SWX:PM

Stock Analysis Report

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Executive Summary

Phoenix Mecano AG, together with its subsidiaries, manufactures and sells enclosures and industrial components worldwide.


Snowflake Analysis

Undervalued with adequate balance sheet and pays a dividend.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.4%

PM

3.6%

CH Electrical

1.2%

CH Market


1 Year Return

-12.6%

PM

1.1%

CH Electrical

2.9%

CH Market

Return vs Industry: PM underperformed the Swiss Electrical industry which returned 3.1% over the past year.

Return vs Market: PM underperformed the Swiss Market which returned 3% over the past year.


Shareholder returns

PMIndustryMarket
7 Day0.4%3.6%1.2%
30 Day1.2%3.3%2.5%
90 Day-14.7%-8.9%-1.5%
1 Year-10.2%-12.6%5.7%1.1%6.3%2.9%
3 Year-27.1%-33.2%-14.8%-24.3%15.9%4.1%
5 Year-6.7%-19.4%6.8%-12.3%28.4%6.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

34.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PM (CHF373.5) is trading below our estimate of fair value (CHF570.42)

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


Price To Earnings Ratio

PE vs Industry: PM is good value based on its PE Ratio (23.7x) compared to the Electrical industry average (23.7x).

PE vs Market: PM is poor value based on its PE Ratio (23.7x) compared to the Swiss market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: PM is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: PM is good value based on its PB Ratio (1.6x) compared to the CH Electrical industry average (1.9x).


Next Steps

Future Growth

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

31.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PM's forecast earnings growth (31.1% per year) is above the savings rate (-0.2%).

Earnings vs Market: PM's earnings (31.1% per year) are forecast to grow faster than the Swiss market (8.5% per year).

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

Revenue vs Market: PM's revenue (0.7% per year) is forecast to grow slower than the Swiss market (2.4% per year).

High Growth Revenue: PM's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PM's Return on Equity is forecast to be low in 3 years time (12.9%).


Next Steps

Past Performance

How has Phoenix Mecano performed over the past 5 years?

12.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PM has a large one-off loss of €14.6M impacting its December 31 2019 financial results.

Growing Profit Margin: PM's current net profit margins (2.1%) are lower than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: PM's earnings have grown by 12.3% per year over the past 5 years.

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

Earnings vs Industry: PM had negative earnings growth (-61%) over the past year, making it difficult to compare to the Electrical industry average (-0.2%).


Return on Equity

High ROE: PM's Return on Equity (6.4%) is considered low.


Next Steps

Financial Health

How is Phoenix Mecano's financial position?


Financial Position Analysis

Short Term Liabilities: PM's short term assets (€335.6M) exceed its short term liabilities (€146.7M).

Long Term Liabilities: PM's short term assets (€335.6M) exceed its long term liabilities (€124.0M).


Debt to Equity History and Analysis

Debt Level: PM's debt to equity ratio (68.3%) is considered high.

Reducing Debt: PM's debt to equity ratio has increased from 23% to 68.3% over the past 5 years.

Debt Coverage: PM's debt is well covered by operating cash flow (29.3%).

Interest Coverage: PM's interest payments on its debt are well covered by EBIT (22.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Phoenix Mecano's current dividend yield, its reliability and sustainability?

2.68%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PM's dividend (2.68%) is higher than the bottom 25% of dividend payers in the Swiss market (1.93%).

High Dividend: PM's dividend (2.68%) is low compared to the top 25% of dividend payers in the Swiss market (3.91%).


Stability and Growth of Payments

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

Growing Dividend: PM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62.4%), PM's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PM's dividends in 3 years are forecast to be covered by earnings (51.5% payout ratio).


Next Steps

Management

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

17.3yrs

Average board tenure


CEO

Rochus Kobler (50yo)

4yrs

Tenure

€858,000

Compensation

Dr. Rochus Kobler, Dr oec, HSG, Dipl Ing, ETH, MSc, Unterageri, has been Chief Executive Officer of Phoenix Mecano AG since May 20, 2016. Dr. Kobler served as Chief Operating Officer of Phoenix Mecano AG s ...


CEO Compensation Analysis

Compensation vs Market: Rochus's total compensation ($USD892.44K) is about average for companies of similar size in the Swiss market ($USD967.33K).

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


Board Members

NamePositionTenureCompensationOwnership
Benedikt Goldkamp
Executive Chairman of the Board4yrs€909.00k0.34% 1.2m
Martin Furrer
Non-Executive Director17.33yrs€69.00k0.010% 37.3k
Ulrich Hocker
Independent Lead Directorno data€273.00k0.93% 3.3m
Beat Siegrist
Non-Executive Director17.33yrs€69.00k0.042% 149.4k
Florian Ernst
Non-Executive Director17.33yrs€69.00k0.0010% 3.7k

17.3yrs

Average Tenure

54yo

Average Age

Experienced Board: PM's board of directors are seasoned and experienced ( 17.3 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

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


Key Information

  • Name: Phoenix Mecano AG
  • Ticker: PM
  • Exchange: SWX
  • Founded: 1975
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: CHF358.373m
  • Shares outstanding: 959.50k
  • Website: https://www.phoenix-mecano.com

Number of Employees


Location

  • Phoenix Mecano AG
  • Hofwisenstrasse 6
  • Stein am Rhein
  • Schaffhausen
  • 8260
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PMSWX (SIX Swiss Exchange)YesBearer SharesCHCHFJan 1992
PXMDB (Deutsche Boerse AG)YesBearer SharesDEEURJan 1992
0QKPLSE (London Stock Exchange)YesBearer SharesGBCHFJan 1992

Biography

Phoenix Mecano AG, together with its subsidiaries, manufactures and sells enclosures and industrial components worldwide. The company operates in three divisions: Enclosures, Mechanical Components, and ELCOM/EMS. The Enclosures division develops and manufactures industrial enclosures made of aluminum, stainless steel, plastic, and glass-fiber reinforced polyester; and system solutions for use in mechanical and plant engineering, electrical engineering, automation, measurement and control technology, railway, automotive, and medical technology, as well as for explosive environments in the petrochemical, and onshore and offshore industries. This division also offers machine control boards and suspension systems for protecting electronics in various industrial applications, and membrane keyboards and touch systems. The Mechanical Components division provides profile assembly systems, linear units and drives, and pipe connection technology for various applications in the construction of machinery and equipment, protective enclosures, and ergonomic workstations. This division also offers electric cylinders and lifting columns; and electrically adjustable furniture for the home and hospital care sector. The ELCOM/EMS division provides terminal blocks, connector systems, test probes, series terminals, and coding switches for industrial electronics; power supply systems, backplanes, and electronic assemblies for application in various fields, including medical technology, measurement technology, astrophysics, and research facilities; transformers, instrument transformers, and inductors for use in renewable energies, drive technology, switchgear, and power distribution networks; LED lights; and circuit board equipment, as well as develops customized electronic applications. The company was formerly known as Phoenix Maschinentechnik AG and changed its name to Phoenix Mecano AG in 1986. Phoenix Mecano AG was founded in 1975 and is headquartered in Stein am Rhein, Switzerland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 20:39
End of Day Share Price2020/05/29 00:00
Earnings2019/12/31
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.