TCM Group (CPSE:TCM) - Share price, News & Analysis

TCM fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	3/6
Past Performance	3/6
Financial Health	4/6
Dividends	3/6

TCM Stock Overview

TCM Group A/S engages in the manufacture and sale of kitchen and furniture products for bathrooms and storage in Denmark and internationally.

Rewards

Trading at 80.4% below our estimate of its fair value

Earnings are forecast to grow 15.41% per year

Risk Analysis

Has a high level of debt

Dividend of 6.44% is not well covered by earnings

TCM Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for TCM Group
Historical stock prices
Current Share Price	kr.93.10
52 Week High	kr.167.00
52 Week Low	kr.91.90
Beta	1.02
1 Month Change	-7.09%
3 Month Change	-24.92%
1 Year Change	-42.71%
3 Year Change	-19.04%
5 Year Change	n/a
Change since IPO	-4.51%

Shareholder Returns

	TCM	DK Consumer Durables	DK Market
7D	-6.9%	2.1%	-0.6%
1Y	-42.7%	-27.5%	-16.3%

Return vs Industry: TCM underperformed the Danish Consumer Durables industry which returned -28.9% over the past year.

Return vs Market: TCM underperformed the Danish Market which returned 1% over the past year.

Price Volatility

Is TCM's price volatile compared to industry and market?
TCM volatility
TCM Average Weekly Movement	5.5%
Consumer Durables Industry Average Movement	5.7%
Market Average Movement	6.3%
10% most volatile stocks in DK Market	10.9%
10% least volatile stocks in DK Market	3.8%

Stable Share Price: TCM is not significantly more volatile than the rest of Danish stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: TCM's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2015	496	Torben Paulin	https://www.tcmgroup.dk

TCM Group A/S engages in the manufacture and sale of kitchen and furniture products for bathrooms and storage in Denmark and internationally. Its products include drawers, cabinets, fronts, table tops, handles, and other accessories. As of December 31, 2021, the company operated 39 stores under the Svane Køkkenet; 31 stores under the Tvis Køkkener; and 23 stores under the Nettoline brands.

TCM Group Fundamentals Summary

How do TCM Group's earnings and revenue compare to its market cap?
TCM fundamental statistics
Market Cap	kr.764.31m
Earnings (TTM)	kr.102.61m
Revenue (TTM)	kr.1.11b

7.4x

P/E Ratio

0.7x

P/S Ratio

Is TCM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
TCM income statement (TTM)
Revenue	kr.1.11b
Cost of Revenue	kr.860.07m
Gross Profit	kr.248.50m
Other Expenses	kr.145.89m
Earnings	kr.102.61m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 19, 2022

Earnings per share (EPS)	12.50
Gross Margin	22.42%
Net Profit Margin	9.25%
Debt/Equity Ratio	56.3%

How did TCM perform over the long term?

See historical performance and comparison

Dividends

6.4%

Current Dividend Yield

55%

Payout Ratio

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: TCM (DKK93.1) is trading below our estimate of fair value (DKK474.13)

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

Price To Earnings Ratio

PE vs Industry: TCM is good value based on its Price-To-Earnings Ratio (7.4x) compared to the European Consumer Durables industry average (10.4x).

PE vs Market: TCM is good value based on its Price-To-Earnings Ratio (7.4x) compared to the Danish market (13.3x).

Price to Earnings Growth Ratio

PEG Ratio: TCM is good value based on its PEG Ratio (0.5x)

Price to Book Ratio

PB vs Industry: TCM is overvalued based on its Price-To-Book Ratio (1.8x) compared to the XE Consumer Durables industry average (1.5x).

Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

15.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: TCM's forecast earnings growth (15.4% per year) is above the savings rate (0.09%).

Earnings vs Market: TCM's earnings (15.4% per year) are forecast to grow faster than the Danish market (8.8% per year).

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

Revenue vs Market: TCM's revenue (4.9% per year) is forecast to grow slower than the Danish market (5.9% per year).

High Growth Revenue: TCM's revenue (4.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: TCM's Return on Equity is forecast to be high in 3 years time (32%)

Past Performance

How has TCM Group performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

13.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TCM has high quality earnings.

Growing Profit Margin: TCM's current net profit margins (9.3%) are lower than last year (9.9%).

Past Earnings Growth Analysis

Earnings Trend: TCM's earnings have grown by 13.1% per year over the past 5 years.

Accelerating Growth: TCM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TCM had negative earnings growth (-1.7%) over the past year, making it difficult to compare to the Consumer Durables industry average (29.4%).

Return on Equity

High ROE: TCM's Return on Equity (24.3%) is considered high.

Financial Health

How is TCM Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: TCM's short term assets (DKK195.6M) do not cover its short term liabilities (DKK427.8M).

Long Term Liabilities: TCM's short term assets (DKK195.6M) exceed its long term liabilities (DKK120.7M).

Debt to Equity History and Analysis

Debt Level: TCM's net debt to equity ratio (54%) is considered high.

Reducing Debt: TCM's debt to equity ratio has reduced from 70.6% to 56.3% over the past 5 years.

Debt Coverage: TCM's debt is well covered by operating cash flow (28.4%).

Interest Coverage: TCM's interest payments on its debt are well covered by EBIT (35.7x coverage).

Balance Sheet

Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

6.44%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: TCM's dividend (6.44%) is higher than the bottom 25% of dividend payers in the Danish market (1.41%).

High Dividend: TCM's dividend (6.44%) is in the top 25% of dividend payers in the Danish market (6.34%)

Stability and Growth of Payments

Stable Dividend: TCM has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: TCM's dividend payments have increased, but the company has only paid a dividend for 3 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (54.7%), TCM's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (142.1%), TCM's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

4.1yrs

Average board tenure

CEO

Torben Paulin (56 yo)

2.17yrs

Tenure

Mr. Torben Paulin serves as the Chief Executive Officer at TCM Group A/S until March 1, 2020. He had been the Chief Executive Officer and Member of the Executive Board of BoConcept Holding A/S since August...

Board Members

Experienced Board: TCM's board of directors are considered experienced (4.1 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/27 00:00
End of Day Share Price	2022/05/25 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31