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EUTELSAT

Analysis before buying or selling Eutelsat shares

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In order to efficiently analyze the Eutelsat share, we advise you to take a maximum of information about this stock. For this, you can refer to the stock market data that we present in this page such as the live and real time price of this stock but also its historical technical analysis of the last years. You will also find information about Eutelsat's detailed activities according to the revenues they generate, which will help you to better determine the sectors to watch for your fundamental analysis.

Dividend payments
Can I receive dividends when I buy Eutelsat shares?
Yes
 
Information on Eutelsat shares
ISIN code: FR0010221234
Ticker: EPA: ETL
Index or market: Euronext Paris
 

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Elements to consider before selling or buying Eutelsat shares

Analysis N°1

First of all, we should remember that Eutelsat shares are considered to be a yielding stock. The dividend figures are therefore of great importance.

Analysis N°2

Eutelsat stock is also very sensitive to certain statements from the SES. You should therefore follow these events closely.

Analysis N°3

We will of course keep an eye on the company's results. It should be remembered that the Eutelsat Group's financial year ends on 30 June each year. We will also be following very closely the publications concerning the strategies envisaged by the group and their evolution over time. The achievement or non-achievement of these objectives will of course have a strong impact on the share price.

Analysis N°4

We will keep an eye on the group's investments and developments in the field of object connectivity, a real sector of the future for all technology companies worldwide.

Analysis N°5

Of course, the evolution of Eutelsat's market share in the emerging markets of Africa and Latin America and the strategies it will put in place to counter the increasingly strong competition in these promising sectors will also be taken into account.

Analysis N°6

Finally, any partnership, strategic alliance, merger, disposal or acquisition and its direct and indirect consequences must be analysed with the utmost care.

Analysis before buying or selling Eutelsat shares
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General presentation of Eutelsat

Eutelsat is a French company that was founded in 1977 under the full name of Eutelsat Communications. Today, the group is one of the world's leading telecommunications satellite operators, thanks to its long experience in this specific and technical field.

Eutelsat owns 38 satellites which it uses to market telecommunications capacity to a variety of customers such as broadcasters, broadcasting associations, TV package operators, video service providers, data and Internet service providers, businesses and government agencies.

Eutelsat's satellites cover Europe, the Middle East, Africa, the Asia-Pacific region and the Americas, enabling communications throughout the region for video, data, broadband and even government services.

Headquartered in Paris, the group also has an extensive network of sales offices and teleports around the world and employs no less than 1,000 people in 37 different countries to meet the need for high-level technological expertise in specific business areas. These employees work together with their customers to provide the highest quality of service.

The Eutelsat share price is currently listed on Compartment A of the Euronext Paris market and is included in the calculation of the CAC 40 stock market index.

The major competitors of Eutelsat

Eutelsat is currently one of the world's leading satellite service providers. It actually competes with only two other major companies, which we'll cover in more detail here to help you with your Eutelsat stock analysis strategy. It is important to know these competitors of Eutelsat before embarking on a fundamental analysis of this stock price online.

Intelsat

is Eutelsat's main competitor, holding more than 25.7% of the world's satellite telecommunications market. Originally from the United States, the company is based in Bermuda.

Jsat

recently renamed Sky Perfect Jsat is Eutelsat's second serious competitor. It is the number one satellite telecommunications company in the Asia-Pacific region. The group has 18 satellites in operation and offers video broadcasting, data communications and back-up services in Asia, but also in Russia, Oceania, the Middle East and North America. The group is based in Japan.


The major partners of Eutelsat

Facebook

In 2015, Eutelsat became a partner of Facebook, which has been using the entire broadband payload of the AMOS-6 satellite to develop Internet access in Africa.

Beijing Marine Communication & Navigation Company

In 2016, China's Beijing Marine Communication & Navigation Company signed a partnership with Eutelsat to meet the growing needs of the marine, aviation and terrestrial mobile broadband markets.

Hunter Communications

In 2017, the Hunter Communications Group and Eutelsat announced an extension of their contract with Panasonic for transponders on the Eutelsat885 WestB satellite.

ViaSat

Also in 2017, Eutelsat announced a partnership with ViaSat with the aim of offering internet connectivity in remote areas, for planes and trains.

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Positive factors for Eutelsat shares
The factors in favour of a rise in the Eutelsat share price:

Firstly, it should be remembered that the Eutelsat Group has a very interesting position in its sector of activity. It is currently the European leader in the satellite industry, with a market share of 30% in this geographical area, including Central Europe. In addition, it holds no less than 66% of the market share in video applications and 20% of the market share in data services.

Another important strength of this company is that its activities are largely based on long-term contracts covering periods of 10 to 15 years, which is the average life of a satellite. Thus, investors and shareholders appreciate the good visibility that these contracts offer on the Group's order book.

While the Eutelsat Group started out in the video sector, which still generates nearly 65% of its revenues, it has also implemented a strategy of diversifying its activities that is both intelligent and reassuring. In particular, the group has developed very well in buoyant sectors such as data, the government segment and broadband. This diversification significantly reduces the risk of exposure to a single sector of activity.

Eutelsat has also succeeded in gaining the trust of its customers, notably television groups that have been loyal to it for many years. This loyalty is also due to the significant cost of redirecting the satellite dishes of these groups' customers to a new position in orbit. Thus, the customers acquired by the group should not turn to the competition for economic reasons.

We will also appreciate the significant drop in the price of launchers in recent years as well as the significant growth of SpaceX in launchers and satellites that have a longer life and are therefore more profitable.

Eutelsat has also significantly strengthened its position in the broadband sector in Europe through its joint venture with the US company ViaSat, which is responsible for the sale of wholesale services and the provision of access to European consumers.

Finally, shareholders and investors interested in this stock also appreciate the group's policy of investing in emerging countries, particularly in Africa and Latin America, as well as the payout ratio, which offers a payout of around 65 to 75%.

Negative factors for Eutelsat shares
The factors in favour of a drop in the Eutelsat share price:

First of all, it should be noted that investors are particularly demanding of Eutelsat's growth prospects, which is putting significant pressure on the Group.

It should also be noted that the Eutelsat Group's activities are highly dependent on US defence budgets. These contracts represent no less than 10% of the company's total revenues. However, contracts are undergoing significant compression in terms of both volume and price.

The exchange rate of the Euro with other currencies such as the US dollar is also a brake on the profitability of the French company. Indeed, more than 30% of the group's sales are made in dollars while only 12% of costs are invoiced in this currency.

The group's market share in the television sector is also under serious threat from the plans currently being developed by the Google and Qualcomm groups for a connected television.

One can also count among the shortcomings of this company the strong irregularities in terms of earnings growth. Indeed, since 2016, the data and government business has been undergoing a very significant contraction that could prove to be detrimental in the long run.

Let's not forget also that the group's activities present a significant industrial risk. This was notably the case in 2016 with the accident that the Tesla satellite suffered and which resulted in numerous losses.

The final weakness of this company is the increasingly strong competition in Africa. The other major satellite operators are doing everything they can to take market share in this geographical area of the future, as are the fibre and overcapacity specialists who are targeting the Latin American market.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

When and at what price was Eutelsat listed?

On December 2, 2005, the Eutelsat Group was floated on the stock market. The first listing of this stock took place on the Eurolist segment of the Euronext Paris market. During this first listing session, the IPO price of this stock gained many points. It should be remembered that the IPO price was set at 12 euros per share.

What is the history of the dividend paid by Eutelsat to its shareholders?

With respect to the latest dividend, the shareholders' meeting held on November 5, 2020 validated the dividend amount of €0.89 per share to be detached on November 20, 2020 by closing of positions on November 23, 2020 with payment on November 24, 2020. For previous years, the 2018-19 dividend was €1.27 and the 2017-18 dividend was €1.27.

How often are Eutelsat's financial results published?

Eutelsat's financial reports are prepared in accordance with current French regulations. The financial statements for the half-year results ending at the end of December and the annual results as well as the quarterly revenues ending at the end of September and at the end of March are included in the calendar of financial publications regularly updated on the company's website in the section reserved for investors.

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