CTT-CORREIOS DE PORTUGAL (CTT.LS)
PTCTT0AM0001 - Common Stock
We assign a fundamental rating of 5 out of 10 to CTT. CTT was compared to 15 industry peers in the Air Freight & Logistics industry. While CTT is still in line with the averages on profitability rating, there are concerns on its financial health. CTT is not valued too expensively and it also shows a decent growth rate.
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
Looking at the Return On Assets, with a value of 0.95%, CTT is doing worse than 86.67% of the companies in the same industry.
Looking at the Return On Equity, with a value of 21.80%, CTT belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
CTT's Return On Invested Capital of 1.49% is on the low side compared to the rest of the industry. CTT is outperformed by 80.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CTT is significantly below the industry average of 7.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 21.8% | ||
| ROIC | 1.49% |
ROA(3y)1.08%
ROA(5y)1%
ROE(3y)20.8%
ROE(5y)19.16%
ROIC(3y)2.22%
ROIC(5y)2.12%
1.3 Margins
Looking at the Profit Margin, with a value of 5.74%, CTT is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Profit Margin of CTT has grown nicely.
CTT's Operating Margin of 8.97% is amongst the best of the industry. CTT outperforms 86.67% of its industry peers.
CTT's Operating Margin has improved in the last couple of years.
The Gross Margin of CTT (47.55%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of CTT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.97% | ||
| PM (TTM) | 5.74% | ||
| GM | 47.55% |
OM growth 3Y21.37%
OM growth 5Y17.06%
PM growth 3Y42.47%
PM growth 5Y17.98%
GM growth 3Y-3.94%
GM growth 5Y-4.05%
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.
The debt/assets ratio for CTT is higher compared to a year ago.
2.2 Solvency
CTT has an Altman-Z score of 0.00. This is a bad value and indicates that CTT is not financially healthy and even has some risk of bankruptcy.
CTT's Altman-Z score of 0.00 is on the low side compared to the rest of the industry. CTT is outperformed by 80.00% of its industry peers.
The Debt to FCF ratio of CTT is 3.20, which is a good value as it means it would take CTT, 3.20 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.20, CTT belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
CTT has a Debt/Equity ratio of 18.28. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CTT (18.28) is worse than 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.28 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | 0 |
ROIC/WACC0.25
WACC5.96%
2.3 Liquidity
A Current Ratio of 0.67 indicates that CTT may have some problems paying its short term obligations.
With a Current ratio value of 0.67, CTT is not doing good in the industry: 93.33% of the companies in the same industry are doing better.
A Quick Ratio of 0.66 indicates that CTT may have some problems paying its short term obligations.
CTT has a Quick ratio of 0.66. This is amonst the worse of the industry: CTT underperforms 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.22% over the past year.
Measured over the past years, CTT shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.39% on average per year.
The Revenue has grown by 11.56% in the past year. This is quite good.
Measured over the past years, CTT shows a small growth in Revenue. The Revenue has been growing by 4.25% on average per year.
EPS 1Y (TTM)21.22%
EPS 3Y56.6%
EPS 5Y24.39%
EPS Q2Q%-17.5%
Revenue 1Y (TTM)11.56%
Revenue growth 3Y7.87%
Revenue growth 5Y4.25%
Sales Q2Q%16.82%
3.2 Future
CTT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.64% yearly.
The Revenue is expected to grow by 5.75% on average over the next years.
EPS Next Y-3.68%
EPS Next 2Y4.92%
EPS Next 3Y5.9%
EPS Next 5Y6.64%
Revenue Next Year3.84%
Revenue Next 2Y5.12%
Revenue Next 3Y4.18%
Revenue Next 5Y5.75%
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 decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.18, CTT is valued correctly.
CTT's Price/Earnings ratio is a bit more expensive when compared to the industry. CTT is more expensive than 60.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. CTT is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 14.04, the valuation of CTT can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CTT is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, CTT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.18 | ||
| Fwd PE | 14.04 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, CTT is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.53 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
CTT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.58
EPS Next 2Y4.92%
EPS Next 3Y5.9%
5. Dividend
5.1 Amount
CTT has a Yearly Dividend Yield of 3.74%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.42, CTT has a dividend in line with its industry peers.
CTT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
5.2 History
The dividend of CTT decreases each year by -19.70%.
Dividend Growth(5Y)-19.7%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
CTT pays out 44.27% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP44.27%
EPS Next 2Y4.92%
EPS Next 3Y5.9%
CTT-CORREIOS DE PORTUGAL
ELI:CTT (12/20/2024, 7:00:00 PM)
5.39
+0.22 (+4.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners23.23%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap746.19M
Analysts80
Price Target5.69 (5.57%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
Dividend Growth(5Y)-19.7%
DP44.27%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.06%
PT rev (3m)-1.06%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)1.53%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.18 | ||
| Fwd PE | 14.04 | ||
| P/S | 0.81 | ||
| P/FCF | 0.53 | ||
| P/OCF | 0.52 | ||
| P/B | 3.08 | ||
| P/tB | 8.17 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.38
EY7.05%
EPS(NY)0.38
Fwd EY7.12%
FCF(TTM)10.12
FCFY187.7%
OCF(TTM)10.37
OCFY192.37%
SpS6.64
BVpS1.75
TBVpS0.66
PEG (NY)N/A
PEG (5Y)0.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 21.8% | ||
| ROCE | 9.13% | ||
| ROIC | 1.49% | ||
| ROICexc | 3.17% | ||
| ROICexgc | 3.39% | ||
| OM | 8.97% | ||
| PM (TTM) | 5.74% | ||
| GM | 47.55% | ||
| FCFM | 152.47% |
ROA(3y)1.08%
ROA(5y)1%
ROE(3y)20.8%
ROE(5y)19.16%
ROIC(3y)2.22%
ROIC(5y)2.12%
ROICexc(3y)3.64%
ROICexc(5y)3.24%
ROICexgc(3y)3.91%
ROICexgc(5y)3.51%
ROCE(3y)9.14%
ROCE(5y)8.45%
ROICexcg growth 3Y23.91%
ROICexcg growth 5Y-4.52%
ROICexc growth 3Y23.92%
ROICexc growth 5Y-3.83%
OM growth 3Y21.37%
OM growth 5Y17.06%
PM growth 3Y42.47%
PM growth 5Y17.98%
GM growth 3Y-3.94%
GM growth 5Y-4.05%
F-Score6
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.28 | ||
| Debt/FCF | 3.2 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 3.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 2655.86% | ||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 0 |
F-Score6
WACC5.96%
ROIC/WACC0.25
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)4.02%
Cap/Sales(5y)4.59%
Profit Quality(3y)676.61%
Profit Quality(5y)889.65%
High Growth Momentum
Growth
EPS 1Y (TTM)21.22%
EPS 3Y56.6%
EPS 5Y24.39%
EPS Q2Q%-17.5%
EPS Next Y-3.68%
EPS Next 2Y4.92%
EPS Next 3Y5.9%
EPS Next 5Y6.64%
Revenue 1Y (TTM)11.56%
Revenue growth 3Y7.87%
Revenue growth 5Y4.25%
Sales Q2Q%16.82%
Revenue Next Year3.84%
Revenue Next 2Y5.12%
Revenue Next 3Y4.18%
Revenue Next 5Y5.75%
EBIT growth 1Y-12.42%
EBIT growth 3Y30.93%
EBIT growth 5Y22.04%
EBIT Next Year85.35%
EBIT Next 3Y26.64%
EBIT Next 5Y21.75%
FCF growth 1Y1011.88%
FCF growth 3Y58.49%
FCF growth 5Y72.97%
OCF growth 1Y791.08%
OCF growth 3Y52.66%
OCF growth 5Y61.57%