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SOLA

SolarCPSE:SOLAR B Stock Report

Last Price

kr.700.00

Market Cap

kr.5.1b

7D

-3.7%

1Y

69.7%

Updated

21 Jan, 2022

Data

Company Financials +
SOLAR B fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance2/6
Financial Health6/6
Dividends4/6

SOLAR B Stock Overview

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.

Solar Competitors

W.W. Grainger

NYSE:GWW

US$25.3b

Electrocomponents

LSE:ECM

UK£5.2b

WESCO International

NYSE:WCC

US$6.2b

Price History & Performance

Summary of all time highs, changes and price drops for Solar
Historical stock prices
Current Share Pricekr.700.00
52 Week Highkr.826.00
52 Week Lowkr.374.00
Beta1.2
1 Month Change-5.91%
3 Month Change-4.11%
1 Year Change69.70%
3 Year Change146.05%
5 Year Change87.42%
Change since IPO538.10%

Recent News & Updates

Dec 28
Returns On Capital Are A Standout For Solar (CPH:SOLAR B)

Returns On Capital Are A Standout For Solar (CPH:SOLAR B)

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Oct 17
Solar (CPH:SOLAR B) Seems To Use Debt Rather Sparingly

Solar (CPH:SOLAR B) Seems To Use Debt Rather Sparingly

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Aug 14
Returns On Capital Are A Standout For Solar (CPH:SOLAR B)

Returns On Capital Are A Standout For Solar (CPH:SOLAR B)

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Firstly, we'd want to...

Shareholder Returns

SOLAR BDK Trade DistributorsDK Market
7D-3.7%-4.7%-1.9%
1Y69.7%65.1%8.9%

Return vs Industry: SOLAR B exceeded the Danish Trade Distributors industry which returned 65.1% over the past year.

Return vs Market: SOLAR B exceeded the Danish Market which returned 8.9% over the past year.

Price Volatility

Is SOLAR B's price volatile compared to industry and market?
SOLAR B volatility
SOLAR B Average Weekly Movement4.6%
Trade Distributors Industry Average Movement5.3%
Market Average Movement5.2%
10% most volatile stocks in DK Market10.4%
10% least volatile stocks in DK Market3.0%

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

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

About the Company

FoundedEmployeesCEOWebsite
19192,897Jens Andersenhttps://www.solar.eu

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 offers lighting fixtures and luminaries, and various installation materials; switches and sockets, and other products in relation to intelligent building systems; and cables. It also provides communication and security products and solutions, such as video surveillance equipment and accessories, burglar alarms, fire alarms, and access control systems for large installations and urban networks, as well as customized solutions for home switches, UPS, and antenna equipment for telephony.

Solar Fundamentals Summary


Earnings & Revenue

Key profitability statistics from the latest earnings report
SOLAR B income statement (TTM)
Revenuekr.12.03b
Cost of Revenuekr.9.38b
Gross Profitkr.2.66b
Expenseskr.2.32b
Earningskr.340.00m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 10, 2022

Earnings per share (EPS)46.56
Gross Margin22.08%
Net Profit Margin2.83%
Debt/Equity Ratio20.5%

How did SOLAR B perform over the long term?

See historical performance and comparison

Dividends

4.0%

Current Dividend Yield

60%

Payout Ratio

Valuation

Is Solar 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: SOLAR B (DKK702) is trading below our estimate of fair value (DKK1579.41)

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


Price To Earnings Ratio

PE vs Industry: SOLAR B is good value based on its PE Ratio (15.1x) compared to the Danish Trade Distributors industry average (15.3x).

PE vs Market: SOLAR B is good value based on its PE Ratio (15.1x) compared to the Danish market (17x).


Price to Earnings Growth Ratio

PEG Ratio: SOLAR B is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: SOLAR B is overvalued based on its PB Ratio (2.9x) compared to the DK Trade Distributors industry average (2.6x).


Future Growth

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

3.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOLAR B's forecast earnings growth (3.6% per year) is above the savings rate (0.1%).

Earnings vs Market: SOLAR B's earnings (3.6% per year) are forecast to grow slower than the Danish market (8.5% per year).

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

Revenue vs Market: SOLAR B's revenue (3.1% per year) is forecast to grow slower than the Danish market (6.5% per year).

High Growth Revenue: SOLAR B's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SOLAR B's Return on Equity is forecast to be high in 3 years time (29.3%)


Past Performance

How has Solar performed over the past 5 years?

11.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOLAR B has a large one-off loss of DKK108.0M impacting its September 30 2021 financial results.

Growing Profit Margin: SOLAR B's current net profit margins (2.8%) are higher than last year (2.7%).


Past Earnings Growth Analysis

Earnings Trend: SOLAR B's earnings have grown by 11% per year over the past 5 years.

Accelerating Growth: SOLAR B's earnings growth over the past year (9%) is below its 5-year average (11% per year).

Earnings vs Industry: SOLAR B earnings growth over the past year (9%) underperformed the Trade Distributors industry 50.4%.


Return on Equity

High ROE: SOLAR B's Return on Equity (19.1%) is considered low.


Financial Health

How is Solar's financial position?


Financial Position Analysis

Short Term Liabilities: SOLAR B's short term assets (DKK3.7B) exceed its short term liabilities (DKK2.9B).

Long Term Liabilities: SOLAR B's short term assets (DKK3.7B) exceed its long term liabilities (DKK446.0M).


Debt to Equity History and Analysis

Debt Level: SOLAR B's net debt to equity ratio (7.8%) is considered satisfactory.

Reducing Debt: SOLAR B's debt to equity ratio has reduced from 33% to 20.5% over the past 5 years.

Debt Coverage: SOLAR B's debt is well covered by operating cash flow (180%).

Interest Coverage: SOLAR B's interest payments on its debt are well covered by EBIT (23.7x coverage).


Balance Sheet


Dividend

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

4.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SOLAR B's dividend (3.99%) is higher than the bottom 25% of dividend payers in the Danish market (1.18%).

High Dividend: SOLAR B's dividend (3.99%) is in the top 25% of dividend payers in the Danish market (3.31%)


Stability and Growth of Payments

Stable Dividend: SOLAR B's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (60.1%), SOLAR B's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SOLAR B's dividends in 3 years are not forecast to be well covered by earnings (116.6% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Jens Andersen (53 yo)

4.25yrs

Tenure

kr.9,300,000

Compensation

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...


Leadership Team

Experienced Management: SOLAR B's management team is considered experienced (4.3 years average tenure).


Board Members

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


Top Shareholders

Company Information

Solar A/S's 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
  • Implied Market Cap: kr.5.112b
  • Shares outstanding: 7.30m
  • Website: https://www.solar.eu

Number of Employees


Location

  • Solar A/S
  • Industrivej Vest 43
  • Vejen
  • Region of Southern Denmark
  • 6600
  • Denmark

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 21:21
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
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.