Scandinavian Tobacco Group A/S manufactures and sells handmade and machine-made cigars, and pipe tobacco worldwide.
Flawless balance sheet and undervalued.
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.
7 Day Return
1 Year Return
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.
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
6 days ago | Simply Wall StWith A 6.9% Return On Equity, Is Scandinavian Tobacco Group A/S (CPH:STG) A Quality Stock?
2 weeks ago | Simply Wall StDoes It Make Sense To Buy Scandinavian Tobacco Group A/S (CPH:STG) For Its Yield?
1 month ago | Simply Wall StIs Scandinavian Tobacco Group A/S's (CPH:STG) CEO Pay Justified?
Is Scandinavian Tobacco Group undervalued compared to its fair value and its price relative to the market?
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).
How is Scandinavian Tobacco Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
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%).
How has Scandinavian Tobacco Group performed over the past 5 years?
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
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).
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).
What is Scandinavian Tobacco Group's current dividend yield, its reliability and sustainability?
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).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Niels Frederiksen (55yo)
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.
|CEO, President & Member of Executive Board||4.9yrs||ø13.00m||0.060% DKK5.4m|
|Executive VP & CFO||0yrs||ø4.60m||no data|
|Head of Investor Relations||0yrs||no data||no data|
|Senior Vice President of Group Legal & Public Affairs||0yrs||no data||no data|
|Director of Group Communications||0yrs||no data||no data|
|Executive Vice President of Sales & Marketing||14.1yrs||ø6.80m||no data|
|Chief Human Resource Officer & Senior VP||2.8yrs||no data||0.0013% DKK115.3k|
|Senior Vice President of Finance and Senior Vice President of Finance -House of Prince A/S||0yrs||no data||no data|
|Senior Vice President of Scientific & Regulatory Affairs||0yrs||no data||no data|
|Senior Vice President of Group Marketing||0yrs||no data||no data|
Experienced Management: STG's management team is considered experienced (4.9 years average tenure).
|Independent Chairman of the Board||2.8yrs||ø1.40m||0.0050% DKK448.6k|
|Independent Vice-Chairman of the Board||2.8yrs||ø800.00k||0.067% DKK6.0m|
|Independent Director||9.3yrs||ø133.00k||no data|
|Independent Director||2.1yrs||ø273.00k||0.020% DKK1.8m|
|Employee Representative Director||3.6yrs||ø400.00k||0.00024% DKK21.4k|
|Employee Representative Director||9.3yrs||ø400.00k||0.00025% DKK22.3k|
|Employee Representative Director||9.3yrs||ø400.00k||0.00050% DKK44.7k|
|Independent Director||4yrs||ø550.00k||0.0017% DKK152.8k|
|Independent Director||0.8yrs||ø550.00k||no data|
Experienced Board: STG's board of directors are considered experienced (3.2 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Scandinavian Tobacco Group A/S's company bio, employee growth, exchange listings and data sources
- 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
- Scandinavian Tobacco Group A/S
- Sydmarken 42
- Capital Region of Denmark
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|STG||CPSE (OMX Nordic Exchange Copenhagen)||Yes||Ordinary Shares||DK||DKK||Feb 2016|
|8ZI||DB (Deutsche Boerse AG)||Yes||Ordinary Shares||DE||EUR||Feb 2016|
|0RES||LSE (London Stock Exchange)||Yes||Ordinary Shares||GB||DKK||Feb 2016|
|STGC||BATS-CHIXE (BATS 'Chi-X Europe')||Yes||Ordinary Shares||GB||DKK||Feb 2016|
|SNDV.F||OTCPK (Pink Sheets LLC)||Yes||Ordinary Shares||US||USD||Feb 2016|
|STG N||BMV (Bolsa Mexicana de Valores)||Yes||Ordinary Shares||MX||MXN||Feb 2016|
|SKNV.Y||OTCPK (Pink Sheets LLC)||UNSPONSORD ADR||US||USD||Jul 2017|
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
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/22 23:18|
|End of Day Share Price||2020/02/21 00:00|
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.