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Market Cap

kr.12.3b

Last Updated

2021/04/13 17:10 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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.


Market Performance


7 Day Return

3.5%

STG

2.9%

DK Tobacco

1.1%

DK Market


1 Year Return

77.5%

STG

-6.3%

DK Tobacco

37.3%

DK Market

Return vs Industry: STG exceeded the Danish Tobacco industry which returned -6.5% over the past year.

Return vs Market: STG exceeded the Danish Market which returned 38.6% over the past year.


Shareholder returns

STGIndustryMarket
7 Day3.5%2.9%1.1%
30 Day2.7%6.2%4.2%
90 Day15.1%1.5%0.6%
1 Year77.5%77.5%1.4%-6.3%40.9%37.3%
3 Year49.8%20.6%-13.9%-31.1%72.5%59.2%
5 Year65.8%18.0%-18.8%-40.0%79.4%55.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

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 (DKK127.5) is trading below our estimate of fair value (DKK284.03)

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


Price To Earnings Ratio

PE vs Industry: STG is poor value based on its PE Ratio (18.7x) compared to the XE Tobacco industry average (10.5x).

PE vs Market: STG is poor value based on its PE Ratio (18.7x) compared to the Danish market (18x).


Price to Earnings Growth Ratio

PEG Ratio: STG is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: STG's PB Ratio (1.5x) is in line with the XE Tobacco industry average.


Future Growth

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

15.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STG's forecast earnings growth (15.6% per year) is above the savings rate (0.2%).

Earnings vs Market: STG's earnings (15.6% per year) are forecast to grow faster than the Danish market (9.9% per year).

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

Revenue vs Market: STG's revenue (0.05% per year) is forecast to grow slower than the Danish market (6.6% per year).

High Growth Revenue: STG's revenue (0.05% per year) is forecast to grow slower than 20% 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 (13.5%).


Past Performance

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

2.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STG has a large one-off loss of DKK435.2M impacting its December 31 2020 financial results.

Growing Profit Margin: STG's current net profit margins (8.5%) are lower than last year (11.1%).


Past Earnings Growth Analysis

Earnings Trend: STG's earnings have grown by 2.8% per year over the past 5 years.

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

Earnings vs Industry: STG had negative earnings growth (-9.2%) over the past year, making it difficult to compare to the Tobacco industry average (2%).


Return on Equity

High ROE: STG's Return on Equity (8.1%) is considered low.


Financial Health

How is Scandinavian Tobacco Group's financial position?


Financial Position Analysis

Short Term Liabilities: STG's short term assets (DKK4.0B) exceed its short term liabilities (DKK1.7B).

Long Term Liabilities: STG's short term assets (DKK4.0B) exceed its long term liabilities (DKK4.0B).


Debt to Equity History and Analysis

Debt Level: STG's debt to equity ratio (34%) is considered satisfactory.

Reducing Debt: STG's debt to equity ratio has reduced from 37.1% to 34% over the past 5 years.

Debt Coverage: STG's debt is well covered by operating cash flow (55.8%).

Interest Coverage: STG's interest payments on its debt are well covered by EBIT (14.4x coverage).


Balance Sheet


Dividend

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

5.09%

Current Dividend Yield


Upcoming Dividend Payment

TodayApr 13 2021Ex Dividend DateApr 15 2021Dividend Pay DateApr 19 20214 days from Ex DividendBuy in the next 1 day to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: STG's dividend (5.1%) is higher than the bottom 25% of dividend payers in the Danish market (1.11%).

High Dividend: STG's dividend (5.1%) is in the top 25% of dividend payers in the Danish market (3.72%)


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 5 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (95.3%), STG's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: STG's dividends in 3 years are forecast to be covered by earnings (52.2% payout ratio).


Next Steps

Management

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

6.1yrs

Average management tenure


CEO

Niels Frederiksen (56 yo)

6.08yrs

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 ($USD3.17M) is above average for companies of similar size in the Danish market ($USD1.45M).

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


Leadership Team

Experienced Management: STG's management team is seasoned and experienced (6.1 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 company bio, 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.12.321b
  • Shares outstanding: 96.71m
  • 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


Biography

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, Balmora...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/13 17:10
End of Day Share Price2021/04/13 00:00
Earnings2020/12/31
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.