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 Analysis

Average dividend payer and fair value.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.9%

LUN

0.6%

DK Pharmaceuticals

0.4%

DK Market


1 Year Return

-10.2%

LUN

18.4%

DK Pharmaceuticals

26.7%

DK Market

Return vs Industry: LUN underperformed the Danish Pharmaceuticals industry which returned 18.4% over the past year.

Return vs Market: LUN underperformed the Danish Market which returned 26.7% over the past year.


Shareholder returns

LUNIndustryMarket
7 Day2.9%0.6%0.4%
30 Day-3.3%2.5%3.6%
90 Day3.7%7.7%12.1%
1 Year-6.4%-10.2%25.2%18.4%30.5%26.7%
3 Year-1.6%-8.5%40.4%24.5%62.7%48.9%
5 Year117.5%102.3%38.1%14.6%68.4%44.9%

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 (DKK268) is trading below our estimate of fair value (DKK554.58)

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 (20x) compared to the Pharmaceuticals industry average (25.6x).

PE vs Market: LUN is poor value based on its PE Ratio (20x) compared to the Danish market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: LUN is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: LUN is overvalued based on its PB Ratio (3.7x) compared to the XE Pharmaceuticals industry average (3.1x).


Next Steps

Future Growth

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

9.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LUN's forecast earnings growth (9.9% per year) is above the savings rate (-0.3%).

Earnings vs Market: LUN's earnings (9.9% per year) are forecast to grow slower than the Danish market (11.8% per year).

High Growth Earnings: LUN's earnings are forecast to grow, but not significantly.

Revenue vs Market: LUN's revenue (4.1% per year) is forecast to grow slower than the Danish market (6% per year).

High Growth Revenue: LUN's revenue (4.1% 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 (16.9%).


Next Steps

Past Performance

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

58.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LUN has high quality earnings.

Growing Profit Margin: LUN's current net profit margins (15.7%) are lower than last year (21.6%).


Past Earnings Growth Analysis

Earnings Trend: LUN has become profitable over the past 5 years, growing earnings by 58.4% per year.

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

Earnings vs Industry: LUN had negative earnings growth (-31.7%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (-2.1%).


Return on Equity

High ROE: LUN's Return on Equity (18.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is H. Lundbeck's financial position?


Financial Position Analysis

Short Term Liabilities: LUN's short term assets (DKK9.0B) do not cover its short term liabilities (DKK10.3B).

Long Term Liabilities: LUN's short term assets (DKK9.0B) do not cover its long term liabilities (DKK10.9B).


Debt to Equity History and Analysis

Debt Level: LUN's debt to equity ratio (62.7%) is considered high.

Reducing Debt: LUN's debt to equity ratio has increased from 24.7% to 62.7% over the past 5 years.

Debt Coverage: LUN's debt is well covered by operating cash flow (28.6%).

Interest Coverage: LUN's interest payments on its debt are well covered by EBIT (171.8x coverage).


Balance Sheet

Inventory Level: LUN has a low level of unsold assets or inventory.

Debt Coverage by Assets: LUN's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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

1.53%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%1.5%markettop25%4.6%industryaverage2.8%forecastin3Years2.1%

Current dividend yield vs market & industry

Notable Dividend: LUN's dividend (1.53%) is higher than the bottom 25% of dividend payers in the Danish market (1.44%).

High Dividend: LUN's dividend (1.53%) is low compared to the top 25% of dividend payers in the Danish market (4.58%).


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 increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.5%), 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 (33.8% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Deborah Dunsire (57yo)

1.4yrs

Tenure

ø21,200,000

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Deborah's total compensation ($USD3.08M) is about average for companies of similar size in the Danish market ($USD2.50M).

Compensation vs Earnings: Deborah's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Deborah Dunsire
President & CEO1.4yrsø21.20mno data
Anders Götzsche
Executive VP & CFO12.8yrsø10.20m0.022% DKK11.4m
Lars Bang
Executive Vice President of Product Development & Supply1.1yrsø8.90m0.018% DKK9.4m
Jacob Tolstrup
Executive Vice President of Commercial Operations2.3yrsø8.30m0.0022% DKK1.2m
Per Luthman
Executive Vice President of R&D1.1yrsø6.84mno data
Palle Olesen
Chief Specialist & VP of Investor Relations0yrsno datano data
Anders Schroll
Vice President of Corporate Communications & Global Public Affairs0yrsno datano data
Elise Hauge
Executive VP and Head of People & Communication0.4yrsno datano data
Ole Chrintz
Senior Vice President of International Markets0yrsno datano data
Peter Anastasiou
Executive Vice President of North America2.3yrsno datano data

1.4yrs

Average Tenure

54.5yo

Average Age

Experienced Management: LUN's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jeremy Levin
Independent Director3.1yrsno datano data
Henrik Andersen
Independent Director1.9yrsno datano data
Lars Rasmussen
Independent Chairman3.8yrsno data0.010% DKK5.3m
Lene Skole-Sørensen
Deputy Chairman5.1yrsno data0.0044% DKK2.4m
Jeffrey Berkowitz
Independent Director1.9yrsno datano data
Lars Holmqvist
Director5.1yrsno data0.0076% DKK4.0m
Henrik Jensen
Employee Representative Director2.1yrsno datano data
Rikke Andreasen
Employee Representative Director1.9yrsno datano data
Ludovic Otterbein
Employee Representative Director1.9yrsno datano data

2.1yrs

Average Tenure

53yo

Average Age

Experienced Board: LUN's board of directors are not considered experienced ( 2.1 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.


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: ø53.076b
  • Shares outstanding: 198.71m
  • 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’s principal products include Abilify Maintena for schizophrenia; Brintellix/Trintellix to treat depression; Northera for treating symptomatic neurogenic orthostatic hypotension; Onfi for Lennox-Gastaut syndrome; and Rexulti to treat depression/schizophrenia. It also provides Azilect for treating Parkinson’s disease; Cipralex/Lexapro for depression; Ebixa to treat Alzheimer’s disease; Sabril for treating epilepsy; and Xenazine for chorea associated with Huntington’s disease, as well as other products. The company sells its products primarily to distributors of pharmaceuticals, pharmacies, and hospitals. H. Lundbeck A/S has research collaboration with Enamine Ltd. The company was founded in 1915 and is headquartered in Valby, Denmark. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 21:09
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.