CTT - Correios De Portugal, S.A.
CTT - Correios De Portugal, S.A. Fundamental Analysis
CTT - Correios De Portugal, S.A. (CTTOF) shows moderate financial fundamentals with a PE ratio of 17.40, profit margin of 4.12%, and ROE of 20.74%. The company generates $1.2B in annual revenue with strong year-over-year growth of 16.15%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CTTOF's fundamental strength across five key dimensions:
Efficiency Score
WeakCTTOF struggles to generate sufficient returns from assets.
Valuation Score
ModerateCTTOF shows balanced valuation metrics.
Growth Score
ModerateCTTOF shows steady but slowing expansion.
Financial Health Score
WeakCTTOF carries high financial risk with limited liquidity.
Profitability Score
ModerateCTTOF maintains healthy but balanced margins.
Key Financial Metrics
Is CTTOF Expensive or Cheap?
P/E Ratio
CTTOF trades at 17.40 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CTTOF's PEG of 7.57 indicates potential overvaluation.
Price to Book
The market values CTT - Correios De Portugal, S.A. at 3.43 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.45 times EBITDA. This is generally considered low.
How Well Does CTTOF Make Money?
Net Profit Margin
For every $100 in sales, CTT - Correios De Portugal, S.A. keeps $4.12 as profit after all expenses.
Operating Margin
Core operations generate 8.13 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.74 in profit for every $100 of shareholder equity.
ROA
CTT - Correios De Portugal, S.A. generates $0.81 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
CTT - Correios De Portugal, S.A. produces operating cash flow of $156.84M, showing steady but balanced cash generation.
Free Cash Flow
CTT - Correios De Portugal, S.A. generates strong free cash flow of $124.95M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.93 in free cash annually.
FCF Yield
CTTOF converts 14.14% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.40
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
7.57
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.43
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.72
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.56
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.21
vs 25 benchmark
ROA
Return on assets percentage
0.008
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How CTTOF Stacks Against Its Sector Peers
| Metric | CTTOF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.40 | 26.77 | Better (Cheaper) |
| ROE | 20.74% | 1268.00% | Weak |
| Net Margin | 4.12% | -41740.00% (disorted) | Weak |
| Debt/Equity | 2.18 | 0.72 | Weak (High Leverage) |
| Current Ratio | 0.56 | 10.12 | Weak Liquidity |
| ROA | 0.81% | -1511302.00% (disorted) | Weak |
CTTOF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews CTT - Correios De Portugal, S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
60.91%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
64.28%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
221.48%
Industry Style: Cyclical, Value, Infrastructure
High Growth