CPSE:LUN

Stock Analysis Report

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Market Cap

kr.37.8b

Last Updated

2021/06/24 18:01 UTC

Data Sources

Company Financials +

Executive Summary

H. Lundbeck A/S engages in the research, development, production, and sale of pharmaceuticals for the treatment of psychiatric and neurological disorders in Europe, North America, and internationally. More Details


Snowflake Analysis

Undervalued with excellent balance sheet.


Similar Companies

Share Price & News

How has H. Lundbeck's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LUN is not significantly more volatile than the rest of Danish stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: LUN's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-0.3%

LUN

-1.6%

DK Pharmaceuticals

-1.1%

DK Market


1 Year Return

-25.8%

LUN

1.5%

DK Pharmaceuticals

29.4%

DK Market

Return vs Industry: LUN underperformed the Danish Pharmaceuticals industry which returned 1.5% over the past year.

Return vs Market: LUN underperformed the Danish Market which returned 29.4% over the past year.


Shareholder returns

LUNIndustryMarket
7 Day-0.3%-1.6%-1.1%
30 Day-4.0%4.2%1.6%
90 Day-12.4%9.6%11.0%
1 Year-25.0%-25.8%4.8%1.5%32.7%29.4%
3 Year-53.1%-56.5%44.5%28.6%73.9%60.8%
5 Year-15.4%-23.9%46.5%21.6%99.5%74.0%

Long-Term Price Volatility Vs. Market

How volatile is H. Lundbeck's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is H. Lundbeck 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: LUN (DKK189.55) is trading below our estimate of fair value (DKK616.64)

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


Price To Earnings Ratio

PE vs Industry: LUN is good value based on its PE Ratio (17.9x) compared to the European Pharmaceuticals industry average (25.9x).

PE vs Market: LUN is poor value based on its PE Ratio (17.9x) compared to the Danish market (15.1x).


Price to Earnings Growth Ratio

PEG Ratio: LUN is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: LUN is good value based on its PB Ratio (2.2x) compared to the XE Pharmaceuticals industry average (3.5x).


Future Growth

How is H. Lundbeck forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

23.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LUN's forecast earnings growth (23.2% per year) is above the savings rate (0.1%).

Earnings vs Market: LUN's earnings (23.2% per year) are forecast to grow faster than the Danish market (8% per year).

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

Revenue vs Market: LUN's revenue (7.4% per year) is forecast to grow faster than the Danish market (7% per year).

High Growth Revenue: LUN's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LUN's Return on Equity is forecast to be low in 3 years time (15.4%).


Past Performance

How has H. Lundbeck performed over the past 5 years?

24.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LUN has a large one-off loss of DKK910.0M impacting its March 31 2021 financial results.

Growing Profit Margin: LUN's current net profit margins (12.1%) are higher than last year (8.7%).


Past Earnings Growth Analysis

Earnings Trend: LUN has become profitable over the past 5 years, growing earnings by 24.2% per year.

Accelerating Growth: LUN's earnings growth over the past year (40%) exceeds its 5-year average (24.2% per year).

Earnings vs Industry: LUN earnings growth over the past year (40%) exceeded the Pharmaceuticals industry 6.1%.


Return on Equity

High ROE: LUN's Return on Equity (12.3%) is considered low.


Financial Health

How is H. Lundbeck's financial position?


Financial Position Analysis

Short Term Liabilities: LUN's short term assets (DKK8.1B) exceed its short term liabilities (DKK8.0B).

Long Term Liabilities: LUN's short term assets (DKK8.1B) do not cover its long term liabilities (DKK9.3B).


Debt to Equity History and Analysis

Debt Level: LUN's debt to equity ratio (33.2%) is considered satisfactory.

Reducing Debt: LUN's debt to equity ratio has reduced from 39.5% to 33.2% over the past 5 years.

Debt Coverage: LUN's debt is well covered by operating cash flow (65.8%).

Interest Coverage: LUN's interest payments on its debt are well covered by EBIT (30.9x coverage).


Balance Sheet


Dividend

What is H. Lundbeck current dividend yield, its reliability and sustainability?

1.31%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LUN's dividend (1.32%) is higher than the bottom 25% of dividend payers in the Danish market (1.11%).

High Dividend: LUN's dividend (1.32%) is low compared to the top 25% of dividend payers in the Danish market (3.38%).


Stability and Growth of Payments

Stable Dividend: LUN's dividend payments have been volatile in the past 10 years.

Growing Dividend: LUN's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.5%), LUN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LUN's dividends in 3 years are forecast to be well covered by earnings (27.4% payout ratio).


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Deborah Dunsire (58 yo)

2.75yrs

Tenure

kr.23,000,000

Compensation

Dr. Deborah Dunsire, M.D. serves as Chief Executive Officer and President at H. Lundbeck A/S since September 1, 2018 and served as its Interim Executive Vice President of R&D since January 2019 until Febru...


CEO Compensation Analysis

Compensation vs Market: Deborah's total compensation ($USD3.69M) is about average for companies of similar size in the Danish market ($USD3.26M).

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


Leadership Team

Experienced Management: LUN's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: LUN's board of directors are considered experienced (3.3 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

H. Lundbeck A/S's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: H. Lundbeck A/S
  • Ticker: LUN
  • Exchange: CPSE
  • Founded: 1915
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: kr.37.782b
  • Shares outstanding: 198.70m
  • Website: https://www.lundbeck.com

Number of Employees


Location

  • H. Lundbeck A/S
  • Ottiliavej 9
  • Valby
  • Capital Region of Denmark
  • 2500
  • Denmark

Listings


Biography

H. Lundbeck A/S engages in the research, development, production, and sale of pharmaceuticals for the treatment of psychiatric and neurological disorders in Europe, North America, and internationally. The ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/24 18:01
End of Day Share Price2021/06/24 00:00
Earnings2021/03/31
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.