After an impressive 2023 and over 105% gains during the last 12 months, TTS shares became even more popular among Romanian investors and top-performing international funds. While you can buy TTS shares directly, sometimes it is worth considering an ETF with TTS representation.
Transport Trade Services S.A. provides freight forwarding services in Romania. It is involved in the river/maritime and land transport of bulk and packed commodities goods, handling of goods and equipment, and door-to-door transportation activities.
In June 2021, the shares issued by TTS were admitted for trading on the regulated market administered by the BSE, in the Premium category (ticker: TTS). Recently, iShares MSCI Frontier and Select EM ETF (FM), managed by Blackrock, the world's largest asset manager, bought 203,482.00 TTS shares, meaning 0.24% weight in the fund. Thus, the total weight of Romanian companies in the largest fund dedicated to Emerging and Frontier Markets increased to around 10%.
Transport Trade Services Stock (BSE: TTS) - Research and Ratings
- Is TTS stock undervalued compared to its fair value, analyst forecasts, and price relative to the market?
- What is the analyst 12-month TTS shares price forecast?
- What are TTS’s future growth expectations?
- How has Transport Trade Services stock performed over the past 5 years?
- Should you buy TTS shares or invest in ETFs with TTS representation?
Understanding TTS Shares: A brief description
The Transport Trade Services Group ("TTS Group" or the "Group") consists of TTS (Transport Trade Services) S.A. ("TTS" or the "Company") and the 13 subsidiaries in which TTS holds, directly or indirectly, more than 50% of the share capital.
The Group provides integrated logistics services, i.e. transport services on the Danube, transshipment (between transport units, from warehouses, silos, etc.), warehousing (warehouses, silos, river units, etc.), brokerage (production of specific documents) and any other services specific to the management of the logistics chain.
The main goods transported and operated in the ports are dry bulk goods, i.e. mineral products (raw materials for the steel industry and rolled products), agricultural products (cereals, oilseeds and fodder) and chemical products (phosphate rock and finished products of the chemical fertilizer industry).
The Group's asset base includes a river fleet with a capacity of almost 800 thousand tons, 8 floating cranes, as well as port terminals in Constanta and in 7 Danube River ports.
The Group's business model is characterized by vertical integration of operations, positioning of business lines at the base of value chains and strategic geographical coverage, and has as its focal point TTS (Transport Trade Services) S.A.
Transport Trade Services shares are distributed among 3 categories:
Legal Entities - 42,0281 %
Individuals - 32,6646 %
MIHAILESCU ALEXANDRU MIRCEA - 25,3072 %
TTS shares - Fundamental Analysis and Financial Ratings
See the latest TRANSPORT TRADE SERVICES SA stock price analysis, including valuation, future growth, past performance, and more to help you make more informed investing decisions.
Valuation
Is TTS undervalued compared to its fair value, analyst forecasts and its price relative to the market?
- TTS (RON26.9) is trading above simplywall.st estimate of fair value (RON24.33).
- TTS is good value based on its Price-To-Earnings Ratio (5.7x) compared to the peer average (10.1x).
- TTS is good value based on its Price-To-Earnings Ratio (5.7x) compared to the European Shipping industry average (6.6x).
- TTS is good value based on its Price-To-Earnings Ratio (5.7x) compared to the estimated Fair Price-To-Earnings Ratio (6.1x).
Future Growth
Transport Trade Services` (TTS) revenue and earnings are forecast to decline at 3.3% and 29.9% per annum respectively. EPS is expected to decline by 30% per annum. Return on equity is forecast to be 13.9% in 3 years.
- TTS's earnings are forecast to decline over the next 3 years (-29.9% per year).
- TTS's revenue is expected to decline over the next 3 years (-3.3% per year).
- TTS's Return on Equity is forecast to be low in 3 years' time (13.9%).
- Analyst coverage is Low.
Past Performance
Transport Trade Services SA has been growing earnings at an average annual rate of 47.8%, while the Shipping industry saw earnings growing at 51.6% annually. Revenues have been growing at an average rate of 21.2% per year. TTS's return on equity is 28.1%, and it has net margins of 24%.
- TTS has high quality earnings.
- TTS's current net profit margins (24%) are higher than last year (17.6%).
- TTS's earnings have grown significantly by 47.8% per year over the past 5 years.
- TTS's earnings growth over the past year (72.8%) exceeds its 5-year average (47.8% per year).
- TTS earnings growth over the past year (72.8%) exceeded the Shipping industry (10.8%).
- TTS's Return on Equity (28.1%) is considered high.
Financial Health
TTS (Transport Trade Services) has a total shareholder equity of RON1.1B and total debt of RON131.0M, which brings its debt-to-equity ratio to 12.1%. Its total assets and total liabilities are RON1.3B and RON252.4M respectively. TTS (Transport Trade Services)'s EBIT is RON351.5M making its interest coverage ratio -174.9. It has cash and short-term investments of RON229.6M.
- TTS's short-term assets (RON369.6M) exceed its short-term liabilities (RON135.3M).
- TTS's short-term assets (RON369.6M) exceed its long-term liabilities (RON117.2M).
- TTS has more cash than its total debt.
- TTS's debt to equity ratio has reduced from 20.4% to 12.1% over the past 5 years.
- TTS's debt is well covered by operating cash flow (297.6%).
- TTS earns more interest than it pays, so coverage of interest payments is not a concern.
Dividend
TTS (Transport Trade Services) is a dividend paying company with a current yield of 1.94% that is well covered by earnings.
- Whilst dividend payments have been stable, TTS has been paying a dividend for less than 10 years.
- TTS's dividend payments have increased, but the company has only paid a dividend for 2 years.
- TTS's dividend (2.4%) isn’t notable compared to the bottom 25% of dividend payers in the Romanian market (2.37%).
- TTS's dividend (2.4%) is low compared to the top 25% of dividend payers in the Romanian market (6.65%).
- With its low payout ratio (11.6%), TTS's dividend payments are thoroughly covered by earnings.
- With its low cash payout ratio (16.8%), TTS's dividend payments are well covered by cash flows.
TTS Shares Price Forecast
What is the analyst 12-month TTS shares price forecast, and do we have any statistical confidence in the consensus price target from analysts?
According to tradingview.com, the analyst offering 1 year price forecasts for Transport Trade Services SA has an estimate of RON30.40.
According to stockopedia.com, the analyst consensus target price for shares in TTS Transport Trade Services SA is RON21.90. That is 18.59% below the last closing price of RON26.90.
Source: investing.com
Investing.com analysts' 12-Month Price High Target for TTS shares is RON 25.40, while the Average and Low-Price targets are RON 20.23, respectively RON 15.00.
There are no 5-year TTS shares price forecasts and price predictions.
Important: When considering TTS's fundamental analysis, financial rating and price predictions, it’s important to remember that high market volatility and changing economic environment makes it difficult to give long-term estimates. As such, analysts and algorithm-based platforms can and do get their ratings and predictions wrong. Always do your own research before making an investment decision. And never trade or invest more than you can afford to lose.
Transport Trade Services Stock (BSE: TTS) - Technical Analysis
After an impressive evolution in 2023, TTS stock price started 2024 with a consolidation, followed by a correction in early March, after reaching an all-time-high (RON30.10) on 29 February. Currently, price seems to complete a symmetrical triangle pattern on the daily chart, which could eventually be solved either bullish or bearish.
Source: bvb.ro
In such circumstances, technical oriented traders are usually patient while monitoring the volumes and a potential breakout from the pattern. An upside scenario could come along with new record highs, while a bearish one may target lower levels such as 24.50 and below, RON22.00.
How to Invest in TTS Stock
Some investors want to take an active hand in managing their investments, while others prefer to set it and forget it. Your preference may change but decide on an approach to get started.
For most people, stock market investing means choosing among these two investment types:
Individual TTS shares
If you’re after a specific company, you can buy a single share or a few shares to dip your toe into the stock-trading waters. Building a diversified portfolio out of many individual stocks is possible, but it takes significant investment and research.
If you go this route, remember that individual stocks will have ups and downs. If you research a company and choose to invest in it, think about why you picked that company in the first place if jitters start to set in on a down day.
Traditional stockbrokers allow you to invest in local stocks. However, you might not be able to invest in international stocks listed on the major stock exchanges, global ETFs, and other assets.
ETFs with TTS holdings
Transport Trade Services stock (or any single stock, for that matter) can have an unpredictable and dynamic evolution. You can manage the risk you see extreme highs and lows by diversifying your investment holdings. An ETF, for instance, contains a basket of individual stocks. When you invest in a fund, you also own small pieces of each of those companies.
If you want an ETF with TTS representation, you might consider iShares MSCI Frontier and Select ETF. BlackRock's iShares is the largest provider of ETFs as calculated by assets under management.
The fund can be suitable for Romania and foreign investors who want liquid and diversified exposure to another top 10 companies listed on the Bucharest Stock Exchange:
Why invest in TTS Shares via FM?
With net assets of $450M, The iShares MSCI Frontier and Select EM ETF (FM) is the largest exchange-traded-fund that seeks to track the investment results of an index composed primarily of frontier market equities along with select emerging market equities.
- Exposure to frontier market stocks and smaller size emerging market stocks with an emphasis on tradability and investability of the underlying constituents;
- One-click access to a virtually untapped investment portfolio with a Bucharest Stock Exchange and BET index exposure;
- Use to seek long-term growth and diversification.
How to Get Started with CAPEX.com
Here is how to buy and trade stocks, ETFs and other assets with an international, highly regulated broker like CAPEX.com:
- Choose which type of account you want to use. Your first concern should be your risk appetite and time horizon. If you want to buy and hold shares, open an Invest account. If you want to speculate on price movements (including falling prices) with zero commission and leverage, open a CFD trading account.
- Create an account. Regardless of your chosen account, you need to register and complete the KYC process to verify your identity.
- Fund your account with fiat money. Before buying and trading stocks and ETFs, you need to fund your exchange account with U.S. dollars, Euros, or other currencies.
- Place your order. Click on the "Search" icon located in the left panel or by clicking on "ETFs" and then select the instrument, such as "iShares MSCI Frontier and Select EM ETF”.
When trading stocks, the CFDs (contracts for difference) are stored in your account and are more liquid than the underlying asset.
However, you should be aware that CFD trading is fast-moving and requires close monitoring. As a result, traders should be aware of the significant risks when trading CFDs. There are margins you need to maintain; if you cannot cover reductions in values, your position might be closed, and you'll have to meet the loss no matter what subsequently happens to the underlying asset.
With CAPEX, you can trade CFDs on +2.000 stocks and invest in +5.000 stocks and ETFs with ownership.
Free resources
Before you start investing in shares, you should consider using the educational resources we offer like CAPEX Academy or a demo trading account. CAPEX Academy has lots of free trading courses for you to choose from, and they all tackle a different financial concept or process – like the basics of analyses – to help you to become a more informed trader.
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Sources:
https://www.tts-group.ro/investor-relations.html
https://bvb.ro/FinancialInstruments/Details/FinancialInstrumentsDetails.aspx?s=TTS
https://simplywall.st/stocks/ro/transportation/bvb-tts/tts-transport-trade-services-shares/management
https://www.investing.com/equities/tts-transport-trade-services
https://www.stockopedia.com/share-prices/tts-transport-trade-services-sa-BSE:TTS/