Alfa Laval
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Alfa Laval AB (publ) provides heat transfer, separation, and fluid handling products and solutions worldwide. The last earnings update was 32 days ago. More info.
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ALFA Share Price and Events
7 Day Returns
1 Year Returns
ALFA Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Alfa Laval (ALFA) | -3.1% | -7.2% | -0.6% | -8.6% | 61.8% | 16.3% |
| SE Machinery | -4% | -11.3% | -0.1% | -16.9% | 37.9% | 31.1% |
| SE Market | -1.7% | -5% | 0.2% | -1% | 10% | 15% |
1 Year Return vs Industry and Market
- ALFA outperformed the Machinery industry which returned -16.9% over the past year.
- ALFA underperformed the Market in Sweden which returned -1% over the past year.
Value
Is Alfa Laval undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Alfa Laval
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Alfa Laval.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 13 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 7% |
| Perpetual Growth Rate | 10-Year SE Government Bond Rate | 0.4% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year SE Govt Bond Rate | 0.4% |
| Equity Risk Premium | S&P Global | 6% |
| Machinery Unlevered Beta | Simply Wall St/ S&P Global | 1.05 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.045 (1 + (1- 22%) (14.08%)) |
1.107 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.11 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.43% + (1.107 * 5.96%) |
7.03% |
Discounted Cash Flow Calculation for OM:ALFA using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Alfa Laval is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (SEK, Millions) | Source |
Present Value Discounted (@ 7.03%) |
|
|---|---|---|---|
| 2019 | 4,551.67 | Analyst x9 | 4,252.59 |
| 2020 | 5,588.63 | Analyst x8 | 4,878.32 |
| 2021 | 5,789.00 | Analyst x6 | 4,721.19 |
| 2022 | 5,939.37 | Est @ 2.6% | 4,525.55 |
| 2023 | 6,055.10 | Est @ 1.95% | 4,310.57 |
| 2024 | 6,145.58 | Est @ 1.49% | 4,087.51 |
| 2025 | 6,217.87 | Est @ 1.18% | 3,863.85 |
| 2026 | 6,277.17 | Est @ 0.95% | 3,644.39 |
| 2027 | 6,327.25 | Est @ 0.8% | 3,432.09 |
| 2028 | 6,370.84 | Est @ 0.69% | 3,228.67 |
| Present value of next 10 years cash flows | SEK40,944.73 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= SEK6,370.84 × (1 + 0.43%) ÷ (7.03% – 0.43%) |
SEK96,967.45 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= SEK96,967.45 ÷ (1 + 7.03%)10 |
SEK49,141.98 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= SEK40,944.73 + SEK49,141.98 |
SEK90,086.71 |
| Equity Value per Share (SEK) |
= Total value / Shares Outstanding
= SEK90,086.71 / 419.46 |
SEK214.77 |
| Calculation | Result | |
|---|---|---|
| Value per share (SEK) | From above. | SEK214.77 |
| Current discount | Discount to share price of
SEK203.90
= -1 x (SEK203.90 - SEK214.77) / SEK214.77 |
5.1% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- Alfa Laval's share price is below the future cash flow value, but not at a moderate discount (< 20%).
- Alfa Laval's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Alfa Laval's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Alfa Laval's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-31) in SEK | SEK11.19 |
| OM:ALFA Share Price ** | OM (2019-05-24) in SEK | SEK203.9 |
| Sweden Machinery Industry PE Ratio | Median Figure of 17 Publicly-Listed Machinery Companies | 15.86x |
| Sweden Market PE Ratio | Median Figure of 323 Publicly-Listed Companies | 16.62x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Alfa Laval.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = OM:ALFA Share Price ÷ EPS (both in SEK) = 203.9 ÷ 11.19 |
18.23x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Alfa Laval is overvalued based on earnings compared to the SE Machinery industry average.
- Alfa Laval is overvalued based on earnings compared to the Sweden market.
Price based on expected Growth
Does
Alfa Laval's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 18.23x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts |
5.2%per year |
| Sweden Machinery Industry PEG Ratio | Median Figure of 14 Publicly-Listed Machinery Companies | 2.62x |
| Sweden Market PEG Ratio | Median Figure of 235 Publicly-Listed Companies | 1.31x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 18.23x ÷ 5.2% |
3.52x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Alfa Laval is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Alfa Laval's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-31) in SEK | SEK61.22 |
| OM:ALFA Share Price * | OM (2019-05-24) in SEK | SEK203.9 |
| Sweden Machinery Industry PB Ratio | Median Figure of 27 Publicly-Listed Machinery Companies | 3.08x |
| Sweden Market PB Ratio | Median Figure of 568 Publicly-Listed Companies | 2.47x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = OM:ALFA Share Price ÷ Book Value per Share (both in SEK) = 203.9 ÷ 61.22 |
3.33x |
* Primary Listing of Alfa Laval.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Alfa Laval is overvalued based on assets compared to the SE Machinery industry average.
Value checks
We assess Alfa Laval's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check) Alfa Laval has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
How is Alfa Laval expected to perform in the next 1 to 3 years based on estimates from 13 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Alfa Laval's earnings growth is expected to exceed the low risk savings rate of 0.4%.
Growth vs Market Checks
- Alfa Laval's earnings growth is positive but not above the Sweden market average.
- Alfa Laval's revenue growth is positive but not above the Sweden market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| OM:ALFA Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts | 5.2% |
| OM:ALFA Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts | 3.9% |
| Sweden Machinery Industry Earnings Growth Rate | Market Cap Weighted Average | 2.2% |
| Sweden Machinery Industry Revenue Growth Rate | Market Cap Weighted Average | 2.3% |
| Sweden Market Earnings Growth Rate | Market Cap Weighted Average | 8.7% |
| Sweden Market Revenue Growth Rate | Market Cap Weighted Average | 4.6% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 13 Analyst Estimates (S&P Global) | See Below |
| Date (Data in SEK Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 48,316 | 6,970 | 5,616 | 11 |
| 2020-12-31 | 47,198 | 6,470 | 5,413 | 13 |
| 2019-12-31 | 45,045 | 5,831 | 5,115 | 11 |
| Date (Data in SEK Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-03-31 | 41,973 | 5,176 | 4,692 |
| 2018-12-31 | 40,666 | 4,883 | 4,519 |
| 2018-09-30 | 39,569 | 4,966 | 4,287 |
| 2018-06-30 | 37,607 | 4,660 | 3,886 |
| 2018-03-31 | 36,039 | 4,325 | 3,248 |
| 2017-12-31 | 35,314 | 4,463 | 2,976 |
| 2017-09-30 | 35,106 | 4,815 | 2,528 |
| 2017-06-30 | 35,518 | 4,682 | 1,748 |
| 2017-03-31 | 35,561 | 4,873 | 2,196 |
| 2016-12-31 | 35,634 | 4,979 | 2,289 |
| 2016-09-30 | 36,535 | 4,929 | 2,611 |
| 2016-06-30 | 37,647 | 5,387 | 3,702 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 13 Analyst Estimates (S&P Global) | See Below |
All data from Alfa Laval Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in SEK Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 13.26 | 14.60 | 12.23 | 9.00 |
| 2020-12-31 | 12.92 | 14.00 | 11.66 | 12.00 |
| 2019-12-31 | 12.17 | 12.82 | 11.49 | 13.00 |
| Date (Data in SEK Millions) | EPS * |
|---|---|
| 2019-03-31 | 11.19 |
| 2018-12-31 | 10.77 |
| 2018-09-30 | 10.22 |
| 2018-06-30 | 9.26 |
| 2018-03-31 | 7.74 |
| 2017-12-31 | 7.09 |
| 2017-09-30 | 6.03 |
| 2017-06-30 | 4.17 |
| 2017-03-31 | 5.24 |
| 2016-12-31 | 5.46 |
| 2016-09-30 | 6.22 |
| 2016-06-30 | 8.83 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Alfa Laval's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Sweden market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Sweden market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Alfa Laval has a total score of 1/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Alfa Laval performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Alfa Laval's year on year earnings growth rate has been positive over the past 5 years.
- Alfa Laval's 1-year earnings growth exceeds its 5-year average (44.5% vs 4.8%)
- Alfa Laval's earnings growth has exceeded the SE Machinery industry average in the past year (44.5% vs 28.9%).
Earnings and Revenue History
All data from Alfa Laval Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in SEK Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-03-31 | 41,973.00 | 4,692.00 | 6,640.00 | 1,063.00 |
| 2018-12-31 | 40,666.00 | 4,519.00 | 6,526.00 | 1,020.00 |
| 2018-09-30 | 39,569.00 | 4,287.00 | 6,324.00 | 958.00 |
| 2018-06-30 | 37,607.00 | 3,886.00 | 6,150.00 | 928.00 |
| 2018-03-31 | 36,039.00 | 3,248.00 | 6,038.00 | 894.00 |
| 2017-12-31 | 35,314.00 | 2,976.00 | 5,936.00 | 874.00 |
| 2017-09-30 | 35,106.00 | 2,528.00 | 5,919.00 | 850.00 |
| 2017-06-30 | 35,518.00 | 1,748.00 | 5,988.00 | 840.00 |
| 2017-03-31 | 35,561.00 | 2,196.00 | 6,002.00 | 833.00 |
| 2016-12-31 | 35,634.00 | 2,289.00 | 5,977.00 | 822.00 |
| 2016-09-30 | 36,535.00 | 2,611.00 | 5,983.00 | 790.00 |
| 2016-06-30 | 37,647.00 | 3,702.00 | 5,949.00 | 779.00 |
| 2016-03-31 | 38,874.00 | 3,847.00 | 5,904.00 | 752.00 |
| 2015-12-31 | 39,746.00 | 3,839.00 | 5,920.00 | 756.00 |
| 2015-09-30 | 39,716.00 | 3,806.00 | 5,930.00 | 777.00 |
| 2015-06-30 | 39,295.00 | 3,518.00 | 5,878.00 | 777.00 |
| 2015-03-31 | 37,541.00 | 3,242.00 | 5,771.00 | 792.00 |
| 2014-12-31 | 35,067.00 | 2,946.00 | 5,600.00 | 790.00 |
| 2014-09-30 | 32,901.00 | 2,913.00 | 5,443.00 | 751.00 |
| 2014-06-30 | 30,801.00 | 3,039.00 | 5,281.00 | 743.00 |
| 2014-03-31 | 29,893.00 | 2,888.00 | 5,148.00 | 725.00 |
| 2013-12-31 | 29,801.00 | 3,027.00 | 5,060.00 | 702.00 |
| 2013-09-30 | 29,311.00 | 3,071.00 | 5,012.00 | 729.00 |
| 2013-06-30 | 29,191.00 | 3,100.00 | 4,963.00 | 717.00 |
| 2013-03-31 | 29,487.00 | 3,177.00 | 4,963.00 | 714.00 |
| 2012-12-31 | 29,813.00 | 3,206.00 | 5,001.00 | 707.00 |
| 2012-09-30 | 29,843.00 | 3,223.00 | 5,136.00 | 673.00 |
| 2012-06-30 | 30,362.00 | 3,149.00 | 5,225.00 | 671.00 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Alfa Laval has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Alfa Laval used its assets less efficiently than the SE Machinery industry average last year based on Return on Assets.
- Alfa Laval's use of capital has not improved over the past 3 years (Return on Capital Employed).
Past performance checks
We assess Alfa Laval's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Alfa Laval has a total score of 3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Alfa Laval's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Alfa Laval's finances.
The net worth of a company is the difference between its assets and liabilities.
- Alfa Laval is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Alfa Laval's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is covered by short term assets, assets are 2.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Alfa Laval Company Filings, last reported 1 month ago.
| Date (Data in SEK Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-03-31 | 25,817.00 | 12,039.00 | 4,962.00 |
| 2018-12-31 | 23,599.00 | 12,061.00 | 4,897.00 |
| 2018-09-30 | 22,791.00 | 11,851.00 | 3,253.00 |
| 2018-06-30 | 22,277.00 | 11,976.00 | 2,569.00 |
| 2018-03-31 | 22,440.00 | 11,736.00 | 2,804.00 |
| 2017-12-31 | 20,500.00 | 12,707.00 | 4,335.00 |
| 2017-09-30 | 19,587.00 | 12,210.00 | 1,949.00 |
| 2017-06-30 | 18,929.00 | 13,375.00 | 2,369.00 |
| 2017-03-31 | 20,882.00 | 13,247.00 | 3,012.00 |
| 2016-12-31 | 20,276.00 | 13,491.00 | 3,684.00 |
| 2016-09-30 | 20,112.00 | 13,886.00 | 1,680.00 |
| 2016-06-30 | 19,304.00 | 14,498.00 | 1,772.00 |
| 2016-03-31 | 19,599.00 | 13,578.00 | 1,925.00 |
| 2015-12-31 | 18,423.00 | 14,757.00 | 2,888.00 |
| 2015-09-30 | 17,326.00 | 16,139.00 | 1,660.00 |
| 2015-06-30 | 17,346.00 | 16,593.00 | 1,620.00 |
| 2015-03-31 | 18,470.00 | 16,525.00 | 1,877.00 |
| 2014-12-31 | 17,202.00 | 17,976.00 | 2,700.00 |
| 2014-09-30 | 17,618.00 | 17,999.00 | 1,975.00 |
| 2014-06-30 | 16,484.00 | 18,971.00 | 1,665.00 |
| 2014-03-31 | 16,874.00 | 4,005.00 | 1,620.00 |
| 2013-12-31 | 16,162.00 | 4,806.00 | 2,035.00 |
| 2013-09-30 | 14,772.00 | 5,426.00 | 1,368.00 |
| 2013-06-30 | 14,256.00 | 6,421.00 | 1,392.00 |
| 2013-03-31 | 14,882.00 | 4,945.00 | 1,352.00 |
| 2012-12-31 | 14,453.00 | 6,235.00 | 1,818.00 |
| 2012-09-30 | 14,537.00 | 5,706.00 | 1,724.00 |
| 2012-06-30 | 14,214.00 | 6,144.00 | 1,573.00 |
- Alfa Laval's level of debt (46.6%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (24.7% vs 46.6% today).
- Debt is well covered by operating cash flow (43%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 74.3x coverage).
Financial health checks
We assess Alfa Laval's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Alfa Laval has a total score of 4/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Alfa Laval's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
SEK2,000 of
Alfa Laval
shares you are expected to receive
SEK49
in your first year as a dividend.
Dividend Amount
- Alfa Laval's pays a higher dividend yield than the bottom 25% of dividend payers in Sweden (1.82%).
- Alfa Laval's dividend is below the markets top 25% of dividend payers in Sweden (4.39%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 13 Analyst Estimates (S&P Global) | See Below |
| Sweden Machinery Industry Average Dividend Yield | Market Cap Weighted Average of 16 Stocks | 2.9% |
| Sweden Market Average Dividend Yield | Market Cap Weighted Average of 244 Stocks | 3.3% |
| Sweden Minimum Threshold Dividend Yield | 10th Percentile | 1.2% |
| Sweden Bottom 25% Dividend Yield | 25th Percentile | 1.8% |
| Sweden Top 25% Dividend Yield | 75th Percentile | 4.4% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in SEK) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-12-31 | 6.03 | 12.00 |
| 2020-12-31 | 5.84 | 14.00 |
| 2019-12-31 | 5.50 | 14.00 |
| Date (Data in SEK) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-03-20 | 5.000 | 2.334 |
| 2018-03-16 | 4.250 | 1.985 |
| 2017-03-21 | 4.250 | 2.248 |
| 2016-03-18 | 4.250 | 3.070 |
| 2015-03-31 | 4.000 | 2.696 |
| 2015-02-03 | 4.000 | 2.472 |
| 2014-04-04 | 3.750 | 2.371 |
| 2014-02-05 | 3.750 | 2.179 |
| 2013-03-28 | 3.500 | 2.343 |
| 2013-02-05 | 3.500 | 2.370 |
| 2012-04-02 | 3.250 | 2.617 |
| 2012-02-07 | 3.250 | 2.417 |
| 2011-03-31 | 3.000 | 2.374 |
| 2011-02-08 | 3.000 | 2.332 |
| 2010-04-01 | 2.500 | 2.158 |
| 2010-02-10 | 2.500 | 2.364 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Whilst dividend payments have been stable, Alfa Laval has been paying a dividend for less than 10 years.
- Dividend payments have increased, but Alfa Laval only paid a dividend in the past 9 years.
Income/ dividend checks
We assess Alfa Laval's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Alfa Laval afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Alfa Laval has a total score of 3/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | SEK23,021,000 |
| AGE | 58 |
| TENURE AS CEO | 3.2 years |
CEO Bio
Mr. Tom Erixon serves as a Director of Boliden AB 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 partner Boston Consulting Group and a variety of senior positions within Sandvik. He had served as President and CEO of OVAKO AB and President of Sandvik Coromant. He hold an MA Law from the University of Lund in Sweden and MBA Business Administration from IESE in Spain.
CEO Compensation
- Tom's compensation has been consistent with company performance over the past year, both up more than 20%.
- Tom's remuneration is higher than average for companies of similar size in Sweden.
Management Team Tenure
Average tenure and age of the Alfa Laval management team in years:
- The average tenure for the Alfa Laval management team is less than 2 years, this suggests a new team.
Management Team
Tom Erixon
President & CEO
SEK23M
58
3.2 yrs
Jan Allde
Chief Financial Officer
51
1.3 yrs
Mikael Tydén
President of Operations Division
51
2.3 yrs
Frank Bolata
Chief Information Officer
1.1 yrs
Gabriella Grotte
Investor Relations Manager
Mikael Wahlgren
Chief Legal Counsel and Secretary
53
Peter Torstensson
Senior Vice President of Corporate Communications
63
20.3 yrs
Alex Syed
Vice President of Corporate Development
Joakim Vilson
Senior Vice President of Global Sales & Service
53
Pascale Gimenez
Senior Vice President of Human Resources
52
0.8 yrs
Board of Directors Tenure
Average tenure and age of the Alfa Laval board of directors in years:
- The tenure for the Alfa Laval board of directors is about average.
Board of Directors
Anders Narvinger
Chairman
SEK2M
70
16 yrs
Jörn Rausing
Director
SEK610K
58
19.3 yrs
Finn Rausing
Director
SEK735K
63
18.8 yrs
Ulf Wiinberg
Director
SEK610K
60
6.3 yrs
Anna Ohlsson-Leijon
Director
SEK685K
50
2.1 yrs
Henrik Lange
Director
SEK685K
57
1.3 yrs
Heléne Mellquist
Director
54
0.1 yrs
Maria Hanssen
Director
53
0.1 yrs
Stefan Sandell
Deputy Employee Representative Director
47
14.3 yrs
Leif Norkvist
Deputy Employee Representative Director
57
10.3 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (SEK) | Value (SEK) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 30. Nov 18 | Buy | Anna Ohlsson-Leijon | Individual | 29. Nov 18 | 29. Nov 18 | 2,000 | SEK192.88 | SEK385,760 | ||
| 14. Nov 18 | Buy | Tom Erixon | Individual | 14. Nov 18 | 14. Nov 18 | 10,000 | SEK203.00 | SEK2,030,000 | ||
Management checks
We assess Alfa Laval's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Alfa Laval has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Calculating The Fair Value Of Alfa Laval AB (publ) (STO:ALFA)
Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (SEK, Millions) SEK4.55k SEK5.59k SEK5.79k SEK5.94k SEK6.06k SEK6.15k SEK6.22k SEK6.28k SEK6.33k SEK6.37k Growth Rate Estimate Source Analyst x9 Analyst x8 Analyst x6 Est @ 2.6% Est @ 1.95% Est @ 1.49% Est @ 1.18% Est @ 0.95% Est @ 0.8% Est @ 0.69% Present Value (SEK, Millions) Discounted @ 7.05% SEK4.25k SEK4.88k SEK4.72k SEK4.52k SEK4.31k SEK4.08k SEK3.86k SEK3.64k SEK3.43k SEK3.22k Present Value of 10-year Cash Flow (PVCF)= SEK40.92b "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … OM:ALFA Intrinsic value, May 20th 2019 Important assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.
Simply Wall St - – Full articleHas Alfa Laval AB (publ) (STO:ALFA) Improved Earnings Growth In Recent Times?
In this commentary, I will examine Alfa Laval AB (publ)'s (STO:ALFA) latest earnings update (31 March 2019) and compare these figures against its performance over the past couple of years, as well as how the rest of the machinery industry performed. … See our latest analysis for Alfa Laval Did ALFA's recent earnings growth beat the long-term trend and the industry? … You should continue to research Alfa Laval to get a better picture of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for ALFA’s future growth?
Simply Wall St - – Full articleIs There More To Alfa Laval AB (publ) (STO:ALFA) Than Its 15% Returns On Capital?
To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.
Simply Wall St - – Full articleHere's Why We Think Alfa Laval (STO:ALFA) Is Well Worth Watching
Alfa Laval's Earnings Per Share Are Growing. … Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. … While we note Alfa Laval's EBIT margins were flat over the last year, revenue grew by a solid 15% to kr41b.
Simply Wall St - – Full articleWhat Investors Should Know About Alfa Laval AB (publ)'s (STO:ALFA) Financial Strength
Today we will look at Alfa Laval’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis … See our latest analysis for Alfa Laval
Simply Wall St - – Full articleAt kr216, Is Alfa Laval AB (publ) (STO:ALFA) Worth Looking At Closely?
Alfa Laval AB (publ) (STO:ALFA), which is in the machinery business, and is based in Sweden,. … As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Let’s take a look at Alfa Laval’s outlook and value based on the most recent financial data to see if the opportunity still exists
Simply Wall St - – Full articleIs Alfa Laval AB (publ)'s (STO:ALFA) High P/E Ratio A Problem For Investors?
We'll look at Alfa Laval AB (publ)'s (STO:ALFA) P/E ratio and reflect on what it tells us about the company's share price. … How Do I Calculate Alfa Laval's Price To Earnings Ratio … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleAlfa Laval AB (publ) (STO:ALFA) Has A ROE Of 19%
Over the last twelve months Alfa Laval has recorded a ROE of 19%. … That means that for every SEK1 worth of shareholders' equity, it generated SEK0.19 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleWhat Investors Should Know About Alfa Laval AB (publ)'s (STO:ALFA) Financial Strength
Today we will look at ALFA’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis. … View our latest analysis for Alfa Laval
Simply Wall St - – Full articleIf You Had Bought Alfa Laval Stock Three Years Ago, You Could Pocket A 47% Gain Today
For example, the Alfa Laval AB (publ) (STO:ALFA) share price is up 47% in the last three years, clearly besting than the market return of around 9.8% (not including dividends). … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Alfa Laval was able to grow its EPS at 5.6% per year over three years, sending the share price higher.
Simply Wall St - – Full articleCompany Info
Description
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 & Other. It offers fluid handling systems, such as automation and fluid control equipment; installation materials; analytical, cleaning validation, flow, level, pressure, temperature, and weighing instruments, as well as instrumentation accessories; mixing equipment; centrifugal, circumferential piston, rotary lobe, and screw pumps; rotary jet and spray heads; tank covers and accessories; and valves. The company also provides heat transfer products, including air heat exchangers; exhaust gas economizers, and oil/gas-fired composite steam and steam boilers; burners; oil/gas-fired hot water and thermal, and waste heat recovery heaters; plate and tubular heat exchangers; and scraped surface heat exchangers. In addition, it offers separation products comprising cylindrical filter baskets and filtering elements; decanters and separators; evaporation systems; filters and strainers; and membrane and pump control systems. Further, the company provides process solutions consisting of ballast water, brewery, bulk, desalination, edible oil, exhaust gas cleaning, filling, fresh water, fuel conditioning, marine exhaust gas, olive oil, protein, refrigeration, safety, and thermal solutions. It serves the biotech and pharmaceuticals, energy, chemicals,food, dairy, beverage, home and personal care, HVAC, machinery and manufacturing, marine and transportation, mining, minerals, pigment, pulp and paper, refrigeration, semiconductor and electronics, steel, and water and waste treatment industries. The company was formerly known as AB Separator and changed its name to Alfa Laval AB (publ) in 1963. Alfa Laval AB (publ) was founded in 1883 and is headquartered in Lund, Sweden.
Details
| Name: | Alfa Laval AB (publ) |
| ALFA | |
| Exchange: | OM |
| Founded: | 1883 |
| SEK85,527,142,628 | |
| 419,456,315 | |
| Website: | http://www.alfalaval.com |
| Address: |
Alfa Laval AB (publ) Rudeboksvägen 1, Lund, Skåne County, 226 55, Sweden |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| OM | ALFA | Common Stock | OMX Nordic Exchange Stockholm | SE | SEK | 20. May 2002 | |
| OTCPK | ALFV.F | Common Stock | Pink Sheets LLC | US | USD | 20. May 2002 | |
| DB | AA9 | Common Stock | Deutsche Boerse AG | DE | EUR | 20. May 2002 | |
| LSE | 0NNF | Common Stock | London Stock Exchange | GB | SEK | 20. May 2002 | |
| BATS-CHIXE | ALFAS | Common Stock | BATS 'Chi-X Europe' | GB | SEK | 20. May 2002 | |
| OTCPK | ALFV.Y | ADR | Pink Sheets LLC | US | USD | 22. Oct 2008 |
Number of employees
Current staff
Industry
| Industrial Machinery | |
| Capital Goods |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/05/26 20:51 |
| End of day share price update: | 2019/05/24 00:00 |
| Last estimates confirmation: | 2019/05/20 |
| Last earnings filing: | 2019/04/24 |
| Last earnings reported: | 2019/03/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
