DB:IJU

Stock Analysis Report

Executive Summary

Intrum AB (publ), together with its subsidiaries, provides credit management and financial services in Europe and internationally.

Snowflake

Fundamentals

Very undervalued 6 star dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.4%

IJU

-0.6%

DE Commercial Services

0.03%

DE Market


1 Year Return

4.9%

IJU

-2.1%

DE Commercial Services

9.9%

DE Market

Return vs Industry: IJU exceeded the German Commercial Services industry which returned -2.1% over the past year.

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


Shareholder returns

IJUIndustryMarket
7 Day-3.4%-0.6%0.03%
30 Day1.0%5.1%4.4%
90 Day9.8%18.8%13.6%
1 Year9.0%4.9%1.4%-2.1%13.4%9.9%
3 Year-11.1%-20.3%5.2%-3.9%25.6%14.6%
5 Year16.4%-1.5%-2.6%-16.4%36.9%18.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IJU (€22.84) is trading below our estimate of fair value (€130.13)

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


Price To Earnings Ratio

PE vs Industry: IJU is good value based on its PE Ratio (12.8x) compared to the Commercial Services industry average (16.6x).

PE vs Market: IJU is good value based on its PE Ratio (12.8x) compared to the German market (19.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: IJU is good value based on its PB Ratio (1.3x) compared to the DE Commercial Services industry average (2.6x).


Next Steps

Future Growth

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

26.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IJU's forecast earnings growth (26.5% per year) is above the savings rate (0.2%).

Earnings vs Market: IJU's earnings (26.5% per year) are forecast to grow faster than the German market (12.5% per year).

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

Revenue vs Market: IJU's revenue (13.1% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: IJU's revenue (13.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IJU's Return on Equity is forecast to be low in 3 years time (14%).


Next Steps

Past Performance

How has Intrum performed over the past 5 years?

18.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IJU has high quality earnings.

Growing Profit Margin: IJU's current net profit margins (17.3%) are higher than last year (14.5%).


Past Earnings Growth Analysis

Earnings Trend: IJU's earnings have grown by 18.5% per year over the past 5 years.

Accelerating Growth: IJU's earnings growth over the past year (35.5%) exceeds its 5-year average (18.5% per year).

Earnings vs Industry: IJU earnings growth over the past year (35.5%) exceeded the Commercial Services industry 6.1%.


Return on Equity

High ROE: IJU's Return on Equity (9.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Intrum's financial position?


Financial Position Analysis

Short Term Liabilities: IJU's short term assets (SEK10.5B) exceeds its short term liabilities (SEK9.3B)

Long Term Liabilities: IJU's short term assets (10.5B) do not cover its long term liabilities (48.6B)


Debt to Equity History and Analysis

Debt Level: IJU's debt to equity ratio (177.1%) is considered high

Reducing Debt: IJU's debt to equity ratio has increased from 175.7% to 177.1% over the past 5 years.

Debt Coverage: IJU's debt is not well covered by operating cash flow (13%).

Interest Coverage: IJU's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet

Inventory Level: IJU has a low level of unsold assets or inventory.

Debt Coverage by Assets: IJU's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

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

3.80%

Current Dividend Yield


Dividend Yield vs Market

company3.8%marketbottom25%1.3%markettop25%3.7%industryaverage3.5%forecastin3Years5.7%

Current dividend yield vs market & industry

Notable Dividend: IJU's dividend (3.8%) is higher than the bottom 25% of dividend payers in the German market (1.33%).

High Dividend: IJU's dividend (3.8%) is in the top 25% of dividend payers in the German market (3.66%)


Stability and Growth of Payments

Stable Dividend: IJU's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48.5%), IJU's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IJU's dividends in 3 years are forecast to be well covered by earnings (49.5% payout ratio).


Next Steps

Management

What is the CEO of Intrum's salary, the management and board of directors tenure and is there insider trading?

2.4yrs

Average management tenure


CEO

Mikael Ericson (59yo)

3.7yrs

Tenure

kr13,131,000

Compensation

Mr. Mikael Ericson has been Chief Executive Officer and President of Lindorff Group AB since June 2017. Mr. Ericson has been the Chief Executive Officer and President of Intrum Justitia AB since March 1, 2 ...


CEO Compensation Analysis

Compensation vs Market: Mikael's total compensation ($USD1.36M) is below average for companies of similar size in the German market ($USD2.73M).

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


Management Age and Tenure

2.4yrs

Average Tenure

49.5yo

Average Age

Experienced Management: IJU's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

54yo

Average Age

Experienced Board: IJU's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: IJU insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Sellkr23,42919 Sep 19
Mikael Ericson
EntityIndividual
Role
Chief Executive Officer
CEO & President
Shares1,000
Max Pricekr23.43
Buykr11,77019 Sep 19
Mikael Ericson
EntityIndividual
Role
Chief Executive Officer
CEO & President
Shares500
Max Pricekr23.54
Buykr45,87303 May 19
Mikael Ericson
EntityIndividual
Role
Chief Executive Officer
CEO & President
Shares2,000
Max Pricekr22.94
Buykr90,90403 May 19
Anders Engdahl
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares4,000
Max Pricekr22.73
Sellkr1,052,91401 Mar 19
Marc Knothe
EntityIndividual
Shares40,000
Max Pricekr26.32

Ownership Breakdown

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


Management Team

  • Mats Gustafsson

    Acting Regional Managing Director of Scandinavia and Director of Group Business Development

    • Tenure: 11.1yrs
  • Mikael Ericson (59yo)

    CEO & President

    • Tenure: 3.7yrs
    • Compensation: kr13.13m
  • Niklas Lundquist (49yo)

    Chief Legal Officer

    • Tenure: 2.4yrs
  • Cathrine Klouman (57yo)

    Chief Operating Officer

    • Tenure: 2.4yrs
  • Per Christofferson (51yo)

    Regional Managing Director

    • Tenure: 0yrs
  • Harry Vranjes (49yo)

    Head of Credit Management Services

    • Tenure: 11.8yrs
  • Jean-Luc Ferraton (46yo)

    Chief Human Resources Officer

    • Tenure: 7.6yrs
  • Anders Engdahl (45yo)

    Chief Financial Officer

    • Tenure: 0.5yrs
  • Anna Fall (50yo)

    Chief Brand & Communications Officer

    • Tenure: 1.1yrs
  • Viktor Lindeberg

    Head of Investor Relations

    • Tenure: 0.3yrs

Board Members

  • Kristoffer Melinder (48yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: kr600.00k
  • Per Larsson (58yo)

    Chairman

    • Tenure: 2.8yrs
    • Compensation: kr1.31m
  • Magnus Yngen (61yo)

    Deputy Chairman

    • Tenure: 2.3yrs
    • Compensation: kr700.00k
  • Ragnhild Wiborg (58yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: kr800.00k
  • Erik Näsvik (44yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: kr600.00k
  • Magdalena Persson (48yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: kr600.00k
  • Hans Torsten Larsson (58yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: kr750.00k
  • Liv Fiksdahl (54yo)

    Director

    • Tenure: 0.6yrs
  • Andrés Rubio (51yo)

    Director

    • Tenure: 0.6yrs

Company Information

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


Key Information

  • Name: Intrum AB (publ)
  • Ticker: IJU
  • Exchange: DB
  • Founded: 1923
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: kr32.696b
  • Listing Market Cap: kr3.069b
  • Shares outstanding: 130.94m
  • Website: https://www.intrum.com

Number of Employees


Location

  • Intrum AB (publ)
  • Hesselmans Torg 14
  • Nacka
  • Stockholm
  • Stockholm County
  • 105 24
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
INTRUMOM (OMX Nordic Exchange Stockholm)YesShare CapitalSESEKJun 2002
0H9PLSE (London Stock Exchange)YesShare CapitalGBSEKJun 2002
IJUDB (Deutsche Boerse AG)YesShare CapitalDEEURJun 2002
ITJT.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDMar 2013

Biography

Intrum AB (publ), together with its subsidiaries, provides credit management and financial services in Europe and internationally. The company offers credit optimization services, including credit monitori ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/16 21:17
End of Day Share Price2019/11/15 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.