Trade the PostNL share!
POSTNL

Analysis before buying or selling PostNL shares

Trade the PostNL share!
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Before you start trading the Dutch PostNL share online, we recommend that you make sure you have all the information and knowledge you need for this exercise. With this in mind, in this article we have put together the stock market and economic elements that you will need the most to set up your analysis of this stock. For example, you will find information about the company and its activities in detail, a presentation of its main competitors on the market or its most recent partnerships. We will also explain here which data you should use in your fundamental analysis of this stock.

Elements to consider before selling or buying PostNL shares

Analysis N°1

The creation and implementation of new services to meet consumer needs can be a strength for this company and can increase its revenues.

Analysis N°2

The company's growth in the e-commerce segment will also be monitored with the development of its online services and the web market in general.

Analysis N°3

Regulatory changes can of course also have an influence on the share price and should therefore be given full attention.

Analysis N°4

The competition in the parcel delivery sector is increasing and you should therefore take this into account when analysing this stock.

Analysis N°5

Finally, we will follow the decline of postal mailings, which is weighing on the group's activities, replaced by online communication.

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General presentation of PostNL

We now propose to tell you a little more about PostNL and its activities. This will give you a better insight into the group and its sources of income, which will enable you to better anticipate the influence of certain events on its profitability and the likely rise in its share price.

The PostNL Group is a Dutch company that is active in the field of express transport services, mail forwarding and e-commerce. But the company also offers additional services such as data and document management, direct marketing and fulfilment services.

In order to better understand the activities of this group, it is possible to divide them into two major divisions according to the share of turnover they generate and in this way:

  • The parcel delivery activities alone account for 52.1% of the group's turnover. According to the latest available data, the group delivered more than 283 million parcels in Belgium, the Netherlands and Luxembourg in 2019.
  • Mail delivery, which this time only concerns the Netherlands, accounts for 47.9% of the company's turnover with 1,742 million postal items processed in 2019.
Analysis before buying or selling PostNL shares
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The major competitors of PostNL

If a good knowledge of the company PostNL is of course essential before trading its share, you should also be familiar with its main competitor on the market. Because PostNL has only one serious competitor at the moment, which we will present to you here in more detail to help you take it into account in your analysis.

 Bpost

This Belgian company, formerly known as La Poste, is a limited company under public law which currently has two main activities. Like PostNL, it is in charge of processing postal mail in the geographical area of Belgium, but also of managing a network of post offices that distribute, in addition to postal products, financial products and insurance from subsidiary companies. This group is therefore responsible for ensuring the universal postal service and as such has a monopoly on certain mail services. However, this monopoly was restricted in 2003 to domestic items weighing less than 100 grams and to incoming international items weighing less than 100 grams. BPost's annual turnover is several billion euros and its annual earnings before interest and taxes are more than 450 million euros. As this Belgian company is currently in direct competition with PostNL, you should keep an eye out for possible interactions between these two entities, the introduction of new products or services by both companies or important communications and publications by the latter.


The major partners of PostNL

Let's move on to the strategic partners of the PostNL Group with a presentation of the recent strategic alliances that the group has put in place over the last few years.

Deutsche Bank 

In 2013, the PostNL group announced a private placement led by Deutsche Bank and Goldman Sachs, representing 15% of TNT Express' share capital, whose stock value rose as a result. PostNL now owns 29.8% of TNT Express and has done so since the split of the express parcel business in 2011.

Carrefour 

Subsequently, the PostNL group also entered into a partnership with Carrefour in the field of home shopping delivery. This partnership enables Carrefour to become the first to deliver to its customers in the whole of West Flanders. It should be noted that Carrefour also benefits from a parallel partnership with PostNL's competitor, BPost. PostNL is now in charge of home deliveries to Carrefour's private customers in the province of Antwerp and Limburg, but also in the province of West Flanders, which was previously served by Bpost. With this geographical extension of its delivery services, Carrefour continues to strengthen its online services.

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Positive factors for PostNL shares
The factors in favour of a rise in the PostNL share price:
  • Firstly, PostNL has a strong market position as a provider of postal and logistics solutions. PostNL's market position and customer interaction also allows it to balance its exposure to the declining postal market.
  • The group's reputation and brand image is another of its strengths and allows it, among other things, to communicate with its customers and to attract labour market personnel in a sector where the workforce is rather small.
  • The company's highly qualified staff is also a major asset, as they are both qualified and motivated. The group also benefits from an extensive network in the Netherlands and Belgium. PostNL invests heavily in developing the skills of its employees and in its online presence. Investments in information systems to optimise the networks are also important.
  • PostNL's share price also benefits from the company's financial strength, which allows it to accelerate its transformation towards parcel and logistics solutions. The company's cash flow allows it to make investments to increase the volume of parcels processed in the Benelux and internationally by expanding its processing and distribution centres and strengthening its digitisation capabilities.
Negative factors for PostNL shares
The factors in favour of a drop in the PostNL share price:
  • The current decline in the postal market, the group's historical business, has of course had a negative impact on the group's revenues for some years and these losses have not yet been fully compensated by the other activities.
  • It should also be noted that the increasingly strict and restrictive regulations in this sector of activity tend to increase the difficulties encountered by this group in the implementation of its new products and services.
  • Although the sector in which PostNL operates has high barriers to entry, the price war that rages is also important. As a result, PostNL must absolutely face up to this by making savings.
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

What can cause the PostNL share price to fall?

There are several factors that can lead to a decline in the PostNL share price. For example, the arrival on the market of new competitors will be a very serious threat to the company's market share. The same applies to the introduction of new services and products by its direct competitor BPost, which could take away customers. These indicators will therefore be followed with interest.

How to analyse the PostNL share price effectively?

Technical analysis and fundamental analysis are the two methods you should use to make good predictions about the price of this stock. Indeed, by comparing signals from trend and volatility indicators with signals from major news and market publications, you will have every chance of determining the direction of future movements.

On which market is the PostNL share quoted?

The PostNL Group's shares are currently listed on compartment B of the Euronext Amsterdam market. This is the Dutch stock exchange that is part of the European Euronext listing system. This means that the share price is quoted continuously and during the usual opening days and hours of this financial centre. You can view the price of the stock on your broker's chart.

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