NOT FOR DISTRIBUTION
Header cover image

Market Cap

kr.11.9b

Last Updated

2021/04/09 17:04 UTC

Data Sources

Company Financials +

Executive Summary

NKT A/S develops, manufactures, and markets cables, accessories, and solutions worldwide. More Details


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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

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


Market Performance


7 Day Return

-2.4%

NKT

-0.2%

DK Electrical

1.4%

DK Market


1 Year Return

126.0%

NKT

80.6%

DK Electrical

37.5%

DK Market

Return vs Industry: NKT exceeded the Danish Electrical industry which returned 80.6% over the past year.

Return vs Market: NKT exceeded the Danish Market which returned 37.5% over the past year.


Shareholder returns

NKTIndustryMarket
7 Day-2.4%-0.2%1.4%
30 Day15.6%5.8%5.3%
90 Day-7.9%-3.4%-1.0%
1 Year156.0%126.0%84.3%80.6%41.1%37.5%
3 Year59.0%40.4%85.5%72.0%71.6%58.2%
5 Year67.7%-28.8%120.9%89.7%79.9%56.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

36.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NKT (DKK269.2) is trading below our estimate of fair value (DKK420.35)

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


Price To Earnings Ratio

PE vs Industry: NKT is unprofitable, so we can't compare its PE Ratio to the XE Electrical industry average.

PE vs Market: NKT is unprofitable, so we can't compare its PE Ratio to the Danish market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NKT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NKT is good value based on its PB Ratio (1.4x) compared to the XE Electrical industry average (3.4x).


Future Growth

How is NKT forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

80.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NKT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: NKT is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: NKT's is expected to become profitable in the next 3 years.

Revenue vs Market: NKT's revenue (10.9% per year) is forecast to grow faster than the Danish market (6.6% per year).

High Growth Revenue: NKT's revenue (10.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NKT's Return on Equity is forecast to be low in 3 years time (6.8%).


Past Performance

How has NKT performed over the past 5 years?

-30.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NKT is currently unprofitable.

Growing Profit Margin: NKT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NKT is unprofitable, and losses have increased over the past 5 years at a rate of 30.4% per year.

Accelerating Growth: Unable to compare NKT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NKT is unprofitable, making it difficult to compare its past year earnings growth to the Electrical industry (11.4%).


Return on Equity

High ROE: NKT has a negative Return on Equity (-6.92%), as it is currently unprofitable.


Financial Health

How is NKT's financial position?


Financial Position Analysis

Short Term Liabilities: NKT's short term assets (€842.0M) exceed its short term liabilities (€765.6M).

Long Term Liabilities: NKT's short term assets (€842.0M) exceed its long term liabilities (€308.6M).


Debt to Equity History and Analysis

Debt Level: NKT's debt to equity ratio (15.5%) is considered satisfactory.

Reducing Debt: NKT's debt to equity ratio has reduced from 19.4% to 15.5% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable NKT has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: NKT is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 39.1% per year.


Dividend

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

0.31%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate NKT'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 NKT's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NKT'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?

1.7yrs

Average management tenure


CEO

Alexander Kara (59 yo)

1.67yrs

Tenure

Mr. Alexander Kara is Chief Executive Officer and President at NKT A/S since August 1, 2019. He is an internationally experienced executive in the power distribution industry, with in-depth market knowledg...


Leadership Team

Experienced Management: NKT's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: NKT's board of directors are considered experienced (3.5 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 been substantially diluted in the past year, with total shares outstanding growing by 57.5%.


Top Shareholders

Company Information

NKT A/S's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NKT A/S
  • Ticker: NKT
  • Exchange: CPSE
  • Founded: 1891
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: kr.11.879b
  • Shares outstanding: 42.98m
  • Website: https://www.nkt.com

Number of Employees


Location

  • NKT A/S
  • Vibeholms AllE 20
  • Brøndby
  • Capital Region of Denmark
  • 2605
  • Denmark

Listings


Biography

NKT A/S develops, manufactures, and markets cables, accessories, and solutions worldwide. It operates through Solutions, Applications, Service & Accessories, and NKT Photonics segments. It offers high volt...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/09 17:04
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.