SWX:ARBN

Stock Analysis Report

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Executive Summary

Arbonia AG operates as a building supplier in Switzerland, Germany, and internationally. More Details

Rewards

Trading at 25.1% below our estimate of its fair value

Earnings are forecast to grow 22.53% per year

Risk Analysis

No risks detected for ARBN from our risk checks.


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has Arbonia's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ARBN is not significantly more volatile than the rest of Swiss stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ARBN's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-3.6%

ARBN

-5.6%

CH Building

0.1%

CH Market


1 Year Return

14.0%

ARBN

6.5%

CH Building

-1.0%

CH Market

Return vs Industry: ARBN exceeded the Swiss Building industry which returned 6.5% over the past year.

Return vs Market: ARBN exceeded the Swiss Market which returned -1% over the past year.


Shareholder returns

ARBNIndustryMarket
7 Day-3.6%-5.6%0.1%
30 Day3.2%4.7%4.7%
90 Day30.5%6.5%8.0%
1 Year14.0%14.0%9.4%6.5%2.5%-1.0%
3 Year-13.6%-15.1%19.8%10.9%19.7%4.6%
5 Year48.4%45.8%65.2%46.2%50.5%25.7%

Long-Term Price Volatility Vs. Market

How volatile is Arbonia's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Arbonia undervalued compared to its fair value and its price relative to the market?

25.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ARBN (CHF14.36) is trading below our estimate of fair value (CHF19.16)

Significantly Below Fair Value: ARBN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ARBN is poor value based on its PE Ratio (35.3x) compared to the CH Building industry average (32.5x).

PE vs Market: ARBN is poor value based on its PE Ratio (35.3x) compared to the Swiss market (24x).


Price to Earnings Growth Ratio

PEG Ratio: ARBN is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: ARBN is good value based on its PB Ratio (1.2x) compared to the CH Building industry average (3.1x).


Next Steps

Future Growth

How is Arbonia forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

22.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARBN's forecast earnings growth (22.5% per year) is above the savings rate (-0.3%).

Earnings vs Market: ARBN's earnings (22.5% per year) are forecast to grow faster than the Swiss market (13.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ARBN's revenue (2.5% per year) is forecast to grow slower than the Swiss market (4.6% per year).

High Growth Revenue: ARBN's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ARBN's Return on Equity is forecast to be low in 3 years time (5.7%).


Next Steps

Past Performance

How has Arbonia performed over the past 5 years?

67.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARBN has high quality earnings.

Growing Profit Margin: ARBN's current net profit margins (2%) are lower than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: ARBN has become profitable over the past 5 years, growing earnings by 67% per year.

Accelerating Growth: ARBN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ARBN had negative earnings growth (-23.3%) over the past year, making it difficult to compare to the Building industry average (-4%).


Return on Equity

High ROE: ARBN's Return on Equity (3.3%) is considered low.


Next Steps

Financial Health

How is Arbonia's financial position?


Financial Position Analysis

Short Term Liabilities: ARBN's short term assets (CHF465.0M) exceed its short term liabilities (CHF371.8M).

Long Term Liabilities: ARBN's short term assets (CHF465.0M) exceed its long term liabilities (CHF324.0M).


Debt to Equity History and Analysis

Debt Level: ARBN's debt to equity ratio (24%) is considered satisfactory.

Reducing Debt: ARBN's debt to equity ratio has reduced from 168.5% to 24% over the past 5 years.

Debt Coverage: ARBN's debt is well covered by operating cash flow (65.2%).

Interest Coverage: ARBN's interest payments on its debt are well covered by EBIT (9.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Arbonia current dividend yield, its reliability and sustainability?

1.53%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ARBN's dividend (1.53%) isn’t notable compared to the bottom 25% of dividend payers in the Swiss market (1.59%).

High Dividend: ARBN's dividend (1.53%) is low compared to the top 25% of dividend payers in the Swiss market (3.79%).


Stability and Growth of Payments

Stable Dividend: ARBN's dividend payments have been volatile in the past 10 years.

Growing Dividend: ARBN's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54%), ARBN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ARBN's dividends in 3 years are forecast to be well covered by earnings (33.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.6yrs

Average management tenure


CEO

Alexander von Witzleben (57 yo)

5.5yrs

Tenure

CHF1,422,000

Compensation

Mr. Alexander von Witzleben, Dipl.-Kaufmann, has been Chief Executive Officer at Arbonia AG since 2018 and it’s Executive Chairman since April 17, 2015. He was its Interim Chief Executive Officer at Arboni...


CEO Compensation Analysis

Compensation vs Market: Alexander's total compensation ($USD1.60M) is above average for companies of similar size in the Swiss market ($USD1.20M).

Compensation vs Earnings: Alexander's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Alexander von Witzleben
Executive Chairman & CEO5.5yrsCHF1.42m0.52%
CHF 5.2m
Daniel Wüest
Chief Financial Officer1.75yrsno data0.014%
CHF 144.0k
Claudius Moor
Member of Management Board0.58yrno datano data
Fabienne Zürcher
Head Corporate Communications & Investor Relationsno datano datano data
Maria Romero
Head of Group Human Resourcesno datano datano data
Knut Bartsch
Head of the Sanitary Equipment Division16.67yrsno data0.079%
CHF 787.9k
Karl-Heinz Hartmann
Chief Operating officer of Kitchens and Refrigeration Divisionno datano datano data
Ulrich Bornkessel
Head of Heating9yrsno data0.030%
CHF 297.5k
Nicolas Casanovas
Head of the Windows Division0.58yrno datano data

3.6yrs

Average Tenure

52yo

Average Age

Experienced Management: ARBN's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alexander von Witzleben
Executive Chairman & CEO5.5yrsCHF1.42m0.52%
CHF 5.2m
Michael Pieper
Non-Executive Director5.75yrsCHF80.00k22.16%
CHF 220.8m
Peter Bodmer
Non-Executive Director7.75yrsCHF90.00k0.032%
CHF 316.5k
Carsten Voigtländer
Director1.75yrsCHF55.00kno data
Heinz Haller
Non-Executive Director6.75yrsCHF95.00k0.15%
CHF 1.5m
Thomas Lozser
Non-Executive Director4.08yrsCHF76.00k0.53%
CHF 5.3m
Markus Oppliger
Independent Acting Lead Directorno dataCHF101.00k0.036%
CHF 362.6k
Peter Barandun
Non-Executive Vice-Chairman 5.75yrsCHF132.00k0.053%
CHF 531.2k

5.8yrs

Average Tenure

58yo

Average Age

Experienced Board: ARBN's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Arbonia AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Arbonia AG
  • Ticker: ARBN
  • Exchange: SWX
  • Founded: 1874
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: CHF996.443m
  • Shares outstanding: 69.20m
  • Website: https://www.arbonia.com

Number of Employees


Location

  • Arbonia AG
  • Amriswilerstrasse 50
  • Arbon
  • Thurgau
  • 9320
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARBNSWX (SIX Swiss Exchange)YesNew Registered SharesCHCHFJul 1994
ANGADB (Deutsche Boerse AG)YesNew Registered SharesDEEURJul 1994
0QKRLSE (London Stock Exchange)YesNew Registered SharesGBCHFJul 1994

Biography

Arbonia AG operates as a building supplier in Switzerland, Germany, and internationally. The company operates through four divisions: HVAC (Heating, Ventilation and Air Conditioning), Sanitary Equipment, W...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/20 18:13
End of Day Share Price2021/01/20 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.