company background image
STG

Scandinavian Tobacco GroupCPSE:STG Stock Report

Market Cap

kr.12.8b

7D

-0.7%

1Y

37.8%

Updated

27 Sep, 2021

Data

Company Financials +
STG fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance5/6
Financial Health3/6
Dividends4/6

STG Overview

Scandinavian Tobacco Group A/S manufactures and sells cigars and pipe tobacco.

Scandinavian Tobacco Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Scandinavian Tobacco Group
Historical stock prices
Current Share Pricekr.129.60
52 Week Highkr.86.05
52 Week Lowkr.142.80
Beta0.73
1 Month Change0.15%
3 Month Change3.76%
1 Year Change37.80%
3 Year Change32.65%
5 Year Change13.59%
Change since IPO29.60%

Recent News & Updates

Jul 09
Scandinavian Tobacco Group (CPH:STG) Might Have The Makings Of A Multi-Bagger

Scandinavian Tobacco Group (CPH:STG) Might Have The Makings Of A Multi-Bagger

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

Jun 21
These 4 Measures Indicate That Scandinavian Tobacco Group (CPH:STG) Is Using Debt Safely

These 4 Measures Indicate That Scandinavian Tobacco Group (CPH:STG) Is Using Debt Safely

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

STGDK TobaccoDK Market
7D-0.7%0.08%0.2%
1Y37.8%-2.0%33.7%

Return vs Industry: STG exceeded the Danish Tobacco industry which returned -2% over the past year.

Return vs Market: STG exceeded the Danish Market which returned 33.7% over the past year.

Price Volatility

Is STG's price volatile compared to industry and market?
STG volatility
STG Beta0.73
Industry Beta0.70
Market Beta1

Stable Share Price: STG is not significantly more volatile than the rest of Danish stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: STG's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
175011,000Niels Frederiksenhttps://www.st-group.com

Scandinavian Tobacco Group A/S manufactures and sells cigars and pipe tobacco. The company offers fine-cut tobacco, and machine-cut and handmade cigars. It markets its products under the Bali Shag, Balmoral, Borkum Riff, Break, Bugler, Café Crème, CAO, Captain Black, Clan, Cohiba, Colt, Crossroad, Cubero, Erinmore, Escort, Hajenus, Henri Wintermans, Kite, La Gloria Cubana, La Paz, M by Colts, Macanudo, Mehari's, Mercator, Panter, Partagas, Petit, Signature, SLS SALSA, Stanwell, Talon, Tiedemanns, W.Ø.

Scandinavian Tobacco Group Fundamentals Summary

How do Scandinavian Tobacco Group's earnings and revenue compare to its market cap?
STG fundamental statistics
Market Capkr.12.79b
Earnings (TTM)kr.1.10b
Revenue (TTM)kr.8.19b

11.4x

P/E Ratio

1.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
STG income statement (TTM)
Revenuekr.8.19b
Cost of Revenuekr.4.18b
Gross Profitkr.4.02b
Expenseskr.2.91b
Earningskr.1.10b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 04, 2021

Earnings per share (EPS)11.41
Gross Margin49.03%
Net Profit Margin13.47%
Debt/Equity Ratio41.1%

How did STG perform over the long term?

See historical performance and comparison

Dividends

5.0%

Current Dividend Yield

57%

Payout Ratio

Valuation

Is Scandinavian Tobacco 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

Below Fair Value: STG (DKK132.3) is trading below our estimate of fair value (DKK391.18)

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


Price To Earnings Ratio

PE vs Industry: STG's PE Ratio (11.6x) is in line with the European Tobacco industry average.

PE vs Market: STG is good value based on its PE Ratio (11.6x) compared to the Danish market (15.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: STG is overvalued based on its PB Ratio (1.5x) compared to the XE Tobacco industry average (1.4x).


Future Growth

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

7.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STG's forecast earnings growth (7.3% per year) is above the savings rate (0.1%).

Earnings vs Market: STG's earnings (7.3% per year) are forecast to grow slower than the Danish market (8.7% per year).

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

Revenue vs Market: STG's revenue is expected to decline over the next 3 years (-0.1% per year).

High Growth Revenue: STG's revenue is forecast to decline over the next 3 years (-0.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: STG's Return on Equity is forecast to be low in 3 years time (15.2%).


Past Performance

How has Scandinavian Tobacco Group performed over the past 5 years?

7.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STG has high quality earnings.

Growing Profit Margin: STG's current net profit margins (13.5%) are higher than last year (9.8%).


Past Earnings Growth Analysis

Earnings Trend: STG's earnings have grown by 7% per year over the past 5 years.

Accelerating Growth: STG's earnings growth over the past year (52.3%) exceeds its 5-year average (7% per year).

Earnings vs Industry: STG earnings growth over the past year (52.3%) exceeded the Tobacco industry -2.4%.


Return on Equity

High ROE: STG's Return on Equity (13.3%) is considered low.


Financial Health

How is Scandinavian Tobacco Group's financial position?


Financial Position Analysis

Short Term Liabilities: STG's short term assets (DKK4.4B) exceed its short term liabilities (DKK1.6B).

Long Term Liabilities: STG's short term assets (DKK4.4B) do not cover its long term liabilities (DKK4.5B).


Debt to Equity History and Analysis

Debt Level: STG's debt to equity ratio (41.1%) is considered high.

Reducing Debt: STG's debt to equity ratio has increased from 39.5% to 41.1% over the past 5 years.

Debt Coverage: STG's debt is well covered by operating cash flow (45.5%).

Interest Coverage: STG's interest payments on its debt are well covered by EBIT (20.6x coverage).


Balance Sheet


Dividend

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

5.02%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: STG's dividend (4.91%) is higher than the bottom 25% of dividend payers in the Danish market (1.09%).

High Dividend: STG's dividend (4.91%) is in the top 25% of dividend payers in the Danish market (3.4%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, STG has been paying a dividend for less than 10 years.

Growing Dividend: STG's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.8%), STG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: STG's dividends in 3 years are forecast to be well covered by earnings (49.7% payout ratio).


Next Steps

Management

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

6.5yrs

Average management tenure


CEO

Niels Frederiksen (57 yo)

6.5yrs

Tenure

kr.19,800,000

Compensation

Mr. Niels Frederiksen has been the Chief Executive Officer and President of Scandinavian Tobacco Group A/S since March 1, 2015 and serves as its Member of Executive Board. Mr. Frederiksen served as Executi...


CEO Compensation Analysis

Compensation vs Market: Niels's total compensation ($USD3.12M) is above average for companies of similar size in the Danish market ($USD1.42M).

Compensation vs Earnings: Niels's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: STG's management team is seasoned and experienced (6.5 years average tenure).


Board Members

Experienced Board: STG's board of directors are considered experienced (4.3 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

Scandinavian Tobacco Group A/S's employee growth, exchange listings and data sources


Key Information

  • Name: Scandinavian Tobacco Group A/S
  • Ticker: STG
  • Exchange: CPSE
  • Founded: 1750
  • Industry: Tobacco
  • Sector: Food, Beverage & Tobacco
  • Market Cap: kr.12.793b
  • Shares outstanding: 96.70m
  • Website: https://www.st-group.com

Number of Employees


Location

  • Scandinavian Tobacco Group A/S
  • Sandtoften 9
  • Gentofte
  • Capital Region of Denmark
  • 2820
  • Denmark

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 17:04
End of Day Share Price2021/09/27 00:00
Earnings2021/06/30
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.