OTCPK:GTOM.Y

Stock Analysis Report

Executive Summary

Gemalto N.V. provides digital security products and services worldwide.

Snowflake

Fundamentals

Excellent balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.9%

GTOM.Y

1.5%

US Software

1.3%

US Market


1 Year Return

-6.9%

GTOM.Y

23.1%

US Software

5.9%

US Market


Shareholder returns

GTOM.YIndustryMarket
7 Day-1.9%1.5%1.3%
30 Day-1.9%-0.8%-1.9%
90 Day-1.1%-3.4%-1.8%
1 Year-6.9%-6.9%24.8%23.1%8.3%5.9%
3 Year-17.8%-18.9%122.8%114.1%45.6%36.2%
5 Year-51.2%-52.2%179.3%159.1%66.1%47.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

75.46x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: GTOM.Y ($28.34) is trading above our estimate of fair value ($23.96)

Significantly Undervalued: GTOM.Y is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GTOM.Y is poor value based on its PE Ratio (75.5x) compared to the Software industry average (48.2x).

PE vs Market: GTOM.Y is poor value based on its PE Ratio (75.5x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: GTOM.Y is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: GTOM.Y is good value based on its PB Ratio (2x) compared to the US Software industry average (5.1x).


Next Steps

Future Growth

How is Gemalto forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

42.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GTOM.Y's forecast earnings growth (42.2% per year) is above the savings rate (2.7%).

Earnings vs Market: GTOM.Y's earnings (42.2% per year) are forecast to grow faster than the US market (14.4% per year).

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

Revenue vs Market: GTOM.Y's revenue (4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: GTOM.Y's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Information is not available.


Next Steps

Past Performance

How has Gemalto performed over the past 5 years?

-45.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GTOM.Y's earnings have declined by -45.7% per year over the past 5 years.

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

Earnings vs Industry: GTOM.Y has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (19.1%).


Return on Equity

High ROE: GTOM.Y's Return on Equity (2.6%) is considered low.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Gemalto's financial position?


Financial Position Analysis

Short Term Liabilities: GTOM.Y's short term assets (€1.6B) exceeds its short term liabilities (€913.5M)

Long Term Liabilities: GTOM.Y's short term assets (1.6B) exceeds its long term liabilities (1.1B)


Debt to Equity History and Analysis

Debt Level: GTOM.Y's debt to equity ratio (35.8%) is considered satisfactory

Reducing Debt: GTOM.Y's debt to equity ratio has increased from 0.3% to 35.8% over the past 5 years.

Debt Coverage: GTOM.Y's debt is well covered by operating cash flow (37.6%).

Interest Coverage: GTOM.Y's interest payments on its debt are well covered by EBIT (11.6x coverage).


Balance Sheet

Information is not available.

Information is not available.


Next Steps

Dividend

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

0.69%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%3.8%industryaverage1.5%forecastin3Years0.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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


Current Payout to Shareholders

Dividend Coverage: GTOM.Y is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GTOM.Y'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 Gemalto's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Philippe Vallée (54yo)

2.6yrs

Tenure

€3,473,331

Compensation

Mr. Philippe Vallée has been Chief Executive Officer of Gemalto NV since September 1, 2016 and has been its Executive Director since September 1, 2016. Mr. Vallée served as the Chief Operating Officer of G ...


CEO Compensation Analysis

Information is not available.

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


Management Age and Tenure

2.3yrs

Average Tenure

55yo

Average Age

Experienced Management: GTOM.Y's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

7.9yrs

Average Tenure

61.5yo

Average Age

Experienced Board: GTOM.Y's board of directors are considered experienced (7.9 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


Management Team

  • Philippe Vallée (54yo)

    CEO & Executive Director

    • Tenure: 2.6yrs
    • Compensation: €3.47m
  • Martin McCourt (56yo)

    Chief Marketing Officer and Executive VP of Strategy & M&A

    • Tenure: 2.3yrs
  • Philippe Cabanettes (63yo)

    Executive VP of Human Resources

    • Tenure: 12.8yrs
  • Jean-Pierre Charlet (65yo)

    Executive VP of Legal & Company Secretary

    • Tenure: 2.2yrs
  • Philip Cambriel (60yo)

    Executive VP of Corporate Projects & France

    • Tenure: 13.3yrs
  • Eva Rudin (50yo)

    Executive Vice President of Central Operations

    • Tenure: 0.3yrs
  • Isabelle Marand (52yo)

    Executive Vice President of Corporate Communication

    • Tenure: 5.3yrs
  • Jean-Claude Deturche

    Head Of Investor Relations

    • Tenure: 0yrs
  • Serge Barbe (55yo)

    Chief Technology Officer

    • Tenure: 2.2yrs
  • Virginie Dupérat-Vergne (43yo)

    Chief Financial Officer

    • Tenure: 1.3yrs

Board Members

  • Alex Mandl (75yo)

    Independent Non-Executive Chairman

    • Tenure: 12.8yrs
    • Compensation: €265.00k
  • Joop Drechsel (63yo)

    Independent Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: €111.77k
  • Philippe Vallée (54yo)

    CEO & Executive Director

    • Tenure: 2.6yrs
    • Compensation: €3.47m
  • Johannes Fritz (64yo)

    Non-Executive Independent Director

    • Tenure: 12.8yrs
    • Compensation: €93.00k
  • Philippe Alfroid (73yo)

    Non-Executive Independent Director

    • Tenure: 8.9yrs
    • Compensation: €96.77k
  • Olivier Piou (60yo)

    Non-Executive Non-Independent Director

    • Tenure: 15.2yrs
    • Compensation: €407.08k
  • Homaira Akbari (57yo)

    Non-Executive Independent Director

    • Tenure: 5.9yrs
    • Compensation: €94.00k
  • Buford Alexander (69yo)

    Non-Executive Independent Director

    • Tenure: 9.9yrs
    • Compensation: €86.00k
  • Yen Yen Tan (53yo)

    Non-Executive Independent Director

    • Tenure: 6.9yrs
    • Compensation: €86.00k
  • Jill Smith (60yo)

    Non-Executive Independent Director

    • Tenure: 1.9yrs
    • Compensation: €94.00k

Company Information

Gemalto N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gemalto N.V.
  • Ticker: GTOM.Y
  • Exchange: OTCPK
  • Founded: 2002
  • Industry: Application Software
  • Sector: Software
  • Market Cap: €4.622b
  • Listing Market Cap: €5.171b
  • Shares outstanding: 90.72m
  • Website: https://www.gemalto.com

Number of Employees


Location

  • Gemalto N.V.
  • Barbara Strozzilaan 382
  • Amsterdam
  • Noord-Holland
  • 1083 HN
  • Netherlands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LDVDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2004
GTOF.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDMay 2004
0OGALSE (London Stock Exchange)YesCommon StockGBEURMay 2004
GTOABATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURMay 2004
GTOENXTAM (Euronext Amsterdam)YesCommon StockNLEURMay 2004
GTOWBAG (Wiener Boerse AG)YesCommon StockATEURMay 2004
GTOM.YOTCPK (Pink Sheets LLC)SPONS ADR EACH REPR 1/2 ORD SHSUSUSDOct 2008
LDVADB (Deutsche Boerse AG)SPONS ADR EACH REPR 1/2 ORD SHSDEEUROct 2008

Biography

Gemalto N.V. provides digital security products and services worldwide. The company operates through two segments, Identity, IoT & Cybersecurity; and Smartcards & Issuance. It designs security solutions to ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/04/03 00:23
End of Day Share Price2019/04/02 00:00
Earnings2018/12/31
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.