CPSE:FLS

Stock Analysis Report

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Executive Summary

FLSmidth & Co. A/S supplies engineering, equipment, and services to the cement and mining industries worldwide. More Details


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: FLS is not significantly more volatile than the rest of Danish stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: FLS's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

1.0%

FLS

-0.3%

DK Machinery

-2.4%

DK Market


1 Year Return

-16.0%

FLS

-14.8%

DK Machinery

20.2%

DK Market

Return vs Industry: FLS matched the Danish Machinery industry which returned -16% over the past year.

Return vs Market: FLS underperformed the Danish Market which returned 20.5% over the past year.


Shareholder returns

FLSIndustryMarket
7 Day1.0%-0.3%-2.4%
30 Day22.0%24.0%-0.7%
90 Day8.9%16.1%7.8%
1 Year-16.0%-16.0%-14.7%-14.8%22.5%20.2%
3 Year-33.2%-36.6%-40.2%-42.3%47.6%36.3%
5 Year-1.3%-9.2%73.1%46.9%56.7%36.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

6.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FLS (DKK212.6) is trading below our estimate of fair value (DKK228.18)

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


Price To Earnings Ratio

PE vs Industry: FLS is poor value based on its PE Ratio (29.2x) compared to the XE Machinery industry average (24.9x).

PE vs Market: FLS is poor value based on its PE Ratio (29.2x) compared to the Danish market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: FLS is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: FLS is good value based on its PB Ratio (1.3x) compared to the DK Machinery industry average (1.5x).


Next Steps

Future Growth

How is FLSmidth forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

35.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FLS's forecast earnings growth (35.6% per year) is above the savings rate (0.3%).

Earnings vs Market: FLS's earnings (35.6% per year) are forecast to grow faster than the Danish market (11.7% per year).

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

Revenue vs Market: FLS's revenue (6.2% per year) is forecast to grow slower than the Danish market (6.4% per year).

High Growth Revenue: FLS's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FLS's Return on Equity is forecast to be low in 3 years time (8.7%).


Next Steps

Past Performance

How has FLSmidth performed over the past 5 years?

5.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FLS has high quality earnings.

Growing Profit Margin: FLS's current net profit margins (2%) are lower than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: FLS's earnings have grown by 5.1% per year over the past 5 years.

Accelerating Growth: FLS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FLS had negative earnings growth (-58.8%) over the past year, making it difficult to compare to the Machinery industry average (-20.5%).


Return on Equity

High ROE: FLS's Return on Equity (4.5%) is considered low.


Next Steps

Financial Health

How is FLSmidth's financial position?


Financial Position Analysis

Short Term Liabilities: FLS's short term assets (DKK10.6B) exceed its short term liabilities (DKK8.3B).

Long Term Liabilities: FLS's short term assets (DKK10.6B) exceed its long term liabilities (DKK4.1B).


Debt to Equity History and Analysis

Debt Level: FLS's debt to equity ratio (30.6%) is considered satisfactory.

Reducing Debt: FLS's debt to equity ratio has reduced from 63.8% to 30.6% over the past 5 years.

Debt Coverage: FLS's debt is well covered by operating cash flow (56.4%).

Interest Coverage: FLS's interest payments on its debt are well covered by EBIT (9.8x coverage).


Balance Sheet


Next Steps

Dividend

What is FLSmidth current dividend yield, its reliability and sustainability?

3.14%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate FLS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate FLS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FLS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FLS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: FLS is not paying a notable dividend for the Danish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FLS's dividend in 3 years as they are not forecast to pay a notable one for the Danish market.


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Thomas Schulz (55 yo)

7.58yrs

Tenure

kr.10,981,000

Compensation

Mr. Thomas Schulz has been Group Chief Executive Officer at FLSmidth & Co. A/S since May 1, 2013. Mr. Schulz has extensive experience from the global mining and construction industry. He served as the Pres...


CEO Compensation Analysis

Compensation vs Market: Thomas's total compensation ($USD1.79M) is about average for companies of similar size in the Danish market ($USD1.69M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Schulz
Group Chief Executive Officer7.58yrskr.10.98m0.037%
DKK 3.8m
Annette Terndrup
Group Executive VP and Head of Group Legal & Strategy7.92yrskr.221.00k0.0027%
DKK 278.8k
Mette Dobel
Interim President of Region Europe11.92yrskr.450.00k0.0017%
DKK 178.9k
Naja Barrisøe
Acting CFO1.08yrsno datano data
Roland Andersen
Member of Group Executive Management & CFO0.42yrno datano data
Anders Wisdom
General Manager of Operations & Maintenanceno datano datano data
Nicolai Mauritzen
Head of Investor Relations2.92yrsno datano data
Sofie Lindberg
Senior Vice President of Group Communicationsno datano datano data
Cori Petersen
Head of Group HR & HSE2.67yrsno datano data
Per Kristensen
President of Region Asia8.75yrskr.1.71mno data
Carsten Lund
President of Cement Industryno datakr.141.00kno data
Deon de Kock
President of Region Sub-Saharan Africa & Middle Eastno datano datano data

2.8yrs

Average Tenure

53yo

Average Age

Experienced Management: FLS's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mette Dobel
Interim President of Region Europe11.92yrskr.450.00k0.0017%
DKK 178.9k
Tom Knutzen
Independent Vice Chairman3.58yrskr.900.00k0.030%
DKK 3.1m
Vagn Sørensen
Independent Chairman9.67yrskr.1.35m0.021%
DKK 2.2m
Thrasyvoulos Moraitis
Independent Director1.75yrskr.618.00kno data
Gillian Winckler
Independent Director1.75yrskr.431.00kno data
Richard Smith
Independent Director4.67yrskr.675.00k0.0020%
DKK 207.0k
Søren Quistgaard
Employee-Elected Member7.92yrskr.575.00k0.00013%
DKK 13.5k
Anne Eberhard
Independent Director3.75yrskr.575.00k0.0020%
DKK 207.0k
Claus Østergaard
Employee-Elected Member4.92yrskr.450.00k0.00086%
DKK 89.5k

4.7yrs

Average Tenure

57yo

Average Age

Experienced Board: FLS's board of directors are considered experienced (4.7 years average tenure).


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.


Ownership Breakdown

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


Top Shareholders

Company Information

FLSmidth & Co. A/S's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: FLSmidth & Co. A/S
  • Ticker: FLS
  • Exchange: CPSE
  • Founded: 1882
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: kr.10.402b
  • Shares outstanding: 50.15m
  • Website: https://www.flsmidth.com

Number of Employees


Location

  • FLSmidth & Co. A/S
  • Vigerslev Allé 77
  • Valby
  • Copenhagen
  • Capital Region of Denmark
  • 2500
  • Denmark

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FLSCPSE (OMX Nordic Exchange Copenhagen)YesCommon SharesDKDKKJan 1992
F6O1DB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1992
0OJALSE (London Stock Exchange)YesCommon SharesGBDKKJan 1992
FLID.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1992
FLSCBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBDKKJan 1992
FLID.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDMay 2008

Biography

FLSmidth & Co. A/S supplies engineering, equipment, and services to the cement and mining industries worldwide. The company operates through Mining and Cement segments. The company also engages in the mini...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/04 18:09
End of Day Share Price2020/12/04 00:00
Earnings2020/09/30
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.