CPSE:PAAL B

Stock Analysis Report

Executive Summary

Per Aarsleff Holding A/S, together with its subsidiaries, operates as a civil engineering contractor in Denmark and internationally.

Rewards

Trading at 34.7% below its fair value

Earnings are forecast to grow 17.71% per year

Earnings have grown 2.7% per year over the past 5 years

Pays a high and reliable dividend of 2.3%

Risk Analysis

No risks detected for PAAL B from our risk checks.


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.2%

PAAL B

2.3%

DK Construction

1.8%

DK Market


1 Year Return

12.7%

PAAL B

24.0%

DK Construction

23.0%

DK Market

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

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


Shareholder returns

PAAL BIndustryMarket
7 Day1.2%2.3%1.8%
30 Day-0.9%0.3%2.9%
90 Day-9.8%4.0%9.2%
1 Year15.4%12.7%28.2%24.0%26.8%23.0%
3 Year40.9%31.9%28.6%16.5%57.4%44.0%
5 Year115.9%97.3%72.9%42.7%89.3%63.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Per Aarsleff Holding undervalued compared to its fair value and its price relative to the market?

34.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PAAL B (DKK217) is trading below our estimate of fair value (DKK332.43)

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


Price To Earnings Ratio

PE vs Industry: PAAL B is poor value based on its PE Ratio (12x) compared to the Construction industry average (11.5x).

PE vs Market: PAAL B is good value based on its PE Ratio (12x) compared to the Danish market (15.4x).


Price to Earnings Growth Ratio

PEG Ratio: PAAL B is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: PAAL B is overvalued based on its PB Ratio (1.4x) compared to the XE Construction industry average (1.2x).


Next Steps

Future Growth

How is Per Aarsleff Holding forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

17.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PAAL B's forecast earnings growth (17.7% per year) is above the savings rate (-0.3%).

Earnings vs Market: PAAL B's earnings (17.7% per year) are forecast to grow faster than the Danish market (12.1% per year).

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

Revenue vs Market: PAAL B's revenue (4.4% per year) is forecast to grow slower than the Danish market (6.7% per year).

High Growth Revenue: PAAL B's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PAAL B's Return on Equity is forecast to be low in 3 years time (14.1%).


Next Steps

Past Performance

How has Per Aarsleff Holding performed over the past 5 years?

2.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PAAL B has high quality earnings.

Growing Profit Margin: PAAL B's current net profit margins (2.8%) are lower than last year (2.9%).


Past Earnings Growth Analysis

Earnings Trend: PAAL B's earnings have grown by 2.7% per year over the past 5 years.

Accelerating Growth: PAAL B's earnings growth over the past year (7.4%) exceeds its 5-year average (2.7% per year).

Earnings vs Industry: PAAL B earnings growth over the past year (7.4%) underperformed the Construction industry 7.9%.


Return on Equity

High ROE: PAAL B's Return on Equity (12%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Per Aarsleff Holding's financial position?


Financial Position Analysis

Short Term Liabilities: PAAL B's short term assets (DKK5.6B) exceed its short term liabilities (DKK4.6B).

Long Term Liabilities: PAAL B's short term assets (DKK5.6B) exceed its long term liabilities (DKK632.0M).


Debt to Equity History and Analysis

Debt Level: PAAL B's debt to equity ratio (24.4%) is considered satisfactory.

Reducing Debt: PAAL B's debt to equity ratio has reduced from 27.7% to 24.4% over the past 5 years.

Debt Coverage: PAAL B's debt is well covered by operating cash flow (158.6%).

Interest Coverage: PAAL B earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: PAAL B's debt is covered by short term assets (assets are 7.4x debt).


Next Steps

Dividend

What is Per Aarsleff Holding's current dividend yield, its reliability and sustainability?

2.30%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%1.5%markettop25%5.0%industryaverage3.5%forecastin3Years3.3%

Current dividend yield vs market & industry

Notable Dividend: PAAL B's dividend (2.3%) is higher than the bottom 25% of dividend payers in the Danish market (1.52%).

High Dividend: PAAL B's dividend (2.3%) is low compared to the top 25% of dividend payers in the Danish market (5.02%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.6%), PAAL B's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PAAL B's dividends in 3 years are forecast to be well covered by earnings (28.3% payout ratio).


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Jesper Jacobsen (49yo)

1.2yrs

Tenure

0

Mr. Jesper Kristian Jacobsen has been Chief Executive Officer at Per Aarsleff Holding A/S since October 1, 2018. He employed with Per Aarsleff Holding A/S since 2001. He served as Deputy General Manager at ...


Management Age and Tenure

1.9yrs

Average Tenure

49yo

Average Age

Experienced Management: PAAL B's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

2.9yrs

Average Tenure

60yo

Average Age

Experienced Board: PAAL B's board of directors are not considered experienced ( 2.9 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 not been meaningfully diluted in the past year.


Management Team

  • Lars Carlsen (58yo)

    Deputy Chief Executive Officer

    • Tenure: 1.9yrs
  • Mogens Hestbæk (47yo)

    Group Chief Financial Officer

    • Tenure: 4.9yrs
  • Jesper Jacobsen (49yo)

    Chief Executive Officer

    • Tenure: 1.2yrs

Board Members

  • Jens Sørensen (62yo)

    Deputy Chairman

    • Tenure: 5.8yrs
  • Andreas Lundby (69yo)

    Independent Chairman

    • Tenure: 0yrs
  • Ebbe Iversen (68yo)

    Director

    • Tenure: 0.08yrs
  • Bjarne Hansen (58yo)

    Director

    • Tenure: 0.9yrs
  • Peter Poulsen (57yo)

    Independent Director

    • Tenure: 9.9yrs
  • Charlotte Strand (58yo)

    Independent Director

    • Tenure: 2.9yrs

Company Information

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


Key Information

  • Name: Per Aarsleff Holding A/S
  • Ticker: PAAL B
  • Exchange: CPSE
  • Founded: 1947
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: ø4.378b
  • Shares outstanding: 20.17m
  • Website: https://www.aarsleff.com

Number of Employees


Location

  • Per Aarsleff Holding A/S
  • Hasselager Allé 5
  • Viby J
  • Central Denmark Region
  • 8260
  • Denmark

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PAAL BCPSE (OMX Nordic Exchange Copenhagen)YesClass B SharesDKDKKJan 1992
0REQLSE (London Stock Exchange)YesClass B SharesGBDKKJan 1992
PAALBCBATS-CHIXE (BATS 'Chi-X Europe')YesClass B SharesGBDKKJan 1992
PE9DB (Deutsche Boerse AG)YesClass B SharesDEEURJan 1992

Biography

Per Aarsleff Holding A/S, together with its subsidiaries, operates as a civil engineering contractor in Denmark and internationally. It operates through Construction, Pipe Technologies, and Ground Engineer ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 20:46
End of Day Share Price2019/12/10 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.