CPSE:MTHH

Stock Analysis Report

Executive Summary

MT Højgaard Holding A/S operates in the construction and civil engineering industry in Denmark, the North Atlantic countries, and internationally.

Rewards

Trading at 76.8% below its fair value

Earnings are forecast to grow 36.62% per year

Became profitable this year

Risk Analysis

Debt is not well covered by operating cash flow

High level of non-cash earnings

Shareholders have been substantially diluted in the past year

Does not have a meaningful market cap (DKK568M)



Snowflake Analysis

Very undervalued with high growth potential.

Share Price & News

How has MT Højgaard Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MTHH has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.7%

MTHH

2.3%

DK Construction

1.8%

DK Market


1 Year Return

16.8%

MTHH

24.0%

DK Construction

23.0%

DK Market

Return vs Industry: MTHH underperformed the Danish Construction industry which returned 24% over the past year.

Return vs Market: MTHH underperformed the Danish Market which returned 23% over the past year.


Shareholder returns

MTHHIndustryMarket
7 Day0.7%2.3%1.8%
30 Day5.0%0.3%2.9%
90 Day4.3%4.0%9.2%
1 Year16.8%16.8%28.2%24.0%26.8%23.0%
3 Year-66.0%-66.0%28.6%16.5%57.4%44.0%
5 Year-64.7%-64.7%72.9%42.7%89.3%63.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is MT Højgaard Holding undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MTHH (DKK73) is trading below our estimate of fair value (DKK314.36)

Significantly Below Fair Value: MTHH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MTHH is good value based on its PE Ratio (3.4x) compared to the Construction industry average (11.5x).

PE vs Market: MTHH is good value based on its PE Ratio (3.4x) compared to the Danish market (15.4x).


Price to Earnings Growth Ratio

PEG Ratio: MTHH is good value based on its PEG Ratio (0.1x)


Price to Book Ratio

PB vs Industry: MTHH is good value based on its PB Ratio (1x) compared to the XE Construction industry average (1.2x).


Next Steps

Future Growth

How is MT Højgaard Holding forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

36.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTHH's forecast earnings growth (36.6% per year) is above the savings rate (-0.3%).

Earnings vs Market: MTHH's earnings (36.6% per year) are forecast to grow faster than the Danish market (12.1% per year).

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

Revenue vs Market: MTHH's revenue (17.9% per year) is forecast to grow faster than the Danish market (6.7% per year).

High Growth Revenue: MTHH's revenue (17.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MTHH's Return on Equity is forecast to be high in 3 years time (29.6%)


Next Steps

Past Performance

How has MT Højgaard Holding performed over the past 5 years?

-24.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTHH has a high level of non-cash earnings.

Growing Profit Margin: MTHH became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MTHH has become profitable over the past 5 years, growing earnings by -24.9% per year.

Accelerating Growth: MTHH has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MTHH has become profitable in the last year, making it difficult to compare its past year earnings growth to the Construction industry (7.9%).


Return on Equity

High ROE: Whilst MTHH's Return on Equity (26.23%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is MT Højgaard Holding's financial position?


Financial Position Analysis

Short Term Liabilities: MTHH's short term assets (DKK2.6B) do not cover its short term liabilities (DKK2.8B).

Long Term Liabilities: MTHH's short term assets (DKK2.6B) exceed its long term liabilities (DKK1.2B).


Debt to Equity History and Analysis

Debt Level: MTHH's debt to equity ratio (203%) is considered high.

Reducing Debt: MTHH's debt to equity ratio has increased from 17.3% to 203% over the past 5 years.

Debt Coverage: MTHH's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if MTHH's interest payments on its debt are well covered by EBIT.


Balance Sheet

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

Debt Coverage by Assets: MTHH's debt is covered by short term assets (assets are 2.3x debt).


Next Steps

Dividend

What is MT Højgaard Holding's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%5.0%industryaverage3.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

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

0.7yrs

Average board tenure


CEO

Morten Hansen (56yo)

0.08yrs

Tenure

0

Mr. Morten Hansen is the Owner and CEO in Omnia Invest A/S, Tirsbæk Bakker A/S and Juulsbjerg Ejendomme A/S. Mr. Hansen has been Director at MT Højgaard Holding A/S since April 5, 2019. He has been the Ac ...


Board Age and Tenure

0.7yrs

Average Tenure

55.5yo

Average Age

Experienced Board: MTHH's board of directors are not considered experienced ( 0.7 years average tenure), which suggests a new board.


Insider Trading

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 been substantially diluted in the past year, with total shares outstanding growing by 64.3%.


Management Team

  • Ann-Louise Elkjær

    Vice President of Communications and Human Resources

    • Tenure: 0yrs
  • Morten Hansen (56yo)

    Acting President & CEO

    • Tenure: 0.08yrs
  • Martin Solberg (44yo)

    CFO & Member of Executive Board

    • Tenure: 0.9yrs

Board Members

  • Carsten Dilling (57yo)

    Chairman of the Board

    • Tenure: 0.7yrs
  • Christine Thorsen (61yo)

    Director

    • Tenure: 0.7yrs
  • Anders Lindberg (54yo)

    Vice Chairman

    • Tenure: 0.7yrs
  • Pernille Fabricius (53yo)

    Director

    • Tenure: 5.7yrs
  • Ole Jess Røsdahl (55yo)

    Director

    • Tenure: 0.7yrs
  • Morten Hansen (56yo)

    Acting President & CEO

    • Tenure: 0.08yrs

Company Information

MT Højgaard Holding A/S's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MT Højgaard Holding A/S
  • Ticker: MTHH
  • Exchange: CPSE
  • Founded: 1918
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: ø568.456m
  • Shares outstanding: 7.79m
  • Website: https://www.mthh.dk

Number of Employees


Location

  • MT Højgaard Holding A/S
  • Knud Højgaards Vej 7
  • Søborg
  • Capital Region of Denmark
  • 2860
  • Denmark

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MTHHCPSE (OMX Nordic Exchange Copenhagen)YesOrdinary SharesDKDKKJan 1992
0JD8LSE (London Stock Exchange)YesOrdinary SharesGBDKKJan 1992

Biography

MT Højgaard Holding A/S operates in the construction and civil engineering industry in Denmark, the North Atlantic countries, and internationally. The company develops, constructs, and refurbishes building ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 20:48
End of Day Share Price2019/12/11 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.