Reported Earnings • May 06
Full year 2025 earnings released: EPS: €12.72 (vs €2.78 in FY 2024) Full year 2025 results: EPS: €12.72 (up from €2.78 in FY 2024). Revenue: €462.2m (up 54% from FY 2024). Net income: €37.5m (up 386% from FY 2024). Profit margin: 8.1% (up from 2.6% in FY 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 57% per year but the company’s share price has only increased by 24% per year, which means it is significantly lagging earnings growth. New Risk • May 06
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 62% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (62% accrual ratio). Minor Risk Market cap is less than US$100m (€74.9m market cap, or US$88.4m). New Risk • May 05
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2025. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Minor Risks Latest financial reports are more than 6 months old (reported June 2025 fiscal period end). Market cap is less than US$100m (€76.1m market cap, or US$89.0m). Declared Dividend • Apr 26
Dividend of €0.40 announced Dividend of €0.40 is the same as last year. Ex-date: 3rd June 2026 Payment date: 5th June 2026 Dividend yield will be 1.6%, which is lower than the industry average of 2.4%. Sustainability & Growth The dividend has increased by an average of 13% per year over the past 9 years. However, payments have been volatile during that time. Earnings per share has grown by 13% over the last 3 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Duyuru • Apr 18
We.Connect SA, Annual General Meeting, May 28, 2026 We.Connect SA, Annual General Meeting, May 28, 2026. Valuation Update With 7 Day Price Move • Feb 23
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to €26.00, the stock trades at a trailing P/E ratio of 7.5x. Average trailing P/E is 30x in the Electronic industry in France. Total returns to shareholders of 98% over the past three years. Upcoming Dividend • Jun 02
Upcoming dividend of €0.40 per share Eligible shareholders must have bought the stock before 09 June 2025. Payment date: 11 June 2025. Trailing yield: 2.1%. Lower than top quartile of French dividend payers (5.4%). Higher than average of industry peers (0.6%). New Risk • May 05
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2024. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Minor Risks Latest financial reports are more than 6 months old (reported June 2024 fiscal period end). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (€51.1m market cap, or US$57.8m). Declared Dividend • May 02
Dividend of €0.40 announced Dividend of €0.40 is the same as last year. Ex-date: 9th June 2025 Payment date: 11th June 2025 Dividend yield will be 2.3%, which is lower than the industry average of 2.4%. Sustainability & Growth The dividend has increased by an average of 15% per year over the past 8 years. However, payments have been volatile during that time. Earnings per share has grown by 6.2% over the last 3 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Duyuru • Apr 29
We.Connect SA, Annual General Meeting, Jun 03, 2025 We.Connect SA, Annual General Meeting, Jun 03, 2025. Location: zac du couternois, 4 avenue louise leblois, serris France Duyuru • Apr 24
We.Connect in Talks to Buy Consumer Electronics Firm Exertis France We.Connect SA (ENXTPA:ALWEC) said on April 22, 2025 that it has started exclusive talks on the acquisition of consumer electronics distributor Exertis France SAS. The contemplated deal, financial details of which were not disclosed, does not include the professional tech divisions of Exertis in France and Iberia, namely Exertis Connect, Exertis Azenn, and Exertis AV Spain, a press statement says. The acquisition is expected to bolster We.Connect’s growth trajectory create significant synergies and strengthen its footprint in the European market, particularly in the Iberian Peninsula. The deal is expected to close in Third Quarter 2025, pending regulatory and labour body approvals. Reported Earnings • Oct 23
First half 2024 earnings released First half 2024 results: Revenue: €120.3m (down 7.3% from 1H 2023). Net income: €3.74m (down 13% from 1H 2023). Profit margin: 3.1% (down from 3.3% in 1H 2023). The decrease in margin was driven by lower revenue. New Risk • Jul 17
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 6.7% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Shareholders have been diluted in the past year (6.7% increase in shares outstanding). Market cap is less than US$100m (€58.3m market cap, or US$63.8m). Upcoming Dividend • Jun 03
Upcoming dividend of €0.40 per share Eligible shareholders must have bought the stock before 10 June 2024. Payment date: 12 June 2024. Trailing yield: 2.1%. Lower than top quartile of French dividend payers (5.2%). Higher than average of industry peers (0.7%). New Risk • May 12
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Minor Risks Latest financial reports are more than 6 months old (reported June 2023 fiscal period end). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (€54.4m market cap, or US$58.6m). Valuation Update With 7 Day Price Move • Feb 16
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to €17.30, the stock trades at a trailing P/E ratio of 5.3x. Average trailing P/E is 10x in the Electronic industry in France. Total loss to shareholders of 8.4% over the past three years. Reported Earnings • Oct 26
First half 2023 earnings released First half 2023 results: Net income: €4.29m (up €4.29m from 1H 2022). New Risk • Oct 25
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of French stocks, typically moving 6.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (64% accrual ratio). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.5% average weekly change). Market cap is less than US$100m (€39.0m market cap, or US$41.3m). Valuation Update With 7 Day Price Move • Oct 24
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to €14.20, the stock trades at a trailing P/E ratio of 5x. Average trailing P/E is 12x in the Electronic industry in France. Total loss to shareholders of 6.4% over the past three years. Upcoming Dividend • May 30
Upcoming dividend of €0.40 per share at 2.8% yield Eligible shareholders must have bought the stock before 06 June 2023. Payment date: 08 June 2023. Payout ratio is a comfortable 14% but the company is not cash flow positive. Trailing yield: 2.8%. Lower than top quartile of French dividend payers (5.3%). Higher than average of industry peers (2.2%). Reported Earnings • Apr 23
Full year 2022 earnings released: EPS: €2.85 (vs €2.33 in FY 2021) Full year 2022 results: EPS: €2.85 (up from €2.33 in FY 2021). Revenue: €237.7m (up 9.3% from FY 2021). Net income: €7.88m (up 24% from FY 2021). Profit margin: 3.3% (up from 2.9% in FY 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 32% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Board Change • Nov 16
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. No highly experienced directors. No independent directors (3 non-independent directors). CEO & Chairman of the Board Moshey Gorsd was the last director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Upcoming Dividend • May 26
Upcoming dividend of €0.40 per share Eligible shareholders must have bought the stock before 02 June 2022. Payment date: 06 June 2022. The company last paid an ordinary dividend in May 2017. The average dividend yield among industry peers is 1.9%. Board Change • Apr 27
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. No highly experienced directors. No independent directors (3 non-independent directors). CEO & Chairman of the Board Moshey Gorsd was the last director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Duyuru • Apr 27
We.Connect SA (ENXTPA:ALWEC) acquired Dyadem S.A and Octant S.A. We.Connect SA (ENXTPA:ALWEC) acquired Dyadem S.A and Octant S.A on April 26, 2022.
We.Connect SA (ENXTPA:ALWEC) completed the acquisition of Dyadem S.A and Octant S.A on April 26, 2022. Is New 90 Day High Low • Feb 03
New 90-day high: €21.20 The company is up 25% from its price of €16.90 on 04 November 2020. The French market is up 13% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Electronic industry, which is up 40% over the same period. Valuation Update With 7 Day Price Move • Feb 03
Investor sentiment improved over the past week After last week's 21% share price gain to €21.20, the stock is trading at a trailing P/E ratio of 24.7x, up from the previous P/E ratio of 20.4x. This compares to an average P/E of 35x in the Electronic industry in France. Total returns to shareholders over the past three years are 62%. Is New 90 Day High Low • Nov 12
New 90-day high: €18.50 The company is up 41% from its price of €13.10 on 14 August 2020. The French market is up 9.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electronic industry, which is down 4.0% over the same period. Is New 90 Day High Low • Oct 21
New 90-day high: €18.40 The company is up 48% from its price of €12.40 on 22 July 2020. The French market is down 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electronic industry, which is down 3.0% over the same period. Is New 90 Day High Low • Sep 29
New 90-day high: €14.40 The company is up 31% from its price of €11.00 on 01 July 2020. The French market is down 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electronic industry, which is down 2.0% over the same period.