CPSE:TCM

Stock Analysis Report

Executive Summary

TCM Group A/S manufactures and supplies kitchen and furniture products for bathrooms and storage in Denmark and internationally.

Snowflake

Fundamentals

Outstanding track record and good value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.5%

TCM

6.4%

DK Consumer Durables

2.0%

DK Market


1 Year Return

-2.2%

TCM

5.3%

DK Consumer Durables

13.3%

DK Market

Return vs Industry: TCM underperformed the Danish Consumer Durables industry which returned 5.3% over the past year.

Return vs Market: TCM underperformed the Danish Market which returned 13.3% over the past year.


Shareholder returns

TCMIndustryMarket
7 Day1.5%6.4%2.0%
30 Day-10.3%0.8%0.5%
90 Day-11.8%3.4%2.0%
1 Year2.3%-2.2%11.8%5.3%16.8%13.3%
3 Yearn/a35.1%16.6%37.9%26.3%
5 Yearn/a93.9%53.9%74.3%49.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: TCM (DKK104.5) is trading below our estimate of fair value (DKK273.52)

Significantly Undervalued: TCM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TCM is good value based on its PE Ratio (9.3x) compared to the Consumer Durables industry average (12x).

PE vs Market: TCM is good value based on its PE Ratio (9.3x) compared to the Danish market (15.1x).


Price to Earnings Growth Ratio

Low PEG Ratio: TCM is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: TCM is overvalued based on its PB Ratio (2.5x) compared to the XE Consumer Durables industry average (1.4x).


Next Steps

Future Growth

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

6.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TCM's forecast earnings growth (6% per year) is above the savings rate (0.2%).

Earnings vs Market: TCM's earnings (6% per year) are forecast to grow slower than the Danish market (11.9% per year).

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

Revenue vs Market: TCM's revenue (4.7% per year) is forecast to grow slower than the Danish market (7.1% per year).

High Growth Revenue: TCM's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: TCM's Return on Equity is forecast to be high in 3 years time (27.2%)


Next Steps

Past Performance

How has TCM Group performed over the past 5 years?

28.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TCM's earnings have grown significantly by 28.9% per year over the past 5 years.

Accelerating Growth: TCM's earnings growth over the past year (78.4%) exceeds its 5-year average (28.9% per year).

Earnings vs Industry: TCM earnings growth over the past year (78.4%) exceeded the Consumer Durables industry -0.05%.


Return on Equity

High ROE: TCM's Return on Equity (26.9%) is considered high.


Return on Assets

ROA vs Industry: TCM has a higher Return on Assets than the Consumer Durables industry average last year.


Return on Capital Employed

ROCE Improving: TCM has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is TCM Group's financial position?


Financial Position Analysis

Short Term Liabilities: TCM's short term assets (DKK233.9M) do not cover its short term liabilities (DKK236.0M)

Long Term Liabilities: TCM's short term assets (233.9M) do not cover its long term liabilities (243.9M)


Debt to Equity History and Analysis

Debt Level: TCM's debt to equity ratio (42.4%) is considered high

Reducing Debt: TCM's debt to equity ratio has reduced from 74.2% to 42.4% over the past 5 years.

Debt Coverage: TCM's debt is well covered by operating cash flow (84%).

Interest Coverage: TCM's interest payments on its debt are well covered by EBIT (30.7x coverage).


Balance Sheet

Inventory Level: TCM has a low level of unsold assets or inventory.

Debt Coverage by Assets: TCM's debt is covered by short term assets (assets are 1.322960x debt).


Next Steps

Dividend

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

4.55%

Current Dividend Yield


Dividend Yield vs Market

company4.5%marketbottom25%1.6%markettop25%5.1%industryaverage5.0%forecastin3Years6.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TCM's dividend (4.55%) is higher than the bottom 25% of dividend payers in the Danish market (1.64%).

High Dividend: TCM's dividend (4.55%) is low compared to the top 25% of dividend payers in the Danish market (5.07%).

Stable Dividend: Too early to tell whether TCM's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if TCM's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.4%), TCM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TCM's dividends in 3 years are forecast to be covered by earnings (55.7% payout ratio).


Next Steps

Management

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

1.4yrs

Average board tenure


CEO

Ole Andersen 0

11.8yrs

Tenure

0

Mr. Ole Lund Andersen has been the Chief Executive Officer of TCM Group A/S. since 2008 Mr. Andersen served as the Chief Executive Officer and President of Tvilum Aps from 2002 to 2007. Mr. Andersen holds  ...


Board Age and Tenure

1.4yrs

Average Tenure

53yo

Average Age

Experienced Board: TCM's board of directors are not considered experienced ( 1.4 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


Management Team

  • Ole Andersen

    Chief Executive Officer

    • Tenure: 11.8yrs
  • Mogens Pedersen (44yo)

    Chief Financial Officer

    • Tenure: 4.8yrs

Board Members

  • Carsten Bjerg (60yo)

    Independent Director

    • Tenure: 1.5yrs
  • Sanna Suvanto-Harsaae (53yo)

    Independent Chairman of the Board

    • Tenure: 0yrs
  • Anders Skole-Sørensen (57yo)

    Independent Vice Chairman

    • Tenure: 1.3yrs
  • Danny Espersen (51yo)

    Independent Director

    • Tenure: 0.5yrs
  • Søren Eskildsen (47yo)

    Independent Director

    • Tenure: 1.5yrs

Company Information

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


Key Information

  • Name: TCM Group A/S
  • Ticker: TCM
  • Exchange: CPSE
  • Founded: 2015
  • Industry: Home Furnishings
  • Sector: Consumer Durables
  • Market Cap: ø1.045b
  • Shares outstanding: 10.00m
  • Website: https://www.tcmgroup.dk

Number of Employees


Location

  • TCM Group A/S
  • Skautrupvej 16
  • Tvis
  • Holstebro
  • Central Denmark Region
  • 7500
  • Denmark

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TCMCPSE (OMX Nordic Exchange Copenhagen)YesShare CapitalDKDKKNov 2017
TCMCBATS-CHIXE (BATS 'Chi-X Europe')YesShare CapitalGBDKKNov 2017
0CUNLSE (London Stock Exchange)YesShare CapitalGBDKKNov 2017

Biography

TCM Group A/S manufactures and supplies kitchen and furniture products for bathrooms and storage in Denmark and internationally. Its products include drawers, cabinets, fronts, table tops, handles, and oth ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 21:56
End of Day Share Price2019/10/15 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.