STRO

StrongPointOB:STRO Stock Report

Market Cap

kr1.3b

7D

-3.2%

1Y

56.3%

Updated

16 Sep, 2021

Data

Company Financials +
STRO fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance3/6
Financial Health6/6
Dividends3/6

STRO Overview

StrongPoint ASA develops and sells technology solutions for e-commerce and store operations in Norway, Sweden, and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for StrongPoint
Historical stock prices
Current Share Pricekr30.40
52 Week Highkr15.85
52 Week Lowkr37.80
Beta0.71
1 Month Change6.29%
3 Month Change-1.30%
1 Year Change56.30%
3 Year Change261.91%
5 Year Change172.65%
Change since IPO237.78%

Recent News & Updates

Shareholder Returns

STRONO ElectronicNO Market
7D-3.2%-2.0%0.1%
1Y56.3%30.4%21.7%

Return vs Industry: STRO exceeded the Norwegian Electronic industry which returned 32.7% over the past year.

Return vs Market: STRO exceeded the Norwegian Market which returned 25.6% over the past year.

Price Volatility

Is STRO's price volatile compared to industry and market?
STRO volatility
STRO Beta0.71
Industry Beta1.21
Market Beta1

Stable Share Price: STRO is not significantly more volatile than the rest of Norwegian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: STRO's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a399Jacob Tveraabakhttps://www.strongpoint.com

StrongPoint ASA develops and sells technology solutions for e-commerce and store operations in Norway, Sweden, and internationally. It operates through three segments: Retail Technology, Cash Security, and Labels. The company offers various retail solutions, including cash management, select and collect, click and collect, self-service, and electronic shelf labelling solutions, as well as retail management software and other solutions; and consultative services.

Valuation

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

20.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: STRO (NOK30.4) is trading above our estimate of fair value (NOK18.03)

Significantly Below Fair Value: STRO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: STRO is good value based on its PE Ratio (20.5x) compared to the European Electronic industry average (23x).

PE vs Market: STRO is poor value based on its PE Ratio (20.5x) compared to the Norwegian market (13.9x).


Price to Earnings Growth Ratio

PEG Ratio: STRO is poor value based on its PEG Ratio (4.8x)


Price to Book Ratio

PB vs Industry: STRO's PB Ratio (4x) is in line with the NO Electronic industry average.


Future Growth

How is StrongPoint forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

4.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STRO's forecast earnings growth (4.2% per year) is above the savings rate (1.2%).

Earnings vs Market: STRO's earnings (4.2% per year) are forecast to grow slower than the Norwegian market (9.2% per year).

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

Revenue vs Market: STRO's revenue (11.6% per year) is forecast to grow faster than the Norwegian market (5.9% per year).

High Growth Revenue: STRO's revenue (11.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: STRO's Return on Equity is forecast to be high in 3 years time (20.5%)


Past Performance

How has StrongPoint performed over the past 5 years?

-3.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STRO has a large one-off gain of NOK52.8M impacting its June 30 2021 financial results.

Growing Profit Margin: STRO's current net profit margins (5.5%) are higher than last year (1.5%).


Past Earnings Growth Analysis

Earnings Trend: STRO's earnings have declined by 3.9% per year over the past 5 years.

Accelerating Growth: STRO's earnings growth over the past year (412.2%) exceeds its 5-year average (-3.9% per year).

Earnings vs Industry: STRO earnings growth over the past year (412.2%) exceeded the Electronic industry 34.3%.


Return on Equity

High ROE: STRO's Return on Equity (19.5%) is considered low.


Financial Health

How is StrongPoint's financial position?


Financial Position Analysis

Short Term Liabilities: STRO's short term assets (NOK506.3M) exceed its short term liabilities (NOK375.1M).

Long Term Liabilities: STRO's short term assets (NOK506.3M) exceed its long term liabilities (NOK38.3M).


Debt to Equity History and Analysis

Debt Level: STRO's debt to equity ratio (12.9%) is considered satisfactory.

Reducing Debt: STRO's debt to equity ratio has reduced from 22.8% to 12.9% over the past 5 years.

Debt Coverage: STRO's debt is well covered by operating cash flow (427.4%).

Interest Coverage: STRO's interest payments on its debt are well covered by EBIT (10.4x coverage).


Balance Sheet


Dividend

What is StrongPoint current dividend yield, its reliability and sustainability?

2.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: STRO's dividend (2.3%) is higher than the bottom 25% of dividend payers in the Norwegian market (1.87%).

High Dividend: STRO's dividend (2.3%) is low compared to the top 25% of dividend payers in the Norwegian market (5.13%).


Stability and Growth of Payments

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

Growing Dividend: STRO's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.3%), STRO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: STRO's dividends in 3 years are forecast to be covered by earnings (65.2% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Jacob Tveraabak (45 yo)

3.08yrs

Tenure

kr4,087,000

Compensation

Mr. Jacob Tveraabak has been Chief Executive Officer of StrongPoint ASA since August 01, 2018. After his degree in Business Administration from NHH, Mr. Tveraabak worked with McKinsey & Company for several...


CEO Compensation Analysis

Compensation vs Market: Jacob's total compensation ($USD476.07K) is about average for companies of similar size in the Norwegian market ($USD514.20K).

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


Leadership Team

Experienced Management: STRO's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: STRO's board of directors are considered experienced (5.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: STRO 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

StrongPoint ASA's employee growth, exchange listings and data sources


Key Information

  • Name: StrongPoint ASA
  • Ticker: STRO
  • Exchange: OB
  • Founded: NaN
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: kr1.343b
  • Shares outstanding: 44.18m
  • Website: https://www.strongpoint.com

Number of Employees


Location

  • StrongPoint ASA
  • Slynga 10
  • Rælingen
  • Akershus
  • 2005
  • Norway

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 04:37
End of Day Share Price2021/09/15 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.