CPSE:PAAL B

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


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

-9.1%

PAAL B

-6.9%

DK Construction

-6.7%

DK Market


1 Year Return

-10.9%

PAAL B

9.3%

DK Construction

20.0%

DK Market

Return vs Industry: PAAL B underperformed the Danish Construction industry which returned 9.4% over the past year.

Return vs Market: PAAL B underperformed the Danish Market which returned 19.6% over the past year.


Shareholder returns

PAAL BIndustryMarket
7 Day-9.1%-6.9%-6.7%
30 Day-6.5%-2.3%0.3%
90 Day-6.7%-0.9%4.8%
1 Year-8.5%-10.9%13.6%9.3%23.7%20.0%
3 Year29.3%20.6%18.4%6.3%52.8%39.7%
5 Year35.5%21.7%41.2%15.3%60.9%38.4%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PAAL B (DKK204) is trading below our estimate of fair value (DKK463.14)

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 good value based on its PE Ratio (11.5x) compared to the Construction industry average (12.2x).

PE vs Market: PAAL B is good value based on its PE Ratio (11.5x) compared to the Danish market (16.1x).


Price to Earnings Growth Ratio

PEG Ratio: PAAL B is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: PAAL B is overvalued based on its PB Ratio (1.3x) 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?

7.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PAAL B's forecast earnings growth (11.9% per year) is above the savings rate (-0.3%).

Earnings vs Market: PAAL B's earnings (11.9% per year) are forecast to grow faster than the Danish market (11.8% per year).

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

Revenue vs Market: PAAL B's revenue (3.8% per year) is forecast to grow slower than the Danish market (6% per year).

High Growth Revenue: PAAL B's revenue (3.8% 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 (13.3%).


Next Steps

Past Performance

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

2.0%

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 (2.7%) are lower than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: PAAL B's earnings have grown by 2% per year over the past 5 years.

Accelerating Growth: PAAL B's earnings growth over the past year (6%) exceeds its 5-year average (2% per year).

Earnings vs Industry: PAAL B earnings growth over the past year (6%) exceeded the Construction industry 2.1%.


Return on Equity

High ROE: PAAL B's Return on Equity (11.6%) 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 (DKK5.5B) exceed its short term liabilities (DKK4.3B).

Long Term Liabilities: PAAL B's short term assets (DKK5.5B) exceed its long term liabilities (DKK749.8M).


Debt to Equity History and Analysis

Debt Level: PAAL B's debt to equity ratio (19.4%) is considered satisfactory.

Reducing Debt: PAAL B's debt to equity ratio has reduced from 25.3% to 19.4% over the past 5 years.

Debt Coverage: PAAL B's debt is well covered by operating cash flow (155.8%).

Interest Coverage: PAAL B's interest payments on its debt are well covered by EBIT (19.7x coverage).


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 9x debt).


Next Steps

Dividend

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

2.78%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%1.6%markettop25%4.9%industryaverage3.7%forecastin3Years4.2%

Current dividend yield vs market & industry

Notable Dividend: PAAL B's dividend (2.7%) is higher than the bottom 25% of dividend payers in the Danish market (1.56%).

High Dividend: PAAL B's dividend (2.7%) is low compared to the top 25% of dividend payers in the Danish market (4.93%).


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 (31%), 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 (34.4% payout ratio).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Jesper Jacobsen (49yo)

1.3yrs

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Jesper Jacobsen
Chief Executive Officer1.3yrsno datano data
Mogens Hestbæk
Group Chief Financial Officer5.1yrsno datano data
Lars Carlsen
Deputy Chief Executive Officer2.1yrsno datano data
Nicolai Schultz
Deputy Chief Executive Officer0.08yrsno datano data

1.7yrs

Average Tenure

50yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Jens Sørensen
Independent Director6.1yrsno datano data
Ebbe Iversen
Chairman of the Board0.08yrsno datano data
Bjarne Hansen
Independent Deputy Chairman0.08yrsno datano data
Charlotte Strand
Independent Director3.1yrsno datano data
Henrik Andersen
Director0.08yrsno datano data

0.08yrs

Average Tenure

59yo

Average Age

Experienced Board: PAAL B's board of directors are not considered experienced ( 0.1 years average tenure), which suggests a new board.


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

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: ø3.990b
  • 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 construction and civil engineering company in Denmark and internationally. It operates through Construction, Pipe Technologies, and Ground Engineering segments. The company’s infrastructure activities include the construction of roads, harbors, and traffic and airport facilities; marine construction works; burial of electrical, copper, and fiber cables; railway works; mining support; systems for drinking water supply and plants for water treatment; and geotechnical site investigation. It also engages in pipe renewal projects, including collectors, laterals, and service connections between collectors and laterals, as well as manholes; establishment of reservoirs; protection of land and buildings near the coastlines; construction and expansion of turnkey wastewater treatment plants that provide mechanical, biological, and chemical treatment; soil deposits for harbor facilities; urban spaces and squares; and waste management solutions. In addition, the company is involved in the installation of foundations for offshore wind farms; design, dimension, establishment, and servicing of the heat and power plants; construction or renovation of district heating plants and pipes; and gas pipe installation works. Further, it engages in the construction of buildings, shell structure, construction pits, retaining walls, ground anchors, groundwater lowering works, and site development activities; renewal of down pipes; technical installation contract works; renovation of ventilation channels; and CCTV inspection of sewer systems. The company was formerly known as Per Aarsleff A/S and changed its name to Per Aarsleff Holding A/S in April 2016. Per Aarsleff Holding A/S was founded in 1947 and is headquartered in Viby J, Denmark. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 20:56
End of Day Share Price2020/02/27 00:00
Earnings2019/09/30
Annual Earnings2019/09/30


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.