CPSE:SOLAR B

Stock Analysis Report

Executive Summary

Solar A/S operates as a sourcing and services company in electrical, heating and plumbing, ventilation, and climate and energy solutions in the Danish, Swedish, Norwegian, and Dutch markets.

Snowflake

Fundamentals

Fair value with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.9%

CPSE:SOLAR B

0.8%

DK Trade Distributors

0.9%

DK Market


1 Year Return

-29.5%

CPSE:SOLAR B

-21.2%

DK Trade Distributors

3.9%

DK Market

SOLAR B underperformed the Trade Distributors industry which returned -21.2% over the past year.

SOLAR B underperformed the Market in Denmark which returned 3.9% over the past year.


Share holder returns

SOLAR BIndustryMarket
7 Day2.9%0.8%0.9%
30 Day-8.0%-7.6%1.2%
90 Day-11.3%-11.4%3.7%
1 Year-26.4%-29.5%-18.7%-21.2%7.0%3.9%
3 Year-15.9%-23.7%-10.6%-16.6%31.3%20.5%
5 Year-5.1%-18.3%10.6%-0.8%68.8%44.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

44%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Solar's share price is below the future cash flow value, and at a moderate discount (> 20%).

Solar's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Solar is overvalued based on earnings compared to the DK Trade Distributors industry average.

Solar is overvalued based on earnings compared to the Denmark market.


Price Based on Expected Growth

Solar is good value based on expected growth next year.


Price Based on Value of Assets

Solar is overvalued based on assets compared to the DK Trade Distributors industry average.


Next Steps

Future Growth

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

32.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Solar's revenue is expected to grow by 3.5% yearly, however this is not considered high growth (20% yearly).

Solar's earnings are expected to grow significantly at over 20% yearly.

Solar's revenue growth is positive but not above the Denmark market average.

Solar's earnings growth is expected to exceed the Denmark market average.

Solar's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Solar is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Solar performed over the past 5 years?

25.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Solar has delivered over 20% year on year earnings growth in the past 5 years.

Solar's 1-year earnings growth is less than its 5-year average (3.5% vs 25.2%)

Solar's earnings growth has not exceeded the DK Trade Distributors industry average in the past year (3.5% vs 13.6%).


Return on Equity

Solar has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Solar used its assets less efficiently than the DK Trade Distributors industry average last year based on Return on Assets.


Return on Capital Employed

Solar's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Solar's financial position?


Financial Position Analysis

Solar is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Solar's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Solar's level of debt (59.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (39.2% vs 59.6% today).

Debt is not well covered by operating cash flow (16%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 10.1x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 3.7x debt.


Next Steps

Dividend

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

6.77%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Solar's pays a higher dividend yield than the bottom 25% of dividend payers in Denmark (1.7%).

Solar's dividend is below the markets top 25% of dividend payers in Denmark (5%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.7x coverage).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Jens Andersen (51yo)

1.8yrs

Tenure

0

Mr. Jens E. Andersen has been the Chief Executive Officer and Member of Executive Board at Solar A/S since October 8, 2017 and serves as its Managing Director of Denmark. Mr. Andersen served as Senior Vice ...


CEO Compensation Analysis

Jens's remuneration is lower than average for companies of similar size in Denmark.

Insufficient data for Jens to compare compensation growth.


Management Age and Tenure

2.7yrs

Average Tenure

53yo

Average Age

The tenure for the Solar management team is about average.


Board Age and Tenure

4.1yrs

Average Tenure

51yo

Average Age

The tenure for the Solar board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Lars Goth (58yo)

    Senior Vice President of Supply Chain

    • Tenure: 0.0yrs
  • Michael Jeppesen (53yo)

    CFO & Member of Executive Board

    • Tenure: 8.6yrs
  • Dariusz Targosz (50yo)

    Senior VP & MD of Poland

    • Tenure: 0.0yrs
  • Hugo Dorph (54yo)

    Chief Commercial Officer & Member of Executive Board

    • Tenure: 0.0yrs
  • Jan Fjellvær (58yo)

    Senior VP & MD of Norway

    • Tenure: 0.0yrs
  • Ole Sørensen (48yo)

    Senior Vice President of Industry Sales

    • Tenure: 1.9yrs
  • Jens Andersen (51yo)

    CEO, MD of Denmark & Member of Executive Board

    • Tenure: 1.8yrs
  • Charlotte Kræfting

    Director of Stakeholder Relations

    • Tenure: 0.0yrs
  • Anders Koppel (50yo)

    Senior VP & MD of Sweden

    • Tenure: 0.0yrs
  • Bauke Zeinstra (53yo)

    Senior VP & MD of MAG45

    • Tenure: 3.5yrs

Board Members

  • Jens Borum (66yo)

    Chairman

    • Tenure: 0.0yrs
  • Bent Frisk (58yo)

    Director

    • Tenure: 13.6yrs
  • Jens Toft (65yo)

    Independent Director

    • Tenure: 10.6yrs
  • Lars Andersen (51yo)

    Employee-Elected Member

    • Tenure: 9.6yrs
  • Morten Chrone (53yo)

    Independent Director

    • Tenure: 0.4yrs
  • Peter Bang (50yo)

    Independent Director

    • Tenure: 1.6yrs
  • Jesper Jensen (51yo)

    Vice Chairman

    • Tenure: 0.4yrs
  • Ulrik Damgaard (46yo)

    Employee-Elected Member

    • Tenure: 5.6yrs
  • Sophie Knauer (36yo)

    Independent Director

    • Tenure: 2.6yrs

Company Information

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


Key Information

  • Name: Solar A/S
  • Ticker: SOLAR B
  • Exchange: CPSE
  • Founded: 1919
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: ø2.087b
  • Shares outstanding: 7.30m
  • Website: https://www.solar.eu

Number of Employees


Location

  • Solar A/S
  • Industrivej Vest 43
  • Vejen
  • 6600
  • Denmark

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SOLAR BCPSE (OMX Nordic Exchange Copenhagen)YesClass B Shares DKK 100DKDKKJan 1992
ZVRDB (Deutsche Boerse AG)YesClass B Shares DKK 100DEEURJan 1992
0G33LSE (London Stock Exchange)YesClass B Shares DKK 100GBDKKJan 1992
SOLABCBATS-CHIXE (BATS 'Chi-X Europe')YesClass B Shares DKK 100GBDKKJan 1992

Biography

Solar A/S operates as a sourcing and services company in electrical, heating and plumbing, ventilation, and climate and energy solutions in the Danish, Swedish, Norwegian, and Dutch markets. The company of ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 20:50
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
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.