OTCPK:ESIG.F

Stock Analysis Report

Executive Summary

ESI Group SA, together with its subsidiaries, engages in the development and distribution of software in Europe, the Middle East, Africa, the Asia Pacific, and the Americas.

Rewards

PE ratio (38.7x) is below the Software industry average (44.5x)

Earnings are forecast to grow 14.8% per year

Earnings grew by 922.1% over the past year

Risk Analysis

Has a high level of debt



Snowflake Analysis

Proven track record with adequate balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ESIG.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

ESIG.F

0.2%

US Software

0.8%

US Market


1 Year Return

2.3%

ESIG.F

28.5%

US Software

17.8%

US Market

Return vs Industry: ESIG.F underperformed the US Software industry which returned 28.5% over the past year.

Return vs Market: ESIG.F underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

ESIG.FIndustryMarket
7 Day0%0.2%0.8%
30 Dayn/a1.1%1.8%
90 Dayn/a4.2%4.1%
1 Year2.3%2.3%30.5%28.5%20.4%17.8%
3 Year-30.5%-30.5%125.6%116.5%45.9%36.4%
5 Yearn/a181.2%161.4%68.1%49.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

38.67x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ESIG.F ($31) is trading above our estimate of fair value ($7.71)

Significantly Below Fair Value: ESIG.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ESIG.F is good value based on its PE Ratio (38.7x) compared to the Software industry average (44.5x).

PE vs Market: ESIG.F is poor value based on its PE Ratio (38.7x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: ESIG.F is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: ESIG.F is good value based on its PB Ratio (1.6x) compared to the US Software industry average (5.7x).


Next Steps

Future Growth

How is ESI Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

14.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ESIG.F's forecast earnings growth (14.8% per year) is above the savings rate (1.7%).

Earnings vs Market: ESIG.F's earnings (14.8% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: ESIG.F's earnings are forecast to grow, but not significantly.

Revenue vs Market: ESIG.F's revenue (7.1% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: ESIG.F's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ESIG.F's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has ESI Group performed over the past 5 years?

-11.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ESIG.F has high quality earnings.

Growing Profit Margin: ESIG.F's current net profit margins (2.9%) are higher than last year (0.3%).


Past Earnings Growth Analysis

Earnings Trend: ESIG.F's earnings have declined by -11.5% per year over the past 5 years.

Accelerating Growth: ESIG.F's earnings growth over the past year (922.1%) exceeds its 5-year average (-11.5% per year).

Earnings vs Industry: ESIG.F earnings growth over the past year (922.1%) exceeded the Software industry 15.8%.


Return on Equity

High ROE: ESIG.F's Return on Equity (4.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ESI Group's financial position?


Financial Position Analysis

Short Term Liabilities: ESIG.F's short term assets (€72.8M) exceed its short term liabilities (€55.6M).

Long Term Liabilities: ESIG.F's short term assets (€72.8M) exceed its long term liabilities (€69.9M).


Debt to Equity History and Analysis

Debt Level: ESIG.F's debt to equity ratio (41.1%) is considered high.

Reducing Debt: ESIG.F's debt to equity ratio has increased from 23% to 41.1% over the past 5 years.

Debt Coverage: ESIG.F's debt is well covered by operating cash flow (27.2%).

Interest Coverage: ESIG.F's interest payments on its debt are well covered by EBIT (5.7x coverage).


Balance Sheet

Inventory Level: ESIG.F has a low level of unsold assets or inventory.

Debt Coverage by Assets: ESIG.F's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate ESIG.F'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 ESIG.F's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ESIG.F'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 ESIG.F'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 ESI Group's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Cristel de Rouvray (43yo)

0.8yrs

Tenure

€142,894

Compensation

Dr. Cristel Anne de Rouvray has been a Director of ESI Group SA since July 8, 1999. Dr. de Rouvray serves as the Chief Executive Officer at ESI Group SA since February 1, 2019. Dr. de Rouvray served as the ...


Management Age and Tenure

1.7yrs

Average Tenure

69yo

Average Age

Experienced Management: ESIG.F's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

11.3yrs

Average Tenure

69yo

Average Age

Experienced Board: ESIG.F's board of directors are seasoned and experienced ( 11.3 years average tenure).


Insider Trading

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.


Management Team

  • Christopher St. John

    COO & Asia Pacific Regional Director

    • Tenure: 0.9yrs
    • Compensation: €346.53k
  • Cristel de Rouvray (43yo)

    CEO & Director

    • Tenure: 0.8yrs
    • Compensation: €142.89k
  • Alain de Rouvray (76yo)

    Founder & Non-Executive Chairman

    • Tenure: 28.9yrs
    • Compensation: €548.53k
  • Vincent Chaillou (69yo)

    COO of Group Strategy and EMEA Regional Director & Director

    • Tenure: 15.4yrs
    • Compensation: €385.11k
  • Argiris Kamoulakos

    Scientific Director & Secretary

    • Tenure: 0yrs
  • Yunus Shah

    Senior Vice President of Product Engineering

    • Tenure: 0yrs
  • Olfa Zorgati

    Chief Financial Officer

    • Tenure: 1.5yrs
  • Mike Salari

    Executive Vice President Innovation

    • Tenure: 4.8yrs
  • Christian Matzen

    Executive Vice President of Sales & Marketing

    • Tenure: 1.9yrs
  • Marco Gremaud

    Executive Managing Director for EMEA

    • Tenure: 3.8yrs

Board Members

  • Yves de Balmann (73yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: €19.00k
  • Cristel de Rouvray (43yo)

    CEO & Director

    • Tenure: 0.8yrs
    • Compensation: €142.89k
  • Alain de Rouvray (76yo)

    Founder & Non-Executive Chairman

    • Tenure: 28.9yrs
    • Compensation: €548.53k
  • Vincent Chaillou (69yo)

    COO of Group Strategy and EMEA Regional Director & Director

    • Tenure: 15.4yrs
    • Compensation: €385.11k
  • Véronique Jacq (51yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: €16.47k
  • Charles-Helen des Isnards (74yo)

    Independent Director

    • Tenure: 11.7yrs
    • Compensation: €42.00k
  • Eric d’Hotelans (69yo)

    Independent Director

    • Tenure: 11yrs
    • Compensation: €26.47k
  • Rajani Ramanathan (52yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: €30.20k

Company Information

ESI Group SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ESI Group SA
  • Ticker: ESIG.F
  • Exchange: OTCPK
  • Founded: 1973
  • Industry: Application Software
  • Sector: Software
  • Market Cap: €158.490m
  • Listing Market Cap: €175.846m
  • Shares outstanding: 5.64m
  • Website: https://www.esi-group.com

Number of Employees


Location

  • ESI Group SA
  • 100-102, Avenue de Suffren
  • Paris
  • Ile-de-France
  • 75015
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ESIENXTPA (Euronext Paris)YesOrdinary SharesFREURJul 2000
EGJBST (Boerse-Stuttgart)YesOrdinary SharesDEEURJul 2000
0GM9LSE (London Stock Exchange)YesOrdinary SharesGBEURJul 2000
ESIG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2000
ESIPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJul 2000

Biography

ESI Group SA, together with its subsidiaries, engages in the development and distribution of software in Europe, the Middle East, Africa, the Asia Pacific, and the Americas. It allows industrial manufactur ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 00:12
End of Day Share Price2019/12/02 00:00
Earnings2019/07/31
Annual Earnings2019/01/31


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.