OTCPK:WWLN.F

Stock Analysis Report

Executive Summary

Worldline SA provides electronic payment and transactional services to financial institutions, merchants, corporations, and government agencies worldwide.


Snowflake Analysis

Solid track record with excellent balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

WWLN.F

1.7%

US IT

0.6%

US Market


1 Year Return

n/a

WWLN.F

42.2%

US IT

24.6%

US Market

Return vs Industry: Insufficient data to determine how WWLN.F performed against the US IT industry.

Return vs Market: Insufficient data to determine how WWLN.F performed against the US Market.


Shareholder returns

WWLN.FIndustryMarket
7 Day0%1.7%0.6%
30 Day0%7.1%3.0%
90 Dayn/a14.5%10.6%
1 Yearn/a43.7%42.2%27.3%24.6%
3 Yearn/a109.6%100.6%50.5%40.8%
5 Yearn/a161.6%138.3%78.9%59.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

57.93x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WWLN.F ($69.69) is trading above our estimate of fair value ($47.5)

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


Price To Earnings Ratio

PE vs Industry: WWLN.F is poor value based on its PE Ratio (56.6x) compared to the IT industry average (32x).

PE vs Market: WWLN.F is poor value based on its PE Ratio (56.6x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: WWLN.F is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: WWLN.F is good value based on its PB Ratio (3.1x) compared to the US IT industry average (4.2x).


Next Steps

Future Growth

How is Worldline forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

16.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WWLN.F's forecast earnings growth (16.8% per year) is above the savings rate (1.7%).

Earnings vs Market: WWLN.F's earnings (16.8% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: WWLN.F's revenue (7.4% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: WWLN.F's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WWLN.F's Return on Equity is forecast to be low in 3 years time (9.3%).


Next Steps

Past Performance

How has Worldline performed over the past 5 years?

5.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WWLN.F has high quality earnings.

Growing Profit Margin: WWLN.F's current net profit margins (9%) are higher than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: WWLN.F's earnings have grown by 5.4% per year over the past 5 years.

Accelerating Growth: WWLN.F's earnings growth over the past year (65.1%) exceeds its 5-year average (5.4% per year).

Earnings vs Industry: WWLN.F earnings growth over the past year (65.1%) exceeded the IT industry 16.2%.


Return on Equity

High ROE: WWLN.F's Return on Equity (5.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Worldline's financial position?


Financial Position Analysis

Short Term Liabilities: WWLN.F's short term assets (€2.7B) do not cover its short term liabilities (€2.8B).

Long Term Liabilities: WWLN.F's short term assets (€2.7B) exceed its long term liabilities (€581.0M).


Debt to Equity History and Analysis

Debt Level: WWLN.F's debt to equity ratio (4.6%) is considered satisfactory.

Reducing Debt: WWLN.F's debt to equity ratio has reduced from 32.2% to 4.6% over the past 5 years.

Debt Coverage: WWLN.F's debt is well covered by operating cash flow (197.8%).

Interest Coverage: WWLN.F earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: WWLN.F's debt is covered by short term assets (assets are 14.7x debt).


Next Steps

Dividend

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

0.17%

Forecast Dividend Yield


Dividend Yield vs Market

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

Current dividend yield vs market & industry

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

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

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


Current Payout to Shareholders

Dividend Coverage: WWLN.F is not paying a notable dividend for the US market.


Future Payout to Shareholders

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

3.5yrs

Average management tenure


CEO

Gilles Grapinet (56yo)

6.5yrs

Tenure

€1,791,566

Compensation

Mr. Gilles Grapinet has been Chairman of Worldline S.A. and Worldline S.A./N.V. since October 24, 2019. He has been the Chief Executive Officer of Worldline S.A. and Worldline S.A./N.V. since July 2013. Mr ...


CEO Compensation Analysis

Compensation vs Market: Gilles's total compensation ($USD1.99M) is below average for companies of similar size in the US market ($USD10.76M).

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


Management Age and Tenure

3.5yrs

Average Tenure

46yo

Average Age

Experienced Management: WWLN.F's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

57yo

Average Age

Experienced Board: WWLN.F's board of directors are considered experienced (4.3 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 been diluted in the past year, with total shares outstanding growing by 22.2%.


Management Team

  • Gilles Grapinet (56yo)

    Chairman & CEO

    • Tenure: 6.5yrs
    • Compensation: €1.79m
  • Vincent Roland

    Managing Director of Merchant Services

    • Tenure: 4yrs
  • Christophe Duquenne

    CTO, COO & Director of the Merchant Services Global Business Line

    • Tenure: 6.5yrs
  • Pascal Mauze

    Head of Sales & Marketing

    • Tenure: 3yrs
  • Marc-Henri Desportes (46yo)

    Deputy Chief Executive Officer

    • Tenure: 6.5yrs
    • Compensation: €952.87k
  • Tiphaine Hecketsweiler

    Head of Communications Worldline

    • David Pierre-Kahn

      Head of Investors Relations

      • Eric Heurtaux (43yo)

        Chief Financial Officer

        • Tenure: 3.1yrs
      • Charles-Henri de Taffin

        Head of Legal

        • Tenure: 2.5yrs
      • Olivier Burger

        Group Human Resource Director

        • Tenure: 1.3yrs

      Board Members

      • Romeo Lacher (59yo)

        Director

        • Tenure: 1.2yrs
        • Compensation: €3.67k
      • Susan Tolson (57yo)

        Independent Director

        • Tenure: 5.6yrs
        • Compensation: €38.50k
      • Gilles Arditti (64yo)

        Director

        • Tenure: 5.8yrs
      • Danielle Lagarde (59yo)

        Independent Director

        • Tenure: 3.1yrs
        • Compensation: €3.67k
      • Gilles Grapinet (56yo)

        Chairman & CEO

        • Tenure: 6.5yrs
        • Compensation: €1.79m
      • Ursula Morgenstern (54yo)

        Director

        • Tenure: 5.8yrs
      • Luc Rémont (50yo)

        Independent Director

        • Tenure: 5.6yrs
        • Compensation: €37.00k
      • Aldo Cardoso (63yo)

        Independent Director

        • Tenure: 5.6yrs
        • Compensation: €42.25k
      • Sophie Houssiaux (54yo)

        Director

        • Tenure: 3.1yrs
      • Lorenz von Lothringen

        Director

        • Tenure: 0.8yrs

      Company Information

      Worldline S.A.'s company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Worldline S.A.
      • Ticker: WWLN.F
      • Exchange: OTCPK
      • Founded: 1973
      • Industry: Data Processing and Outsourced Services
      • Sector: Software
      • Market Cap: €12.010b
      • Listing Market Cap: €13.316b
      • Shares outstanding: 181.97m
      • Website: https://www.worldline.com

      Number of Employees


      Location

      • Worldline S.A.
      • 80 Quai Voltaire
      • River Ouest
      • Bezons
      • Ile-de-France
      • 95870
      • France

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      WLNENXTPA (Euronext Paris)YesCommon StockFREURJun 2014
      WO6DB (Deutsche Boerse AG)YesCommon StockDEEURJun 2014
      WLNPBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURJun 2014
      0QVILSE (London Stock Exchange)YesCommon StockGBEURJun 2014
      WWLN.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJun 2014
      WRDL.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDMar 2016

      Biography

      Worldline SA provides electronic payment and transactional services to financial institutions, merchants, corporations, and government agencies worldwide. Its Merchant Services segment offers commercial acquiring services, as well as ancillary value added services; payment terminals solutions; omni-channel payment and acceptance services, merchant wallets, digital signage, and online payment gateways; private label cards; and loyalty programs and related solutions, such as sales promotion services and self-service kiosks. The company’s Financial Services segment provides issuing services, such as issuing and managing debit, credit, prepaid, and commercial cards, as well as digital enablement, and identity, trust, and authentication services; acquiring processing, fraud risk management, and ATM management; instant payments channel, payments processing back-office, and clearing and settlement services; digital banking platform, mobile and open banking, and trading system and financial information services; and payment software licensing, hosting, application management, and business process outsourcing. Its Mobility & e-Transactional Services segment offers solutions and services, including e-ticketing; e-contracts and electronic invoicing, and legal archiving solutions; e-safe services; and cloud contact and consumer cloud services, and connected living solutions. The company was formerly known as Atos Worldline S.A.S. and changed its name to Worldline SA in April 2014. The company was founded in 1973 and is headquartered in Bezons, France. Worldline SA is a subsidiary of Atos SE. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/23 01:02
      End of Day Share Price2019/12/19 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.