DB:CH0

Stock Analysis Report

Executive Summary

Cherry AB (publ) operates as a gaming company in Sweden.

Snowflake

Fundamentals

Solid track record with high growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

DB:CH0

-2.9%

DE Hospitality

0.9%

DE Market


1 Year Return

39.4%

DB:CH0

-52.6%

DE Hospitality

-8.5%

DE Market

CH0 outperformed the Hospitality industry which returned -42.5% over the past year.

CH0 outperformed the Market in Germany which returned -10.7% over the past year.


Share holder returns

CH0IndustryMarket
7 Day0%-2.9%0.9%
30 Day-1.7%-6.5%0.3%
90 Day-1.6%-9.2%1.1%
1 Year39.4%39.4%-49.4%-52.6%-5.6%-8.5%
3 Yearn/a-22.3%-33.1%20.7%10.1%
5 Yearn/a-6.5%-25.2%26.8%9.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Cherry undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Cherry's share price is below the future cash flow value, and at a moderate discount (> 20%).

Cherry's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Cherry is good value based on earnings compared to the DE Hospitality industry average.

Cherry is overvalued based on earnings compared to the Germany market.


Price Based on Expected Growth

Cherry is good value based on expected growth next year.


Price Based on Value of Assets

Cherry is overvalued based on assets compared to the DE Hospitality industry average.


Next Steps

Future Growth

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

28.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Cherry's revenue is expected to grow by 19% yearly, however this is not considered high growth (20% yearly).

Cherry's earnings are expected to grow significantly at over 20% yearly.

Cherry's revenue growth is expected to exceed the Germany market average.

Cherry's earnings growth is expected to exceed the Germany market average.

Cherry's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Cherry is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Cherry performed over the past 5 years?

76.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Cherry has delivered over 20% year on year earnings growth in the past 5 years.

Cherry's 1-year earnings growth exceeds its 5-year average (810.5% vs 76.5%)

Cherry's earnings growth has exceeded the DE Hospitality industry average in the past year (810.5% vs -2.8%).


Return on Equity

Whilst Cherry has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Cherry used its assets more efficiently than the DE Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Cherry has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Cherry's financial position?


Financial Position Analysis

Cherry is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Cherry's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Cherry's level of debt (105.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (0.7% vs 105.2% today).

Debt is well covered by operating cash flow (40.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.8x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.6x debt.


Next Steps

Dividend

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

1.51%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate Cherry's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Cherry's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Cherry has not reported any payouts.

Unable to verify if Cherry's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Cherry has not reported any payouts.


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Gunnar Lind (60yo)

0.8yrs

Tenure

kr279,000

Compensation

Mr. Gunnar Lind has been Acting Chief Executive Officer at Cherry AB (publ) since May 24, 2018. Mr. Lind served as the Chief Executive Officer and President of Cherry AB (publ) (formerly Cherryföretagen AB ...


Management Age and Tenure

1.3yrs

Average Tenure

50.5yo

Average Age

The average tenure for the Cherry management team is less than 2 years, this suggests a new team.


Board Age and Tenure

2.9yrs

Average Tenure

54yo

Average Age

The average tenure for the Cherry board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month insider trading information.


Recent Insider Transactions

Sell€110,067,22014 Feb 19
Klein Group AS
EntityCompany
Shares14,431,035
Max Price€7.63

Ownership Breakdown


Management Team

  • Fredrik Burvall (46yo)

    Executive Officer

    • Compensation: SEK2.49m
  • Lahcene Merzoug

    Managing Director of ComeOn

    • Tenure: 0.8yrs
  • Fredrik Elmqvist (47yo)

    Chief Executive Officer of Yggdrasil Gaming

  • Gunnar Lind (60yo)

    Acting CEO & Director

    • Tenure: 0.8yrs
    • Compensation: SEK279.00k
  • Jonas Cederholm

    Chief Executive Officer of Game Lounge

  • Dario Arruda

    Chief Executive Officer of XCaliber

  • Aron Egfors (41yo)

    Chief Executive Officer of Restaurant Casino

    • Tenure: 4.1yrs
  • Lars Kling

    Co-Founder

  • Anders Antonsson (54yo)

    IR & Communications Manager

    • Tenure: 1.3yrs
  • Christine Rankin (54yo)

    Chief Financial Officer

    • Tenure: 1.8yrs

Board Members

  • Gunnar Lind (60yo)

    Acting CEO & Director

    • Tenure: 5.8yrs
    • Compensation: SEK279.00k
  • Jorgen Olsson (42yo)

    Employee Representative Director

    • Tenure: 11.8yrs
  • Rolf Akerlind (75yo)

    Director

    • Tenure: 1.1yrs
    • Compensation: SEK370.00k
  • Johan Moazed (54yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: SEK279.00k
  • Morten Klein (49yo)

    Chairman

    • Tenure: 2.1yrs
    • Compensation: SEK2.03m

Company Information

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


Key Information

  • Name: Cherry AB (publ)
  • Ticker: CH0
  • Exchange: DB
  • Founded: 1963
  • Industry: casinos and gaming
  • Sector: consumer services
  • Market Cap: kr9.193b
  • Listing Market Cap: kr872.525m
  • Shares outstanding: 105.67m
  • Website: Click here

Number of Employees


Location

  • Cherry AB (publ)
  • Stureplan 19
  • Stockholm
  • 111 45
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHER BOM (OMX Nordic Exchange Stockholm)YesClass B SharesSESEKSep 2006
0RV7LSE (London Stock Exchange)YesClass B SharesGBSEKSep 2006
CH0DB (Deutsche Boerse AG)YesClass B SharesDEEURSep 2006

Biography

Cherry AB (publ) operates as a gaming company in Sweden. The company offers online casino, sports betting, and lotteries online through cherrycasino.com, comeon.com, eurolotto.com, euroslots.com, folkeauto ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/02/27 23:04
End of Day Share Price2019/02/27 00:00
Earnings2018/12/31
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.