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FLSmidth

CPSE:FLS
Snowflake Description

Undervalued with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FLS
CPSE
DKK14B
Market Cap
  1. Home
  2. DK
  3. Capital Goods
Company description

FLSmidth & Co. A/S supplies engineering, equipment, and services to the cement and mining industries worldwide. The last earnings update was 76 days ago. More info.


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FLS Share Price and Events
7 Day Returns
-1.2%
CPSE:FLS
1.4%
DK Machinery
-0.8%
DK Market
1 Year Returns
-28.1%
CPSE:FLS
-30.4%
DK Machinery
-0.6%
DK Market
FLS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
FLSmidth (FLS) -1.2% 3.8% -15.9% -28.1% 4.9% -6.4%
DK Machinery 1.4% 1.1% -20.9% -30.4% 6.9% -4.3%
DK Market -0.8% -0.2% 0.7% -0.6% 10.3% 34.2%
1 Year Return vs Industry and Market
  • FLS outperformed the Machinery industry which returned -30.4% over the past year.
  • FLS underperformed the Market in Denmark which returned -0.6% over the past year.
Price Volatility
FLS
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of FLSmidth to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for FLSmidth.

CPSE:FLS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.3%
Perpetual Growth Rate 10-Year DK Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for CPSE:FLS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DK Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.09
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.087 (1 + (1- 22%) (21.81%))
1.182
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.18
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.21% + (1.182 * 5.96%)
7.26%

Discounted Cash Flow Calculation for CPSE:FLS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for FLSmidth 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.

CPSE:FLS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (DKK, Millions) Source Present Value
Discounted (@ 7.26%)
2020 1,336.75 Analyst x4 1,246.26
2021 1,481.33 Analyst x3 1,287.57
2022 1,588.75 Est @ 7.25% 1,287.47
2023 1,670.42 Est @ 5.14% 1,262.01
2024 1,731.59 Est @ 3.66% 1,219.67
2025 1,777.08 Est @ 2.63% 1,166.99
2026 1,810.90 Est @ 1.9% 1,108.70
2027 1,836.19 Est @ 1.4% 1,048.08
2028 1,855.31 Est @ 1.04% 987.31
2029 1,870.02 Est @ 0.79% 927.78
Present value of next 10 years cash flows DKK11,541.84
CPSE:FLS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= DKK1,870.02 × (1 + 0.21%) ÷ (7.26% – 0.21%)
DKK26,591.83
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= DKK26,591.83 ÷ (1 + 7.26%)10
DKK13,193.06
CPSE:FLS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= DKK11,541.84 + DKK13,193.06
DKK24,734.90
Equity Value per Share
(DKK)
= Total value / Shares Outstanding
= DKK24,734.90 / 49.99
DKK494.78
CPSE:FLS Discount to Share Price
Calculation Result
Value per share (DKK) From above. DKK494.78
Current discount Discount to share price of DKK278.20
= -1 x (DKK278.20 - DKK494.78) / DKK494.78
43.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price FLSmidth is available for.
Intrinsic value
44%
Share price is DKK278.2 vs Future cash flow value of DKK494.78
Current Discount Checks
For FLSmidth to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • FLSmidth's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • FLSmidth'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 FLSmidth's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are FLSmidth's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
CPSE:FLS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in DKK DKK16.42
CPSE:FLS Share Price ** CPSE (2019-07-17) in DKK DKK278.2
Denmark Machinery Industry PE Ratio Median Figure of 5 Publicly-Listed Machinery Companies 17.18x
Denmark Market PE Ratio Median Figure of 100 Publicly-Listed Companies 17.82x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of FLSmidth.

CPSE:FLS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= CPSE:FLS Share Price ÷ EPS (both in DKK)

= 278.2 ÷ 16.42

16.94x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • FLSmidth is good value based on earnings compared to the DK Machinery industry average.
  • FLSmidth is good value based on earnings compared to the Denmark market.
Price based on expected Growth
Does FLSmidth's expected growth come at a high price?
Raw Data
CPSE:FLS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 16.94x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
17.9%per year
Europe Machinery Industry PEG Ratio Median Figure of 127 Publicly-Listed Machinery Companies 1.55x
Denmark Market PEG Ratio Median Figure of 44 Publicly-Listed Companies 2.08x

*Line of best fit is calculated by linear regression .

CPSE:FLS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 16.94x ÷ 17.9%

0.95x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • FLSmidth is good value based on expected growth next year.
Price based on value of assets
What value do investors place on FLSmidth's assets?
Raw Data
CPSE:FLS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in DKK DKK163.77
CPSE:FLS Share Price * CPSE (2019-07-17) in DKK DKK278.2
Denmark Machinery Industry PB Ratio Median Figure of 7 Publicly-Listed Machinery Companies 1.64x
Denmark Market PB Ratio Median Figure of 136 Publicly-Listed Companies 1.58x
CPSE:FLS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= CPSE:FLS Share Price ÷ Book Value per Share (both in DKK)

= 278.2 ÷ 163.77

1.7x

* Primary Listing of FLSmidth.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • FLSmidth is overvalued based on assets compared to the DK Machinery industry average.
X
Value checks
We assess FLSmidth's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. FLSmidth has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is FLSmidth expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
17.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is FLSmidth expected to grow at an attractive rate?
  • FLSmidth's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • FLSmidth's earnings growth is expected to exceed the Denmark market average.
  • FLSmidth's revenue growth is positive but not above the Denmark market average.
Annual Growth Rates Comparison
Raw Data
CPSE:FLS Future Growth Rates Data Sources
Data Point Source Value (per year)
CPSE:FLS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 17.9%
CPSE:FLS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 6%
Denmark Machinery Industry Earnings Growth Rate Market Cap Weighted Average 26.5%
Europe Machinery Industry Revenue Growth Rate Market Cap Weighted Average 3.9%
Denmark Market Earnings Growth Rate Market Cap Weighted Average 10.6%
Denmark Market Revenue Growth Rate Market Cap Weighted Average 6.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
CPSE:FLS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in DKK Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
CPSE:FLS Future Estimates Data
Date (Data in DKK Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 24,229 1,710 1
2021-12-31 22,675 1,943 1,410 8
2020-12-31 21,634 1,843 1,210 9
2019-12-31 20,189 1,724 992 9
CPSE:FLS Past Financials Data
Date (Data in DKK Millions) Revenue Cash Flow Net Income *
2019-03-31 18,931 276 818
2018-12-31 18,750 385 818
2018-09-30 18,243 834 554
2018-06-30 18,009 891 483
2018-03-31 17,864 1,259 389
2017-12-31 18,000 1,065 419
2017-09-30 18,582 1,127 590
2017-06-30 19,255 1,457 677
2017-03-31 18,805 1,656 684
2016-12-31 18,192 1,447 586
2016-09-30 17,964 987 427
2016-06-30 17,799 739 348

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • FLSmidth's earnings are expected to grow by 17.9% yearly, however this is not considered high growth (20% yearly).
  • FLSmidth's revenue is expected to grow by 6% yearly, however this is not considered high growth (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.
Raw Data
CPSE:FLS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from FLSmidth Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

CPSE:FLS Future Estimates Data
Date (Data in DKK Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 34.08 34.08 34.08 1.00
2021-12-31 27.73 30.71 25.40 6.00
2020-12-31 24.12 26.14 22.30 7.00
2019-12-31 19.76 20.83 18.60 6.00
CPSE:FLS Past Financials Data
Date (Data in DKK Millions) EPS *
2019-03-31 16.42
2018-12-31 16.45
2018-09-30 11.16
2018-06-30 9.76
2018-03-31 7.88
2017-12-31 8.51
2017-09-30 12.02
2017-06-30 13.82
2017-03-31 13.97
2016-12-31 11.98
2016-09-30 8.73
2016-06-30 7.13

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • FLSmidth is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess FLSmidth's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Denmark market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
FLSmidth has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has FLSmidth performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare FLSmidth's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • FLSmidth's year on year earnings growth rate has been positive over the past 5 years.
  • FLSmidth's 1-year earnings growth exceeds its 5-year average (110.3% vs 15%)
  • FLSmidth's earnings growth has exceeded the Europe Machinery industry average in the past year (110.3% vs 12.3%).
Earnings and Revenue History
FLSmidth's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from FLSmidth Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

CPSE:FLS Past Revenue, Cash Flow and Net Income Data
Date (Data in DKK Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 18,931.00 818.00 2,929.00
2018-12-31 18,750.00 818.00 2,924.00
2018-09-30 18,243.00 554.00 2,933.00
2018-06-30 18,009.00 483.00 2,875.00
2018-03-31 17,864.00 389.00 2,909.00
2017-12-31 18,000.00 419.00 2,927.00
2017-09-30 18,582.00 590.00 2,950.00
2017-06-30 19,255.00 677.00 3,040.00
2017-03-31 18,805.00 684.00 2,997.00
2016-12-31 18,192.00 586.00 3,023.00
2016-09-30 17,964.00 427.00 3,057.00
2016-06-30 17,799.00 348.00 3,045.00
2016-03-31 18,757.00 479.00 3,136.00
2015-12-31 19,682.00 599.00 3,134.00
2015-09-30 20,012.00 732.00 3,064.00
2015-06-30 20,379.00 857.00 3,077.00
2015-03-31 20,233.00 971.00 2,991.00
2014-12-31 20,499.00 880.00 3,056.00
2014-09-30 20,851.00 568.00 3,068.00
2014-06-30 22,605.00 -448.00 3,277.00
2014-03-31 24,510.00 -650.00 3,477.00
2013-12-31 25,482.00 -720.00 3,694.00
2013-09-30 27,898.00 -126.00 3,945.00
2013-06-30 27,876.00 1,026.00 4,013.00
2013-03-31 27,376.00 1,097.00 4,014.00
2012-12-31 26,284.00 1,311.00 3,765.00
2012-09-30 24,800.00 1,346.00 3,592.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • FLSmidth has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • FLSmidth used its assets more efficiently than the DK Machinery industry average last year based on Return on Assets.
  • FLSmidth has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess FLSmidth's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. 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.
FLSmidth has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is FLSmidth's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up FLSmidth's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • FLSmidth is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • FLSmidth's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of FLSmidth's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 4.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from FLSmidth Company Filings, last reported 3 months ago.

CPSE:FLS Past Debt and Equity Data
Date (Data in DKK Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 8,201.00 2,721.00 984.00
2018-12-31 8,266.00 2,802.00 875.00
2018-09-30 8,048.00 3,066.00 1,126.00
2018-06-30 7,933.00 3,293.00 1,131.00
2018-03-31 8,058.00 2,525.00 1,311.00
2017-12-31 8,038.00 2,950.00 1,382.00
2017-09-30 8,211.00 3,319.00 1,159.00
2017-06-30 8,254.00 3,804.00 1,228.00
2017-03-31 8,496.00 3,613.00 1,280.00
2016-12-31 8,462.00 3,950.00 1,448.00
2016-09-30 8,151.00 4,511.00 1,367.00
2016-06-30 7,896.00 5,038.00 1,198.00
2016-03-31 7,938.00 4,697.00 1,124.00
2015-12-31 7,982.00 4,878.00 1,123.00
2015-09-30 7,832.00 5,055.00 1,261.00
2015-06-30 8,207.00 5,608.00 1,275.00
2015-03-31 8,157.00 5,686.00 1,225.00
2014-12-31 7,761.00 5,530.00 963.00
2014-09-30 7,644.00 5,897.00 1,049.00
2014-06-30 7,362.00 6,113.00 1,001.00
2014-03-31 7,033.00 6,043.00 973.00
2013-12-31 6,922.00 5,553.00 1,084.00
2013-09-30 7,299.00 5,495.00 1,341.00
2013-06-30 8,417.00 5,902.00 1,569.00
2013-03-31 9,585.00 5,186.00 1,661.00
2012-12-31 9,419.00 4,355.00 1,566.00
2012-09-30 9,238.00 5,590.00 1,628.00
  • FLSmidth's level of debt (33.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (86% vs 33.2% today).
  • Debt is not well covered by operating cash flow (10.1%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 19.3x coverage).
X
Financial health checks
We assess FLSmidth's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. FLSmidth has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.24%
Current annual income from FLSmidth dividends. Estimated to be 4.17% next year.
If you bought DKK2,000 of FLSmidth shares you are expected to receive DKK65 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • FLSmidth's pays a higher dividend yield than the bottom 25% of dividend payers in Denmark (1.63%).
  • FLSmidth's dividend is below the markets top 25% of dividend payers in Denmark (4.62%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
CPSE:FLS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
Europe Machinery Industry Average Dividend Yield Market Cap Weighted Average of 144 Stocks 3%
Denmark Market Average Dividend Yield Market Cap Weighted Average of 77 Stocks 2.4%
Denmark Minimum Threshold Dividend Yield 10th Percentile 0.9%
Denmark Bottom 25% Dividend Yield 25th Percentile 1.6%
Denmark Top 25% Dividend Yield 75th Percentile 4.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

CPSE:FLS Future Dividends Estimate Data
Date (Data in DKK) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31 13.17 8.00
2020-12-31 11.78 9.00
2019-12-31 10.06 9.00
CPSE:FLS Past Annualized Dividends Data
Date (Data in DKK) Dividend per share (annual) Avg. Yield (%)
2019-01-31 9.000 3.022
2018-04-05 8.000 2.172
2017-03-30 6.000 1.538
2016-02-11 4.000 1.470
2015-02-12 9.000 3.303
2015-01-15 9.000 3.186
2014-02-13 2.000 0.702
2013-02-12 9.000 3.000
2012-02-21 9.000 2.584
2011-02-17 9.000 2.423
2010-04-16 5.000 1.184
2010-02-25 7.000 1.825
2009-11-17 0.000 0.000
2009-10-30 0.000 0.000
2009-08-20 0.000 0.000
2009-05-28 0.000 0.000
2009-02-26 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • FLSmidth has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but FLSmidth only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of FLSmidth's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.6x coverage).
X
Income/ dividend checks
We assess FLSmidth's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can FLSmidth afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. FLSmidth has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

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.
CEO
Thomas Schulz
COMPENSATION DKK13,511,000
AGE 54
TENURE AS CEO 6.2 years
CEO Bio

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 President of Sandvik Construction Business Area at Sandvik Tooling AB. He served as a Member of Group Executive Management of Sandvik in Sweden from 2011 to 2013. He served as the President of Customer Segment Construction within Sandvik Mining and Construction at Sandvik AB from 2006 to December 2012. He joined Sandvik in 2001 and served as the Chairman of SJL Shan Bao from 2011 to 2012, President of the Business Area Construction from 2011 to 2012, President of Construction and Senior Vice President of Mining and Construction from 2005 to 2011 and Regional President Mining and Construction Central Europe from 2001 to 2002. He has been a Director of Norsk Hydro ASA since May 26, 2016. Mr. Schulz holds a M Sc (Engineering) and PhD in Mining Engineering (Dissertation in Mineral Mining and Quarrying) at Rheinisch-Westfälische Technische Hochschule Aachen.

CEO Compensation
  • Thomas's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Thomas's remuneration is lower than average for companies of similar size in Denmark.
Management Team Tenure

Average tenure and age of the FLSmidth management team in years:

1.5
Average Tenure
51.5
Average Age
  • The average tenure for the FLSmidth management team is less than 2 years, this suggests a new team.
Management Team

Thomas Schulz

TITLE
Group Chief Executive Officer
COMPENSATION
DKK14M
AGE
54
TENURE
6.2 yrs

Lars Vestergaard

TITLE
Group Executive VP & CFO
COMPENSATION
DKK7M
AGE
45
TENURE
5.3 yrs

Anders Wisdom

TITLE
General Manager of Operations & Maintenance

Nicolai Mauritzen

TITLE
Head of Investor Relations
TENURE
1.5 yrs

Annette Terndrup

TITLE
Head of Group Legal & Strategy
TENURE
6.5 yrs

Sofie Lindberg

TITLE
Senior Vice President of Group Communications

Cori Petersen

TITLE
Head of Group HR and HSE
AGE
50
TENURE
1.3 yrs

Mikael Lindholm

TITLE
Chief Digital Officer
AGE
45
TENURE
1.2 yrs

Manfred Schaffer

TITLE
Mining President
AGE
61
TENURE
1.5 yrs

Jan Kjaersgaard

TITLE
Cement President
AGE
53
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the FLSmidth board of directors in years:

2.3
Average Tenure
56.5
Average Age
  • The average tenure for the FLSmidth board of directors is less than 3 years, this suggests a new board.
Board of Directors

Vagn Sørensen

TITLE
Chairman
COMPENSATION
DKK1M
AGE
60
TENURE
8.3 yrs

Tom Knutzen

TITLE
Vice Chairman
COMPENSATION
DKK844K
AGE
57
TENURE
2.2 yrs

Rob Smith

TITLE
Director
COMPENSATION
DKK650K
AGE
54
TENURE
3.3 yrs

Anne Eberhard

TITLE
Director
COMPENSATION
DKK431K
AGE
56
TENURE
2.3 yrs

Thras Moraitis

TITLE
Director
AGE
58
TENURE
0.3 yrs

Gill Winckler

TITLE
Director
AGE
56
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (DKK) Value (DKK)
X
Management checks
We assess FLSmidth's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. FLSmidth has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should You Be Tempted To Sell FLSmidth & Co. A/S (CPH:FLS) Because Of Its P/E Ratio?

See our latest analysis for FLSmidth How Do I Calculate FLSmidth's Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for FLSmidth: P/E of 17.18 = DKK282.1 ÷ DKK16.42 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' Does FLSmidth Have A Relatively High Or Low P/E For Its Industry?

Simply Wall St -

FLSmidth & Co. A/S (CPH:FLS): Immense Growth Potential?

A/S's (CPH:FLS) earnings update in March 2019, it seems that analyst forecasts are fairly optimistic, with earnings expected to grow by 28% in the upcoming year relative to the past 5-year average growth rate of 15%. … I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of FLS's earnings growth over these next few years. … CPSE:FLS Past and Future Earnings, July 9th 2019 From the current net income level of ø818m and the final forecast of ø1.5b by 2022, the annual rate of growth for FLS’s earnings is 18%.

Simply Wall St -

How Should Investors Feel About FLSmidth & Co. A/S's (CPH:FLS) CEO Pay?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … See our latest analysis for FLSmidth How Does Thomas Schulz's Compensation Compare With Similar Sized Companies? … As you can see, Thomas Schulz is paid more than the median CEO pay at companies of a similar size, in the same market.

Simply Wall St -

Should FLSmidth & Co. A/S (CPH:FLS) Be Part Of Your Dividend Portfolio?

Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. … Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see FLSmidth has grown its earnings per share at 15% per annum over the past five years. … Conclusion When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable.

Simply Wall St -

Should You Think About Buying FLSmidth & Co. A/S (CPH:FLS) Now?

Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. … According to my valuation, the intrinsic value for the stock is DKK467.18, but it is currently trading at ø271 on the share market, meaning that there is still an opportunity to buy now. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price.

Simply Wall St -

Does FLSmidth & Co. A/S’s (CPH:FLS) ROCE Reflect Well On The Business?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for FLSmidth: 0.097 = ø1.2b ÷ (ø23b - ø11b) (Based on the trailing twelve months to March 2019.) Therefore, FLSmidth has an ROCE of 9.7%. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE. … Our Take On FLSmidth's ROCE While its ROCE looks good, it's worth remembering that the current liabilities are making the business look better.

Simply Wall St -

Investors Who Bought FLSmidth (CPH:FLS) Shares A Year Ago Are Now Down 36%

One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During the unfortunate twelve months during which the FLSmidth share price fell, it actually saw its earnings per share (EPS) improve by 108%. … When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return.

Simply Wall St -

Should You Be Concerned About FLSmidth & Co. A/S's (CPH:FLS) Historical Volatility?

A/S (CPH:FLS), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility).

Simply Wall St -

What Kind Of Shareholder Owns Most FLSmidth & Co. A/S (CPH:FLS) Stock?

A/S (CPH:FLS), then you'll have to look at the makeup of its share registry. … Generally speaking, as a company grows, institutions will increase their ownership. … institutions are noticeable on the share registry.

Simply Wall St -

Is FLSmidth & Co. A/S (CPH:FLS) Trading At A 31% Discount?

by taking the foreast future cash flows of the company and discounting them back to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. … We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows

Simply Wall St -

Company Info

Description

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 mining activities. It explores for copper, gold, iron ore, coal, and battery metals. It offers a range of products, systems, and services, including single engineered and customized equipment, such as mills, kiln systems, and clinker coolers for the cement industry; and crushers, ball mills, pumps, gravity concentrators, and thickeners or flotation cells, as well as bundled equipment solutions, full production plants, and maintenance solutions for the mining industry. The company also provides operation, maintenance, and upgrade services, as well as sells spare and wear parts. The company was founded in 1882 and is headquartered in Copenhagen, Denmark.

Details
Name: FLSmidth & Co. A/S
FLS
Exchange: CPSE
Founded: 1882
DKK13,907,794,152
49,992,071
Website: http://www.flsmidth.com
Address: FLSmidth & Co. A/S
Vigerslev Allé 77,
Valby,
Copenhagen,
Capital Region of Denmark, 2500,
Denmark
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
CPSE FLS Common Shares OMX Nordic Exchange Copenhagen DK DKK 02. Jan 1992
OTCPK FLID.F Common Shares Pink Sheets LLC US USD 02. Jan 1992
DB F6O1 Common Shares Deutsche Boerse AG DE EUR 02. Jan 1992
LSE 0OJA Common Shares London Stock Exchange GB DKK 02. Jan 1992
BATS-CHIXE FLSC Common Shares BATS 'Chi-X Europe' GB DKK 02. Jan 1992
OTCPK FLID.Y SPONSORED ADR Pink Sheets LLC US USD 20. May 2008
Number of employees
Current staff
Staff numbers
11,513
FLSmidth employees.
Industry
Construction Machinery and Heavy Trucks
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/17 20:45
End of day share price update: 2019/07/17 00:00
Last estimates confirmation: 2019/07/11
Last earnings filing: 2019/05/02
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.