OB:EPR

Stock Analysis Report

Executive Summary

Europris ASA operates as a discount variety retailer in Norway.

Snowflake

Fundamentals

Undervalued average dividend payer.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.8%

EPR

6.1%

NO Multiline Retail

1.7%

NO Market


1 Year Return

21.7%

EPR

-6.2%

NO Multiline Retail

-8.2%

NO Market

Return vs Industry: EPR exceeded the Norwegian Multiline Retail industry which returned -6.2% over the past year.

Return vs Market: EPR exceeded the Norwegian Market which returned -8.2% over the past year.


Share holder returns

EPRIndustryMarket
7 Day2.8%6.1%1.7%
30 Day2.1%0.6%-0.09%
90 Day4.0%7.6%-0.7%
1 Year30.8%21.7%-1.3%-6.2%-3.2%-8.2%
3 Year-24.4%-37.2%13.6%-2.5%40.8%22.5%
5 Yearn/a-1.3%-22.2%63.9%26.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: EPR (NOK25.8) is trading below our estimate of fair value (NOK102.46)

Significantly Undervalued: EPR is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: EPR is good value based on its PE Ratio (11.5x) compared to the Multiline Retail industry average (17.4x).

PE vs Market: EPR is good value based on its PE Ratio (11.5x) compared to the Norwegian market (13.3x).


Price Based on Expected Growth

Low PEG Ratio: EPR is good value based on its PEG Ratio (0.7x)


Price Based on Value of Assets

PB vs Industry: EPR is overvalued based on its PB Ratio (2.7x) compared to the XE Multiline Retail industry average (1.9x).


Next Steps

Future Growth

How is Europris expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

15.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: EPR's forecast earnings growth (15.9% per year) is above the savings rate (1.8%).

Earnings vs Market: EPR's earnings (15.9% per year) are forecast to grow faster than the Norwegian market (15% per year).

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

Revenue vs Market: EPR's revenue (3.9% per year) is forecast to grow slower than the Norwegian market (4.9% per year).

High Growth Revenue: EPR's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: EPR's Return on Equity is forecast to be high in 3 years time (24.1%)


Next Steps

Past Performance

How has Europris performed over the past 5 years?

22.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: EPR's earnings have grown significantly by 22.6% per year over the past 5 years.

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

Earnings vs Industry: EPR had negative earnings growth (-10.7%) over the past year, making it difficult to compare to the Multiline Retail industry average (6.5%).


Return on Equity

High ROE: Whilst EPR's Return on Equity (23.18%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: EPR's Return on Assets is below or equal to the Multiline Retail industry average last year.


Return on Capital Employed

ROCE Improving: EPR's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Europris's financial position?


Financial Position Analysis

Short Term Liabilities: EPR's short term assets (NOK1.9B) do not cover its short term liabilities (NOK3.2B)

Long Term Liabilities: EPR's short term assets (1.9B) do not cover its long term liabilities (2.1B)


Debt to Equity History and Analysis

Debt Level: EPR's debt to equity ratio (112.6%) is considered high

Reducing Debt: EPR's debt to equity ratio has reduced from 156.8% to 112.6% over the past 5 years.

Debt Coverage: EPR's debt is well covered by operating cash flow (28.5%).

Interest Coverage: EPR's interest payments on its debt are well covered by EBIT (10.6x coverage).


Balance Sheet

Inventory Level: EPR has a high level of physical assets or inventory.

Debt Coverage by Assets: EPR's debt is covered by short term assets (assets are 1.098940x debt).


Next Steps

Dividend

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

7.54%

Expected Dividend Yield


Dividend Yield vs Market

company7.2%marketbottom25%2.6%markettop25%6.3%industryaverage4.9%forecastin3Years7.5%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: EPR's dividend (7.17%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.56%).

High Dividend: EPR's dividend (7.17%) is in the top 25% of dividend payers in the Norwegian market (6.31%)

Stable Dividend: Whilst dividend payments have been stable, EPR has been paying a dividend for less than 10 years.

Growing Dividend: EPR's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (82.3%), EPR's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EPR's dividends in 3 years are forecast to be covered by earnings (63% payout ratio).


Next Steps

Management

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

6.8yrs

Average management tenure


CEO

Pål Wibe 0

5.6yrs

Tenure

kr5,089,000

Compensation

Mr. Pål Wibe has been the Chief Executive Officer of Europris ASA since March 2014. Mr. Wibe is employed at Nordkronen AS and Nordkronen II AS. He served as the Chief Executive Officer at Nille AS for near ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Pål's total compensation is reasonable compared to companies of similar size in the Norwegian market.

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


Management Age and Tenure

6.8yrs

Average Tenure

Experienced Management: EPR's management team is seasoned and experienced (6.8 years average tenure).


Board Age and Tenure

3.0yrs

Average Tenure

56.5yo

Average Age

Experienced Board: EPR's board of directors are considered experienced (3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Sellkr1,464,10012 Jul 19
Petter Wilskow
EntityIndividual
Role
Chief Legal Officer
Human Resource
Shares55,000
Max Pricekr26.62
Buykr128,80008 May 19
Petter Wilskow
EntityIndividual
Role
Chief Legal Officer
Human Resource
Shares5,000
Max Pricekr25.76
Buykr50,61111 Dec 18
Borge Andreassen
EntityIndividual
Shares2,365
Max Pricekr21.40

Ownership Breakdown


Management Team

  • Petter Wilskow

    Human Resource

    • Tenure: 13.8yrs
    • Compensation: kr2.25m
  • Martin Bjørklund

    Group Projects & Investor Relations Director

    • Tenure: 3.8yrs
    • Compensation: kr80.00k
  • Knut Spæren

    CPO, Procurement Director & Purchasing Director

    • Tenure: 8.5yrs
    • Compensation: kr2.56m
  • Pål Andersen

    Logistics Director

    • Tenure: 6.8yrs
    • Compensation: kr2.25m
  • Pål Wibe

    Chief Executive Officer

    • Tenure: 5.6yrs
    • Compensation: kr5.09m
  • Espen Eldal

    Chief Financial Officer

    • Tenure: 5.8yrs
    • Compensation: kr2.19m
  • Jon Borgersen

    Marketing & Concept Director

    • Tenure: 7.8yrs
    • Compensation: kr2.61m
  • Ole Harv

    Chief Information Officer & IT Director

    • Tenure: 5.5yrs
    • Compensation: kr1.47m
  • Trine Engløkken

    Business Controller

    • Tenure: 0yrs
  • Torhild Larsen

    Chief Group Accountant

    • Tenure: 10yrs

Board Members

  • Tom Rygh (61yo)

    Chairman of the Board

    • Tenure: 0yrs
    • Compensation: kr300.00k
  • Hege Bømark (56yo)

    Director

    • Tenure: 4.8yrs
  • Sverre Kjaer (60yo)

    Director

    • Tenure: 1.4yrs
  • Claus Juel-Jensen (56yo)

    Director

    • Tenure: 2.3yrs
  • Bente Sollid Storehaug (52yo)

    Director

    • Tenure: 4.8yrs
  • Pål Billington

    Alternate Director

    • Tenure: 3.8yrs
  • Tone Fintland (57yo)

    Director

    • Tenure: 2.3yrs

Company Information

Europris ASA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Europris ASA
  • Ticker: EPR
  • Exchange: OB
  • Founded: 2011
  • Industry: General Merchandise Stores
  • Sector: Retail
  • Market Cap: kr4.166b
  • Shares outstanding: 161.47m
  • Website: https://www.europris.no

Number of Employees


Location

  • Europris ASA
  • Hjalmar Bjørges vei 105
  • Fredrikstad
  • Østfold
  • 1604
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EPROB (Oslo Bors)YesOrdinary SharesNONOKJun 2015
2RGDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2015
0RAILSE (London Stock Exchange)YesOrdinary SharesGBNOKJun 2015
EPROBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKJun 2015

Biography

Europris ASA operates as a discount variety retailer in Norway. The company sells own brand, private-label, and branded merchandise, including home and kitchen, groceries, house and garden, electronics, pe ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 23:42
End of Day Share Price2019/10/11 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.

© 2018 SIMPLY WALL STREET PTY LTD, COMMUNITY DESIGN 2845206, US DESIGN PATENT #29/544/281, EUROPEAN DESIGN REGISTRATION #2845206, STANDARD & POOR’S FINANCIAL SERVICES LLC. ALL RIGHTS RESERVED.

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Copyright © 2018, Standard & Poor’s Financial Services LLC. Reproduction of S&P Capital IQ in any form is prohibited except with the prior written permission of S&P. S&P does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions, regardless of the cause or for the results obtained from the use of such information. S&P DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall S&P be liable for any direct, indirect, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with subscriber’s or others’ use of S&P Capital IQ. (2018)