Columbus A/S : A good buy now? Relative to peers, maybe.

Columbus A/S relative valuation is now UNDERVALUED. It was previously rated NEUTRAL, and has a fundamental analysis score of 75.

Our analysis is based on comparing Columbus A/S with the following peers – Copenhagen Network A/S Class A, Travelmarket A/S and Athena IT-Group A/S (CPHNW-DK, TMCOM-DK and ATHENA-DK).

Relative Valuation

Columbus A/S’s price of DKK 5.85 is lower than CapitalCube’s implied price of DKK 7.23. CapitalCube believes that at these levels, Columbus A/S is undervalued and has upside potential. Over the last 52 week period, the stock has fluctuated between DKK 3.93 and DKK 6.45.

Relative Valuation

Company Overview

  • Compared to peers, relative outperformance over the last year and the last month suggest a leading position.
  • COLUM-DK has a successful operating model with relatively high net profit margins and asset turns.
  • Changes in annual earnings (relative to peers) are better than the change in its revenues (relative to peers), implying the company is focused more on earnings.
  • COLUM-DK‘s return on assets currently and over the past five years suggest that its relatively high operating returns are sustainable.
  • While COLUM-DK‘s revenue growth in recent years has been above the peer median, the stock’s PE ratio is less than the peer median suggesting that the company’s earnings may be peaking and the market expects a decline in its growth expectations.

Investment Outlook

Columbus A/S has a fundamental score of 75 and has a relative valuation of UNDERVALUED.

Columbus A/S is on the top left quadrant of the CapitalCube Value – Price Matrix. We classify this space a ‘Value Play’. Here, Columbus A/S is potentially undervalued, since it trades below its CapitalCube Implied Price of 7.23. At the same time, Columbus A/S is also fundamentally strong with a score of 75. This is a classic value stock definition.

Fundamentals Vs Relative Valuation

Drivers of Valuation

Valuation Drivers

COLUM-DK has moved to an Harvesting from a relatively high ROE profile at the prior year-end.

ROE % (On Common Equity)
 

Peer Analysis

A complete list of valuation metrics is available on the company page.

Company Profile

Columbus A/S is engaged in the provision of consultancy services and software solutions. It offers food manufacturing software, retail, advanced discrete manufacturing, distribution, and services solutions. The company was founded by Michael Gaardboe in December 1989 and is headquartered in Ballerup, Denmark.

Disclaimer

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