Graziano Martini Blog | Correios De Portugal, A Postal Service Value Cheap Company In The Lisbon Stock Exchange. | Talkmarkets
Financial Analyst & Advisor

Internal Financial Auditor at Unipol Banca SpA / Analyst, Advisor at Bnp Paribas and Banca BSI Italy, Financial Writer with over 20 years of experience in International Equities, Bonds, Financial Markets, IPO, Hedge and Private Equity.

Correios De Portugal, A Postal Service Value Cheap Company In The Lisbon Stock Exchange.

Date: Thursday, September 28, 2017 3:43 PM EDT

Correios de Portugal – is the national postal service in Portugal and principally engaged in the provision of courier services. The Company's activities are divided into four business segments: Mail, Express & Parcels, Financial Services and CCT Bank. The Mail division operates post offices, as well as offers postal services to business customers, distribution of advertising materials and postal communication solutions, among others. The Group includes express courier company CTT Expresso, the document management and digitisation firm EAD, direct mail and hybrid mail firm Mailtec, and payment services firm PayShop. Since 2005, CTT Group has also owned Spanish express parcels carrier Tourline Express, and is currently attempting to take a more integrated approach to parcel and express services across the Iberian Peninsula, through an alliance between Tourline Express and CTT Expresso. CTT Group also owns a 50% stake in CORRE, a courier company joint venture with the local postal operator in Mozambique. So actually the Group operates in Portugal, Spain and Mozambique.

For the six months ended 30 June 2017, CTT Correios de Portugal SA revenues increased 1% to EUR340.5M. Net income applicable to common stockholders decreased 44% to EUR17.7M. Revenues reflect Express Services segment increase of 7% to EUR61.7M, Financial Services segment increase of 9% to EUR32.1M, Other Countries segment increase of 12% to EUR42M. Net income was offset by Staff costs increase of 4% to EUR174.2M. Annually (31/12/2016) revenue decreased to 669,7 from 705,2 the year before while net income decreased to 62,2 from 72,1. The 2016 p/e is 15,38 while is estimated that for 2017 the p/e Company will be 13,31, with at current prices (5,05 €), an intersting and very covered 9,70% dividend yield. 

Of the twelve analysts who follow the title on September 28, 2017 (source Reuters) 3 are buy, 4 outperform, 5 maintain with a total OUTPERFORM rating.

We are long on CTT with a medium 7,50 € target price.

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