OM:ASSA B

Stock Analysis Report

Executive Summary

ASSA ABLOY AB (publ) provides door opening products, solutions, and services for the institutional, commercial, and residential markets in Europe, the Middle East, Africa, North and South America, Asia, and Oceania.


Snowflake Analysis

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ASSA B's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.06%

ASSA B

2.8%

SE Building

5.3%

SE Market


1 Year Return

-13.9%

ASSA B

-7.7%

SE Building

-10.3%

SE Market

Return vs Industry: ASSA B underperformed the Swedish Building industry which returned -7.7% over the past year.

Return vs Market: ASSA B underperformed the Swedish Market which returned -10.3% over the past year.


Shareholder returns

ASSA BIndustryMarket
7 Day-0.06%2.8%5.3%
30 Day-19.5%-18.7%-18.2%
90 Day-21.1%-21.1%-22.8%
1 Year-12.4%-13.9%-6.2%-7.7%-7.8%-10.3%
3 Year-1.3%-6.2%11.6%5.5%-0.6%-15.4%
5 Year8.2%-0.06%27.9%17.4%8.0%-14.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

13.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ASSA B (SEK172.9) is trading below our estimate of fair value (SEK199.87)

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


Price To Earnings Ratio

PE vs Industry: ASSA B is poor value based on its PE Ratio (19.2x) compared to the Building industry average (15.6x).

PE vs Market: ASSA B is poor value based on its PE Ratio (19.2x) compared to the Swedish market (14.1x).


Price to Earnings Growth Ratio

PEG Ratio: ASSA B is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: ASSA B is overvalued based on its PB Ratio (3.2x) compared to the SE Building industry average (2.1x).


Next Steps

Future Growth

How is ASSA ABLOY forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

5.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASSA B's forecast earnings growth (5.7% per year) is above the savings rate (-0.4%).

Earnings vs Market: ASSA B's earnings (5.7% per year) are forecast to grow slower than the Swedish market (7.8% per year).

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

Revenue vs Market: ASSA B's revenue (4.1% per year) is forecast to grow slower than the Swedish market (4.1% per year).

High Growth Revenue: ASSA B's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ASSA B's Return on Equity is forecast to be low in 3 years time (15.9%).


Next Steps

Past Performance

How has ASSA ABLOY performed over the past 5 years?

-1.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ASSA B has high quality earnings.

Growing Profit Margin: ASSA B's current net profit margins (10.6%) are higher than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: ASSA B's earnings have declined by -1.8% per year over the past 5 years.

Accelerating Growth: ASSA B's earnings growth over the past year (263%) exceeds its 5-year average (-1.8% per year).

Earnings vs Industry: ASSA B earnings growth over the past year (263%) exceeded the Building industry 11.3%.


Return on Equity

High ROE: ASSA B's Return on Equity (16.9%) is considered low.


Next Steps

Financial Health

How is ASSA ABLOY's financial position?


Financial Position Analysis

Short Term Liabilities: ASSA B's short term assets (SEK31.6B) exceed its short term liabilities (SEK27.8B).

Long Term Liabilities: ASSA B's short term assets (SEK31.6B) exceed its long term liabilities (SEK31.1B).


Debt to Equity History and Analysis

Debt Level: ASSA B's debt to equity ratio (44.9%) is considered high.

Reducing Debt: ASSA B's debt to equity ratio has reduced from 55.5% to 44.9% over the past 5 years.

Debt Coverage: ASSA B's debt is well covered by operating cash flow (47.7%).

Interest Coverage: ASSA B's interest payments on its debt are well covered by EBIT (14.7x coverage).


Balance Sheet

Inventory Level: ASSA B has a low level of unsold assets or inventory.

Debt Coverage by Assets: ASSA B's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

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

2.23%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: ASSA B's dividend (2.23%) is higher than the bottom 25% of dividend payers in the Swedish market (2.14%).

High Dividend: ASSA B's dividend (2.23%) is low compared to the top 25% of dividend payers in the Swedish market (6.55%).


Stability and Growth of Payments

Stable Dividend: ASSA B's dividends per share have been stable in the past 10 years.

Growing Dividend: ASSA B's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.8%), ASSA B's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ASSA B's dividends in 3 years are forecast to be well covered by earnings (42.3% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Nico Delvaux (53yo)

2s

Tenure

kr42,558,000

Compensation

Mr. Nico Delvaux has been President, Chief Executive Officer and Head of Global Technologies Division of Assa Abloy AB since March 15, 2018. Mr. Delvaux served as Chief Executive Officer and President at M ...


CEO Compensation Analysis

Compensation vs Market: Nico's total compensation ($USD4.28M) is above average for companies of similar size in the Swedish market ($USD1.79M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Nico Delvaux
President2yrskr42.56m0.0077% SEK14.7m
Erik Pieder
Executive VP & CFO1.17yrsno data0.00011% SEK211.3k
David Simonsson
Chief Operating Officerno datano datano data
Johan Warnstrom
Chief Technology Officerno datano datano data
Björn Tibell
Head of Investor Relationsno datano datano data
Ann Holmberg
Head of Corporate Communications17.67yrsno datano data
Monica Nascimento
Director of Marketing Communicationsno datano datano data
Maria Ewerth
Executive VP & Chief Human Resources Officer6.25yrsno data0.0012% SEK2.3m
Christophe Sut
Executive VP & Head of Global Technologies Business Unit of Global Solutions3.67yrsno data0.00053% SEK1.0m
Anders Maltesen
Executive VP & Head of Asia Pacific Division2.5yrsno data0.00074% SEK1.4m

3.1yrs

Average Tenure

51yo

Average Age

Experienced Management: ASSA B's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Birgitta Klasén
Independent Director11.67yrskr885.00k0.0019% SEK3.6m
Mats Persson
Employee Representative Director26.17yrsno datano data
Carl Douglas
Independent Vice Chairman7.92yrskr900.00kno data
Lars Renström
Independent Chairman7.92yrskr2.50m0.0027% SEK5.2m
Jan Svensson
Independent Director7.92yrskr1.04m0.00054% SEK1.0m
Sofia Högberg
Independent Director2.92yrskr885.00kno data
Rune Hjälm
Employee Representative Director3.17yrsno datano data
Bjarne Johansson
Employee Representative Deputy Director5.17yrsno datano data
Eva Karlsson
Independent Director4.83yrskr685.00kno data
Lena Olving
Independent Director1.92yrskr685.00k0.000050% SEK96.0k

6.5yrs

Average Tenure

59yo

Average Age

Experienced Board: ASSA B's board of directors are considered experienced (6.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ASSA B 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

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


Key Information

  • Name: ASSA ABLOY AB (publ)
  • Ticker: ASSA B
  • Exchange: OM
  • Founded: 1994
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: kr192.053b
  • Shares outstanding: 1.11b
  • Website: https://www.assaabloy.com

Number of Employees


Location

  • ASSA ABLOY AB (publ)
  • Klarabergsviadukten 90
  • Stockholm
  • Stockholm County
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ASAZ.FOTCPK (Pink Sheets LLC)YesSeries B SharesUSUSDNov 1994
ASSA BOM (OMX Nordic Exchange Stockholm)YesSeries B SharesSESEKNov 1994
ALZCDB (Deutsche Boerse AG)YesSeries B SharesDEEURNov 1994
0R87LSE (London Stock Exchange)YesSeries B SharesGBSEKNov 1994
ASSABSBATS-CHIXE (BATS 'Chi-X Europe')YesSeries B SharesGBSEKNov 1994
0R87 NBMV (Bolsa Mexicana de Valores)YesSeries B SharesMXMXNNov 1994
ASAZ.YOTCPK (Pink Sheets LLC)ADRUSUSDApr 2008

Biography

ASSA ABLOY AB (publ) provides door opening products, solutions, and services for the institutional, commercial, and residential markets in Europe, the Middle East, Africa, North and South America, Asia, and Oceania. The company offers mechanical and electromechanical locks, digital door locks, cylinders, door fittings, security doors, door frames, access control devices, secure lockers, and fire doors, as well as hardware products. It also provides identity solutions, including identity and access management, biometrics, authenticity and brand protection products, contactless RFID tags and transponders, and government IDs to companies, and government and state institutions, as well as healthcare, education, and financial industries; and secure access solutions for hotels, cruise ships, student accommodations, and elderly care facilities. In addition, the company offers entrance automation products, services, and components, such as automatic swing, sliding, and revolving doors; industrial doors; garage doors; high-performance doors; docking solutions; hangar doors; gate automation products; components for overhead sectional doors and sensors; and high security fencings and gates. ASSA ABLOY AB (publ) provides its products primarily under the ASSA ABLOY, Yale, HID, and ABLOY brands. The company sells its products through distributors, wholesalers, and home improvement stores. ASSA ABLOY AB (publ) was founded in 1994 and is based in Stockholm, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 20:38
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.