CPSE:LUN

Stock Analysis Report

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.

Snowflake

Fundamentals

Flawless balance sheet, good value and pays a dividend.


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


Market Performance


7 Day Return

-10.0%

CPSE:LUN

0.5%

DK Pharmaceuticals

0.9%

DK Market


1 Year Return

-35.4%

CPSE:LUN

5.4%

DK Pharmaceuticals

3.9%

DK Market

LUN underperformed the Pharmaceuticals industry which returned 5.3% over the past year.

LUN underperformed the Market in Denmark which returned 3.9% over the past year.


Share holder returns

LUNIndustryMarket
7 Day-10.0%0.5%0.9%
30 Day-6.3%2.1%1.2%
90 Day-10.5%5.0%3.7%
1 Year-32.7%-35.4%11.2%5.4%7.0%3.9%
3 Year-5.2%-11.8%24.2%10.4%31.3%20.5%
5 Year118.7%103.4%31.5%9.9%68.8%44.1%

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 based on future cash flows and its price relative to the stock market?

47%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

H. Lundbeck's share price is below the future cash flow value, and at a moderate discount (> 20%).

H. Lundbeck's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

H. Lundbeck is good value based on earnings compared to the Europe Pharmaceuticals industry average.

H. Lundbeck is good value based on earnings compared to the Denmark market.


Price Based on Expected Growth

H. Lundbeck is poor value based on expected growth next year.


Price Based on Value of Assets

H. Lundbeck is overvalued based on assets compared to the Europe Pharmaceuticals industry average.


Next Steps

Future Growth

How is H. Lundbeck expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

7.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

H. Lundbeck's revenue is expected to grow by 1% yearly, however this is not considered high growth (20% yearly).

H. Lundbeck's earnings are expected to grow by 7.8% yearly, however this is not considered high growth (20% yearly).

H. Lundbeck's revenue growth is positive but not above the Denmark market average.

H. Lundbeck's earnings growth is positive but not above the Denmark market average.

H. Lundbeck's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

H. Lundbeck is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

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

53.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

H. Lundbeck has delivered over 20% year on year earnings growth in the past 5 years.

H. Lundbeck's 1-year earnings growth is negative, it can't be compared to the 5-year average.

H. Lundbeck's 1-year earnings growth is negative, it can't be compared to the Europe Pharmaceuticals industry average.


Return on Equity

H. Lundbeck has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

H. Lundbeck used its assets more efficiently than the Europe Pharmaceuticals industry average last year based on Return on Assets.


Return on Capital Employed

H. Lundbeck has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is H. Lundbeck's financial position?


Financial Position Analysis

H. Lundbeck is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

H. Lundbeck's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

H. Lundbeck's level of debt (4.8%) 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 (16.1% vs 4.8% today).

Debt is well covered by operating cash flow (531.8%, greater than 20% of total debt).

H. Lundbeck earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 13.2x debt.


Next Steps

Dividend

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

3.46%

Expected Dividend Yield


Dividend Yield and Payments Analysis

H. Lundbeck's pays a higher dividend yield than the bottom 25% of dividend payers in Denmark (1.7%).

H. Lundbeck's dividend is below the markets top 25% of dividend payers in Denmark (5%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).


Next Steps

Management

What is the CEO of H. Lundbeck's salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average management tenure


CEO

Deborah Dunsire (57yo)

1.1yrs

Tenure

ø13,700,000

Compensation

Dr. Deborah Dunsire, M.D. serves as Chief Executive Officer and President at H. Lundbeck A/S since July, 2018 and served as its Interim Executive Vice President of R&D since January 2019 until February 201 ...


CEO Compensation Analysis

Deborah's remuneration is about average for companies of similar size in Denmark.

Insufficient data for Deborah to compare compensation growth.


Management Age and Tenure

1.4yrs

Average Tenure

57yo

Average Age

The average tenure for the H. Lundbeck management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.6yrs

Average Tenure

53yo

Average Age

The average tenure for the H. Lundbeck board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Deborah Dunsire (57yo)

    President & CEO

    • Tenure: 1.1yrs
    • Compensation: ø13.70m
  • Lars Bang (57yo)

    Executive Vice President of Product Development & Supply

    • Tenure: 0.6yrs
    • Compensation: ø8.50m
  • Anders Götzsche (52yo)

    Executive VP & CFO

    • Tenure: 12.3yrs
    • Compensation: ø12.30m
  • Ole Chrintz (61yo)

    Senior Vice President of International Markets

    • Tenure: 0.0yrs
  • Jacob Tolstrup (47yo)

    Executive Vice President of Commercial Operations

    • Tenure: 1.8yrs
    • Compensation: ø7.80m
  • Helle Juhl

    Executive of Human Resources

    • Tenure: 0.0yrs
  • Peter Anastasiou (49yo)

    Executive Vice President of North America

    • Tenure: 1.8yrs
  • Anders Schroll

    Vice President of Corporate Communications & Global Public Affairs

    • Tenure: 0.0yrs
  • Palle Olesen

    Chief Specialist & VP of Investor Relations

    • Tenure: 0.0yrs
  • Johan Luthman (63yo)

    Executive Vice President of R&D

    • Tenure: 0.4yrs

Board Members

  • Jeremy Levin (66yo)

    Director

    • Tenure: 2.6yrs
  • Henrik Andersen (52yo)

    Director

    • Tenure: 1.4yrs
  • Lars Rasmussen (60yo)

    Chairman

    • Tenure: 3.3yrs
  • Lene Skole-Sørensen (60yo)

    Deputy Chairman

    • Tenure: 4.6yrs
  • Jeff Berkowitz (53yo)

    Director

    • Tenure: 1.4yrs
  • Lars Holmqvist (60yo)

    Director

    • Tenure: 4.6yrs
  • Henrik Jensen (50yo)

    Employee Representative Director

    • Tenure: 1.6yrs
  • Rikke Andreasen (48yo)

    Employee Representative Director

    • Tenure: 1.4yrs
  • Ludovic Otterbein (46yo)

    Employee Representative Director

    • Tenure: 1.4yrs

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: ø48.202b
  • Shares outstanding: 198.77m
  • Website: https://www.lundbeck.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HLUK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 1999
LUNCPSE (OMX Nordic Exchange Copenhagen)YesOrdinary SharesDKDKKJun 1999
LDBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1999
0ND5LSE (London Stock Exchange)YesOrdinary SharesGBDKKJun 1999
LUNCBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBDKKJun 1999
HLUY.YOTCPK (Pink Sheets LLC)SPONS ADR L 1USUSDMay 2012

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 Analysis2019/08/24 20:51
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
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.