OB:STRONG

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet with proven track record.

Share Price & News

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


Latest Share Price and Events

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

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


Market Performance


7 Day Return

7.5%

STRONG

4.6%

NO Electronic

3.0%

NO Market


1 Year Return

74.7%

STRONG

64.3%

NO Electronic

-1.9%

NO Market

Return vs Industry: STRONG exceeded the Norwegian Electronic industry which returned 65.1% over the past year.

Return vs Market: STRONG exceeded the Norwegian Market which returned -4.1% over the past year.


Shareholder returns

STRONGIndustryMarket
7 Day7.5%4.6%3.0%
30 Day7.5%1.3%8.3%
90 Day1.8%10.5%6.8%
1 Year80.1%74.7%67.7%64.3%1.7%-1.9%
3 Year141.7%111.9%-39.2%-40.3%9.5%-2.8%
5 Year122.6%70.9%81.8%68.9%54.5%23.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

27.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: STRONG (NOK20) is trading above our estimate of fair value (NOK8.6)

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


Price To Earnings Ratio

PE vs Industry: STRONG is poor value based on its PE Ratio (27.3x) compared to the XE Electronic industry average (25.9x).

PE vs Market: STRONG is poor value based on its PE Ratio (27.3x) compared to the Norwegian market (15.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: STRONG is good value based on its PB Ratio (2.7x) compared to the NO Electronic industry average (3.1x).


Next Steps

Future Growth

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

31.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STRONG's forecast earnings growth (31.7% per year) is above the savings rate (1.6%).

Earnings vs Market: STRONG's earnings (31.7% per year) are forecast to grow slower than the Norwegian market (33.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: STRONG's revenue (8.3% per year) is forecast to grow faster than the Norwegian market (6.1% per year).

High Growth Revenue: STRONG's revenue (8.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: STRONG's Return on Equity is forecast to be high in 3 years time (23.3%)


Next Steps

Past Performance

How has StrongPoint performed over the past 5 years?

-15.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STRONG has high quality earnings.

Growing Profit Margin: STRONG's current net profit margins (2.8%) are higher than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: STRONG's earnings have declined by 15.7% per year over the past 5 years.

Accelerating Growth: STRONG's earnings growth over the past year (53.4%) exceeds its 5-year average (-15.7% per year).

Earnings vs Industry: STRONG earnings growth over the past year (53.4%) exceeded the Electronic industry -7.5%.


Return on Equity

High ROE: STRONG's Return on Equity (10%) is considered low.


Next Steps

Financial Health

How is StrongPoint's financial position?


Financial Position Analysis

Short Term Liabilities: STRONG's short term assets (NOK484.3M) exceed its short term liabilities (NOK399.9M).

Long Term Liabilities: STRONG's short term assets (NOK484.3M) exceed its long term liabilities (NOK66.1M).


Debt to Equity History and Analysis

Debt Level: STRONG's debt to equity ratio (20.7%) is considered satisfactory.

Reducing Debt: STRONG's debt to equity ratio has reduced from 44.5% to 20.7% over the past 5 years.

Debt Coverage: STRONG's debt is well covered by operating cash flow (63.6%).

Interest Coverage: STRONG's interest payments on its debt are well covered by EBIT (15.2x coverage).


Balance Sheet


Next Steps

Dividend

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

3.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: STRONG's dividend (3%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.45%).

High Dividend: STRONG's dividend (3%) is low compared to the top 25% of dividend payers in the Norwegian market (6.03%).


Stability and Growth of Payments

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

Growing Dividend: STRONG's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (81.9%), STRONG's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: STRONG's dividends in 3 years are forecast to be covered by earnings (56.5% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Jacob Tveraabak (44 yo)

2.25yrs

Tenure

kr3,953,000

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 more th...


CEO Compensation Analysis

Compensation vs Market: Jacob's total compensation ($USD442.53K) is about average for companies of similar size in the Norwegian market ($USD380.15K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jacob Tveraabak
Chief Executive Officer2.25yrskr3.95m0.44%
NOK 3.9m
Hilde Gilen
Chief Financial Officer1.75yrskr2.91m0.093%
NOK 826.9k
Anders Nilsen
Vice President of Group Accounting1.75yrskr1.52m0.00081%
NOK 7.2k
Julius Stulpinas
Senior Vice President of Technology & Supply Chainno datano data0.045%
NOK 401.6k
Amanda Cremon
Vice President of Sales for E-commerce and Marketing0.33yrno data0.0077%
NOK 68.0k
Erik Vaag
Senior Vice President of People & Organisation Development1.42yrsno data0.0035%
NOK 31.4k
Per Haagensen
Senior VP of Retail Technology & MD of Norwayno datakr1.31m0.13%
NOK 1.2m
Sven Calissendorff
Senior VP & MD of Swedenno datakr1.85mno data
Roine Gabrielsson
Senior Vice President of Global Partnersno datakr2.29mno data
Lars-Åke Köpper
Senior Vice President of Cash Securityno datakr2.55m0.083%
NOK 735.9k
Trond Kongrød
Senior Vice President of Retail Technology of EMEAno datakr2.33m0.050%
NOK 442.7k
Leif Persson
Senior Vice President of Labelsno datakr1.99m0.070%
NOK 621.0k

1.8yrs

Average Tenure

54.5yo

Average Age

Experienced Management: STRONG's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Klaus De Vibe
Director9.08yrskr336.00k0.20%
NOK 1.8m
Inger Solhaug
Director5.58yrskr282.00k0.015%
NOK 135.4k
Peter Wirén
Director2.58yrskr276.00k0.050%
NOK 443.4k
Camilla Aldona Tepfers
Director7.58yrskr270.00k0.021%
NOK 184.5k
Morthen Johannessen
Chairman of the Boardno datakr573.00k0.11%
NOK 969.0k
Ingeborg Hegstad
Director0.58yrno data0.023%
NOK 203.2k

5.6yrs

Average Tenure

50yo

Average Age

Experienced Board: STRONG's board of directors are considered experienced (5.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: STRONG 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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: StrongPoint ASA
  • Ticker: STRONG
  • Exchange: OB
  • Founded:
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: kr885.857m
  • Shares outstanding: 44.29m
  • Website: https://www.strongpoint.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STRONGOB (Oslo Bors)YesOrdinary SharesNONOKDec 2002
0JEZLSE (London Stock Exchange)YesOrdinary SharesGBNOKDec 2002
STRONOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKDec 2002

Biography

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...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 21:23
End of Day Share Price2020/11/24 00:00
Earnings2020/09/30
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.