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Scandinavian Tobacco Group

CPSE:STG
Snowflake Description

Flawless balance sheet and undervalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
STG
CPSE
DKK8B
Market Cap
  1. Home
  2. DK
  3. Food, Beverage & Tobacco
Company description

Scandinavian Tobacco Group A/S manufactures and sells handmade and machine-made cigars, and pipe tobacco worldwide. The last earnings update was 54 days ago. More info.


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STG Share Price and Events
7 Day Returns
-5%
CPSE:STG
-1.2%
Global Tobacco
-1.5%
DK Market
1 Year Returns
-25.7%
CPSE:STG
-16.6%
Global Tobacco
-0.1%
DK Market
STG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Scandinavian Tobacco Group (STG) -5% -3.1% -3.6% -25.7% -33.9% -
Global Tobacco -1.2% -0.8% -10.7% -16.6% -29.8% -0.8%
DK Market -1.5% -0.6% -0.6% -0.1% 9.8% 35.9%
1 Year Return vs Industry and Market
  • STG underperformed the Tobacco industry which returned -16.6% over the past year.
  • STG underperformed the Market in Denmark which returned -0.1% over the past year.
Price Volatility
STG
Industry
5yr Volatility vs Market

Value

 Is Scandinavian Tobacco Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Scandinavian Tobacco Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Scandinavian Tobacco Group.

CPSE:STG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 5%
Perpetual Growth Rate 10-Year DK Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for CPSE:STG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DK Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Tobacco Unlevered Beta Simply Wall St/ S&P Global 0.34
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.344 (1 + (1- 22%) (38.6%))
0.63
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.21% + (0.8 * 5.96%)
4.98%

Discounted Cash Flow Calculation for CPSE:STG using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Scandinavian Tobacco Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

CPSE:STG DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (DKK, Millions) Source Present Value
Discounted (@ 4.98%)
2020 1,052.50 Analyst x2 1,002.56
2021 1,082.50 Analyst x2 982.21
2022 1,104.50 Est @ 2.03% 954.62
2023 1,120.92 Est @ 1.49% 922.84
2024 1,133.31 Est @ 1.1% 888.77
2025 1,142.80 Est @ 0.84% 853.68
2026 1,150.22 Est @ 0.65% 818.46
2027 1,156.19 Est @ 0.52% 783.67
2028 1,161.14 Est @ 0.43% 749.68
2029 1,165.35 Est @ 0.36% 716.70
Present value of next 10 years cash flows DKK8,673.20
CPSE:STG DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= DKK1,165.35 × (1 + 0.21%) ÷ (4.98% – 0.21%)
DKK24,493.23
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= DKK24,493.23 ÷ (1 + 4.98%)10
DKK15,063.53
CPSE:STG Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= DKK8,673.20 + DKK15,063.53
DKK23,736.72
Equity Value per Share
(DKK)
= Total value / Shares Outstanding
= DKK23,736.72 / 99.63
DKK238.24
CPSE:STG Discount to Share Price
Calculation Result
Value per share (DKK) From above. DKK238.24
Current discount Discount to share price of DKK75.70
= -1 x (DKK75.70 - DKK238.24) / DKK238.24
68.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Scandinavian Tobacco Group is available for.
Intrinsic value
>50%
Share price is DKK75.7 vs Future cash flow value of DKK238.24
Current Discount Checks
For Scandinavian Tobacco Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Scandinavian Tobacco Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Scandinavian Tobacco Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Scandinavian Tobacco Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Scandinavian Tobacco Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
CPSE:STG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in DKK DKK6.64
CPSE:STG Share Price ** CPSE (2019-07-16) in DKK DKK75.7
Global Tobacco Industry PE Ratio Median Figure of 12 Publicly-Listed Tobacco Companies 13.54x
Denmark Market PE Ratio Median Figure of 100 Publicly-Listed Companies 17.78x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Scandinavian Tobacco Group.

CPSE:STG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= CPSE:STG Share Price ÷ EPS (both in DKK)

= 75.7 ÷ 6.64

11.4x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Scandinavian Tobacco Group is good value based on earnings compared to the Global Tobacco industry average.
  • Scandinavian Tobacco Group is good value based on earnings compared to the Denmark market.
Price based on expected Growth
Does Scandinavian Tobacco Group's expected growth come at a high price?
Raw Data
CPSE:STG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.4x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
9.1%per year
Global Tobacco Industry PEG Ratio Median Figure of 7 Publicly-Listed Tobacco Companies 1.52x
Denmark Market PEG Ratio Median Figure of 44 Publicly-Listed Companies 2.09x

*Line of best fit is calculated by linear regression .

CPSE:STG PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.4x ÷ 9.1%

1.26x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Scandinavian Tobacco Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Scandinavian Tobacco Group's assets?
Raw Data
CPSE:STG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in DKK DKK87.61
CPSE:STG Share Price * CPSE (2019-07-16) in DKK DKK75.7
Global Tobacco Industry PB Ratio Median Figure of 18 Publicly-Listed Tobacco Companies 1.83x
Denmark Market PB Ratio Median Figure of 136 Publicly-Listed Companies 1.56x
CPSE:STG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= CPSE:STG Share Price ÷ Book Value per Share (both in DKK)

= 75.7 ÷ 87.61

0.86x

* Primary Listing of Scandinavian Tobacco Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Scandinavian Tobacco Group is good value based on assets compared to the Global Tobacco industry average.
X
Value checks
We assess Scandinavian Tobacco Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Tobacco industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Tobacco industry average (and greater than 0)? (1 check)
  5. Scandinavian Tobacco Group has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Scandinavian Tobacco Group expected to grow at an attractive rate?
  • Scandinavian Tobacco Group's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Scandinavian Tobacco Group's earnings growth is positive but not above the Denmark market average.
  • Scandinavian Tobacco Group's revenue growth is positive but not above the Denmark market average.
Annual Growth Rates Comparison
Raw Data
CPSE:STG Future Growth Rates Data Sources
Data Point Source Value (per year)
CPSE:STG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 9.1%
CPSE:STG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 2.1%
Global Tobacco Industry Earnings Growth Rate Market Cap Weighted Average 8.5%
Global Tobacco Industry Revenue Growth Rate Market Cap Weighted Average 3.4%
Denmark Market Earnings Growth Rate Market Cap Weighted Average 10.5%
Denmark Market Revenue Growth Rate Market Cap Weighted Average 6.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
CPSE:STG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in DKK Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
CPSE:STG Future Estimates Data
Date (Data in DKK Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 7,630 975 1
2021-12-31 7,220 1,238 865 3
2020-12-31 7,132 1,208 840 3
2019-12-31 7,043 1,028 733 3
CPSE:STG Past Financials Data
Date (Data in DKK Millions) Revenue Cash Flow Net Income *
2019-03-31 6,896 919 670
2018-12-31 6,718 785 666
2018-09-30 6,643 891 761
2018-06-30 6,476 906 764
2018-03-31 6,370 931 725
2017-12-31 6,464 1,049 712
2017-09-30 6,580 1,099 648
2017-06-30 6,599 1,397 577
2017-03-31 6,625 1,578 618
2016-12-31 6,746 1,358 682
2016-09-30 6,705 1,364 672
2016-06-30 6,707 1,160 660

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Scandinavian Tobacco Group's earnings are expected to grow by 9.1% yearly, however this is not considered high growth (20% yearly).
  • Scandinavian Tobacco Group's revenue is expected to grow by 2.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
CPSE:STG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Scandinavian Tobacco Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

CPSE:STG Future Estimates Data
Date (Data in DKK Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 9.80 9.80 9.80 1.00
2021-12-31 8.65 9.46 7.15 3.00
2020-12-31 8.40 9.11 7.40 3.00
2019-12-31 7.33 7.71 6.74 3.00
CPSE:STG Past Financials Data
Date (Data in DKK Millions) EPS *
2019-03-31 6.64
2018-12-31 6.68
2018-09-30 7.74
2018-06-30 7.86
2018-03-31 7.44
2017-12-31 7.14
2017-09-30 6.53
2017-06-30 5.73
2017-03-31 6.07
2016-12-31 6.83
2016-09-30 6.78
2016-06-30 6.67

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Scandinavian Tobacco Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Scandinavian Tobacco Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Global market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Global market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Scandinavian Tobacco Group has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Scandinavian Tobacco Group's growth in the last year to its industry (Tobacco).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Scandinavian Tobacco Group's year on year earnings growth rate has been positive over the past 5 years.
  • Scandinavian Tobacco Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Scandinavian Tobacco Group's 1-year earnings growth is negative, it can't be compared to the Global Tobacco industry average.
Earnings and Revenue History
Scandinavian Tobacco Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Scandinavian Tobacco Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

CPSE:STG Past Revenue, Cash Flow and Net Income Data
Date (Data in DKK Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 6,896.10 670.40 2,148.10
2018-12-31 6,717.50 665.50 2,117.20
2018-09-30 6,642.60 761.20 1,971.40
2018-06-30 6,476.30 763.70 1,896.10
2018-03-31 6,369.70 724.90 1,850.80
2017-12-31 6,463.50 711.60 1,884.00
2017-09-30 6,580.20 648.30 1,923.50
2017-06-30 6,599.00 576.70 1,931.10
2017-03-31 6,625.10 618.00 1,934.90
2016-12-31 6,745.60 681.50 1,961.00
2016-09-30 6,705.30 672.30 1,945.30
2016-06-30 6,706.50 659.50 1,997.00
2016-03-31 6,755.10 657.70 2,019.00
2015-12-31 6,732.30 667.60 2,001.90
2015-09-30 6,595.60 671.60 2,021.30
2015-06-30 6,503.50 740.80 1,788.80
2015-03-31 6,292.60 712.80 1,775.30
2014-12-31 6,126.00 639.80 1,808.90
2014-09-30 5,974.10 637.40 1,384.80
2014-03-31 5,930.30 573.80 1,711.20
2013-12-31 5,925.30 572.80 1,725.70
2012-12-31 5,978.00 618.20 1,697.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Scandinavian Tobacco Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Scandinavian Tobacco Group used its assets less efficiently than the Global Tobacco industry average last year based on Return on Assets.
  • Scandinavian Tobacco Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Scandinavian Tobacco Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Tobacco industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Scandinavian Tobacco Group has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Scandinavian Tobacco Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Scandinavian Tobacco Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Scandinavian Tobacco Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Scandinavian Tobacco Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Scandinavian Tobacco Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Scandinavian Tobacco Group Company Filings, last reported 3 months ago.

CPSE:STG Past Debt and Equity Data
Date (Data in DKK Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 9,033.20 2,676.40 367.80
2018-12-31 8,818.20 2,658.10 310.80
2018-09-30 8,627.60 2,830.30 285.60
2018-06-30 8,349.20 3,008.30 154.70
2018-03-31 8,391.80 2,727.10 671.20
2017-12-31 8,448.20 2,606.30 605.20
2017-09-30 8,613.10 2,620.10 660.50
2017-06-30 8,553.70 2,873.80 542.00
2017-03-31 9,296.50 2,717.10 617.90
2016-12-31 9,272.90 2,730.70 570.30
2016-09-30 8,788.80 3,087.80 631.60
2016-06-30 8,660.00 3,422.90 363.70
2016-03-31 8,881.60 3,293.10 406.20
2015-12-31 8,997.90 3,337.90 608.80
2015-09-30 8,688.70 3,319.60 291.20
2015-06-30
2015-03-31 9,087.00 2,958.30 581.00
2014-12-31 9,087.00 2,958.30 581.00
2014-09-30
2014-03-31 8,332.80 2,978.40 464.30
2013-12-31 8,332.80 2,978.40 464.30
2012-12-31 8,424.90 3,240.90 684.20
  • Scandinavian Tobacco Group's level of debt (29.6%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (35.7% vs 29.6% today).
  • Debt is well covered by operating cash flow (34.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 17.2x coverage).
X
Financial health checks
We assess Scandinavian Tobacco Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Scandinavian Tobacco Group has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
7.93%
Current annual income from Scandinavian Tobacco Group dividends. Estimated to be 9.21% next year.
If you bought DKK2,000 of Scandinavian Tobacco Group shares you are expected to receive DKK159 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Scandinavian Tobacco Group's pays a higher dividend yield than the bottom 25% of dividend payers in Denmark (1.61%).
  • Scandinavian Tobacco Group's dividend is above the markets top 25% of dividend payers in Denmark (4.66%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
CPSE:STG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
Global Tobacco Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 6%
Denmark Market Average Dividend Yield Market Cap Weighted Average of 77 Stocks 2.4%
Denmark Minimum Threshold Dividend Yield 10th Percentile 0.9%
Denmark Bottom 25% Dividend Yield 25th Percentile 1.6%
Denmark Top 25% Dividend Yield 75th Percentile 4.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

CPSE:STG Future Dividends Estimate Data
Date (Data in DKK) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31 7.67 3.00
2020-12-31 6.92 3.00
2019-12-31 6.33 3.00
CPSE:STG Past Annualized Dividends Data
Date (Data in DKK) Dividend per share (annual) Avg. Yield (%)
2019-04-10 6.000 7.658
2017-11-08 5.750 5.807
2017-03-16 5.500 4.944
2016-03-10 5.000 4.416

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Scandinavian Tobacco Group has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Scandinavian Tobacco Group only paid a dividend in the past 3 years.
Current Payout to shareholders
What portion of Scandinavian Tobacco Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.4x coverage).
X
Income/ dividend checks
We assess Scandinavian Tobacco Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Scandinavian Tobacco Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Scandinavian Tobacco Group has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Niels Frederiksen
COMPENSATION DKK13,000,000
AGE 55
TENURE AS CEO 4.3 years
CEO Bio

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 Executive Vice President at Scandinavian Tobacco Group A/S. Since 2013 until 28 February 2015, he has been responsible for the smoking tobacco supply chain, the handmade cigar business outside the US, in co-operation with General Cigar and strategic projects. He has been with Scandinavian Tobacco Group since 1999 in various positions, including Senior Vice President and Executive Vice President for Group functions. Mr. Frederiksen serves as a Member of Supervisory Board at British American Tobacco Denmark A/S.

CEO Compensation
  • Niels's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
  • Niels's remuneration is higher than average for companies of similar size in Denmark.
Management Team Tenure

Average tenure and age of the Scandinavian Tobacco Group management team in years:

4.3
Average Tenure
55
Average Age
  • The tenure for the Scandinavian Tobacco Group management team is about average.
Management Team

Niels Frederiksen

TITLE
CEO, President & Member of Executive Board
COMPENSATION
DKK13M
AGE
55
TENURE
4.3 yrs

Marianne Bock

TITLE
Executive VP & CFO
COMPENSATION
DKK5M
AGE
56

Torben Sand

TITLE
Head of Investor Relations

Mette Valentin

TITLE
Senior Vice President of Group Legal & Public Affairs

Simon Augustesen

TITLE
Director of Group Communications

Christian Sørensen

TITLE
Executive Vice President of Sales & Marketing
COMPENSATION
DKK9M
AGE
55
TENURE
13.5 yrs

Hanne Berg

TITLE
Chief Human Resource Officer & Senior VP
AGE
53
TENURE
2.2 yrs

Dorte Morell

TITLE
Senior Vice President of Finance and Senior Vice President of Finance -House of Prince A/S

Thomas Lindegaard

TITLE
Senior Vice President of Scientific & Regulatory Affairs

Lars Wassberg

TITLE
Senior Vice President of Group Marketing
Board of Directors Tenure

Average tenure and age of the Scandinavian Tobacco Group board of directors in years:

2.6
Average Tenure
59.5
Average Age
  • The average tenure for the Scandinavian Tobacco Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Nigel Northridge

TITLE
Chairman of the Board
COMPENSATION
DKK1M
AGE
63
TENURE
2.2 yrs

Henrik Brandt

TITLE
Vice-Chairman of the Board
COMPENSATION
DKK800K
AGE
64
TENURE
2.2 yrs

Marléne Forsell

TITLE
Independent Director
COMPENSATION
DKK550K
AGE
43
TENURE
0.3 yrs

Anders Obel

TITLE
Independent Director
COMPENSATION
DKK273K
AGE
59
TENURE
1.5 yrs

Lindy Larsen

TITLE
Employee Representative Director
COMPENSATION
DKK400K
AGE
64
TENURE
3 yrs

Hanne Malling

TITLE
Employee Representative Director
COMPENSATION
DKK400K
AGE
59
TENURE
8.8 yrs

Henning Petersen

TITLE
Independent Director
COMPENSATION
DKK133K
AGE
72
TENURE
8.8 yrs

Kurt Asmussen

TITLE
Employee Representative Director
COMPENSATION
DKK400K
AGE
56
TENURE
8.8 yrs

Mogens Olsen

TITLE
Director
COMPENSATION
DKK400K
AGE
52
TENURE
2 yrs

Dianne Blixt

TITLE
Independent Director
COMPENSATION
DKK550K
AGE
60
TENURE
3.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (DKK) Value (DKK)
X
Management checks
We assess Scandinavian Tobacco Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Scandinavian Tobacco Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Why Scandinavian Tobacco Group A/S’s (CPH:STG) Return On Capital Employed Might Be A Concern

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Interested In Scandinavian Tobacco Group A/S (CPH:STG)? Here's What Its Recent Performance Looks Like

After reading Scandinavian Tobacco Group A/S's (CPH:STG) most recent earnings announcement (30 September 2018), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … I also compare against an industry benchmark to check whether Scandinavian Tobacco Group's performance has been impacted by industry movements. … See our latest analysis for Scandinavian Tobacco Group?

Simply Wall St -

Should You Be Concerned About Scandinavian Tobacco Group A/S's (CPH:STG) ROE?

We'll use ROE to examine Scandinavian Tobacco Group A/S (CPH:STG), by way of a worked example. … Over the last twelve months Scandinavian Tobacco Group has recorded a ROE of 9.1%. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Should You Know About Scandinavian Tobacco Group A/S's (CPH:STG) Capital Returns?

and want to begin learning the link between Scandinavian Tobacco Group A/S (CPH:STG)’s return fundamentals and stock market performance. … This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … Therefore, looking at how efficiently Scandinavian Tobacco Group is able to use capital to create earnings will help us understand your potential return.

Simply Wall St -

Who Owns Most Of Scandinavian Tobacco Group A/S (CPH:STG)?

In this article, I will take a quick look at Scandinavian Tobacco Group A/S’s (CPH:STG) recent ownership structure – an unconventional investing subject, but an important one. … The impact of a company's ownership structure affects both its short- and long-term performance. … The implications of these institutions’ actions can either benefit or hinder individual investors, so it is important to understand the ownership composition of your stock investment.

Simply Wall St -

Scandinavian Tobacco Group A/S (CPH:STG): Exploring Free Cash Flows

Operating in the tobacco industry, Scandinavian Tobacco Group is currently valued at ø10.36b. … Free cash flow (FCF) is the amount of cash Scandinavian Tobacco Group has left after it pays off its expenses, including its net capital expenditures, which is what the company needs to spend each year to maintain or grow its business operations. … I will be analysing Scandinavian Tobacco Group’s FCF by looking at its FCF yield and its operating cash flow growth.

Simply Wall St -

A Look At The Intrinsic Value Of Scandinavian Tobacco Group A/S (CPH:STG)

by taking the foreast future cash flows of the company and discounting them back to today's value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Why Scandinavian Tobacco Group A/S (CPH:STG) Could Be Your Next Investment

Upon building up an investment case for a stock, we should look at various aspects. … that has been able to sustain great financial health over the past … Below, I've touched on some key aspects you should know on a high level

Simply Wall St -

Scandinavian Tobacco Group A/S (CPH:STG): Set To Experience A Decrease In Earnings?

Looking at Scandinavian Tobacco Group A/S's (CPH:STG) earnings update in March 2018, … with earnings expected to decline by -5.46% in the upcoming year … the past 5-year average growth rate of 2.32%.

Simply Wall St -

Is Scandinavian Tobacco Group A/S's (CPH:STG) Balance Sheet Strong Enough To Weather A Storm?

Scandinavian Tobacco Group A/S (CPH:STG) is a small-cap stock with a market capitalization of ø9.68b. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Evaluating financial health as part of your investment thesis is

Simply Wall St -

Company Info

Description

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.

Details
Name: Scandinavian Tobacco Group A/S
STG
Exchange: CPSE
Founded: 1750
DKK7,542,218,100
99,633,000
Website: http://www.st-group.com
Address: Scandinavian Tobacco Group A/S
Sydmarken 42,
Søborg,
Capital Region of Denmark, 2860,
Denmark
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
CPSE STG Ordinary Shares OMX Nordic Exchange Copenhagen DK DKK 10. Feb 2016
OTCPK SNDV.F Ordinary Shares Pink Sheets LLC US USD 10. Feb 2016
DB 8ZI Ordinary Shares Deutsche Boerse AG DE EUR 10. Feb 2016
LSE 0RES Ordinary Shares London Stock Exchange GB DKK 10. Feb 2016
BMV STG N Ordinary Shares Bolsa Mexicana de Valores MX MXN 10. Feb 2016
OTCPK SKNV.Y UNSPONSORD ADR Pink Sheets LLC US USD 12. Jul 2017
Number of employees
Current staff
Staff numbers
7,300
Scandinavian Tobacco Group employees.
Industry
Tobacco
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/16 22:09
End of day share price update: 2019/07/16 00:00
Last estimates confirmation: 2019/07/01
Last earnings filing: 2019/05/23
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.