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 last earnings update was 10 days ago.
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
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
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
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
is considered below, and whether this is a fair price.
Price based on past earnings
Balco Group's earnings available for a low price, and how does
this compare to other companies in the same industry?
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.
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
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.
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.
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.
TENURE AS CEO
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.
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
management team in years:
The average tenure for the Balco Group management team is over 5 years, this suggests they are a seasoned and experienced team.
President & CEO
Chief Financial Officer
Chief Operating Officer
Head of Investor Relations
Sales Manager of Sweden & Norway
Human Resources Manager
Head of Business Development
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Balco Group board of directors is about average.
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
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
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%.
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?
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
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.
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
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.
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