LSE:0RHN

Stock Analysis Report

Executive Summary

AcadeMedia AB (publ) operates as an independent education provider in northern Europe.


Snowflake Analysis

Very undervalued with proven track record.

Share Price & News

How has AcadeMedia's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 0RHN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.6%

0RHN

5.4%

GB Consumer Services

1.7%

GB Market


1 Year Return

-3.3%

0RHN

-1.8%

GB Consumer Services

-21.8%

GB Market

Return vs Industry: 0RHN underperformed the UK Consumer Services industry which returned -1.8% over the past year.

Return vs Market: 0RHN exceeded the UK Market which returned -21.8% over the past year.


Shareholder returns

0RHNIndustryMarket
7 Day4.6%5.4%1.7%
30 Day0.6%-10.1%-12.0%
90 Day-7.6%-16.6%-25.3%
1 Year-0.9%-3.3%-0.5%-1.8%-17.9%-21.8%
3 Year-5.0%-10.5%-10.7%-14.2%-11.8%-22.8%
5 Yearn/a-41.8%-55.7%0.1%-22.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is AcadeMedia undervalued compared to its fair value and its price relative to the market?

20.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0RHN (SEK49.98) is trading below our estimate of fair value (SEK62.91)

Significantly Below Fair Value: 0RHN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0RHN is good value based on its PE Ratio (12.7x) compared to the Consumer Services industry average (15.7x).

PE vs Market: 0RHN is good value based on its PE Ratio (12.7x) compared to the UK market (13x).


Price to Earnings Growth Ratio

PEG Ratio: 0RHN is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: 0RHN is good value based on its PB Ratio (1.2x) compared to the GB Consumer Services industry average (2.7x).


Next Steps

Future Growth

How is AcadeMedia forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

14.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0RHN's forecast earnings growth (14% per year) is above the savings rate (0.5%).

Earnings vs Market: 0RHN's earnings (14% per year) are forecast to grow slower than the UK market (15.6% per year).

High Growth Earnings: 0RHN's earnings are forecast to grow, but not significantly.

Revenue vs Market: 0RHN's revenue (6.1% per year) is forecast to grow faster than the UK market (2.5% per year).

High Growth Revenue: 0RHN's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0RHN's Return on Equity is forecast to be low in 3 years time (10.8%).


Next Steps

Past Performance

How has AcadeMedia performed over the past 5 years?

8.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0RHN has high quality earnings.

Growing Profit Margin: 0RHN's current net profit margins (3.4%) are higher than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: 0RHN's earnings have grown by 8.8% per year over the past 5 years.

Accelerating Growth: 0RHN's earnings growth over the past year (10.2%) exceeds its 5-year average (8.8% per year).

Earnings vs Industry: 0RHN earnings growth over the past year (10.2%) underperformed the Consumer Services industry 42.5%.


Return on Equity

High ROE: 0RHN's Return on Equity (9.1%) is considered low.


Next Steps

Financial Health

How is AcadeMedia's financial position?


Financial Position Analysis

Short Term Liabilities: 0RHN's short term assets (SEK1.4B) do not cover its short term liabilities (SEK3.7B).

Long Term Liabilities: 0RHN's short term assets (SEK1.4B) do not cover its long term liabilities (SEK8.8B).


Debt to Equity History and Analysis

Debt Level: 0RHN's debt to equity ratio (65.4%) is considered high.

Reducing Debt: 0RHN's debt to equity ratio has reduced from 148.4% to 65.4% over the past 5 years.

Debt Coverage: 0RHN's debt is well covered by operating cash flow (51.7%).

Interest Coverage: 0RHN's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet


Next Steps

Dividend

What is AcadeMedia's current dividend yield, its reliability and sustainability?

2.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 0RHN's dividend (2.51%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2.51%).

High Dividend: 0RHN's dividend (2.51%) is low compared to the top 25% of dividend payers in the UK market (6.87%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 0RHN's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 0RHN's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.8%), 0RHN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0RHN's dividends in 3 years are forecast to be well covered by earnings (30.7% payout ratio).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Marcus Strömberg (52yo)

15.25s

Tenure

kr9,220,000

Compensation

Mr. Marcus Strömberg has been the Chief Executive Officer and President of AcadeMedia AB since 2005. Mr. Strömberg served as Managing Director of AcadeMedia AB. Mr. Strömberg has several years of experienc ...


CEO Compensation Analysis

Compensation vs Market: Marcus's total compensation ($USD910.62K) is about average for companies of similar size in the UK market ($USD974.62K).

Compensation vs Earnings: Marcus's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Marcus Strömberg
President & CEO15.25yrskr9.22m0.28% SEK14.8m
Katarina Wilson
Chief Financial Officer0.42yrno datano data
Annette Lilliestierna
Head of Communication & Public Affairs1.33yrsno datano data
Lise-Lotte Oldmark
Head of HR & Head of AcadeMedia Academy6.25yrsno data0.041% SEK2.1m
Paula Hammerskog
Head of Safety & Security1.33yrsno data0.012% SEK608.5k
Marit Lambrechts
Head of Preschool Norway Business Segment6.25yrsno data0.053% SEK2.8m
Christer Hammar
Head of the Business Segment Adult Educationno datano data0.021% SEK1.1m
Jens Eriksson
Head of the Upper Secondary School Business Segment3.67yrsno data0.024% SEK1.3m
Ingela Gullberg
Head of Qualityno datano datano data
Veronica Rörsgård
Chief Executive Officer of Pysslingen förskolor1.67yrsno datano data

2.7yrs

Average Tenure

52.5yo

Average Age

Experienced Management: 0RHN's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Pia Rudengren
Independent Director2.42yrskr400.00kno data
Anders Bülow
Chairman2.42yrskr675.00k0.015% SEK790.3k
Silvija Seres
Independent Director5.25yrskr375.00kno data
Johan Andersson
Independent Director2.42yrskr325.00kno data
Widar Andersson
Chairman of Advisory Boardno datakr33.00kno data
Annika Nordgren Christensen
Member of Advisory Boardno datano datano data
Anders Jonsson
Member of Advisory Boardno datano datano data
Stig-Björn Ljunggren
Member of Advisory Boardno datano datano data
Maria Abrahamsson
Member of Advisory Boardno datano datano data
Anders Lövgren
Employee Representative Director4.17yrsno data0.00011% SEK5.8k

2.4yrs

Average Tenure

52yo

Average Age

Experienced Board: 0RHN'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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

AcadeMedia AB (publ)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AcadeMedia AB (publ)
  • Ticker: 0RHN
  • Exchange: LSE
  • Founded: 1996
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: kr5.254b
  • Shares outstanding: 105.30m
  • Website: https://www.academedia.se

Number of Employees


Location

  • AcadeMedia AB (publ)
  • Adolf Fredriks Kyrkogata 2
  • Box 213
  • Stockholm
  • Stockholm County
  • 101 24
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ACADOM (OMX Nordic Exchange Stockholm)YesOrdinary SharesSESEKJun 2016
V8TDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2016
0RHNLSE (London Stock Exchange)YesOrdinary SharesGBSEKJun 2016
ACADSBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBSEKJun 2016
V8TBRSE (Berne Stock Exchange)YesOrdinary SharesCHCHFJun 2016

Biography

AcadeMedia AB (publ) operates as an independent education provider in northern Europe. It operates through four segments: Preschool and Compulsory School, Preschool International, Upper Secondary School, Adult Education. The company operates approximately 660 preschools, compulsory schools, upper secondary schools, and adult education units in Sweden, Norway, and Germany. The company operates preschools and compulsory schools under the brand names of Pysslingen Förskolor, Pysslingen Skolor, Vittra, Espira, Joki, Stepke, and KTS; upper secondary school under the Plusgymnasiet, NTI, LBS, ProCivitas, and Rytmus brands; and adult education units under the Eductus, Hermods, and NTI-skolan brand names. AcadeMedia AB (publ) was founded in 1996 and is headquartered in Stockholm, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 03:25
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.