H. Lundbeck
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
Rewards
Risk Analysis
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
| LUN | Industry | Market | |
|---|---|---|---|
| 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
1 week ago | Simply Wall St
If You Had Bought H. Lundbeck's (CPH:LUN) Shares Three Years Ago You Would Be Down 59%4 weeks ago | Simply Wall St
Is H. Lundbeck (CPH:LUN) A Risky Investment?1 month ago | Simply Wall St
Is H. Lundbeck A/S (CPH:LUN) A Smart Choice For Dividend Investors?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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/06/24 18:01 |
| End of Day Share Price | 2021/06/24 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.