CTT-CORREIOS DE PORTUGAL (CTT.LS) Stock Fundamental Analysis
Europe - Euronext Lisbon - ELI:CTT - PTCTT0AM0001 - Common Stock
6.85 EUR
-0.04 (-0.58%)
Taking everything into account, CTT scores 4 out of 10 in our fundamental rating. CTT was compared to 16 industry peers in the Air Freight & Logistics industry. CTT has a medium profitability rating, but doesn't score so well on its financial health evaluation. CTT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year CTT was profitable.
- In the past year CTT had a positive cash flow from operations.
- Each year in the past 5 years CTT has been profitable.
- CTT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- CTT has a Return On Assets of 0.86%. This is in the lower half of the industry: CTT underperforms 75.00% of its industry peers.
- The Return On Equity of CTT (20.77%) is better than 75.00% of its industry peers.
- CTT has a worse Return On Invested Capital (1.67%) than 75.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for CTT is significantly below the industry average of 9.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.86% | ||
| ROE | 20.77% | ||
| ROIC | 1.67% |
ROA(3y)0.99%
ROA(5y)0.92%
ROE(3y)19.57%
ROE(5y)18.38%
ROIC(3y)2.04%
ROIC(5y)2.04%
1.3 Margins
- With a decent Profit Margin value of 4.72%, CTT is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- CTT's Profit Margin has improved in the last couple of years.
- CTT's Operating Margin of 8.81% is amongst the best of the industry. CTT outperforms 81.25% of its industry peers.
- CTT's Operating Margin has improved in the last couple of years.
- CTT has a worse Gross Margin (44.46%) than 62.50% of its industry peers.
- CTT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.81% | ||
| PM (TTM) | 4.72% | ||
| GM | 44.46% |
OM growth 3Y-4.17%
OM growth 5Y3.94%
PM growth 3Y-2.38%
PM growth 5Y2.13%
GM growth 3Y-3.38%
GM growth 5Y-5.22%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CTT is destroying value.
- Compared to 1 year ago, CTT has less shares outstanding
- The number of shares outstanding for CTT has been reduced compared to 5 years ago.
- CTT has a worse debt/assets ratio than last year.
2.2 Solvency
- CTT has an Altman-Z score of -0.03. This is a bad value and indicates that CTT is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of -0.03, CTT is not doing good in the industry: 81.25% of the companies in the same industry are doing better.
- CTT has a debt to FCF ratio of 42.66. This is a negative value and a sign of low solvency as CTT would need 42.66 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 42.66, CTT is doing worse than 81.25% of the companies in the same industry.
- CTT has a Debt/Equity ratio of 19.01. This is a high value indicating a heavy dependency on external financing.
- CTT's Debt to Equity ratio of 19.01 is on the low side compared to the rest of the industry. CTT is outperformed by 93.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 19.01 | ||
| Debt/FCF | 42.66 | ||
| Altman-Z | -0.03 |
ROIC/WACC0.26
WACC6.41%
2.3 Liquidity
- A Current Ratio of 0.59 indicates that CTT may have some problems paying its short term obligations.
- With a Current ratio value of 0.59, CTT is not doing good in the industry: 93.75% of the companies in the same industry are doing better.
- A Quick Ratio of 0.59 indicates that CTT may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.59, CTT is doing worse than 93.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
- CTT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.28%.
- CTT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.30% yearly.
- The Revenue has grown by 17.36% in the past year. This is quite good.
- The Revenue has been growing slightly by 7.02% on average over the past years.
EPS 1Y (TTM)-1.28%
EPS 3Y8.89%
EPS 5Y11.3%
EPS Q2Q%34.33%
Revenue 1Y (TTM)17.36%
Revenue growth 3Y8.43%
Revenue growth 5Y7.02%
Sales Q2Q%35.44%
3.2 Future
- The Earnings Per Share is expected to grow by 17.06% on average over the next years. This is quite good.
- CTT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.58% yearly.
EPS Next Y42.86%
EPS Next 2Y29.48%
EPS Next 3Y26.49%
EPS Next 5Y17.06%
Revenue Next Year25.97%
Revenue Next 2Y17.84%
Revenue Next 3Y14.91%
Revenue Next 5Y11.58%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 18.03, CTT is valued on the expensive side.
- CTT's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, CTT is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 12.04, CTT is valued correctly.
- Based on the Price/Forward Earnings ratio, CTT is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, CTT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.03 | ||
| Fwd PE | 12.04 |
4.2 Price Multiples
- CTT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CTT is cheaper than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.22 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- CTT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- CTT's earnings are expected to grow with 26.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.42
PEG (5Y)1.6
EPS Next 2Y29.48%
EPS Next 3Y26.49%
5. Dividend
5.1 Amount
- CTT has a Yearly Dividend Yield of 2.44%. Purely for dividend investing, there may be better candidates out there.
- CTT's Dividend Yield is comparable with the industry average which is at 2.93.
- CTT's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
5.2 History
- On average, the dividend of CTT grows each year by 12.74%, which is quite nice.
Dividend Growth(5Y)12.74%
Div Incr Years3
Div Non Decr Years4
5.3 Sustainability
- 50.50% of the earnings are spent on dividend by CTT. This is a bit on the high side, but may be sustainable.
- The dividend of CTT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP50.5%
EPS Next 2Y29.48%
EPS Next 3Y26.49%
CTT-CORREIOS DE PORTUGAL / CTT.LS FAQ
Can you provide the ChartMill fundamental rating for CTT-CORREIOS DE PORTUGAL?
ChartMill assigns a fundamental rating of 4 / 10 to CTT.LS.
Can you provide the valuation status for CTT-CORREIOS DE PORTUGAL?
ChartMill assigns a valuation rating of 5 / 10 to CTT-CORREIOS DE PORTUGAL (CTT.LS). This can be considered as Fairly Valued.
Can you provide the profitability details for CTT-CORREIOS DE PORTUGAL?
CTT-CORREIOS DE PORTUGAL (CTT.LS) has a profitability rating of 5 / 10.
What is the valuation of CTT-CORREIOS DE PORTUGAL based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CTT-CORREIOS DE PORTUGAL (CTT.LS) is 18.03 and the Price/Book (PB) ratio is 3.74.
Can you provide the financial health for CTT stock?
The financial health rating of CTT-CORREIOS DE PORTUGAL (CTT.LS) is 1 / 10.