation: US$1.47m
  • Brad Conrad (46yo)

    Executive VP

    • Tenure: 0yrs
    • Compensation: US$1.25m
  • Phil Chin (44yo)

    EVP Corporate Development & Investor Relations

    • Tenure: 6.3yrs
  • Aimie Killeen (40yo)

    General Counsel & Secretary

    • Tenure: 2.6yrs
  • Jeff Hewitt

    Executive Vice President of Financial Institution & Retail Sales & Relationship Management

    • Tenure: 5yrs
  • Stuart MacKinnon (47yo)

    Executive VP of Technology & Operations and Chief Information Officer

    • Tenure: 2.7yrs
    • Compensation: US$1.39m
  • Dan Antilley (51yo)

    Chief Information Security Officer

    • Tenure: 2.4yrs
    • Compensation: US$1.70m
  • Paul Gullo (53yo)

    Chief Accounting Officer

    • Tenure: 1.4yrs

Board Members

  • Warren Jenson (62yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$151.55k
  • Ed West (52yo)

    CEO & Director

    • Tenure: 1.8yrs
    • Compensation: US$12.06m
  • Mark Rossi (63yo)

    Chairman of the Board

    • Tenure: 0.9yrs
    • Compensation: US$280.14k
  • Juli Spottiswood (52yo)

    Director

    • Tenure: 8.4yrs
    • Compensation: US$255.00k
  • Doug Braunstein (58yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$151.55k
  • Jorge Diaz (54yo)

    Director

    • Tenure: 14.8yrs
    • Compensation: US$245.00k
  • Tim Arnoult (70yo)

    Director

    • Tenure: 11.8yrs
    • Compensation: US$253.89k
  • Pat Phillips (69yo)

    Director

    • Tenure: 9.7yrs
    • Compensation: US$255.00k
  • Julie Gardner (61yo)

    Director

    • Tenure: 6yrs
    • Compensation: US$245.00k

Company Information

Cardtronics plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cardtronics plc
  • Ticker: CATM
  • Exchange: NasdaqGS
  • Founded: 1989
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$1.489b
  • Shares outstanding: 45.30m
  • Website: https://www.cardtronics.com

Number of Employees


Location

  • Cardtronics plc
  • 2050 West Sam Houston Parkway South
  • Suite 1300
  • Houston
  • Texas
  • 77042
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CATMNasdaqGS (Nasdaq Global Select)YesClass A Ordinary SharesUSUSDDec 2007
1DB (Deutsche Boerse AG)YesClass A Ordinary SharesDEEURDec 2007

Biography

Cardtronics plc provides automated consumer financial services through its network of automated teller machines (ATMs) and multi-function financial services kiosks. The company offers cash dispensing and b ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 01:11
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
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.