OTCPK:CTTO.F

Stock Analysis Report

Executive Summary

CTT - Correios De Portugal, S.A., together with its subsidiaries, provides postal and financial services worldwide.

Snowflake

Fundamentals

Very undervalued with reasonable growth potential and pays a dividend.


Similar Companies

Share Price & News

How has CTT - Correios De Portugal's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

18.3%

CTTO.F

1.6%

US Logistics

0.5%

US Market


1 Year Return

n/a

CTTO.F

-7.2%

US Logistics

6.8%

US Market

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

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


Shareholder returns

CTTO.FIndustryMarket
7 Day18.3%1.6%0.5%
30 Day9.5%-1.4%-0.8%
90 Dayn/a4.7%-0.9%
1 Yearn/a-5.0%-7.2%9.2%6.8%
3 Yearn/a17.0%9.2%45.6%36.2%
5 Yearn/a28.5%15.2%63.2%45.4%

Price Volatility Vs. Market

How volatile is CTT - Correios De Portugal's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is CTT - Correios De Portugal undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CTTO.F ($2.65) is trading below our estimate of fair value ($6.35)

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


Price To Earnings Ratio

PE vs Industry: CTTO.F is good value based on its PE Ratio (16.7x) compared to the Logistics industry average (23.1x).

PE vs Market: CTTO.F is good value based on its PE Ratio (16.7x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: CTTO.F is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: CTTO.F is good value based on its PB Ratio (2.7x) compared to the US Logistics industry average (3x).


Next Steps

Future Growth

How is CTT - Correios De Portugal forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

24.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTTO.F's forecast earnings growth (24.4% per year) is above the savings rate (2.7%).

Earnings vs Market: CTTO.F's earnings (24.4% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: CTTO.F's revenue (1.6% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: CTTO.F's revenue (1.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CTTO.F's Return on Equity is forecast to be high in 3 years time (26.5%)


Next Steps

Past Performance

How has CTT - Correios De Portugal performed over the past 5 years?

-28.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CTTO.F's earnings have declined by -28.4% per year over the past 5 years.

Accelerating Growth: CTTO.F's earnings growth over the past year (25%) exceeds its 5-year average (-28.4% per year).

Earnings vs Industry: CTTO.F earnings growth over the past year (25%) exceeded the Logistics industry -9.9%.


Return on Equity

High ROE: CTTO.F's Return on Equity (16.3%) is considered low.


Return on Assets

ROA vs Industry: CTTO.F's Return on Assets is below or equal to the Logistics industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is CTT - Correios De Portugal's financial position?


Financial Position Analysis

Short Term Liabilities: CTTO.F's short term assets (€715.8M) do not cover its short term liabilities (€1.7B)

Long Term Liabilities: CTTO.F's short term assets (715.8M) exceeds its long term liabilities (488.9M)


Debt to Equity History and Analysis

Debt Level: CTTO.F's debt to equity ratio (124.7%) is considered high

Reducing Debt: CTTO.F's debt to equity ratio has increased from 1.5% to 124.7% over the past 5 years.

Debt Coverage: CTTO.F's debt is not well covered by operating cash flow (3.2%).

Interest Coverage: CTTO.F's interest payments on its debt are well covered by EBIT (67.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: CTTO.F's debt is covered by short term assets (assets are 4.423610x debt).


Next Steps

Dividend

What is CTT - Correios De Portugal's current dividend yield, its reliability and sustainability?

4.25%

Current Dividend Yield


Dividend Yield vs Market

company4.2%marketbottom25%1.4%markettop25%3.7%industryaverage2.5%forecastin3Years7.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CTTO.F's dividend (4.25%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: CTTO.F's dividend (4.25%) is in the top 25% of dividend payers in the US market (3.73%)

Stable Dividend: CTTO.F has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: CTTO.F has only been paying a dividend for 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (70.8%), CTTO.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CTTO.F's dividends in 3 years are forecast to be covered by earnings (53.9% payout ratio).


Next Steps

Management

What is the CEO of CTT - Correios De Portugal's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average board tenure


CEO

João Afonso Ramalho Sopas Bento (59yo)

0yrs

Tenure

€55,250

Compensation

Prof. João Afonso Ramalho Sopas Pereira Bento serves as the Chief Executive Officer of Efacec Capital, S.G.P.S., SA. Prof. Bento served as Head of Companhia de Concessoes Rodoviarias and Head of Elos - Lig ...


Board Age and Tenure

3.7yrs

Average Tenure

56yo

Average Age

Experienced Board: CTTO.F's board of directors are considered experienced (3.7 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

  • João Afonso Ramalho Sopas Bento (59yo)

    Executive Director & CEO

    • Tenure: 0yrs
    • Compensation: €55.25k
  • Dionizia Ribeiro Farinha Ferreira (53yo)

    CCO of Corporate & Executive Director

    • Tenure: 7.2yrs
    • Compensation: €376.20k
  • Miguel Alexandre Ferreira Salema Garção

    Director of Brand & Communication

    • Tenure: 0yrs
  • António Ferreira Vaz da Silva (53yo)

    CCO of Retail & Executive Director

    • Tenure: 2.5yrs
    • Compensation: €376.16k
  • Luís Miguel Rodrigues

    Director of Physical Resources & Security and Executive Director Mozambique

    • Tenure: 0yrs
  • Peter Tsvetkov

    Director of Investor Relations

    • Tenure: 0yrs
  • Ana Baião Matos

    Director of Accounting and Treasury

    • Tenure: 0yrs
  • Maria Da Graça F. De E Sousa Góis

    Company Secretary and General Secretariat

    • Tenure: 0yrs
  • Francisco Maria da de Sousa de Macedo Simão (37yo)

    COO, CTO & Executive Director

    • Tenure: 2.5yrs
    • Compensation: €376.14k
  • Guy Patrick Guimarães de Pacheco (42yo)

    CFO & Executive Director

    • Tenure: 1.8yrs
    • Compensation: €416.41k

Board Members

  • Francisco José Queiroz de Barros de Lacerda (59yo)

    Non-Executive Vice-Chairman

    • Tenure: 5.6yrs
    • Compensation: €497.07k
  • João Afonso Ramalho Sopas Bento (59yo)

    Executive Director & CEO

    • Tenure: 0yrs
    • Compensation: €55.25k
  • José Manuel Fino (65yo)

    Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: €46.29k
  • António Sarmento Mota (61yo)

    Non-Executive Chairman & Lead Independent Director

    • Tenure: 5.8yrs
    • Compensation: €262.50k
  • Dionizia Ribeiro Farinha Ferreira (53yo)

    CCO of Corporate & Executive Director

    • Tenure: 7.2yrs
    • Compensation: €376.20k
  • Nuno De Carvalho Thomaz (76yo)

    Non Executive Director

    • Tenure: 5.6yrs
    • Compensation: €63.75k
  • António Ferreira Vaz da Silva (53yo)

    CCO of Retail & Executive Director

    • Tenure: 2.5yrs
    • Compensation: €376.16k
  • Francisco Maria da de Sousa de Macedo Simão (37yo)

    COO, CTO & Executive Director

    • Tenure: 2.5yrs
    • Compensation: €376.14k
  • Maria Luísa Coutinho Ferreira Leite Castro Anacoreta Correia (52yo)

    Non-Executive Director

    • Tenure: 2.5yrs
    • Compensation: €76.50k
  • Guy Patrick Guimarães de Pacheco (42yo)

    CFO & Executive Director

    • Tenure: 1.8yrs
    • Compensation: €416.41k

Company Information

CTT - Correios De Portugal, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CTT - Correios De Portugal, S.A.
  • Ticker: CTTO.F
  • Exchange: OTCPK
  • Founded: 1520
  • Industry: Air Freight and Logistics
  • Sector: Transportation
  • Market Cap: €353.100m
  • Listing Market Cap: €393.339m
  • Shares outstanding: 150.00m
  • Website: https://www.ctt.pt

Number of Employees


Location

  • CTT - Correios De Portugal, S.A.
  • Avenida D. João II, no. 13
  • Lisbon
  • Lisbon
  • 1999-001
  • Portugal

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CTTENXTLS (Euronext Lisbon)YesOrdinary SharesPTEURDec 2013
CTTUBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURDec 2013
C7TDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2013
0QIMLSE (London Stock Exchange)YesOrdinary SharesGBEURDec 2013
CTT NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNDec 2013
CTTO.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2013
CTTP.YOTCPK (Pink Sheets LLC)ADRUSUSDJan 2015

Biography

CTT - Correios De Portugal, S.A., together with its subsidiaries, provides postal and financial services worldwide. The company operates through Mail, Express & Parcels, Financial Services, and Banco CTT s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 00:46
End of Day Share Price2019/10/18 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.