CPSE:STG

Stock Analysis Report

Executive Summary

Scandinavian Tobacco Group A/S manufactures and sells handmade and machine-made cigars, and pipe tobacco worldwide.


Snowflake Analysis

Flawless balance sheet and undervalued.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.3%

STG

-0.8%

DK Tobacco

0.3%

DK Market


1 Year Return

1.3%

STG

3.2%

DK Tobacco

26.7%

DK Market

Return vs Industry: STG underperformed the Danish Tobacco industry which returned 3.2% over the past year.

Return vs Market: STG underperformed the Danish Market which returned 26.7% over the past year.


Shareholder returns

STGIndustryMarket
7 Day-1.3%-0.8%0.3%
30 Day1.3%-2.9%4.6%
90 Day16.3%10.5%13.9%
1 Year9.3%1.3%11.7%3.2%30.5%26.7%
3 Year-10.5%-27.2%-25.5%-38.2%62.7%48.9%
5 Yearn/a4.7%-19.7%68.4%44.9%

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 (DKK89.7) is trading below our estimate of fair value (DKK258.22)

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 (14.3x) compared to the Tobacco industry average (10.3x).

PE vs Market: STG is good value based on its PE Ratio (14.3x) compared to the Danish market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: STG is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: STG is good value based on its PB Ratio (1x) compared to the XE Tobacco industry average (1.4x).


Next Steps

Future Growth

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

16.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STG's forecast earnings growth (16.5% per year) is above the savings rate (-0.3%).

Earnings vs Market: STG's earnings (16.5% per year) are forecast to grow faster than the Danish market (11.8% per year).

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

Revenue vs Market: STG's revenue (7.2% per year) is forecast to grow faster than the Danish market (6% per year).

High Growth Revenue: STG's revenue (7.2% 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 (9.5%).


Next Steps

Past Performance

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

0.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STG has a large one-off loss of DKK198.3M impacting its September 30 2019 financial results.

Growing Profit Margin: STG's current net profit margins (9%) are lower than last year (11.5%).


Past Earnings Growth Analysis

Earnings Trend: STG's earnings have grown by 0.4% 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 (-18.5%) over the past year, making it difficult to compare to the Tobacco industry average (-18.5%).


Return on Equity

High ROE: STG's Return on Equity (6.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

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 (DKK1.2B).

Long Term Liabilities: STG's short term assets (DKK4.4B) exceed its long term liabilities (DKK3.8B).


Debt to Equity History and Analysis

Debt Level: STG's debt to equity ratio (31.4%) is considered satisfactory.

Reducing Debt: STG's debt to equity ratio has reduced from 33.5% to 31.4% over the past 5 years.

Debt Coverage: STG's debt is well covered by operating cash flow (39.8%).

Interest Coverage: STG's interest payments on its debt are well covered by EBIT (11.3x coverage).


Balance Sheet

Inventory Level: STG has a high level of physical assets or inventory.

Debt Coverage by Assets: STG's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

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

6.69%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: STG's dividend (6.69%) is higher than the bottom 25% of dividend payers in the Danish market (1.44%).

High Dividend: STG's dividend (6.69%) is in the top 25% of dividend payers in the Danish market (4.58%)


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 4 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (95.6%), 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 (62.3% payout ratio).


Next Steps

Management

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

4.9yrs

Average management tenure


CEO

Niels Frederiksen (55yo)

4.9yrs

Tenure

ø13,000,000

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 ($USD1.89M) is above average for companies of similar size in the Danish market ($USD1.35M).

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

NamePositionTenureCompensationOwnership
Niels Frederiksen
CEO, President & Member of Executive Board4.9yrsø13.00m0.060% DKK5.4m
Marianne Bock
Executive VP & CFO0yrsø4.60mno data
Torben Sand
Head of Investor Relations0yrsno datano data
Mette Valentin
Senior Vice President of Group Legal & Public Affairs0yrsno datano data
Simon Augustesen
Director of Group Communications0yrsno datano data
Christian Sørensen
Executive Vice President of Sales & Marketing14.1yrsø6.80mno data
Hanne Berg
Chief Human Resource Officer & Senior VP2.8yrsno data0.0013% DKK115.3k
Dorte Morell
Senior Vice President of Finance and Senior Vice President of Finance -House of Prince A/S0yrsno datano data
Thomas Lindegaard
Senior Vice President of Scientific & Regulatory Affairs0yrsno datano data
Lars Wassberg
Senior Vice President of Group Marketing0yrsno datano data

4.9yrs

Average Tenure

55yo

Average Age

Experienced Management: STG's management team is considered experienced (4.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nigel Northridge
Independent Chairman of the Board2.8yrsø1.40m0.0050% DKK448.6k
Henrik Brandt
Independent Vice-Chairman of the Board2.8yrsø800.00k0.067% DKK6.0m
Henning Petersen
Independent Director9.3yrsø133.00kno data
Anders Obel
Independent Director2.1yrsø273.00k0.020% DKK1.8m
Lindy Larsen
Employee Representative Director3.6yrsø400.00k0.00024% DKK21.4k
Hanne Malling
Employee Representative Director9.3yrsø400.00k0.00025% DKK22.3k
Kurt Asmussen
Employee Representative Director9.3yrsø400.00k0.00050% DKK44.7k
Dianne Blixt
Independent Director4yrsø550.00k0.0017% DKK152.8k
Marléne Forsell
Independent Director0.8yrsø550.00kno data
Mogens Olsen
Director2.6yrsø400.00k0.0020% DKK175.2k

3.2yrs

Average Tenure

59.5yo

Average Age

Experienced Board: STG's board of directors are considered experienced (3.2 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: ø8.937b
  • Shares outstanding: 99.63m
  • Website: https://www.st-group.com

Number of Employees


Location

  • Scandinavian Tobacco Group A/S
  • Sydmarken 42
  • Søborg
  • Capital Region of Denmark
  • 2860
  • Denmark

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STGCPSE (OMX Nordic Exchange Copenhagen)YesOrdinary SharesDKDKKFeb 2016
8ZIDB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2016
0RESLSE (London Stock Exchange)YesOrdinary SharesGBDKKFeb 2016
STGCBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBDKKFeb 2016
SNDV.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDFeb 2016
STG NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNFeb 2016
SKNV.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDJul 2017

Biography

Scandinavian Tobacco Group A/S manufactures and sells handmade and machine-made cigars, and pipe tobacco worldwide. It operates through five segments: Handmade Cigars, Machine-Made Cigars, Pipe Tobacco, Fine-Cut Tobacco, and Accessories and Contract Manufacturing. The company also produces fine-cut tobacco and sells tobacco-related accessories. Scandinavian Tobacco Group A/S markets its cigars primarily under the Café Crème, La Paz, Macanudo, CAO, Partagas (US), and Cohiba (US) brands; pipe tobacco principally under the Captain Black, Erinmore, Borkum Riff, and W.Ø. Larsen brands; and fine-cut tobacco primarily under the Bugler, Break, Escort, Bali Shag, and Tiedemanns brands. The company sells its cigars in the United States through online and catalogue retail. In addition, it offers contract manufacturing services and fire products; and distributes lighters, matches, filters and tubes/paper, and other products, as well as licenses its brands to third parties. The company was founded in 1750 and is headquartered in Søborg, Denmark. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 23:18
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
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.