Valuation Update With 7 Day Price Move • Jun 08
Investor sentiment improved over the past week After last week's 58% share price gain to kr65.20, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 16x in the Machinery industry in Sweden. Total returns to shareholders of 6.9% over the past three years. Reported Earnings • Apr 29
First quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2022 results: EPS: kr1.03 (down from kr1.95 in 1Q 2021). Revenue: kr1.27b (up 18% from 1Q 2021). Net income: kr50.0m (down 47% from 1Q 2021). Profit margin: 3.9% (down from 8.8% in 1Q 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.9%. Earnings per share (EPS) missed analyst estimates by 9.5%. Over the next year, revenue is forecast to grow 12%, compared to a 16% growth forecast for the industry in Sweden. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has fallen by 17% per year, which means it is significantly lagging earnings. Price Target Changed • Apr 27
Price target decreased to kr54.00 Down from kr68.00, the current price target is provided by 1 analyst. New target price is 23% above last closing price of kr43.85. Stock is down 24% over the past year. The company is forecast to post earnings per share of kr5.58 for next year compared to kr4.65 last year. Board Change • Apr 27
High number of new directors There are 6 new directors who have joined the board in the last 3 years. Independent Director Detlef Borghardt was the last director to join the board, commencing their role in 2020. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Mar 30
Full year 2021 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2021 results: EPS: kr4.65 (up from kr6.45 loss in FY 2020). Revenue: kr4.61b (up 15% from FY 2020). Net income: kr226.0m (up kr530.0m from FY 2020). Profit margin: 4.9% (up from net loss in FY 2020). The move to profitability was driven by higher revenue. Revenue exceeded analyst estimates by 1.9%. Earnings per share (EPS) missed analyst estimates by 9.5%. Over the next year, revenue is forecast to grow 16%, compared to a 17% growth forecast for the industry in Sweden. Over the last 3 years on average, earnings per share has fallen by 32% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Mar 14
Investor sentiment improved over the past week After last week's 15% share price gain to kr39.65, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 17x in the Machinery industry in Sweden. Total loss to shareholders of 36% over the past three years. Price Target Changed • Feb 11
Price target decreased to kr60.00 Down from kr68.00, the current price target is provided by 1 analyst. New target price is 35% above last closing price of kr44.55. Stock is down 11% over the past year. The company is forecast to post earnings per share of kr5.58 for next year compared to kr4.65 last year. Recent Insider Transactions • Oct 29
Independent Director recently bought kr511k worth of stock On the 28th of October, Viveka Ekberg bought around 10k shares on-market at roughly kr51.14 per share. This was the largest purchase by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. Reported Earnings • Oct 22
Third quarter 2021 earnings released: EPS kr1.15 (vs kr2.12 loss in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: kr1.20b (up 25% from 3Q 2020). Net income: kr56.0m (up kr159.0m from 3Q 2020). Profit margin: 4.7% (up from net loss in 3Q 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 60 percentage points per year, which is a significant difference in performance. Price Target Changed • Jul 22
Price target decreased to kr64.00 Down from kr72.00, the current price target is provided by 1 analyst. New target price is 21% above last closing price of kr53.10. Stock is up 55% over the past year. Reported Earnings • Jul 18
Second quarter 2021 earnings released: EPS kr1.11 (vs kr2.95 loss in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: kr1.14b (up 30% from 2Q 2020). Net income: kr54.0m (up kr193.0m from 2Q 2020). Profit margin: 4.7% (up from net loss in 2Q 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 81 percentage points per year, which is a significant difference in performance. Executive Departure • Jun 02
President & CEO Helene Svahn has left the company On the 31st of May, Helene Svahn's tenure as President & CEO of the company ended after 2.0 years in the role. As of March 2021, Helene personally held only 1.16k shares (kr54k worth at the time). A total of 2 executives have left over the last 12 months. Under Helene's leadership, the company delivered a total shareholder return of -2.4%. Reported Earnings • Apr 25
First quarter 2021 earnings released: EPS kr1.95 (vs kr0.068 in 1Q 2020) The company reported a decent first quarter result with improved earnings and profit margins, although revenues were weaker. First quarter 2021 results: Revenue: kr1.08b (down 8.5% from 1Q 2020). Net income: kr95.0m (up kr92.0m from 1Q 2020). Profit margin: 8.8% (up from 0.3% in 1Q 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 87 percentage points per year, which is a significant difference in performance. Reported Earnings • Mar 31
Full year 2020 earnings released: kr6.45 loss per share (vs kr0.023 profit in FY 2019) The company reported a poor full year result with weaker earnings, revenues and control over costs. Full year 2020 results: Revenue: kr4.01b (down 22% from FY 2019). Net loss: kr304.0m (down kr305.0m from profit in FY 2019). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 82 percentage points per year, which is a significant difference in performance. Reported Earnings • Feb 12
Full year 2020 earnings released: kr6.45 loss per share (vs kr0.023 profit in FY 2019) The company reported a poor full year result with weaker earnings, revenues and control over costs. Full year 2020 results: Revenue: kr4.01b (down 22% from FY 2019). Net loss: kr304.0m (down kr305.0m from profit in FY 2019). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 83 percentage points per year, which is a significant difference in performance. Analyst Estimate Surprise Post Earnings • Feb 12
Earnings beat expectations, revenue disappoints Revenue missed analyst estimates by 2.9%. Earnings per share (EPS) exceeded analyst estimates by 53%. Over the next year, revenue is forecast to grow 11%, compared to a 8.2% growth forecast for the Machinery industry in Sweden. Is New 90 Day High Low • Jan 07
New 90-day high: kr46.55 The company is up 11% from its price of kr42.00 on 09 October 2020. The Swedish market is up 6.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 9.0% over the same period. Is New 90 Day High Low • Dec 09
New 90-day high: kr43.85 The company is up 2.0% from its price of kr42.95 on 10 September 2020. The Swedish market is up 7.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 9.0% over the same period. Reported Earnings • Oct 24
Third quarter earnings released Over the last 12 months the company has reported total losses of kr399.0m, with earnings decreasing by kr524.6m from the prior year. Total revenue was kr4.16b over the last 12 months, down 21% from the prior year. Analyst Estimate Surprise Post Earnings • Oct 24
Third-quarter earnings released: Revenue beats expectations Third-quarter revenue exceeded analyst estimates by 0.5% at kr964.0m. Revenue is forecast to grow 8.9% over the next year, compared to a 2.3% growth forecast for the Machinery industry in Sweden. Analyst Estimate Surprise Post Earnings • Oct 22
Third-quarter earnings released: Revenue beats expectations Third-quarter revenue exceeded analyst estimates by 0.5% at kr964.0m. Revenue is forecast to grow 8.9% over the next year, while the growth in Machinery industry in Sweden is expected to stay flat. Reported Earnings • Oct 22
Third quarter earnings released Over the last 12 months the company has reported total losses of kr393.0m, with earnings decreasing by kr512.7m from the prior year. Total revenue was kr4.16b over the last 12 months, down 21% from the prior year. Price Target Changed • Oct 15
Price target raised to kr50.00 Up from kr40.00, the current price target is provided by 1 analyst. The new target price is 22% above the current share price of kr41.15. As of last close, the stock is down 20% over the past year.