DB:E5E

Stock Analysis Report

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Executive Summary

Eltel AB (publ) provides technical services for the power and communication infrastructure networks in Sweden, Finland, Norway, Poland, Denmark, Germany, and the Baltic countries.

Rewards

Trading at 0.2% below our estimate of its fair value

Earnings are forecast to grow 52.2% per year

Risk Analysis

No risks detected for E5E from our risk checks.


Snowflake Analysis

Mediocre balance sheet with moderate growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: E5E has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.7%

E5E

-2.3%

DE Construction

0.05%

DE Market


1 Year Return

-6.1%

E5E

-29.9%

DE Construction

3.4%

DE Market

Return vs Industry: E5E exceeded the German Construction industry which returned -29.9% over the past year.

Return vs Market: E5E underperformed the German Market which returned 3.4% over the past year.


Shareholder returns

E5EIndustryMarket
7 Day-4.7%-2.3%0.05%
30 Day0.8%4.5%5.5%
90 Day21.2%22.1%19.9%
1 Year-6.1%-6.1%-24.3%-29.9%5.7%3.4%
3 Year-28.4%-28.4%-41.8%-49.4%3.4%-4.7%
5 Year-69.3%-82.1%20.4%1.6%10.4%-4.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

0.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: E5E (€1.93) is trading below our estimate of fair value (€1.94)

Significantly Below Fair Value: E5E is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: E5E is unprofitable, so we can't compare its PE Ratio to the XE Construction industry average.

PE vs Market: E5E is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate E5E's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: E5E is overvalued based on its PB Ratio (1.6x) compared to the XE Construction industry average (1.1x).


Next Steps

Future Growth

How is Eltel forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

52.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: E5E is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: E5E is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: E5E's is expected to become profitable in the next 3 years.

Revenue vs Market: E5E's revenue (0.03% per year) is forecast to grow slower than the German market (6% per year).

High Growth Revenue: E5E's revenue (0.03% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: E5E's Return on Equity is forecast to be low in 3 years time (7%).


Next Steps

Past Performance

How has Eltel performed over the past 5 years?

-12.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: E5E is currently unprofitable.

Growing Profit Margin: E5E is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: E5E is unprofitable, and losses have increased over the past 5 years at a rate of 12.2% per year.

Accelerating Growth: Unable to compare E5E's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: E5E is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (7.6%).


Return on Equity

High ROE: E5E has a negative Return on Equity (-11.02%), as it is currently unprofitable.


Next Steps

Financial Health

How is Eltel's financial position?


Financial Position Analysis

Short Term Liabilities: E5E's short term assets (€260.5M) do not cover its short term liabilities (€363.5M).

Long Term Liabilities: E5E's short term assets (€260.5M) exceed its long term liabilities (€142.9M).


Debt to Equity History and Analysis

Debt Level: E5E's debt to equity ratio (73.3%) is considered high.

Reducing Debt: E5E's debt to equity ratio has increased from 52.7% to 73.3% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable E5E has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: E5E is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 0.8% per year.


Next Steps

Dividend

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

1.18%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate E5E's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate E5E's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if E5E's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if E5E's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: E5E is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of E5E's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Casimir Lindholm (49yo)

1.83yrs

Tenure

€750,000

Compensation

Mr. Casimir Lindholm, M.Sc. (Econ.), MBA, has been the CEO and President at Eltel AB (publ) since September 01, 2018. He also served as Acting Managing Director of Country Unit Sweden at Eltel AB (publ) si ...


CEO Compensation Analysis

Compensation vs Market: Casimir's total compensation ($USD856.36K) is about average for companies of similar size in the German market ($USD1.03M).

Compensation vs Earnings: Casimir's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Casimir Lindholm
President & CEO1.83yrs€750.00k0.043% 133.4k
Saila Miettinen-Lähde
Chief Financial Officer0.33yrno datano data
Elin Otter
Director of Communications & Investor Relations1.5yrsno data0.0021% 6.6k
Henrik Sundell
General Counsel3.75yrsno data0.0031% 9.7k
Juha Luusua
Managing Director of Country Unit Finland2.42yrsno data0.097% 301.0k
Leif Göransson
Managing Director of Country Unit Sweden1.75yrsno data0.013% 41.5k
Claus Jensen
Managing Director of Country Unit Denmark2.42yrsno data0.0038% 11.9k
Thor-Egel Bråthen
Managing Director of Country Unit Norway2.42yrsno data0.00080% 2.5k
Gustav Bard
Executiveno data€33.33kno data

2.1yrs

Average Tenure

55yo

Average Age

Experienced Management: E5E's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ulf Mattsson
Independent Chairman of the Board3.08yrs€139.00k0.044% 136.4k
Roland Sundén
Director1.83yrs€37.00k0.032% 98.8k
Håkan Dahlström
Independent Director3.08yrs€41.00k0.049% 152.4k
Joakim Olsson
Director2.17yrs€41.00kno data
Jonny Andersson
Employee Representative Director5.17yrsno datano data
Björn Ekblom
Employee Representative Director5.17yrsno data0.0022% 6.9k
Krister Andersson
Deputy member to employee Representative5.17yrsno datano data
Ninni Stylin
Deputy member to employee representative5.5yrsno datano data
Gunilla Fransson
Independent Director4.5yrs€43.00kno data

4.5yrs

Average Tenure

56yo

Average Age

Experienced Board: E5E's board of directors are considered experienced (4.5 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Eltel AB (publ)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Eltel AB (publ)
  • Ticker: E5E
  • Exchange: DB
  • Founded:
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: kr3.203b
  • Listing Market Cap: kr309.662m
  • Shares outstanding: 156.65m
  • Website: https://www.eltelgroup.com

Number of Employees


Location

  • Eltel AB (publ)
  • AdolfsbergsvAegen 13
  • POB 126 23
  • Bromma
  • Stockholm County
  • 112 92
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ELTELOM (OMX Nordic Exchange Stockholm)YesCommon StockSESEKFeb 2015
ELTELSBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBSEKFeb 2015
E5EDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 2015
0R53LSE (London Stock Exchange)YesCommon StockGBSEKFeb 2015

Biography

Eltel AB (publ) provides technical services for the power and communication infrastructure networks in Sweden, Finland, Norway, Poland, Denmark, Germany, and the Baltic countries. It operates through Power, Communication, and Other segments. The company builds, maintains, and upgrades power transmission systems, as well as supplies power distribution services. It also designs, plans, builds, installs, upgrades, operates, and services mobile and fixed networks. In addition, it offers maintenance services, which comprise scheduled and corrective care services and connect services; upgrade and conversion services to recover and upgrade the condition or technology of an existing infrastructure network; and project delivery services, which include engineering and delivering customer specific network infrastructure projects. It provides its services to national transmission system operators, power distribution grids, telecom operators, and other communication network owners. The company is headquartered in Bromma, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/15 21:33
End of Day Share Price2020/07/15 00:00
Earnings2020/03/31
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.