DB:KP5

Stock Analysis Report

Executive Summary

Kitron ASA, an electronic manufacturing services company, together with its subsidiaries, develops, industrializes, and manufactures electronics for the energy/telecoms, defense/aerospace, offshore/marine, medical device, and industry sectors.


Snowflake Analysis

Established dividend payer with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: KP5's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.7%

KP5

-1.9%

DE Electronic

-0.9%

DE Market


1 Year Return

37.2%

KP5

8.5%

DE Electronic

12.8%

DE Market

Return vs Industry: KP5 exceeded the German Electronic industry which returned 8.5% over the past year.

Return vs Market: KP5 exceeded the German Market which returned 12.8% over the past year.


Shareholder returns

KP5IndustryMarket
7 Day0.7%-1.9%-0.9%
30 Day10.1%8.2%-0.4%
90 Day28.0%8.8%2.3%
1 Year43.2%37.2%10.9%8.5%16.3%12.8%
3 Yearn/a49.7%44.8%15.8%5.7%
5 Yearn/a114.5%99.2%19.7%3.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

19.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KP5 (€1.18) is trading below our estimate of fair value (€1.47)

Significantly Below Fair Value: KP5 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: KP5 is good value based on its PE Ratio (16.4x) compared to the Electronic industry average (29.8x).

PE vs Market: KP5 is good value based on its PE Ratio (16.4x) compared to the German market (21x).


Price to Earnings Growth Ratio

PEG Ratio: KP5 is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: KP5 is overvalued based on its PB Ratio (2.9x) compared to the DE Electronic industry average (1.9x).


Next Steps

Future Growth

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

11.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KP5's forecast earnings growth (11.7% per year) is above the savings rate (-0.4%).

Earnings vs Market: KP5's earnings (11.7% per year) are forecast to grow slower than the German market (13% per year).

High Growth Earnings: KP5's earnings are forecast to grow, but not significantly.

Revenue vs Market: KP5's revenue (7.5% per year) is forecast to grow faster than the German market (5.2% per year).

High Growth Revenue: KP5's revenue (7.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KP5's Return on Equity is forecast to be high in 3 years time (23%)


Next Steps

Past Performance

How has Kitron performed over the past 5 years?

20.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KP5 has high quality earnings.

Growing Profit Margin: KP5's current net profit margins (4%) are lower than last year (4.2%).


Past Earnings Growth Analysis

Earnings Trend: KP5's earnings have grown significantly by 20.9% per year over the past 5 years.

Accelerating Growth: KP5's earnings growth over the past year (20.2%) is below its 5-year average (20.9% per year).

Earnings vs Industry: KP5 earnings growth over the past year (20.2%) exceeded the Electronic industry -3.9%.


Return on Equity

High ROE: KP5's Return on Equity (17.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kitron's financial position?


Financial Position Analysis

Short Term Liabilities: KP5's short term assets (NOK1.7B) exceed its short term liabilities (NOK1.3B).

Long Term Liabilities: KP5's short term assets (NOK1.7B) exceed its long term liabilities (NOK353.1M).


Debt to Equity History and Analysis

Debt Level: KP5's debt to equity ratio (115.6%) is considered high.

Reducing Debt: KP5's debt to equity ratio has increased from 63.9% to 115.6% over the past 5 years.

Debt Coverage: KP5's debt is well covered by operating cash flow (22.9%).

Interest Coverage: KP5's interest payments on its debt are well covered by EBIT (6.3x coverage).


Balance Sheet

Inventory Level: KP5 has a high level of physical assets or inventory.

Debt Coverage by Assets: KP5's debt is covered by short term assets (assets are 2x debt).


Next Steps

Dividend

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

4.11%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 24 2020Ex Dividend DateApr 24 2020Dividend Pay DateMay 05 202011 days from Ex DividendBuy in the next 59 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: KP5's dividend (4.11%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: KP5's dividend (4.11%) is in the top 25% of dividend payers in the German market (3.63%)


Stability and Growth of Payments

Stable Dividend: KP5's dividend payments have been volatile in the past 10 years.

Growing Dividend: KP5's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (67.6%), KP5's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KP5's dividends in 3 years are forecast to be covered by earnings (66.7% payout ratio).


Next Steps

Management

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

6.5yrs

Average management tenure


CEO

Lars Nilsson (55yo)

5.3yrs

Tenure

kr5,279,000

Compensation

Mr. Lars Peter Nilsson has been the Chief Executive Officer of Kitron ASA since November 10, 2014 and serves as its President. He served as the President of Electronics Technology Division at PartnerTech A ...


CEO Compensation Analysis

Compensation vs Market: Lars's total compensation ($USD568.97K) is about average for companies of similar size in the German market ($USD616.99K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Lars Nilsson
CEO & President5.3yrskr5.28m1.16% NOK2.5m
Cathrin Nylander
Chief Financial Officer6.5yrskr2.98m0.49% NOK1.0m
Israel Salvador
COO & Sales Director7.1yrskr3.09m0.42% NOK897.5k
Anne Hjelseth
Chief Human Resource Officer0yrskr2.15m0.064% NOK137.4k
Hans Thomassen
MD of Kitron AS - Norway & VP of North America4.3yrskr2.37m0.24% NOK520.9k
Mindaugas Sestokas
MD of UAB Kitron - Lithuania & VP of Central Eastern Europe12yrskr1.75m0.29% NOK623.8k
Zygimantas Dirse
Managing Director of Kitron Electronics Manufacturing (Ningbo) CO Ltd.0yrskr2.47m0.25% NOK546.1k
Stefan Hansson-Mutas
Managing Director of Kitron AB- Sweden0yrskr2.47mno data
Stian Haugen
Chief Technology Officer0yrsno datano data
Magnus Lindseth
General Manager of Kitron Sweden and Board Observer0yrskr10.00kno data

6.5yrs

Average Tenure

49yo

Average Age

Experienced Management: KP5's management team is seasoned and experienced (6.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Magnus Lindseth
General Manager of Kitron Sweden and Board Observer0yrskr10.00kno data
Tuomo Lähdesmäki
Chairman of the Board6.1yrskr476.00k0.11% NOK238.5k
Christian Jebsen
Independent Director1.8yrskr186.00k0.0075% NOK16.3k
Espen Gundersen
Independent Director2.8yrskr266.00k0.024% NOK52.4k
Maalfrid Brath
Independent Director1.8yrskr197.00k0.0075% NOK16.3k
Gro Braekken
Deputy Chairman of the Board2.8yrskr243.00k0.021% NOK45.2k
Bjørn Gottschlich
Employee Representative Director8.1yrskr232.00k0.0075% NOK16.3k
Tanja Rørheim
Employee Representative Director4.5yrskr232.00k0.0075% NOK16.3k
Jarle Larsen
Employee Representative Director0.8yrsno data0.0038% NOK8.2k

2.8yrs

Average Tenure

53yo

Average Age

Experienced Board: KP5's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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

Kitron ASA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kitron ASA
  • Ticker: KP5
  • Exchange: DB
  • Founded:
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: kr2.178b
  • Listing Market Cap: kr216.095m
  • Shares outstanding: 179.10m
  • Website: https://www.kitron.com

Number of Employees


Location

  • Kitron ASA
  • Olav Brunborgs vei 4
  • Billingstad
  • Akershus
  • 1396
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KITOB (Oslo Bors)YesOrdinary SharesNONOKJan 1998
0F0JLSE (London Stock Exchange)YesOrdinary SharesGBNOKJan 1998
KITOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKJan 1998
KP5DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1998

Biography

Kitron ASA, an electronic manufacturing services company, together with its subsidiaries, develops, industrializes, and manufactures electronics for the energy/telecoms, defense/aerospace, offshore/marine, medical device, and industry sectors. It manufactures electronics that are embedded in the customers’ products; and box-built electronic products. The company’s services include development services, such as product development, product management, re-engineering, and value analysis/value engineering; and industrialization services, including prototype manufacturing, evaluation of new products, component engineering and database, test development, design and build of high level assembly lines, and environmental durability testing. Its services also comprise sourcing and logistics services; manufacturing, assembling, and testing of electronic products for the professional market; and maintenance, repair, and refurbishment programs. The company provides its products and services in Norway, Sweden, Lithuania, Germany, China, and the United States. Kitron ASA is headquartered in Billingstad, Norway. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 23:34
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
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.