BST:SZV

Stock Analysis Report

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Executive Summary

Semcon AB (publ) operates as a technology company in the fields of engineering services and product information in Sweden, Norway, Brazil, the United Kingdom, and internationally. More Details

Rewards

Trading at 9.1% below our estimate of its fair value

Earnings are forecast to grow 19.82% per year

Risk Analysis

SZV passed our risk checks.


Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SZV is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: SZV's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

6.3%

SZV

-1.7%

DE Professional Services

0.7%

DE Market


1 Year Return

8.0%

SZV

-0.2%

DE Professional Services

0.6%

DE Market

Return vs Industry: SZV exceeded the German Professional Services industry which returned -0.2% over the past year.

Return vs Market: SZV exceeded the German Market which returned 0.6% over the past year.


Shareholder returns

SZVIndustryMarket
7 Day6.3%-1.7%0.7%
30 Day6.1%4.0%7.8%
90 Day13.4%3.2%1.7%
1 Year8.0%8.0%1.8%-0.2%3.9%0.6%
3 Year66.3%47.9%23.9%14.7%4.0%-5.0%
5 Year70.1%40.9%64.9%44.2%21.4%4.2%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

9.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SZV (€6.58) is trading below our estimate of fair value (€7.24)

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


Price To Earnings Ratio

PE vs Industry: SZV is good value based on its PE Ratio (12.1x) compared to the XE Professional Services industry average (29.6x).

PE vs Market: SZV is good value based on its PE Ratio (12.1x) compared to the German market (23.2x).


Price to Earnings Growth Ratio

PEG Ratio: SZV is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: SZV is good value based on its PB Ratio (1.8x) compared to the XE Professional Services industry average (2.2x).


Next Steps

Future Growth

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

19.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SZV's forecast earnings growth (19.8% per year) is above the savings rate (0.2%).

Earnings vs Market: SZV's earnings (19.8% per year) are forecast to grow slower than the German market (27.3% per year).

High Growth Earnings: SZV's earnings are forecast to grow, but not significantly.

Revenue vs Market: SZV's revenue (5% per year) is forecast to grow slower than the German market (5.8% per year).

High Growth Revenue: SZV's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SZV's Return on Equity is forecast to be low in 3 years time (16.9%).


Next Steps

Past Performance

How has Semcon performed over the past 5 years?

16.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SZV has high quality earnings.

Growing Profit Margin: SZV's current net profit margins (5.7%) are higher than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: SZV's earnings have grown by 16% per year over the past 5 years.

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

Earnings vs Industry: SZV had negative earnings growth (-4%) over the past year, making it difficult to compare to the Professional Services industry average (-20.8%).


Return on Equity

High ROE: SZV's Return on Equity (14.8%) is considered low.


Next Steps

Financial Health

How is Semcon's financial position?


Financial Position Analysis

Short Term Liabilities: SZV's short term assets (SEK589.5M) exceed its short term liabilities (SEK307.9M).

Long Term Liabilities: SZV's short term assets (SEK589.5M) exceed its long term liabilities (SEK146.5M).


Debt to Equity History and Analysis

Debt Level: SZV is debt free.

Reducing Debt: SZV has no debt compared to 5 years ago when its debt to equity ratio was 30.5%.

Debt Coverage: SZV has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SZV has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

4.90%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate SZV'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 SZV's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SZV'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?

8.5yrs

Average management tenure


CEO

Markus Granlund (45 yo)

8.58yrs

Tenure

Mr. Markus Granlund has been a Director at Alecta pensionsförsäkring, ömsesidigt since April 11, 2019. He has been the Chief Executive Officer and President of Semcon AB (also know as Compliant Logistics A...


Leadership Team

NamePositionTenureCompensationOwnership
Markus Granlund
President & CEO8.58yrsno data0.27%
SEK 315.4k
Björn Strömberg
Chief Financial Officer13.25yrsno data0.14%
SEK 162.4k
Sofia Lindqvist
Investor relations Managerno datano datano data
Carin Wiberg
General Counsel8.42yrsno data0.051%
SEK 60.1k
Per Nilsson
Director of Corporate Communications5.25yrsno data0.014%
SEK 16.3k
Johan Ekener
Business Area President of Product Information16.83yrsno data0.11%
SEK 125.2k
Mats Sällberg
VP & Employee Representative Director6.67yrsno datano data
Karin Eklund
Head of User Experienceno datano datano data
Daniel Rundgren
Business Area President of Engineering & Digital Services2.25yrsno data0.037%
SEK 42.7k

8.5yrs

Average Tenure

46yo

Average Age

Experienced Management: SZV's management team is seasoned and experienced (8.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mats Sällberg
VP & Employee Representative Director6.67yrsno datano data
Tore Bertilsson
Chairman of the Board4.58yrsno data0.14%
SEK 168.4k
Eva Elmstedt
Independent Director1.58yrsno data0.026%
SEK 30.3k
Karl Thedéen
Independent Director4.58yrsno data0.085%
SEK 99.4k
Jeanette Reuterskiöld
Independent Director4.58yrsno data0.0058%
SEK 6.7k
Lars-Ove Jansson
Employee Representative Director2.83yrsno data0.00058%
SEK 678.3
Carl Backman
Director1.58yrsno data0.029%
SEK 33.7k
Maria Andersson
Employee Representative Director0.83yrno datano data

3.7yrs

Average Tenure

54.5yo

Average Age

Experienced Board: SZV's board of directors are considered experienced (3.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SZV 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

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


Key Information

  • Name: Semcon AB (publ)
  • Ticker: SZV
  • Exchange: BST
  • Founded: 1980
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: kr1.187b
  • Listing Market Cap: kr116.945m
  • Shares outstanding: 17.36m
  • Website: https://www.semcon.com

Number of Employees


Location

  • Semcon AB (publ)
  • LindholmsallEn 2
  • Gothenburg
  • Västra Götaland County
  • 417 80
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SEMCOM (OMX Nordic Exchange Stockholm)YesCommon SharesSESEKMay 1997
SZVBST (Boerse-Stuttgart)YesCommon SharesDEEURMay 1997
0O9PLSE (London Stock Exchange)YesCommon SharesGBSEKMay 1997
SEMCSBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBSEKMay 1997

Biography

Semcon AB (publ) operates as a technology company in the fields of engineering services and product information in Sweden, Norway, Brazil, the United Kingdom, and internationally. The company operates thro...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 22:30
End of Day Share Price2020/11/26 00:00
Earnings2020/09/30
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.