Balco Group

OM:BALCO

Snowflake Description

Solid track record with high growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.

BALCO

SEK1B

Market Cap

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Last updated 2019/04/22 22:40

Company description

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BALCO Share Price and Events

7 Day Returns

0.4%

OM:BALCO

1.4%

SE Building

1.2%

SE Market

1 Year Returns

-6.7%

OM:BALCO

21.5%

SE Building

4.4%

SE Market

BALCO Shareholder Return

	7 Day	30 Day	90 Day	1 Year	3 Year	5 Year
Balco Group (BALCO)	0.4%	2%	11%	-6.7%	-	-
SE Building	1.4%	9.1%	24.6%	21.5%	35.1%	96.1%
SE Market	1.2%	4.9%	10.1%	4.4%	15.1%	25.4%

1 Year Return vs Industry and Market

BALCO underperformed the Building industry which returned 21.5% over the past year.
BALCO underperformed the Market in Sweden which returned 4.4% over the past year.

Price Volatility

Industry

5yr Volatility vs Market

Related Companies

Value

Is Balco Group 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 Balco Group 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.

Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Balco Group.

OM:BALCO Discounted Cash Flow Data Sources
Data Point	Source	Value
Valuation Model		2 Stage Free Cash Flow to Equity
Levered Free Cash Flow	Average of 2 Analyst Estimates (S&P Global)	See below
Discount Rate (Cost of Equity)	See below	8%
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.

Calculation of Discount Rate/ Cost of Equity for OM:BALCO
Data Point	Calculation/ Source	Result
Risk-Free Rate	10-Year SE Govt Bond Rate	0.4%
Equity Risk Premium	S&P Global	6%
Building Unlevered Beta	Simply Wall St/ S&P Global	1.18
Re-levered Beta	= Unlevered beta (1 + (1- tax rate) (Debt/Equity)) = 1.178 (1 + (1- 22%) (24.39%))	1.27
Levered Beta	Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm)	1.27
Discount Rate/ Cost of Equity	= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium) = 0.43% + (1.27 * 5.96%)	8%

Discounted Cash Flow Calculation for OM:BALCO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Balco Group 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.

OM:BALCO DCF 1st Stage: Next 10 year cash flow forecast
	Levered FCF (SEK, Millions)	Source	Present Value Discounted (@ 8%)
2019	116.00	Analyst x1	107.41
2020	128.50	Analyst x2	110.17
2021	137.00	Analyst x1	108.75
2022	143.32	Est @ 4.62%	105.34
2023	148.14	Est @ 3.36%	100.82
2024	151.82	Est @ 2.48%	95.67
2025	154.66	Est @ 1.87%	90.24
2026	156.88	Est @ 1.44%	84.75
2027	158.66	Est @ 1.14%	79.37
2028	160.13	Est @ 0.93%	74.17
Present value of next 10 years cash flows			SEK956.68

OM:BALCO DCF 2nd Stage: Terminal Value
	Calculation	Result
Terminal Value	= FCF₂₀₂₈ × (1 + g) ÷ (Discount Rate – g) = SEK160.13 × (1 + 0.43%) ÷ (8% – 0.43%)	SEK2,125.59
Present Value of Terminal Value	= Terminal Value ÷ (1 + r)¹⁰ = SEK2,125.59 ÷ (1 + 8%)¹⁰	SEK984.51

OM:BALCO Total Equity Value
	Calculation	Result
Total Equity Value	= Present value of next 10 years cash flows + Terminal Value = SEK956.68 + SEK984.51	SEK1,941.20
Equity Value per Share (SEK)	= Total value / Shares Outstanding = SEK1,941.20 / 21.43	SEK90.59

OM:BALCO Discount to Share Price
	Calculation	Result
Value per share (SEK)	From above.	SEK90.59
Current discount	Discount to share price of SEK57.40 = -1 x (SEK57.40 - SEK90.59) / SEK90.59	36.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount

Amount off the current price Balco Group is available for.

37%

Share price is SEK57.4 vs Future cash flow value of SEK90.59

Current Discount Checks

For Balco Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.

Balco Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
Balco Group'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 Balco Group's earnings, growth and assets is considered below, and whether this is a fair price.

Price based on past earnings

Are Balco Group's earnings available for a low price, and how does this compare to other companies in the same industry?

Raw Data

OM:BALCO PE (Price to Earnings) Ratio Data Sources
Data Point	Source	Value
Earnings Per Share *	Company Filings (2018-12-31) in SEK	SEK3.58
OM:BALCO Share Price **	OM (2019-04-18) in SEK	SEK57.4
Sweden Building Industry PE Ratio	Median Figure of 11 Publicly-Listed Building Companies	20.36x
Sweden Market PE Ratio	Median Figure of 322 Publicly-Listed Companies	16.98x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Balco Group.

OM:BALCO PE (Price to Earnings) Ratio Calculation
	Calculation	Outcome
PE Ratio	= OM:BALCO Share Price ÷ EPS (both in SEK) = 57.4 ÷ 3.58	16.03x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Balco Group is good value based on earnings compared to the SE Building industry average.
Balco Group is good value based on earnings compared to the Sweden market.

Price based on expected Growth

Does Balco Group's expected growth come at a high price?

Raw Data

OM:BALCO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point	Source	Value
PE Ratio	See PE Ratio Section	16.03x
Net Income Annual Growth Rate	See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts	21.8%per year
Sweden Building Industry PEG Ratio	Median Figure of 7 Publicly-Listed Building Companies	1.38x
Sweden Market PEG Ratio	Median Figure of 233 Publicly-Listed Companies	1.31x

*Line of best fit is calculated by linear regression .

OM:BALCO PEG (Price to Earnings to Growth) Ratio Calculation
	Calculation	Outcome
PEG Ratio	= PE Ratio ÷ Net Income Annual Growth Rate = 16.03x ÷ 21.8%	0.73x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Balco Group is good value based on expected growth next year.

Price based on value of assets

What value do investors place on Balco Group's assets?

Raw Data

OM:BALCO PB (Price to Book) Ratio Data Sources
Data Point	Source	Value
Book Value per Share	Company Filings (2018-12-31) in SEK	SEK20.56
OM:BALCO Share Price *	OM (2019-04-18) in SEK	SEK57.4
Sweden Building Industry PB Ratio	Median Figure of 13 Publicly-Listed Building Companies	2.53x
Sweden Market PB Ratio	Median Figure of 566 Publicly-Listed Companies	2.51x

OM:BALCO PB (Price to Book) Ratio Calculation
	Calculation	Outcome
PB Ratio	= OM:BALCO Share Price ÷ Book Value per Share (both in SEK) = 57.4 ÷ 20.56	2.79x

* Primary Listing of Balco Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Balco Group is overvalued based on assets compared to the SE Building industry average.

Show me more potentially undervalued companies in the Building industry

Value checks

We assess Balco Group'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 Building 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 Building industry average (and greater than 0)? (1 check)

Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

How is Balco Group expected to perform in the next 1 to 3 years based on estimates from 2 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!

21.8%

Expected annual growth in earnings.

Earnings growth vs Low Risk Savings

Is Balco Group expected to grow at an attractive rate?

Balco Group's earnings growth is expected to exceed the low risk savings rate of 0.4%.

Growth vs Market Checks

Balco Group's earnings growth is expected to exceed the Sweden market average.
Balco Group's revenue growth is expected to exceed the Sweden market average.

Annual Growth Rates Comparison

Raw Data

OM:BALCO Future Growth Rates Data Sources
Data Point	Source	Value (per year)
OM:BALCO Future Earnings Growth Rate	Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts	21.8%
OM:BALCO Future Revenue Growth Rate	Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts	12.6%
Sweden Building Industry Earnings Growth Rate	Market Cap Weighted Average	27.9%
Sweden Building Industry Revenue Growth Rate	Market Cap Weighted Average	5.9%
Sweden Market Earnings Growth Rate	Market Cap Weighted Average	8.4%
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

Raw Data

OM:BALCO Analysts Growth Expectations Data Sources
Data Point	Source	Value
Past Financials	Company Filings (3 months ago)	See Below
Future Estimates	Average of up to 2 Analyst Estimates (S&P Global)	See Below

All numbers in SEK Millions and using Trailing twelve months (TTM) annual period rather than quarterly.

OM:BALCO Future Estimates Data
Date (Data in SEK Millions)	Revenue	Cash Flow	Net Income *	Avg. No. Analysts
2021-12-31	1,564	170	155	1
2020-12-31	1,410	152	134	2
2019-12-31	1,291	144	118	1

OM:BALCO Past Financials Data
Date (Data in SEK Millions)	Revenue	Cash Flow	Net Income *
2018-12-31	1,058	28	77
2018-09-30	1,037	145	78
2018-06-30	1,006	115	55
2018-03-31	1,001	135	42
2017-12-31	989	155	31
2017-09-30	943	57	13
2017-06-30	929	50	19
2017-03-31	847	33	10
2016-12-31	802	61	5

*GAAP earnings excluding extraordinary items.

High Growth Checks

Balco Group's earnings are expected to grow significantly at over 20% yearly.
Balco Group's revenue is expected to grow by 12.6% yearly, however this is not considered high growth (20% yearly).

Past and Future Earnings per Share

The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.

Raw Data

OM:BALCO Past and Future Earnings per Share
Data Point	Source	Value
Past Financials	Company Filings (3 months ago)	See Below
Future Estimates	Average of up to 2 Analyst Estimates (S&P Global)	See Below

All data from Balco Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OM:BALCO Future Estimates Data
Date (Data in SEK Millions)	EPS *	EPS High Estimate	EPS Low Estimate	Avg. No. Analysts
2021-12-31	6.90	6.90	6.90	1.00
2020-12-31	6.12	6.17	6.06	2.00
2019-12-31	5.23	5.23	5.23	1.00

OM:BALCO Past Financials Data
Date (Data in SEK Millions)	EPS *
2018-12-31	3.58
2018-09-30	3.65
2018-06-30	2.90
2018-03-31	2.56
2017-12-31	2.28
2017-09-30	1.17
2017-06-30	0.29
2017-03-31	0.84
2016-12-31	0.42

*GAAP earnings excluding extraordinary items.

Performance in 3 years

In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.

Balco Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).

Show me more growth companies in the Building industry

Future performance checks

We assess Balco Group'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)

Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Balco Group has a total score of 5/6, 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 Balco Group 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

Below we compare Balco Group's growth in the last year to its industry (Building).

Past Earnings growth analysis

We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.

Balco Group has delivered over 20% year on year earnings growth in the past 5 years.
Balco Group's 1-year earnings growth exceeds its 5-year average (145.8% vs 64.1%)
Balco Group's earnings growth has exceeded the SE Building industry average in the past year (145.8% vs 11.3%).

Earnings and Revenue History

Balco Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.

Raw Data

All data from Balco Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OM:BALCO Past Revenue, Cash Flow and Net Income Data
Date (Data in SEK Millions)	Revenue	Net Income *	G+A Expenses
2018-12-31	1,058.05	76.75	148.01
2018-09-30	1,037.45	77.72	156.52
2018-06-30	1,005.85	54.52	162.22
2018-03-31	1,000.75	41.62	159.62
2017-12-31	988.95	31.22	155.92
2017-09-30	943.01	13.24	145.29
2017-06-30	929.01	19.34	138.79
2017-03-31	846.51	9.54	132.14
2016-12-31	801.61	4.74	127.89
2015-12-31	638.59	12.92	106.10
2014-12-31	568.37	-29.64	78.48
2013-12-31	542.05	-37.64	84.98

*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.

Balco Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
Balco Group used its assets more efficiently than the SE Building industry average last year based on Return on Assets.
Balco Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).

Show me more strong past performing companies in the Building industry

Past performance checks

We assess Balco Group'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 Building 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)

The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Balco Group has a total score of 5/6, 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 Balco Group'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 Balco Group's finances.

The net worth of a company is the difference between its assets and liabilities.

Net Worth

Balco Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Balco Group's cash and other short term assets cover its long term commitments.

Balance sheet

This treemap shows a more detailed breakdown of Balco Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.

Assets

Liabilities and shares

The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.

High level of physical assets or inventory.
Debt is covered by short term assets, assets are 1.4x 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.

Raw Data

All data from Balco Group Company Filings, last reported 3 months ago.

OM:BALCO Past Debt and Equity Data
Date (Data in SEK Millions)	Total Equity	Total Debt	Cash & Short Term Investments
2018-12-31	440.50	300.05	87.99
2018-09-30	422.20	197.40	70.20
2018-06-30	403.00	196.70	51.70
2018-03-31	402.00	196.80	63.10
2017-12-31	386.35	196.50	110.11
2017-09-30	155.70	429.70	24.50
2017-06-30	159.30	399.70	19.60
2017-03-31	139.52	381.76	22.74
2016-12-31	139.52	381.76	22.74
2015-12-31	126.57	384.67	30.96
2014-12-31	107.85	358.59	8.33
2013-12-31	131.92	359.58	8.89

Balco Group's level of debt (68.1%) compared to net worth is high (greater than 40%).
The level of debt compared to net worth has been reduced over the past 5 years (272.7% vs 68.1% today).
Debt is not well covered by operating cash flow (9.3%, less than 20% of total debt).
Interest payments on debt are well covered by earnings (EBIT is 19.8x coverage).

Show me more healthy companies in the Building industry

Financial health checks

We assess Balco Group'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)

For companies that are loss making and have been so on average in the past we replace the last 2 checks with:

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 Balco Group'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

3.48%

Current annual income from Balco Group dividends. Estimated to be 5.34% next year.

If you bought SEK2,000 of Balco Group shares you are expected to receive SEK70 in your first year as a dividend.

Dividend Amount

Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?

Balco Group's pays a higher dividend yield than the bottom 25% of dividend payers in Sweden (1.86%).
Balco Group's dividend is below the markets top 25% of dividend payers in Sweden (4.37%).

Upcoming dividend payment

Purchase Balco Group before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.

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.

Raw Data

OM:BALCO Annualized Past and Future Dividends
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 2 Analyst Estimates (S&P Global)	See Below
Sweden Building Industry Average Dividend Yield	Market Cap Weighted Average of 11 Stocks	1.6%
Sweden Market Average Dividend Yield	Market Cap Weighted Average of 245 Stocks	3.5%
Sweden Minimum Threshold Dividend Yield	10th Percentile	1.2%
Sweden Bottom 25% Dividend Yield	25th Percentile	1.9%
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.

OM:BALCO Future Dividends Estimate Data
Date (Data in SEK)	Dividend per Share (annual)	Avg. No. Analysts
2021-12-31	4.00	1.00
2020-12-31	2.63	2.00
2019-12-31	3.00	1.00

OM:BALCO Past Annualized Dividends Data
Date (Data in SEK)	Dividend per share (annual)	Avg. Yield (%)
2019-04-12	2.000	3.472
2018-05-17	1.000	1.633

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

It is too early to tell whether Balco Group has stable dividend payments.
Balco Group only just started paying a dividend, it is too early to tell if payments are increasing.

Current Payout to shareholders

What portion of Balco Group's earnings are paid to the shareholders as a dividend.

Dividends paid are covered by earnings (1.8x coverage).

Future Payout to shareholders

Dividends after 3 years are expected to be covered by earnings (1.7x coverage).

Income/ dividend checks

We assess Balco Group'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 Balco Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)

Full details on the Dividends part of the Simply Wall St company analysis model.

Management

What is the CEO of Balco Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.

CEO

Kenneth Lundahl

COMPENSATION	SEK4,544,000
AGE	51
TENURE AS CEO	6.3 years

CEO Bio

Mr. Kenneth Lundahl serves as President and Chief Executive Officer at Balco AB. Mr. Lundahl has been Chief Executive Officer of Balco Group AB (publ) since 2013 and serves as its President. Mr. Lundahl served as the President of Business Area Trailers at Thule Group AB. Mr. Lundahl joined Thule AB in 1996. He holds M.Sc. in Civil engineering degree from Chalmers Technical University. He serves as Chairman of the board of directors of Lundahl & Hall AB, several directorships in the Lundahl & Hall Group such as director and alternate director. He is Director in Plast Aktiebolaget Orion. He serves as Chairman of the board of directors of Anderstorps Hotellfastigheter AB and Woodleg Förvaltning AB.

CEO Compensation

Kenneth's compensation has been consistent with company performance over the past year.
Kenneth's remuneration is higher than average for companies of similar size in Sweden.

Management Team Tenure

Average tenure and age of the Balco Group management team in years:

5.3

Average Tenure

Average Age

The average tenure for the Balco Group management team is over 5 years, this suggests they are a seasoned and experienced team.

Management Team

Kenneth Lundahl

TITLE

President & CEO

COMPENSATION

SEK5M

AGE

51

TENURE

TITLE

Head of Business Development

AGE

49

Board of Directors Tenure

Average tenure and age of the Balco Group board of directors in years:

3.3

Average Tenure

Average Age

The tenure for the Balco Group board of directors is about average.

TITLE

Director

AGE

47

TENURE

0.9 yrs

Who owns this company?

Recent Insider Trading

No 3 month insider trading information.

Recent Insider Transactions

Announced	Type	Name	Entity	Start	End	Shares	Max Price (SEK)	Value (SEK)
31. Mar 19	Buy	Fruholmen Invest AB	Company	28. Mar 19	28. Mar 19	9,579	SEK53.47	SEK512,189
25. Feb 19	Buy	Fruholmen Invest AB	Company	25. Feb 19	25. Feb 19	10,000	SEK53.54	SEK535,400
20. Dec 18	Buy	Roger Andersson	Individual	20. Dec 18	20. Dec 18	3,500	SEK52.00	SEK182,000
05. Dec 18	Sell	Henrik Nilsson	Individual	30. Nov 18	03. Dec 18	-36,362	SEK60.25	SEK-2,167,273
07. Jun 18	Buy	Fruholmen Invest AB	Company	07. Jun 18	07. Jun 18	20,000	SEK70.94	SEK1,418,800

Management checks

We assess Balco Group'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)

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

Brief Commentary On Balco Group AB's (STO:BALCO) Fundamentals

Attractive stocks have exceptional fundamentals. … In the case of Balco Group AB (STO:BALCO), there's … financially-sound

Simply Wall St - 6 days ago – Full article

Will Balco Group AB's (STO:BALCO) Earnings Grow In The Year Ahead?

Looking at Balco Group AB's (STO:BALCO) earnings update in December 2018, … as a 53% rise in profits is expected in the upcoming year,

Simply Wall St - 2 weeks ago – Full article

Do You Like Balco Group AB (STO:BALCO) At This P/E Ratio?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … Balco Group has a price to earnings ratio of 15.14, based on the last twelve months. … How Do I Calculate A Price To Earnings Ratio

Simply Wall St - 3 weeks ago – Full article

How Much Are Balco Group AB (STO:BALCO) Insiders Taking Off The Table?

So before you buy or sell Balco Group AB (STO:BALCO), you may well want to know whether insiders have been buying or selling. … The Last 12 Months Of Insider Transactions At Balco Group. … Henrik Nilsson was the only individual insider to sell shares in the last twelve months

Simply Wall St - 1 month ago – Full article

If You Had Bought Balco Group (STO:BALCO) Stock A Year Ago, You'd Be Sitting On A 16% Loss, Today

Investors in Balco Group AB (STO:BALCO) have tasted that bitter downside in the last year, as the share price dropped 16%. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During the unfortunate twelve months during which the Balco Group share price fell, it actually saw its earnings per share (EPS) improve by 57%.

Simply Wall St - 1 month ago – Full article

What Should You Know About Balco Group AB's (STO:BALCO) Earnings Trajectory?

Balco Group AB's (STO:BALCO) released its most recent earnings update in December 2018, whicha

Simply Wall St - 1 month ago – Full article

Is Balco Group AB (STO:BALCO) A Smart Pick For Income Investors?

A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. … Recently, Balco Group AB (STO:BALCO) has started paying dividends to shareholders. … Does Balco Group tick all the boxes of a great dividend stock?

Simply Wall St - 2 months ago – Full article

Can Balco Group AB (STO:BALCO) Maintain Its Strong Returns?

Our data shows Balco Group has a return on equity of 18% for the last year. … That means that for every SEK1 worth of shareholders' equity, it generated SEK0.18 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St - 2 months ago – Full article

Why Balco Group AB’s (STO:BALCO) Return On Capital Employed Is Impressive

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.

Simply Wall St - 3 months ago – Full article

Is Balco Group AB (STO:BALCO) Potentially Underrated?

Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Balco Group AB (STO:BALCO) due to its excellent fundamentals in more than one area. … BALCO

Simply Wall St - 3 months ago – Full article

Company Info

Description

Balco Group AB develops, produces, and sells balcony systems to tenant-owner associations, private landlords, and publicly owned and construction companies in Sweden, Norway, Denmark, Germany, Finland, the United Kingdom, the Netherlands, and Switzerland. The company operates in two segments, Renovation and New Build. It offers glazed balconies, including climate walls, access balconies, and etage products; open balconies, such as city, maritime, and prefabricated balconies; and accessories and other products comprising flooring products, screens, glass corners, powered awnings, sunscreens, roller blinds, and window boxes. The company was founded in 1987 and is headquartered in Växjö, Sweden.

Details

Name:	Balco Group AB
Ticker:	BALCO
Exchange:	OM
Founded:	1987
Market Cap:	SEK1,230,013,164
Shares outstanding:	21,428,801
Website:	http://www.balcogroup.se
Address:	Balco Group AB Älgvägen 4, Växjö, Kronoberg County, 352 45, Sweden

Listings

Exchange Symbol	Ticker Symbol	Security	Exchange	Country	Currency	Listed on
OM	BALCO	Ordinary Shares	OMX Nordic Exchange Stockholm	SE	SEK	06. Oct 2017
DB	B9C	Ordinary Shares	Deutsche Boerse AG	DE	EUR	06. Oct 2017
LSE	0RUW	Ordinary Shares	London Stock Exchange	GB	SEK	06. Oct 2017

Number of employees

Current staff

375

Balco Group employees.

Industry

Industry:	Building Products
Sector:	Capital Goods

Company Analysis and Financial Data Status

Area	Date (UTC time)
Company Analysis updated:	2019/04/22 22:40
End of day share price update:	2019/04/18 00:00
Last estimates confirmation:	2019/03/20
Last earnings filing:	2019/04/12
Last earnings reported:	2018/12/31
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.

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Copyright © 2019, Standard & Poor’s Financial Services LLC. Reproduction of S&P Capital IQ in any form is prohibited except with the prior written permission of S&P. S&P does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions, regardless of the cause or for the results obtained from the use of such information. S&P DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall S&P be liable for any direct, indirect, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with subscriber’s or others’ use of S&P Capital IQ. (2019)

Balco Group

BALCO Share Price and Events

7 Day Returns

1 Year Returns

BALCO Shareholder Return

1 Year Return vs Industry and Market

Price Volatility

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Value

INTRINSIC VALUE BASED ON FUTURE CASH FLOWS

Current Discount

Current Discount Checks

PRICE RELATIVE TO MARKET

Price based on past earnings

Price based on expected Growth

Price based on value of assets

Value checks

Future Performance

Earnings growth vs Low Risk Savings

Growth vs Market Checks

Annual Growth Rates Comparison

Analysts growth expectations

High Growth Checks

Past and Future Earnings per Share

Performance in 3 years

Future performance checks

Past Performance

Past earnings growth

Past Earnings growth analysis

Earnings and Revenue History

Performance last year

Past performance checks

Health

Net Worth

Balance sheet

Assets

Liabilities and shares

Historical Debt

Financial health checks

Dividends

Annual Dividend Income

Dividend Amount

Upcoming dividend payment

Annualized Historical and Future Dividends

Current Payout to shareholders

Future Payout to shareholders

Income/ dividend checks

Management

CEO

CEO Bio

CEO Compensation

Management Team Tenure

Management Team

Kenneth Lundahl

President & CEO

SEK5M

51

6.3 yrs

Michael Grindborn

Chief Financial Officer

50

Johan Fälth

Chief Operating Officer

43

5.3 yrs

Cecilia Lannebo

Head of Investor Relations

45

3.3 yrs

David Andersson

Marketing Manager

34

5.3 yrs

Roger Andersson

Sales Manager of Sweden & Norway

51

9.3 yrs