DB:PWO

Stock Analysis Report

Progress-Werk Oberkirch

Executive Summary

Progress-Werk Oberkirch AG develops and manufactures advanced metal components and subsystems used in lightweight construction for the automotive safety and comfort in Germany, rest of Europe, North America, and Asia.

Snowflake

Fundamentals

Undervalued established dividend payer.

Share Price & News

How has Progress-Werk Oberkirch's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

7.0%

PWO

6.0%

DE Auto Components

0.7%

DE Market


1 Year Return

-10.6%

PWO

0.4%

DE Auto Components

9.9%

DE Market

Return vs Industry: PWO underperformed the German Auto Components industry which returned 0.4% over the past year.

Return vs Market: PWO underperformed the German Market which returned 9.9% over the past year.


Shareholder returns

PWOIndustryMarket
7 Day7.0%6.0%0.7%
30 Day7.4%15.9%5.9%
90 Day4.0%23.6%12.0%
1 Year-5.5%-10.6%4.5%0.4%13.4%9.9%
3 Year-19.3%-28.7%-9.8%-17.3%25.8%14.7%
5 Year-16.3%-31.4%-1.1%-11.7%42.6%23.2%

Price Volatility Vs. Market

How volatile is Progress-Werk Oberkirch's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Progress-Werk Oberkirch undervalued compared to its fair value and its price relative to the market?

43.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PWO (€26.1) is trading below our estimate of fair value (€46.42)

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


Price To Earnings Ratio

PE vs Industry: PWO is poor value based on its PE Ratio (18.2x) compared to the Auto Components industry average (14.1x).

PE vs Market: PWO is good value based on its PE Ratio (18.2x) compared to the German market (20x).


Price to Earnings Growth Ratio

PEG Ratio: PWO is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: PWO is good value based on its PB Ratio (0.8x) compared to the DE Auto Components industry average (1.2x).


Next Steps

Future Growth

How is Progress-Werk Oberkirch forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

34.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PWO's forecast earnings growth (34.8% per year) is above the savings rate (0.2%).

Earnings vs Market: PWO's earnings (34.8% per year) are forecast to grow faster than the German market (12.4% per year).

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

Revenue vs Market: PWO's revenue (3% per year) is forecast to grow slower than the German market (4.9% per year).

High Growth Revenue: PWO's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PWO's Return on Equity is forecast to be low in 3 years time (10.3%).


Next Steps

Past Performance

How has Progress-Werk Oberkirch performed over the past 5 years?

-2.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PWO has high quality earnings.

Growing Profit Margin: PWO's current net profit margins (0.9%) are lower than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: PWO's earnings have declined by -2.7% per year over the past 5 years.

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

Earnings vs Industry: PWO had negative earnings growth (-53.8%) over the past year, making it difficult to compare to the Auto Components industry average (-25.2%).


Return on Equity

High ROE: PWO's Return on Equity (4.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Progress-Werk Oberkirch's financial position?


Financial Position Analysis

Short Term Liabilities: PWO's short term assets (€171.3M) exceeds its short term liabilities (€159.3M)

Long Term Liabilities: PWO's short term assets (171.3M) exceeds its long term liabilities (157.6M)


Debt to Equity History and Analysis

Debt Level: PWO's debt to equity ratio (129.2%) is considered high

Reducing Debt: PWO's debt to equity ratio has increased from 122.5% to 129.2% over the past 5 years.

Debt Coverage: PWO's debt is well covered by operating cash flow (36.8%).

Interest Coverage: PWO's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet

Inventory Level: PWO has a high level of physical assets or inventory.

Debt Coverage by Assets: PWO's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

What is Progress-Werk Oberkirch's current dividend yield, its reliability and sustainability?

4.18%

Current Dividend Yield


Dividend Yield vs Market

company4.2%marketbottom25%1.4%markettop25%3.6%industryaverage3.7%forecastin3Years4.7%

Current dividend yield vs market & industry

Notable Dividend: PWO's dividend (4.18%) is higher than the bottom 25% of dividend payers in the German market (1.42%).

High Dividend: PWO's dividend (4.18%) is in the top 25% of dividend payers in the German market (3.64%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (76.2%), PWO's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PWO's dividends in 3 years are forecast to be well covered by earnings (32.9% payout ratio).


Next Steps

Management

What is the CEO of Progress-Werk Oberkirch's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average board tenure


CEO

Volker Simon (57yo)

5.3yrs

Tenure

€801,000

Compensation

Dr. Volker Simon has been the Chief Executive Officer of Progress Werk Oberkirch AG since July 01, 2014 and has been its Member of Management Board since July 1, 2001. Dr. Simon served as Director of Sales ...


CEO Compensation Analysis

Compensation vs Market: Volker's total compensation ($USD882.64K) is above average for companies of similar size in the German market ($USD212.40K).

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


Board Age and Tenure

3.5yrs

Average Tenure

61yo

Average Age

Experienced Board: PWO's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

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.


Management Team

  • Bernd Bartmann (63yo)

    CFO & Member of Management Board

    • Tenure: 0yrs
    • Compensation: €719.00k
  • Volker Simon (57yo)

    CEO & Member of Management Board

    • Tenure: 5.3yrs
    • Compensation: €801.00k
  • Johannes Obrecht (53yo)

    COO & Member of the Management Board

    • Tenure: 3.3yrs
    • Compensation: €549.00k

Board Members

  • Jochen Ruetz

    Member of Supervisory Board

    • Tenure: 1.5yrs
    • Compensation: €24.00k
  • Dieter Maier

    Honorary Chairman of the Supervisory Board

    • Tenure: 3.5yrs
  • Karl Schmidhuber (71yo)

    Chairman of Supervisory Board

    • Tenure: 3.5yrs
    • Compensation: €74.00k
  • Herbert König (61yo)

    Employee Representative Member of Supervisory Board

    • Tenure: 13.5yrs
    • Compensation: €36.00k
  • Georg Hengstberger (56yo)

    Deputy Chairman of the Supervisory Board

    • Tenure: 1.5yrs
    • Compensation: €51.00k
  • Carsten Claus (66yo)

    Member of Supervisory Board

    • Tenure: 1.5yrs
    • Compensation: €28.00k
  • Gerhard Schrempp (48yo)

    Employee Representative Member of Supervisory Board

    • Tenure: 3.5yrs
    • Compensation: €28.00k

Company Information

Progress-Werk Oberkirch AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Progress-Werk Oberkirch AG
  • Ticker: PWO
  • Exchange: DB
  • Founded: 1919
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: €82.188m
  • Shares outstanding: 3.13m
  • Website: https://www.progress-werk.de

Number of Employees


Location

  • Progress-Werk Oberkirch AG
  • Industriestrasse 8
  • Oberkirch
  • Baden-Württemberg
  • 77704
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PWODB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
PWOXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURJan 1992
0NHLLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
PWOdBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992

Biography

Progress-Werk Oberkirch AG develops and manufactures advanced metal components and subsystems used in lightweight construction for the automotive safety and comfort in Germany, rest of Europe, North Americ ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/11 20:48
End of Day Share Price2019/11/11 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.