OTCPK:WCAG.Y

Stock Analysis Report

Executive Summary

Wirecard AG, a technology company, provides outsourcing and white label solutions for electronic payments worldwide.


Snowflake Analysis

Outstanding track record with high growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.3%

WCAG.Y

-0.8%

US IT

-1.1%

US Market


1 Year Return

9.4%

WCAG.Y

34.7%

US IT

17.8%

US Market

Return vs Industry: WCAG.Y underperformed the US IT industry which returned 34.8% over the past year.

Return vs Market: WCAG.Y underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

WCAG.YIndustryMarket
7 Day-3.3%-0.8%-1.1%
30 Day-5.7%3.3%1.5%
90 Day11.0%12.2%6.6%
1 Year9.5%9.4%36.1%34.7%20.2%17.8%
3 Year213.9%213.0%107.6%98.6%47.5%38.1%
5 Yearn/a144.9%123.2%71.2%52.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

39.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WCAG.Y ($72.75) is trading below our estimate of fair value ($119.71)

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


Price To Earnings Ratio

PE vs Industry: WCAG.Y is poor value based on its PE Ratio (34.3x) compared to the IT industry average (31.4x).

PE vs Market: WCAG.Y is poor value based on its PE Ratio (34.3x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: WCAG.Y is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: WCAG.Y is overvalued based on its PB Ratio (7.1x) compared to the US IT industry average (4.2x).


Next Steps

Future Growth

How is Wirecard forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

28.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WCAG.Y's forecast earnings growth (28.4% per year) is above the savings rate (1.7%).

Earnings vs Market: WCAG.Y's earnings (28.4% per year) are forecast to grow faster than the US market (14.1% per year).

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

Revenue vs Market: WCAG.Y's revenue (19.2% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: WCAG.Y's revenue (19.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WCAG.Y's Return on Equity is forecast to be high in 3 years time (25.4%)


Next Steps

Past Performance

How has Wirecard performed over the past 5 years?

27.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WCAG.Y has high quality earnings.

Growing Profit Margin: WCAG.Y's current net profit margins (18.6%) are higher than last year (17.6%).


Past Earnings Growth Analysis

Earnings Trend: WCAG.Y's earnings have grown significantly by 27.1% per year over the past 5 years.

Accelerating Growth: WCAG.Y's earnings growth over the past year (41.7%) exceeds its 5-year average (27.1% per year).

Earnings vs Industry: WCAG.Y earnings growth over the past year (41.7%) exceeded the IT industry 12%.


Return on Equity

High ROE: WCAG.Y's Return on Equity (20.8%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Wirecard's financial position?


Financial Position Analysis

Short Term Liabilities: WCAG.Y's short term assets (€5.0B) exceed its short term liabilities (€2.8B).

Long Term Liabilities: WCAG.Y's short term assets (€5.0B) exceed its long term liabilities (€1.9B).


Debt to Equity History and Analysis

Debt Level: WCAG.Y's debt to equity ratio (77.1%) is considered high.

Reducing Debt: WCAG.Y's debt to equity ratio has increased from 9.5% to 77.1% over the past 5 years.

Debt Coverage: WCAG.Y's debt is well covered by operating cash flow (61%).

Interest Coverage: WCAG.Y's interest payments on its debt are well covered by EBIT (27.1x coverage).


Balance Sheet

Inventory Level: WCAG.Y has a low level of unsold assets or inventory.

Debt Coverage by Assets: WCAG.Y's debt is covered by short term assets (assets are 2.8x debt).


Next Steps

Dividend

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

0.15%

Current Dividend Yield


Dividend Yield vs Market

company0.1%marketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years0.3%

Current dividend yield vs market & industry

Notable Dividend: WCAG.Y's dividend (0.15%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: WCAG.Y's dividend (0.15%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: WCAG.Y is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: WCAG.Y is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: WCAG.Y is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Markus Braun (50yo)

€3,308,000

Compensation

Dr. Markus Braun is a CEO, CTO and Member of the Management Board at Wirecard AG since January 2002. He serves as Chairman of Management Board at Wirecard AG since 2019. He was e-Strategy Project Manager o ...


CEO Compensation Analysis

Compensation vs Market: Markus's total compensation ($USD3.59M) is below average for companies of similar size in the US market ($USD10.81M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Markus Braun
CEO, CTO & Chairman of Management Board0yrs€3.31m7.05% 1.3b
Alexander von Knoop
CFO & Member of Management Board2.1yrs€1.77mno data
Jan Marsalek
COO & Member of Management Board10yrs€2.36mno data
Susanne Steidl
Chief Product Officer & Member of Management Board2.1yrs€1.76mno data
Iris Stöckl
Vice President of Corporate Communications & IR0yrsno datano data
Bradley Fauss
General Counsel2.8yrsno datano data
Jörg Möller
Executive Vice President Sales Travel0yrsno datano data
Carlos Häuser
Executive Vice President of Payment & Risk Services0yrsno datano data
Brigitte Häuser-Axtner
Executive Vice President of Sales Digital 0yrsno datano data
Christian Reindl
Executive Vice President of Sales - Consumer Goods20.1yrsno datano data

2.8yrs

Average Tenure

47.5yo

Average Age

Experienced Management: WCAG.Y's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Eichelmann
Chairman of the Supervisory Board0.08yrsno datano data
Wulf Matthias
Member of Supervisory Board12.1yrs€316.00kno data
Stefan Klestil
Deputy Chairman of the Supervisory Board0yrs€186.00kno data
Anastassia Lauterbach
Member of Supervisory Board1.7yrs€65.00kno data
Susana Quintana-Plaza
Member of Supervisory Board1.7yrs€65.00kno data
Vuyiswa M'Cwabeni
Member of Supervisory Board3.7yrs€131.00kno data

1.7yrs

Average Tenure

49.5yo

Average Age

Experienced Board: WCAG.Y's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


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

Wirecard AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wirecard AG
  • Ticker: WCAG.Y
  • Exchange: OTCPK
  • Founded: 1999
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: €16.521b
  • Listing Market Cap: €17.946b
  • Shares outstanding: 123.57m
  • Website: https://www.wirecard.com

Number of Employees


Location

  • Wirecard AG
  • Einsteinring 35
  • Aschheim
  • Bavaria
  • 85609
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WDIDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2000
WDIXTRA (XETRA Trading Platform)YesCommon StockDEEUROct 2000
0O8XLSE (London Stock Exchange)YesCommon StockGBEUROct 2000
WRCD.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDOct 2000
WDIDBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEUROct 2000
WDISWX (SIX Swiss Exchange)YesCommon StockCHCHFOct 2000
WDIWBAG (Wiener Boerse AG)YesCommon StockATEUROct 2000
WDIETLX (Eurotlx)YesCommon StockITEUROct 2000
WCAG.YOTCPK (Pink Sheets LLC)UNSPON ADR EACH REPR 0.5 ORD EUR0.00USUSDSep 2013
WDIADB (Deutsche Boerse AG)UNSPON ADR EACH REPR 0.5 ORD EUR0.00DEEURSep 2013

Biography

Wirecard AG, a technology company, provides outsourcing and white label solutions for electronic payments worldwide. The company operates in three segments: Payment Processing & Risk Management, Acquiring & Issuing, and Call Center & Communication Services. The Payment Processing & Risk Management segment offers products and service for the acceptance or transactions, and the processing of electronic payments and associated processes. The Acquiring & Issuing segment provides settlement services for credit card sales for online and terminal payments, as well as current accounts with prepaid cards and Girocard/Maestro debit cards; processes payment transactions in various currencies; and issues prepaid and debit cards to private and business customers. The Call Center & Communication Services segment offers value added services, aftersales services to customers, and mailing services. The company also provides payment processing solutions that include Wirecard Payment Page, a payment page; credit card processing; direct debit; online banking payment; alternative payment; international payment processing; tokenization; point of sale terminals; and Wirecard Checkout Portal, a payment portal. In addition, it offers mobile payment solutions; risk management solutions, such as fraud prevention, credit worthiness checks, and individual solutions; integration and testing solutions, including enterprise integration, transaction testing, payment hub, customer self-select PIN, and secure mailer solutions; and communication services. The company serves the consumer goods, digital goods, and travel and mobility sectors. Wirecard has strategic partnerships with Poynt, CreditPilot PLC, SunExpress, and Emonvia. Wirecard AG was founded in 1999 and is headquartered in Aschheim, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 03:18
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
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.