OTCPK:KDCX.F

Stock Analysis Report

Executive Summary

Kudelski SA develops and delivers a range of secure content protection solutions to address the needs of the digital television ecosystem in Internet, satellite, cable, terrestrial, and hybrid end-to-end transmission systems worldwide.

Rewards

Trading at 0.6% below its fair value

Earnings are forecast to grow 101.04% per year

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 1.85% is not well covered by earnings



Snowflake Analysis

Moderate growth potential and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

KDCX.F

-2.3%

US Electronic

0.06%

US Market


1 Year Return

n/a

KDCX.F

7.7%

US Electronic

19.4%

US Market

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

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


Shareholder returns

KDCX.FIndustryMarket
7 Day0%-2.3%0.06%
30 Dayn/a-6.2%1.1%
90 Dayn/a1.1%8.9%
1 Yearn/a8.8%7.7%21.9%19.4%
3 Year-71.1%-71.1%34.4%30.8%48.9%39.3%
5 Yearn/a66.6%58.5%71.9%53.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

0.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KDCX.F ($5.3) is trading below our estimate of fair value ($5.33)

Significantly Below Fair Value: KDCX.F is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: KDCX.F is unprofitable, so we can't compare its PE Ratio to the Electronic industry average.

PE vs Market: KDCX.F is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate KDCX.F's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: KDCX.F is good value based on its PB Ratio (0.7x) compared to the US Electronic industry average (1.9x).


Next Steps

Future Growth

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

101.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KDCX.F is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: KDCX.F is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: KDCX.F's is expected to become profitable in the next 3 years.

Revenue vs Market: KDCX.F's revenue (1.8% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: KDCX.F's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KDCX.F's Return on Equity is forecast to be low in 3 years time (5.4%).


Next Steps

Past Performance

How has Kudelski performed over the past 5 years?

-43.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KDCX.F is currently unprofitable.

Growing Profit Margin: KDCX.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: KDCX.F is unprofitable, and losses have increased over the past 5 years at a rate of -43% per year.

Accelerating Growth: Unable to compare KDCX.F's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: KDCX.F is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (14.6%).


Return on Equity

High ROE: KDCX.F has a negative Return on Equity (-1.97%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kudelski's financial position?


Financial Position Analysis

Short Term Liabilities: KDCX.F's short term assets ($510.1M) exceed its short term liabilities ($309.3M).

Long Term Liabilities: KDCX.F's short term assets ($510.1M) exceed its long term liabilities ($506.1M).


Debt to Equity History and Analysis

Debt Level: KDCX.F's debt to equity ratio (113.1%) is considered high.

Reducing Debt: KDCX.F's debt to equity ratio has increased from 87.6% to 113.1% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: KDCX.F's debt is covered by short term assets (assets are 1.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: KDCX.F has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: KDCX.F has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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

1.85%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Years2.0%

Current dividend yield vs market & industry

Notable Dividend: KDCX.F's dividend (1.85%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: KDCX.F's dividend (1.85%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

Stable Dividend: KDCX.F's dividend payments have been volatile in the past 10 years.

Growing Dividend: KDCX.F's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: KDCX.F is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

8.8yrs

Average management tenure


CEO

André Kudelski (59yo)

29.1yrs

Tenure

US$3,823,464

Compensation

Mr. André Kudelski serves as Member of Supervisory Board at Publicis Groupe S.A. since May 25, 2016. Mr. Kudelski began his career in 1984 within the Kudelski SA company as an R&D engineer. In 1989, he bec ...


CEO Compensation Analysis

Compensation vs Market: André's total compensation ($USD3.90M) is above average for companies of similar size in the US market ($USD1.11M).

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


Leadership Team

NamePositionTenureCompensationOwnership
André Kudelski
Chairman29.1yrsUS$3.82m34.9% $101.1m
Mauro Saladini
CFO, Executive VP & Member of Executive Board17yrsno data0.20% $577.7k
Morten Solbakken
COO of Digital TV2.1yrsno data0.020% $57.3k
Nancy Goldberg
Chief Marketing & Sales Officer1.1yrsno datano data
Christophe Nicolas
Chief Information Officer4.3yrsno datano data
Santino Rumasuglia
VP & Head of Investor Relations0yrsno datano data
Mark Beariault
General Counsel & Corporate Secretary8.8yrsno datano data
Cédric Alber
Senior Manager of Media relations0yrsno datano data
John Burke
Head of Group Human Resources & Senior VP0yrsno datano data
Charles Egli
Executive VP & CEO of Nagra Public Access17.1yrsno datano data

8.8yrs

Average Tenure

55yo

Average Age

Experienced Management: KDCX.F's management team is seasoned and experienced (8.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
André Kudelski
Chairman29.1yrsUS$3.82m34.9% $101.1m
Pierre Lescure
Non Executive Director15.8yrsUS$125.64k0.0037% $10.6k
Laurent Dassault
Non-Executive Director25.1yrsUS$41.81k1.29% $3.7m
Claude Smadja
Vice-Chairman & Lead Director17.8yrsUS$136.19k0.0024% $6.9k
Patrick Foetisch
Non Executive Director28.1yrsUS$175.21k0.0018% $5.3k
Marguerite Kudelski
Non-Executive Director13.8yrsUS$53.35kno data
Alec Ross
Non-Executive Director5.8yrsUS$53.35k0.0023% $6.6k

17.8yrs

Average Tenure

66yo

Average Age

Experienced Board: KDCX.F's board of directors are seasoned and experienced ( 17.8 years average tenure).


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

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


Key Information

  • Name: Kudelski SA
  • Ticker: KDCX.F
  • Exchange: OTCPK
  • Founded: 1951
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: CHF284.129m
  • Listing Market Cap: CHF289.653m
  • Shares outstanding: 54.75m
  • Website: https://www.nagra.com

Number of Employees


Location

  • Kudelski SA
  • 22-24, Route de Genève
  • PO Box 134
  • Cheseaux-sur-Lausanne
  • Vaud
  • 1033
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KDCX.FOTCPK (Pink Sheets LLC)YesBearer SharesUSUSDJul 1998
KUDSWX (SIX Swiss Exchange)YesBearer SharesCHCHFJul 1998
0QNQLSE (London Stock Exchange)YesBearer SharesGBCHFJul 1998
KUDDB (Deutsche Boerse AG)YesBearer SharesDEEURJul 1998

Biography

Kudelski SA develops and delivers a range of secure content protection solutions to address the needs of the digital television ecosystem in Internet, satellite, cable, terrestrial, and hybrid end-to-end transmission systems worldwide. It operates through four segments: Digital TV, Cybersecurity, Internet of Things (IoT), and Public Access. The Digital TV segment offers integrated solutions, including open conditional access solutions, which allow TV operators and content providers to operate various value-added pay TV services on a secure platform, and middleware software solutions for set-top boxes and other consumer devices; and intellectual property consulting services. The Cybersecurity segment provides cybersecurity solutions to various sectors, such as advisory, technology and resale, managed security, and proprietary research and development services. The IoT segment offers device security through identity authentication and firmware protection; data security to ensure the confidentiality, integrity, and authenticity of sensitive data; and access management and active security protections to enable secure processing, local decision making, and threat detection and response. The Public Access segment provides access control systems and ticketing services for ski lifts, car parks, stadiums, concert halls, and other events. The company also offers watermarking solutions, as well as operates a travel agency; and finance services. In addition, it offers smartcards and digital TV sales and support services. Kudelski SA was founded in 1951 and is headquartered in Cheseaux-sur-Lausanne, Switzerland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 00:17
End of Day Share Price2020/02/07 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.