OM:ALFA

Stock Analysis Report

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Executive Summary

Alfa Laval AB (publ) provides heat transfer, separation, and fluid handling products and solutions worldwide. More Details


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ALFA is less volatile than 75% of Swedish stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ALFA's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

4.8%

ALFA

1.5%

SE Machinery

0.6%

SE Market


1 Year Return

-5.7%

ALFA

21.4%

SE Machinery

17.1%

SE Market

Return vs Industry: ALFA underperformed the Swedish Machinery industry which returned 21.4% over the past year.

Return vs Market: ALFA underperformed the Swedish Market which returned 17.1% over the past year.


Shareholder returns

ALFAIndustryMarket
7 Day4.8%1.5%0.6%
30 Day23.0%12.2%8.0%
90 Day3.0%13.8%8.3%
1 Year-5.7%-5.7%22.1%21.4%18.9%17.1%
3 Year17.7%12.9%42.9%21.7%41.5%26.2%
5 Year60.4%45.4%134.7%89.9%63.2%31.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

8.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ALFA (SEK222.1) is trading below our estimate of fair value (SEK242.08)

Significantly Below Fair Value: ALFA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ALFA is good value based on its PE Ratio (21.1x) compared to the SE Machinery industry average (30.7x).

PE vs Market: ALFA is good value based on its PE Ratio (21.1x) compared to the Swedish market (22.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ALFA is overvalued based on its PB Ratio (3.2x) compared to the SE Machinery industry average (3.1x).


Next Steps

Future Growth

How is Alfa Laval forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

4.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALFA's forecast earnings growth (4.4% per year) is above the savings rate (0.5%).

Earnings vs Market: ALFA's earnings (4.4% per year) are forecast to grow slower than the Swedish market (11.6% per year).

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

Revenue vs Market: ALFA's revenue (2.4% per year) is forecast to grow slower than the Swedish market (3.4% per year).

High Growth Revenue: ALFA's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ALFA's Return on Equity is forecast to be low in 3 years time (14.8%).


Next Steps

Past Performance

How has Alfa Laval performed over the past 5 years?

12.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALFA has high quality earnings.

Growing Profit Margin: ALFA's current net profit margins (10.1%) are lower than last year (12%).


Past Earnings Growth Analysis

Earnings Trend: ALFA's earnings have grown by 12.4% per year over the past 5 years.

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

Earnings vs Industry: ALFA had negative earnings growth (-17.6%) over the past year, making it difficult to compare to the Machinery industry average (-33.8%).


Return on Equity

High ROE: ALFA's Return on Equity (15.4%) is considered low.


Next Steps

Financial Health

How is Alfa Laval's financial position?


Financial Position Analysis

Short Term Liabilities: ALFA's short term assets (SEK31.3B) exceed its short term liabilities (SEK18.6B).

Long Term Liabilities: ALFA's short term assets (SEK31.3B) exceed its long term liabilities (SEK16.5B).


Debt to Equity History and Analysis

Debt Level: ALFA's debt to equity ratio (40.4%) is considered high.

Reducing Debt: ALFA's debt to equity ratio has reduced from 92.4% to 40.4% over the past 5 years.

Debt Coverage: ALFA's debt is well covered by operating cash flow (63.9%).

Interest Coverage: ALFA's interest payments on its debt are well covered by EBIT (28.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Alfa Laval current dividend yield, its reliability and sustainability?

2.50%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ALFA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ALFA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ALFA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ALFA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ALFA is not paying a notable dividend for the Swedish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ALFA's dividend in 3 years as they are not forecast to pay a notable one for the Swedish market.


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Tom Erixon (60 yo)

4.67yrs

Tenure

kr26,592,000

Compensation

Mr. Tom Erixon serves as a Director of Boliden AB (publ) since 2013. He is President and CEO of Alfa Laval since March 1, 2016. He has been Member of the Board of Chinsay. He had served as a Managing partn...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD3.13M) is above average for companies of similar size in the Swedish market ($USD2.12M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Tom Erixon
President & CEO4.67yrskr26.59m0.028%
SEK 25.5m
Jan Allde
Chief Financial Officer2.75yrsno data0.0024%
SEK 2.2m
Mikael Tydén
President of Operations Division3.83yrsno data0.00024%
SEK 221.3k
Frank Bolata
Chief Information Officer2.58yrsno datano data
Gabriella Grotte
Investor Relations Managerno datano datano data
Johan Lundin
Head of Investor Relationsno datano datano data
Emma Adlerton
Chief Legal Counsel & Secretary5.83yrsno datano data
Alex Syed
Vice President of Corporate Developmentno datano datano data
Joakim Vilson
Senior Vice President of Global Sales & Serviceno datano data0.0015%
SEK 1.4m
Pascale Gimenez
Senior Vice President of Human Resources2.25yrsno datano data
Ray Field
Executive Vice President16.17yrsno datano data
Nainesh Patel
President of Food & Water Division15yrsno data0.011%
SEK 10.5m

4.3yrs

Average Tenure

54.5yo

Average Age

Experienced Management: ALFA's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ulf Wiinberg
Independent Director7.83yrskr635.00k0.0048%
SEK 4.4m
Ray Mauritsson
Director0.58yrno datano data
Jörn Rausing
Director20.83yrskr635.00kno data
Finn Rausing
Director20.25yrskr585.00kno data
Henrik Lange
Independent Director2.83yrskr710.00k0.00095%
SEK 875.9k
Dennis Jönsson
Chairman of the Board0.58yrno datano data
Henrik Nielsen
Employee Representative Director5.83yrsno datano data
Maria Hanssen
Independent Director1.58yrskr585.00kno data
Stefan Sandell
Deputy Employee Representative Director15.83yrsno datano data
Heléne Mellquist
Independent Director1.58yrskr710.00kno data
Bror Lantz
Employee Representative Director8.83yrsno data0.000020%
SEK 18.4k
Susanne Jonsson
Employee Representative Director4.08yrsno datano data

5.0yrs

Average Tenure

57yo

Average Age

Experienced Board: ALFA's board of directors are considered experienced (5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ALFA 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

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


Key Information

  • Name: Alfa Laval AB (publ)
  • Ticker: ALFA
  • Exchange: OM
  • Founded: 1883
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: kr92.196b
  • Shares outstanding: 419.46m
  • Website: https://www.alfalaval.com

Number of Employees


Location

  • Alfa Laval AB (publ)
  • Rudeboksvägen 1
  • Lund
  • Skåne County
  • 226 55
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALFAOM (OMX Nordic Exchange Stockholm)YesCommon StockSESEKMay 2002
AA9DB (Deutsche Boerse AG)YesCommon StockDEEURMay 2002
0NNFLSE (London Stock Exchange)YesCommon StockGBSEKMay 2002
ALFV.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDMay 2002
ALFASBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBSEKMay 2002
ALFV.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

Biography

Alfa Laval AB (publ) provides heat transfer, separation, and fluid handling products and solutions worldwide. The company operates in five segments: Energy, Food & Water, Marine, Greenhouse, and Operations...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 19:42
End of Day Share Price2020/11/27 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.