Analysis of Eurotunnel share price for trading

Transport, particularly rail transport, is one of the activity sectors that generates a lot of revenue, even in times of crisis. This is the reason why the privatisation of certain French and European companies in this sector have developed into interesting IPOs on the stock markets. Among the shares that can be beneficial to trade online we find those of the Eurotunnel Company, here we offer you the opportunity to read some particularities and practical information about this company.

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Analysis of Eurotunnel share price for trading
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About the Eurotunnel Company:

The Eurotunnel Company is naturally the company that manages and controls rail transport under the channel, between France and the United Kingdom. This transport is for both passengers and vehicles. A large part of its activity also concerns freight transport.

Due to the diversification of its activities, notably in terms of marketing and communications, the Eurotunnel Company has seen its turnover increase considerably over recent years, currently reaching over one million Euros.

 

The major competitors of Eurotunnel:

The Eurotunnel group is nowadays indisputably number one in its sector as it holds the monopoly in the underground channel crossing. However this is not all. Having benefitted from the rapid decline in maritime companies offering ferry and speedboat crossings, it has proceeded with certain specific purchases of boats that cement its position as leader.

There is therefore no serious competitor to Eurotunnel at this time and to conclude this sector therefore has no real interest for you if you are trading in Eurotunnel shares on the stock market. However, it is recommended that you monitor any merger or acquisition operations in the maritime transport sector, particularly any that may concern Eurotunnel, as well as transport that takes place away from the France / United Kingdom connection. It is not impossible that in the future this group invests in other geographical zones worldwide after its successful experience with the Channel Tunnel.

 

The major partners of Eurotunnel:

Eurotunnel has among other things implemented several partnerships that have enabled it to increase its advantages and become even more profitable.

  • Europorte, a rail freight subsidiary of Eurotunnel, and Alstom have notably signed a partnership agreement covering the maintenance of 17 Prima locomotives, built by Alstom and currently used by Europorte. This is with the aim of improving the management of the Europorte locomotives and their availability.
  • Eurotunnel also partnered with Orange who supplies 4G to passengers travelling through the Channel Tunnel.
  • In the past, Eurotunnel has already partnered with the Alcatel-Lucent Company to enable accessibility to telephone networks in the Channel Tunnel.  

 

Analysis of the Eurotunnel share price:

The Eurotunnel Company share price is directly linked to the turnover achieved by the company that manages the Channel Tunnel. This is why the asset price quoted on the CAC 40 rose significantly in 2012 and 2013 after a strong drop due to the 2010 crisis.

The analysts predict a new rise in this asset price in the coming years.

 

Important stock market data about the Eurotunnel share price:

It is of course primordial to know the recent economic history of the Eurotunnel Company as well as the movements of its share price to be able to implement a comprehensive and profitable trading strategy. However, it is also important not to ignore other more basic information relating to the actual quotation of this asset. To assist you here therefore is some important data that you should take into consideration.

  • In 2017 the total stock market capital of the Eurotunnel Company amounted to €5,303.10 million.
  • The number of stock market shares issued by the Eurotunnel Company and currently in circulation is around 550,000,000.
  • The Eurotunnel share price is currently quoted on the Section A of the Euronext Paris stock market in France.
  • The Eurotunnel Company share price is also included in the composition of the French national stock market index, the CAC All Share.
  • Shareholdings in the Eurotunnel Company are composed as follows: 28.64% institutional investors, 9.39% individual investors, 2.85% under auto control. The remainder are divided amongst various holding companies.

Other partnerships could be signed in the future by this company as part of an effective strategy.

 

Economical and financial history of the Eurotunnel Company:

To assist you in better understanding the historical technical analysis of the Eurotunnel share price it can be beneficial to study the recent economic events that may have influenced investors. Here therefore is a summary of recent notable events of this company.

  • In 2004 Eurotunnel became the first private company to obtain a European rail operator’s license in France. 
  • In 2007 after a few difficult years Eurotunnel announced, for the first time, a profit of one million Euros in its yearly accounts which launched its financial restructuration.
  • In 2009 Eurotunnel continued its freight sector development with the purchase of Veolia Cargo France.
  • In 2010 Eurotunnel announced a turnover of 736 million Euros, a rise of 26%, notably due to its four subsidiaries Europorte France, Europorte Link, Europorte Proximite and Socorail purchased in 2009.
  • In 2012, after the liquidation of the SeaFrance maritime company, Eurotunnel purchased the three ferries owned by this company and rented them to the SCOP (worker’s co-operative) of this company’s previous employees.
  • In 2013, the Eurotunnel group registered a record number of vehicles transported during the 2013 Christmas period of 210,000. This was due to an increase in the shuttle frequency.   

When analysing this recent information and comparing it over the same periods on historical stock market charts it can be better understood how the Eurotunnel share price reacts to different announcements and publications of the group’s financial results. With this information it becomes easier to anticipate future movements in this share price and thereby implement an effective strategy based on a fundamental analysis as well as a technical analysis.

 

Eurotunnel’s rail infrastructure management activites :

To understand better how does the Eurotunnel group manages its development, it is necessary to differentiate its two main activities, which are the management of the rail infrastructure and the railway company itself. We are first going to focus on the company’s management of the rail infrastructure.

Let’s recall that the Eurotunnel company owns the channel tunnel and is therefore in charge of the operation of the infrastructure and of making possible for companies with a license to operate the rail freight services and transport passengers from the trail paths of this tunnel. It also generates revenues from the collection of toll taxes from third party rail companies using the tunnel. Among the main known users, we can mention for example the company Eurostar in charge of the transportation of passengers, the SNCF, EWS, Deutsche Bahn as well as the Europorte company which manages only the transportation of merchandise.

In total and since it was put in service in 1994, the Channel tunnel has enabled more than 400 million passengers to traverse the English Channel. Among those travelers we count of course the passengers of the Eurotunnel shuttles as well as the passengers from Eurostar.

Of course, Eurotunnel is also in charge of the maintenance of these infrastructures through different other businesses.

 

Eurotunnel railway activities:

Of course, the Eurotunnel group is also a full-fledged railway company. It offers transportation services in the Channel tunnel as well as transport services all over Europe.

Concerning the cross-channel rail transport, Eurotunnel operates both the piggyback shuttles such as shuttles carrying trucks and others transporting cars, camping cars, caravans and couches as part of its connections between the terminals of Calais in France and Folkestone in the United Kingdom. Every year, not less than 18 million tons of merchandise and 17 million passengers traverse the channel. Over the last 20 years, the company has transported more than 60 million vehicles under the channel, also achieving a reduction of CO2 emissions of more than 4 million tons. In 2009, it obtained the Carbon Trust Standard certification as a reward for its environmental and ecological policy as well as for its efforts to control and reduce its carbon footprint. But in 2012, it was the other subsidiaries of the group that received this certification after the reduction of nearly 44% of its carbon production between 2006 and 2008. This reduction is expected to increase to 55% in 2011.

Eurotunnel is also the first private operator to have obtained a European license for railway operations in 2004. Since then, it has been able to develop the company Europorte which implements all the expertise of the company. This structure should be studied since it comprises the French assets acquired by the group from Veolia Cargo which we now know under the name of Europorte France for the transportation of rail freight, Europorte Link for the transport of maritime containers, Europorte Proximity as a local operator, Socorail as a specialist in industrial railway sidings and Europorte Channel formerly known as Europorte 2, which specializes in the traction of the Channel tunnel and in ground operations. With not less than 1800 employees, Eurotunnel’s Europorte company generates a turnover of more than 100 million Euros annually.

 

Other activities carried out by Eurotunnel:

In addition to its two main activities concerning rail transport and the management of the infrastructure, Eurotunnel carries out many other activities that are also important to know here are the details:

First of all, we can site, the company’s railway training activities since it has set up a real internal training center, called CIFFCO for the Opal Coast International Railway Training Centre. This training center addresses to external companies of the Eurotunnel group, which is an exception since most trainings are usually provided by railway companies for their own employees. This training center is located in the old business center of the Eurotunnel French terminal site. It offers different trainings in different jobs of railway transport and offers the following certificates:

  • Training of train drivers qualified RFN or for private networks.
  • Training of ground agent including trained officer, chief of maneuver or recognizer.
  • Train traffic officer training.
  • Train guard training.
  • Training in maintenance of infrastructure or rolling material.
  • Training in driving of forklifts, nacelles and overhead cranes.
  • Railway safety training.

Of course, this training center has the advantage of having all the educational material necessary to train for these jobs such as advanced computer equipment, a driving simulator and train tunnel evacuation simulator. Launched in 2011 and inaugurated in 2012, the CIFFCO was able to register its train conductor training in the national directory of professional certifications. Later on, in 2016, Eurotunnel and its training center launched the first MOOC railway job.

And finally let’s talk about Eurotunnel ships. In fact, during the closing of the Seafrance company in 2012, Eurotunnel bought assets of this company concerning three boats. It also acquired the Sister ship Rodin and Berlioz and the Nord Pas de Calais. This purchase was validated after the decision of the Paris court in favor of Eurotunnel against its two opponents Louis Dreyfus/DFDS seaways and Stena Line who had made an offer too. The amount of this purchase was around 65 million euros for a fleet whose value was estimated to be between 150 to 200 million euros. However, it should be noticed that Eurotunnel does not operates these boats directly because he rents them to a SCOP created by old employees of the Seafrance company called My Ferry Link. Those boats also offer trips between the ports of Calais in France and Dover in United Kingdom since 2012. In fact, in 2015, an interdiction for Eurotunnel to operate ferries between these two ports was confirmed by British courts. This decision was taken after a first interdiction issued in 2013 by British competition and markets authority.

 

Structure and distribution of Eurotunnel’s shareholding:

To finish this article, we now invite you to find out more about the structure of Eurotunnel’s shareholding.

Let’s first recall that Eurotunnel currently has around 220 000 shareholders around the world. The average portfolio has around 7257 shares for a total of more than 550 million shares in circulation.

A more complete study about the distribution of its shareholdings was carried out in January 2017 on the basis of the TPI 1000 shares by the nominative register of the General society of Securities services and Computershare.

 We find out about the distribution of the company’s shareholding by types of shareholder with:

  • 59% of custodian shareholders
  • 29% of institutional investors shareholders
  • 9% of individual investors shareholders
  • 3% of shares held in custody

The study also shows the geographical distribution of account holders whose details are as follows:

  • 36% of Eurotunnel’s shares are held in the United States
  • More than 26% of its shares are held in the United Kingdom and Ireland
  • We then find 18% of shares held in France
  • 6% of its shares are held in France
  • and 5% are held in Luxembourg
  • The remaining 9% of shares are distributed in different countries of the world but mainly in Europe

 

Some advice to take a position on the Eurotunnel title:

If you are considering taking a position on Eurotunnel’s course of action, we recommend you first of all, to use the right trading tool preferably with some kind of contracts such as CFDs which you will find on most online trading platforms.

Long positions are particularly advantageous in view of the significant growth predictions of the company and its strong presence in the sector of cross-channel transport.

But of course, you will also have to take into account all the activities carried out by Eurotunnel and the competition that may persists particularly by airlines offering flights between France and United Kingdom.

Finally, the technical data is also important since investors based themselves generally on the different chart indicators to speculate on this title outside of the periods when there are interesting news or publications of a company’s results.

You will find all the information that you need for your fundamental and technical analysis on your online broker’s website.

Where and how to trade in the Eurotunnel share price?

If you wish to start trading on the Eurotunnel share price it is best to turn to a reputable trading platform that has numerous analytical tools available for your use.

Trade Eurotunnel shares in real time!*
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.