CTT-CORREIOS DE PORTUGAL (CTT.LS) Stock Fundamental Analysis
ELI:CTT - Euronext Lisbon - PTCTT0AM0001 - Common Stock - Currency: EUR
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. There are concerns on the financial health of CTT while its profitability can be described as average. 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.
CTT had a positive operating cash flow in the past year.
CTT had positive earnings in each of the past 5 years.
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 0.80%, CTT is doing worse than 80.00% of the companies in the same industry.
CTT has a Return On Equity of 18.39%. This is in the better half of the industry: CTT outperforms 80.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.57%, CTT is doing worse than 73.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CTT is significantly below the industry average of 7.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.8% | ||
| ROE | 18.39% | ||
| ROIC | 1.57% |
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
CTT has a Profit Margin of 4.71%. This is amongst the best in the industry. CTT outperforms 86.67% of its industry peers.
CTT's Profit Margin has improved in the last couple of years.
CTT has a Operating Margin of 8.90%. This is amongst the best in the industry. CTT outperforms 86.67% of its industry peers.
In the last couple of years the Operating Margin of CTT has grown nicely.
CTT has a Gross Margin (46.99%) which is comparable to the rest of the industry.
CTT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.9% | ||
| PM (TTM) | 4.71% | ||
| GM | 46.99% |
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
Compared to 5 years ago, CTT has less shares outstanding
Compared to 1 year ago, CTT has a worse debt to assets ratio.
2.2 Solvency
CTT has an Altman-Z score of 0.04. This is a bad value and indicates that CTT is not financially healthy and even has some risk of bankruptcy.
CTT has a Altman-Z score of 0.04. This is in the lower half of the industry: CTT underperforms 73.33% of its industry peers.
The Debt to FCF ratio of CTT is 5.06, which is a neutral value as it means it would take CTT, 5.06 years of fcf income to pay off all of its debts.
CTT has a Debt to FCF ratio of 5.06. This is comparable to the rest of the industry: CTT outperforms 60.00% of its industry peers.
CTT has a Debt/Equity ratio of 18.07. This is a high value indicating a heavy dependency on external financing.
CTT has a Debt to Equity ratio of 18.07. This is amonst the worse of the industry: CTT underperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.07 | ||
| Debt/FCF | 5.06 | ||
| Altman-Z | 0.04 |
ROIC/WACC0.24
WACC6.68%
2.3 Liquidity
CTT has a Current Ratio of 0.66. 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 (0.66) than 73.33% of its industry peers.
CTT has a Quick Ratio of 0.66. 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 Quick ratio of 0.66. This is in the lower half of the industry: CTT underperforms 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
CTT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.81%.
The Earnings Per Share has been growing by 11.30% on average over the past years. This is quite good.
The Revenue has grown by 14.36% 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 7.02% on average per year.
EPS 1Y (TTM)-22.81%
EPS 3Y8.89%
EPS 5Y11.3%
EPS Q2Q%-26.24%
Revenue 1Y (TTM)14.36%
Revenue growth 3Y8.43%
Revenue growth 5Y7.02%
Sales Q2Q%-7.86%
3.2 Future
The Earnings Per Share is expected to grow by 21.55% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 10.83% on average over the next years. This is quite good.
EPS Next Y43.6%
EPS Next 2Y19.52%
EPS Next 3Y21.55%
EPS Next 5YN/A
Revenue Next Year22%
Revenue Next 2Y15.47%
Revenue Next 3Y10.83%
Revenue Next 5YN/A
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.
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
The Price/Earnings ratio is 23.39, which indicates a rather expensive current valuation of CTT.
Based on the Price/Earnings ratio, CTT is valued a bit more expensive than 66.67% of the companies in the same industry.
CTT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.10, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.84, which indicates a correct valuation of CTT.
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 20.74, CTT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.39 | ||
| Fwd PE | 15.84 |
4.2 Price Multiples
CTT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CTT is cheaper than 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.2 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The 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 21.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.54
PEG (5Y)2.07
EPS Next 2Y19.52%
EPS Next 3Y21.55%
5. Dividend
5.1 Amount
CTT has a Yearly Dividend Yield of 2.19%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.67, CTT has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.43, CTT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
5.2 History
The dividend of CTT is nicely growing with an annual growth rate of 12.74%!
Dividend Growth(5Y)12.74%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
54.83% of the earnings are spent on dividend by CTT. This is a bit on the high side, but may be sustainable.
CTT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP54.83%
EPS Next 2Y19.52%
EPS Next 3Y21.55%
ELI:CTT (5/5/2025, 7:00:00 PM)
7.72
0 (0%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners26.26%
Inst Owner ChangeN/A
Ins Owners14.37%
Ins Owner ChangeN/A
Market Cap1.07B
Analysts75.56
Price Target8.11 (5.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
Yearly Dividend0.18
Dividend Growth(5Y)12.74%
DP54.83%
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)24.8%
PT rev (3m)33.61%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)7.22%
EPS NY rev (3m)16.27%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)9.38%
Revenue NY rev (3m)12.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.39 | ||
| Fwd PE | 15.84 | ||
| P/S | 1.11 | ||
| P/FCF | 1.2 | ||
| P/OCF | 1.15 | ||
| P/B | 4.32 | ||
| P/tB | 11.38 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.33
EY4.27%
EPS(NY)0.49
Fwd EY6.31%
FCF(TTM)6.46
FCFY83.64%
OCF(TTM)6.73
OCFY87.2%
SpS6.98
BVpS1.79
TBVpS0.68
PEG (NY)0.54
PEG (5Y)2.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.8% | ||
| ROE | 18.39% | ||
| ROCE | 9.42% | ||
| ROIC | 1.57% | ||
| ROICexc | 3.49% | ||
| ROICexgc | 3.75% | ||
| OM | 8.9% | ||
| PM (TTM) | 4.71% | ||
| GM | 46.99% | ||
| FCFM | 92.55% |
ROA(3y)0.99%
ROA(5y)0.92%
ROE(3y)19.57%
ROE(5y)18.38%
ROIC(3y)2.04%
ROIC(5y)2.04%
ROICexc(3y)3.78%
ROICexc(5y)3.43%
ROICexgc(3y)4.07%
ROICexgc(5y)3.69%
ROCE(3y)9.38%
ROCE(5y)8.78%
ROICexcg growth 3Y0.86%
ROICexcg growth 5Y1.91%
ROICexc growth 3Y0.94%
ROICexc growth 5Y2.37%
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%
F-Score6
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.07 | ||
| Debt/FCF | 5.06 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 3.93% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 1963.13% | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 0.04 |
F-Score6
WACC6.68%
ROIC/WACC0.24
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)3.96%
Cap/Sales(5y)4.32%
Profit Quality(3y)1307.46%
Profit Quality(5y)1092.73%
High Growth Momentum
Growth
EPS 1Y (TTM)-22.81%
EPS 3Y8.89%
EPS 5Y11.3%
EPS Q2Q%-26.24%
EPS Next Y43.6%
EPS Next 2Y19.52%
EPS Next 3Y21.55%
EPS Next 5YN/A
Revenue 1Y (TTM)14.36%
Revenue growth 3Y8.43%
Revenue growth 5Y7.02%
Sales Q2Q%-7.86%
Revenue Next Year22%
Revenue Next 2Y15.47%
Revenue Next 3Y10.83%
Revenue Next 5YN/A
EBIT growth 1Y-13.35%
EBIT growth 3Y3.91%
EBIT growth 5Y11.24%
EBIT Next Year138.8%
EBIT Next 3Y41.67%
EBIT Next 5YN/A
FCF growth 1Y-8.4%
FCF growth 3Y220.7%
FCF growth 5Y26.43%
OCF growth 1Y-7.44%
OCF growth 3Y152.01%
OCF growth 5Y24.39%