Börse Express – 1 dividend share that benefits from the digitizing trend and provides a return of 3.6%


More and more companies are digitizing their business processes to reduce costs, better understand data and link their locations. Many companies rely on external service providers because only they have the right knowledge.

Especially in the banking industry is currently a major transformation process, for the block chain, mobile payment and cloud engineering. A company that specializes in exactly this and whose actions have become much cheaper, is GFT Technologies (WKN: 580060). What distinguishes the company, you will discover here.

1. Sound business development and growth potential

Above all, GFT Technologies develops individual IT solutions for financial institutions, insurance companies and financial services providers. Founded in 1987, it is now represented in Europe as well as in North, Central and South America. Although there were periods of weakness in the company's history, sales continued to increase in the end. In the last ten years it has grown from 216.8 to 412.8 million euros. In addition, profit grew strongly, from 4.7 to 20 million euros.

GFT has not yet reached its potential. There are several clues. There are many regions where the company is not yet represented, and the current market capitalization is only 219 million euros (18.04.2019). In addition, digitization has just begun in many institutes and, due to the growing importance of the cloud, artificial intelligence, mobile payment and internet of things, the demand for IT services will continue to increase in the future. In addition, GFT is expanding its services to the insurance industry.

2. High and Continuous Dividend

The GFT is more likely to show a floating profit trend, due to the cyclical vulnerability and high dependence of two large customers, German bank (WKN: 514000) and Barclays (WKN: 850403), delay. This led, in addition to the high rating, also to the last price decline. Today, however, dividend income is 3.6% (04/18/2019). By contrast, by the end of 2015 it was only 0.9%. He's talking about inventory now.

In addition, the dividend was paid continuously from the start of distributions (2008) and increased steadily from the previous 0.10 euros to 0.30 euros per share today.

3. Family business

Ulrich and Maria Dietz are both represented on the Fiscal Council, with Mr. Dietz occupying the chair. He has been in the company since its foundation and today owns 26.4% of the shares. Maria Dietz owns 9.7% of the shares. Together, they have a value of 79 million euros (18.04.2019). So you continue to trust your company and hope in the future again with better times for stocks. Because that hope is justified, you will find out now.

4. Sharing has become significantly cheaper

From the end of 2015, GFT's share fell 74% so far (18.04.2019). But now that you think profit has fallen to less than 21% over the same period and sales have risen, you will surely agree that the market is again exaggerating dramatically. This leads to a much lower rating. For example, the price-earnings ratio for 2015 was 1.9. Today is only 0.5 (19.04.2019). That speaks for the stock.

But that's not all, as management is already working to solve the current problems (too dependent on just a few customers and industries). GFT is thus expanding into the insurance industry and constantly expanding its customer base. The costs have been and continue to be reduced. New partnerships such as alphabet (WKN: A14Y6F) were closed. In addition, you can see in revenue growth that business continues to grow and because many new technologies continue to have potential. However, one should not think too briefly about inventory.

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Christof Welzel does not have any of the actions mentioned. Suzanne Frey works as a leader in Alphabet and is on the board of The Motley Fool. Teresa Kersten is on LinkedIn and is part of the The Motley Fool LinkedIn group. Motley Fool owns and recommends actions of the alphabet (actions A and C).

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