DB:LG7

Stock Analysis Report

Lagercrantz Group

Executive Summary

Lagercrantz Group AB (publ) operates as a technology company in the Europe, China, and the United states.

Rewards

PE ratio (30.6x) is below the Electronic industry average (33.7x)

Earnings are forecast to grow 9.94% per year

Earnings grew by 12.8% over the past year

Pays a high and reliable dividend of 1.5%

Risk Analysis

Highly volatile share price over past 3 months



Snowflake Analysis

Outstanding track record with excellent balance sheet and pays a dividend.


Similar Companies

OEM International

OM:OEM B

Share Price & News

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


Latest Share Price and Events

Stable Share Price: LG7's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.0%

LG7

9.4%

DE Electronic

1.7%

DE Market


1 Year Return

58.3%

LG7

13.9%

DE Electronic

15.0%

DE Market

Return vs Industry: LG7 exceeded the German Electronic industry which returned 13.9% over the past year.

Return vs Market: LG7 exceeded the German Market which returned 15% over the past year.


Shareholder returns

LG7IndustryMarket
7 Day3.0%9.4%1.7%
30 Day6.4%8.4%0.8%
90 Day32.9%7.4%3.7%
1 Year61.7%58.3%16.4%13.9%18.5%15.0%
3 Yearn/a55.2%50.0%17.1%6.9%
5 Yearn/a122.9%106.8%24.3%7.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

30.61x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LG7 (€15.58) is trading above our estimate of fair value (€12.66)

Significantly Below Fair Value: LG7 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LG7 is good value based on its PE Ratio (30.6x) compared to the Electronic industry average (33.7x).

PE vs Market: LG7 is poor value based on its PE Ratio (30.6x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: LG7 is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: LG7 is overvalued based on its PB Ratio (7x) compared to the DE Electronic industry average (1.8x).


Next Steps

Future Growth

How is Lagercrantz Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

9.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LG7's forecast earnings growth (9.9% per year) is above the savings rate (-0.4%).

Earnings vs Market: LG7's earnings (9.9% per year) are forecast to grow slower than the German market (13.3% per year).

High Growth Earnings: LG7's earnings are forecast to grow, but not significantly.

Revenue vs Market: LG7's revenue (7.3% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: LG7's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LG7's Return on Equity is forecast to be high in 3 years time (22.9%)


Next Steps

Past Performance

How has Lagercrantz Group performed over the past 5 years?

11.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LG7 has high quality earnings.

Growing Profit Margin: LG7's current net profit margins (8.9%) are higher than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: LG7's earnings have grown by 11.7% per year over the past 5 years.

Accelerating Growth: LG7's earnings growth over the past year (12.8%) exceeds its 5-year average (11.7% per year).

Earnings vs Industry: LG7 earnings growth over the past year (12.8%) exceeded the Electronic industry -3.9%.


Return on Equity

High ROE: LG7's Return on Equity (22.8%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Lagercrantz Group's financial position?


Financial Position Analysis

Short Term Liabilities: LG7's short term assets (SEK1.5B) do not cover its short term liabilities (SEK1.6B).

Long Term Liabilities: LG7's short term assets (SEK1.5B) exceed its long term liabilities (SEK1.1B).


Debt to Equity History and Analysis

Debt Level: LG7 is debt free.

Reducing Debt: LG7 has no debt compared to 5 years ago when its debt to equity ratio was 0.5%.

Debt Coverage: LG7 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: LG7 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: LG7 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if LG7's debt is covered by short term assets.


Next Steps

Dividend

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

1.50%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%1.3%markettop25%3.6%industryaverage1.2%forecastin3Years1.8%

Current dividend yield vs market & industry

Notable Dividend: LG7's dividend (1.5%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: LG7's dividend (1.5%) is low compared to the top 25% of dividend payers in the German market (3.59%).


Stability and Growth of Payments

Stable Dividend: LG7's dividends per share have been stable in the past 10 years.

Growing Dividend: LG7's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.9%), LG7's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LG7's dividends in 3 years are forecast to be well covered by earnings (42.7% payout ratio).


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Jörgen Wigh (54yo)

14yrs

Tenure

kr9,258,000

Compensation

Mr. Jörgen Wigh, M.Sc. Econ., is the founder of PriceGain. Mr. Wigh serves as Chairman of the Board of Bergman & Beving AB (publ) since 2019 and serves as its Director since 2019. Mr. Wigh serves as the Pr ...


CEO Compensation Analysis

Compensation vs Market: Jörgen's total compensation ($USD953.05K) is about average for companies of similar size in the German market ($USD1.15M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jörgen Wigh
President14yrskr9.26m1.17% SEK12.6m
Magnus Söderlind
Executive VP & Head of Business Development11.4yrskr5.44m0.40% SEK4.2m
Kristina MacKintosh
Chief Financial Officer0.8yrsno datano data
Urban Lindskog
Vice President of Communications1.1yrsno datano data
Per Ikov
CEO of Lagercrantz A/S & M&A Lagercrantz Denmark0yrskr568.00kno data
Carina Nordlöf
Group Controller0yrsno datano data

6.3yrs

Average Tenure

54yo

Average Age

Experienced Management: LG7's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jörgen Wigh
President14yrskr9.26m1.17% SEK12.6m
Lennart Sjölund
Director 19.1yrskr220.00k0.31% SEK3.3m
Ulf Södergren
Director1.1yrsno datano data
Anders Börjesson
Chairman of the Board14.5yrskr440.00k0.090% SEK969.2k
Anna Almlöf
Director4.1yrsno data0.0015% SEK15.9k
Fredrik Börjesson
Director4.1yrsno data0.027% SEK285.1k
Anna Marsell
Director1.4yrsno datano data

4.1yrs

Average Tenure

54yo

Average Age

Experienced Board: LG7's board of directors are considered experienced (4.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: LG7 insiders have only sold shares 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

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


Key Information

  • Name: Lagercrantz Group AB (publ)
  • Ticker: LG7
  • Exchange: DB
  • Founded: 1906
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: kr11.297b
  • Listing Market Cap: kr1.073b
  • Shares outstanding: 67.73m
  • Website: https://www.lagercrantz.com

Number of Employees


Location

  • Lagercrantz Group AB (publ)
  • Torsgatan 2
  • PO Box 3508
  • Stockholm
  • Stockholm County
  • 103 69
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LAGR BOM (OMX Nordic Exchange Stockholm)SER'B'NPV (POST SPLIT)SESEKNo data
LAGR BOM (OMX Nordic Exchange Stockholm)YesClass B SharesSESEKSep 2001
0RB7LSE (London Stock Exchange)YesClass B SharesGBSEKSep 2001
LAGRBSBATS-CHIXE (BATS 'Chi-X Europe')YesClass B SharesGBSEKSep 2001
LG7DB (Deutsche Boerse AG)YesClass B SharesDEEURSep 2001

Biography

Lagercrantz Group AB (publ) operates as a technology company in the Europe, China, and the United states. The company operates through four divisions: Electronics, Mechatronics, Communications, and Niche Products. The Electronics division offers special products in embedded electronics, industrial wireless communication, RFID, and light controls. The Mechatronics division provides electric connections systems, electric installation materials, electric and electro-mechanical components, and wiring harness for the manufacturing, power production, electricity distribution, infrastructure, and property sectors. The Communications division offers products, systems, services, and support in the areas of network access, and digital image transmission/technical security, as well as control systems and software. The Niche Products division produces and sells proprietary technical products and solutions to other companies. This division provides products used in manufacturing and dispensing foodstuffs; material handling machinery; furniture and fittings for workplaces, shops, or warehouses; special plastic doors; and galvanized steel wires for roadway, mast, and agriculture applications, as well as provides snow clearance, and airport runway cleaning services. Lagercrantz Group AB (publ) was founded in 1906 and is headquartered in Stockholm, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 23:01
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.