GN Store Nord (CPSE:GN) - Share price, News & Analysis

Q: What is the Fair Price of GN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

GN (DKK244.7) is trading below our estimate of [[fair value]] (DKK646.15)

GN fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	5/6
Past Performance	2/6
Financial Health	1/6
Dividends	0/6

GN Stock Overview

Rewards

Trading at 62.1% below our estimate of its fair value

Earnings are forecast to grow 23.11% per year

Risk Analysis

Debt is not well covered by operating cash flow

Volatile share price over the past 3 months

Profit margins (7%) are lower than last year (11.1%)

GN Store Nord Competitors

Ambu

CPSE:AMBU B

kr.19.0b

Demant

CPSE:DEMANT

kr.53.3b

Össur hf

CPSE:OSSR

kr.12.3b

Coloplast

CPSE:COLO B

kr.188.7b

Price History & Performance

Summary of all time highs, changes and price drops for GN Store Nord
Historical stock prices
Current Share Price	kr.244.70
52 Week High	kr.504.60
52 Week Low	kr.214.70
Beta	0.76
1 Month Change	1.24%
3 Month Change	2.60%
1 Year Change	-48.32%
3 Year Change	-19.93%
5 Year Change	15.05%
Change since IPO	1,746.24%

Shareholder Returns

	GN	DK Medical Equipment	DK Market
7D	-1.3%	0.9%	-1.3%
1Y	-48.3%	-33.1%	-7.2%

Return vs Industry: GN underperformed the Danish Medical Equipment industry which returned -33.1% over the past year.

Return vs Market: GN underperformed the Danish Market which returned -7.2% over the past year.

Price Volatility

Is GN's price volatile compared to industry and market?
GN volatility
GN Average Weekly Movement	8.4%
Medical Equipment Industry Average Movement	7.6%
Market Average Movement	5.9%
10% most volatile stocks in DK Market	11.0%
10% least volatile stocks in DK Market	3.2%

Stable Share Price: GN is more volatile than 75% of Danish stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: GN's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of Danish stocks.

About the Company

Founded	Employees	CEO	Website
1869	7,745	Rene Svendsen-Tune	https://www.gn.com

GN Store Nord A/S develops, manufactures, and markets audio and video communications solutions for medical, professional, and consumer technology solutions in Denmark, rest of Europe, North America, and internationally. It operates in two segments, GN Hearing and GN Audio. The GN Hearing segment produces and sells hearing instruments and products.

GN Store Nord Fundamentals Summary

How do GN Store Nord's earnings and revenue compare to its market cap?
GN fundamental statistics
Market Cap	kr.30.07b
Earnings (TTM)	kr.1.09b
Revenue (TTM)	kr.15.52b

28.7x

P/E Ratio

2.0x

P/S Ratio

Is GN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
GN income statement (TTM)
Revenue	kr.0
Cost of Revenue	kr.0
Gross Profit	kr.0
Other Expenses	kr.0
Earnings	kr.0

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Aug 18, 2022

Earnings per share (EPS)	8.54
Gross Margin	54.01%
Net Profit Margin	7.03%
Debt/Equity Ratio	245.1%

How did GN perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

18%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is GN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GN?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for GN. This is calculated by dividing GN's market cap by their current preferred multiple.
What is GN's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	kr.30.07b

GN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.9x
Enterprise Value/EBITDA	19.3x
PEG Ratio	1.2x

Price to Earnings Ratio vs Peers

How does GN's PE Ratio compare to its peers?

GN PE Ratio vs Peers

The above table shows the PE ratio for GN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	40.5x
AMBU B Ambu	74.4x	50.2%	kr.19.0b
DEMANT Demant	21.2x	9.0%	kr.53.3b
OSSR Össur hf	29.3x	18.9%	kr.12.3b
COLO B Coloplast	39.8x	10.7%	kr.188.7b
GN GN Store Nord	27.6x	23.1%	kr.30.1b

Price-To-Earnings vs Peers: GN is good value based on its Price-To-Earnings Ratio (28.7x) compared to the peer average (40.5x).

Price to Earnings Ratio vs Industry

How does GN's PE Ratio compare vs other companies in the European Medical Equipment Industry?

Price-To-Earnings vs Industry: GN is good value based on its Price-To-Earnings Ratio (28.7x) compared to the Danish Medical Equipment industry average (29.3x)

Price to Earnings Ratio vs Fair Ratio

What is GN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	28.7x
Fair PE Ratio	40.6x

Price-To-Earnings vs Fair Ratio: GN is good value based on its Price-To-Earnings Ratio (28.7x) compared to the estimated Fair Price-To-Earnings Ratio (40.6x).

Share Price vs Fair Value

What is the Fair Price of GN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GN (DKK244.7) is trading below our estimate of fair value (DKK646.15)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Future Growth

How is GN Store Nord forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

23.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: GN's forecast earnings growth (23.1% per year) is above the savings rate (0.1%).

Earnings vs Market: GN's earnings (23.1% per year) are forecast to grow faster than the Danish market (8.3% per year).

High Growth Earnings: GN's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GN's revenue (9.6% per year) is forecast to grow faster than the Danish market (6.1% per year).

High Growth Revenue: GN's revenue (9.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: GN's Return on Equity is forecast to be high in 3 years time (25.3%)

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Past Performance

How has GN Store Nord performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

8.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GN has high quality earnings.

Growing Profit Margin: GN's current net profit margins (7%) are lower than last year (11.1%).

Past Earnings Growth Analysis

Earnings Trend: GN's earnings have grown by 8.3% per year over the past 5 years.

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

Earnings vs Industry: GN had negative earnings growth (-32.9%) over the past year, making it difficult to compare to the Medical Equipment industry average (10.3%).

Return on Equity

High ROE: GN's Return on Equity (18.8%) is considered low.

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Financial Health

How is GN Store Nord's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: GN's short term assets (DKK7.9B) do not cover its short term liabilities (DKK8.7B).

Long Term Liabilities: GN's short term assets (DKK7.9B) do not cover its long term liabilities (DKK12.8B).

Debt to Equity History and Analysis

Debt Level: GN's net debt to equity ratio (229.2%) is considered high.

Reducing Debt: GN's debt to equity ratio has increased from 69.5% to 245.1% over the past 5 years.

Debt Coverage: GN's debt is not well covered by operating cash flow (9.8%).

Interest Coverage: GN's interest payments on its debt are well covered by EBIT (13x coverage).

Balance Sheet

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Dividend

What is GN Store Nord current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

0.63%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: GN's dividend (0.63%) isn’t notable compared to the bottom 25% of dividend payers in the Danish market (1.48%).

High Dividend: GN's dividend (0.63%) is low compared to the top 25% of dividend payers in the Danish market (6.11%).

Stability and Growth of Payments

Stable Dividend: GN is not paying a notable dividend for the Danish market, therefore no need to check if payments are stable.

Growing Dividend: GN is not paying a notable dividend for the Danish market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: GN is not paying a notable dividend for the Danish market.

Cash Payout to Shareholders

Cash Flow Coverage: GN is not paying a notable dividend for the Danish market.

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Management

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

1.6yrs

Average management tenure

CEO

Rene Svendsen-Tune (67 yo)

no data

Tenure

kr.20,500,000

Compensation

Mr. Rene Svendsen-Tune serves as Chief Executive Officer at GN Store Nord A/S. He has been Vice Chairman at Nilfisk Holding A/S since March 26, 2021. Mr. Svendsen-Tune has been the Chief Executive Officer...

CEO Compensation Analysis

Compensation vs Market: Rene's total compensation ($USD2.79M) is about average for companies of similar size in the Danish market ($USD2.40M).

Compensation vs Earnings: Rene's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: GN's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.

Board Members

Experienced Board: GN's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.

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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/18 00:00
End of Day Share Price	2022/08/18 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31