CTT-CORREIOS DE PORTUGAL (CTT.LS)

PTCTT0AM0001 - Common Stock

4.13  -0.03 (-0.6%)

Fundamental Rating

4

Taking everything into account, CTT scores 4 out of 10 in our fundamental rating. CTT was compared to 15 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 correct valuation and a medium growth rate.



6

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.
In the past 5 years CTT has always been profitable.
CTT had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

The Return On Assets of CTT (1.01%) is worse than 86.67% of its industry peers.
CTT's Return On Equity of 18.44% is fine compared to the rest of the industry. CTT outperforms 66.67% of its industry peers.
CTT has a Return On Invested Capital of 1.96%. This is amonst the worse of the industry: CTT underperforms 80.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CTT is significantly below the industry average of 7.90%.
The last Return On Invested Capital (1.96%) for CTT is above the 3 year average (1.77%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 1.01%
ROE 18.44%
ROIC 1.96%
ROA(3y)0.85%
ROA(5y)0.97%
ROE(3y)16.49%
ROE(5y)17.51%
ROIC(3y)1.77%
ROIC(5y)1.87%

1.3 Margins

CTT has a Profit Margin of 5.30%. This is in the better half of the industry: CTT outperforms 80.00% of its industry peers.
CTT's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 11.42%, CTT belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
CTT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 52.96%, CTT is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
CTT's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 11.42%
PM (TTM) 5.3%
GM 52.96%
OM growth 3Y10.02%
OM growth 5Y7.46%
PM growth 3Y2.85%
PM growth 5Y2.74%
GM growth 3Y-6.57%
GM growth 5Y-4.8%

1

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CTT is destroying value.
CTT has less shares outstanding than it did 1 year ago.
CTT has less shares outstanding than it did 5 years ago.
CTT has a better debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 0.03, we must say that CTT is in the distress zone and has some risk of bankruptcy.
CTT has a worse Altman-Z score (0.03) than 80.00% of its industry peers.
CTT has a debt to FCF ratio of 8.95. This is a slightly negative value and a sign of low solvency as CTT would need 8.95 years to pay back of all of its debts.
CTT has a Debt to FCF ratio of 8.95. This is in the lower half of the industry: CTT underperforms 60.00% of its industry peers.
A Debt/Equity ratio of 13.72 is on the high side and indicates that CTT has dependencies on debt financing.
CTT's Debt to Equity ratio of 13.72 is on the low side compared to the rest of the industry. CTT is outperformed by 93.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 13.72
Debt/FCF 8.95
Altman-Z 0.03
ROIC/WACC0.36
WACC5.48%

2.3 Liquidity

CTT has a Current Ratio of 0.60. This is a bad value and indicates that CTT is not financially healthy enough and could expect problems in meeting its short term obligations.
CTT has a worse Current ratio (0.60) than 93.33% of its industry peers.
A Quick Ratio of 0.60 indicates that CTT may have some problems paying its short term obligations.
With a Quick ratio value of 0.60, CTT is not doing good in the industry: 93.33% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.6
Quick Ratio 0.6

4

3. Growth

3.1 Past

CTT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.69%.
CTT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.33% yearly.
Looking at the last year, CTT shows a small growth in Revenue. The Revenue has grown by 4.42% in the last year.
The Revenue has been growing slightly by 3.13% on average over the past years.
EPS 1Y (TTM)-7.69%
EPS 3Y8.32%
EPS 5Y-2.33%
EPS growth Q2Q-22.22%
Revenue 1Y (TTM)4.42%
Revenue growth 3Y4.65%
Revenue growth 5Y3.13%
Revenue growth Q2Q7.15%

3.2 Future

Based on estimates for the next years, CTT will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.64% on average per year.
CTT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.43% yearly.
EPS Next Y43.59%
EPS Next 2Y18.98%
EPS Next 3Y18.13%
EPS Next 5Y15.64%
Revenue Next Year6.63%
Revenue Next 2Y4.47%
Revenue Next 3Y4.8%
Revenue Next 5Y3.43%

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 stable.

5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 17.21, the valuation of CTT can be described as rather expensive.
Based on the Price/Earnings ratio, CTT is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 26.48. CTT is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 12.16, CTT is valued correctly.
CTT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CTT is cheaper than 73.33% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.79. CTT is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 17.21
Fwd PE 12.16

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of CTT indicates a rather cheap valuation: CTT is cheaper than 100.00% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 1.61
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.
The decent profitability rating of CTT may justify a higher PE ratio.
CTT's earnings are expected to grow with 18.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.39
PEG (5Y)N/A
EPS Next 2Y18.98%
EPS Next 3Y18.13%

3

5. Dividend

5.1 Amount

CTT has a Yearly Dividend Yield of 2.98%.
CTT's Dividend Yield is comparable with the industry average which is at 4.05.
CTT's Dividend Yield is a higher than the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 2.98%

5.2 History

The dividend of CTT decreases each year by -24.07%.
Dividend Growth(5Y)-24.07%
Div Incr Years2
Div Non Decr Years2

5.3 Sustainability

41.00% of the earnings are spent on dividend by CTT. This is a bit on the high side, but may be sustainable.
DP41%
EPS Next 2Y18.98%
EPS Next 3Y18.13%

CTT-CORREIOS DE PORTUGAL

ELI:CTT (3/28/2024, 7:00:00 PM)

4.13

-0.03 (-0.6%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap594.37M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.98%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 17.21
Fwd PE 12.16
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.39
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.01%
ROE 18.44%
ROCE
ROIC
ROICexc
ROICexgc
OM 11.42%
PM (TTM) 5.3%
GM 52.96%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.19
Health
Industry RankSector Rank
Debt/Equity 13.72
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.6
Quick Ratio 0.6
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-7.69%
EPS 3Y8.32%
EPS 5Y
EPS growth Q2Q
EPS Next Y43.59%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.42%
Revenue growth 3Y4.65%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y