Ambea AB (publ), through its subsidiaries, primarily provides residential care services for people with disabilities and elderly care in Sweden and Norway.
The last earnings update was 13 days ago.
Discounted Cash Flow Calculation for DB:6MA using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
DB:6MA DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Ambea's share price is below the future cash flow value, and at a moderate discount (> 20%).
Ambea's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Ambea's earnings available for a low price, and how does
this compare to other companies in the same industry?
Ambea's earnings are expected to grow significantly at over 20% yearly.
Ambea's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Ambea's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
4/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Fredrik Gren serves as the Chief Executive Officer and President of Ambea AB (Ambea) at Carema Care AB since February 1, 2012. Mr. Gren served as President of Ambea AB. He served as the Chief Executive Officer of Menigo Foodservice AB. Mr. Gren began his career at McKinsey & Company, where he spent nine years and was its Partner. He served as the Chief Financial Officer of Sveriges Television from 2002 to 2006. He served as Chief Financial Officer of Menigo Foodservice since 2006. He served as Chairman of the Board of Mehiläinen Oy. Mr. Gren serves as an Executive Director of Menigo Foodservice AB. Mr. Gren served as Director of Ambea AB since 2012. He holds an M.Sc from the Stockholm School of Economics in the year 1990 to 1993 and MBA Exchange program from UCLA Anderson School of Management in 1993.
Fredrik's compensation has been consistent with company performance over the past year.
Fredrik's remuneration is about average for companies of similar size in Germany.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the Ambea management team is less than 2 years, this suggests a new team.
CEO & President
Deputy CEO & CFO
Head of Investor Relations
Director of Human Resources
Temporary Head of Nytida
Business Area Head of Vardaga
Head of Quality
Business Area Manager of Nytida
Business Area Manager of Altiden
Business Area Manager of Stendi
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Ambea board of directors is about average.
Ambea AB (publ), through its subsidiaries, primarily provides residential care services for people with disabilities and elderly care in Sweden and Norway. The company operates through four segments: Vardaga, Nytida, Hemita, and Klara. It offers services for the long and short-term residential facilities for children and adults, and with special service and daily activities for adults with an autism diagnosis and intellectual disabilities; elderly care in the form of special housing; and support services in the form of HVB homes, assisted housing, family homes, outpatient care, special housing, and institutional care for children, young people, and adults and families under the Nytida brand, as well as special housing services for the elderly, such as older people, who are unable to remain in their own homes under the Vardaga brand; disability care services in the form of residential care, rehabilitation, respite, and assessment under the Heimta brand. The company also provides training and staffing solutions for municipalities, county councils, and private operators under the Klara brand; and works with the temporary supply and recruitment of doctors and nurses, as well as offers residential and outpatient psychiatric support, and residential facilities for people with lifelong disabilities under the Heimta brand. In addition, it offers ambulatory services. Ambea AB (publ) was founded in 1996 and is headquartered in Solna, Sweden.
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