Balco Group (OM:BALCO) - Share price, News & Analysis

BALCO fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	4/6
Past Performance	5/6
Financial Health	5/6
Dividends	2/6

BALCO Stock Overview

Balco Group AB engages in developing, manufacturing, selling, and installing balcony systems for tenant-owner associations, private landlords, and public housing and construction companies.

Rewards

Price-To-Earnings ratio (15.8x) is below the Building industry average (16.5x)

Earnings are forecast to grow 26.74% per year

Earnings grew by 35.5% over the past year

Risk Analysis

Dividend of 2.99% is not well covered by earnings

Balco Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Balco Group
Historical stock prices
Current Share Price	kr67.00
52 Week High	kr155.80
52 Week Low	kr67.00
Beta	0.66
1 Month Change	-26.37%
3 Month Change	-38.53%
1 Year Change	-34.19%
3 Year Change	-3.46%
5 Year Change	n/a
Change since IPO	2.29%

Shareholder Returns

	BALCO	SE Building	SE Market
7D	-5.2%	-0.9%	-1.3%
1Y	-34.2%	-21.0%	-23.6%

Return vs Industry: BALCO underperformed the Swedish Building industry which returned -21% over the past year.

Return vs Market: BALCO underperformed the Swedish Market which returned -23.6% over the past year.

Price Volatility

Is BALCO's price volatile compared to industry and market?
BALCO volatility
BALCO Average Weekly Movement	7.6%
Building Industry Average Movement	6.3%
Market Average Movement	7.4%
10% most volatile stocks in SE Market	12.2%
10% least volatile stocks in SE Market	4.7%

Stable Share Price: BALCO is not significantly more volatile than the rest of Swedish stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: BALCO's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1987	484	Kenneth Lundahl	https://www.balcogroup.se

Balco Group AB engages in developing, manufacturing, selling, and installing balcony systems for tenant-owner associations, private landlords, and public housing and construction companies. The company operates in two segments, Renovation and New Build. It offers glazed, open, city, maritime, and prefabricated balconies, as well as provides facade solutions; and accessories and other products comprising privacy screens, side and intermediate screens, glass corners, balcony doors, sun protection, roller blinds, flower boxes, flag brackets, solar panels, and locks.

Balco Group Fundamentals Summary

How do Balco Group's earnings and revenue compare to its market cap?
BALCO fundamental statistics
Market Cap	kr1.47b
Earnings (TTM)	kr93.14m
Revenue (TTM)	kr1.16b

15.8x

P/E Ratio

1.3x

P/S Ratio

Is BALCO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BALCO income statement (TTM)
Revenue	kr1.16b
Cost of Revenue	kr851.71m
Gross Profit	kr306.77m
Other Expenses	kr213.63m
Earnings	kr93.14m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 14, 2022

Earnings per share (EPS)	4.25
Gross Margin	26.48%
Net Profit Margin	8.04%
Debt/Equity Ratio	17.2%

How did BALCO perform over the long term?

See historical performance and comparison

Dividends

3.0%

Current Dividend Yield

47%

Payout Ratio

Does BALCO pay a reliable dividends?

See BALCO dividend history and benchmarks

When do you need to buy BALCO by to receive an upcoming dividend?
Balco Group dividend dates
Ex Dividend Date	Nov 24 2022
Dividend Pay Date	Nov 30 2022
Days until Ex dividend	151 days
Days until Dividend pay date	157 days

Does BALCO pay a reliable dividends?

See BALCO dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is BALCO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BALCO?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for BALCO. This is calculated by dividing BALCO's market cap by their current preferred multiple.
What is BALCO's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	kr1.47b

BALCO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.4x
Enterprise Value/EBITDA	11.7x
PEG Ratio	0.6x

Price to Earnings Ratio vs Peers

How does BALCO's PE Ratio compare to its peers?

BALCO PE Ratio vs Peers

The above table shows the PE ratio for BALCO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	17.4x

Forward PE

Price-To-Earnings vs Peers: BALCO is good value based on its Price-To-Earnings Ratio (15.8x) compared to the peer average (17.4x).

Price to Earnings Ratio vs Industry

How does BALCO's PE Ratio compare vs other companies in the Building Industry?

Price-To-Earnings vs Industry: BALCO is good value based on its Price-To-Earnings Ratio (15.8x) compared to the Swedish Building industry average (16.5x)

Price to Earnings Ratio vs Fair Ratio

What is BALCO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BALCO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	15.8x
Fair PE Ratio	22.8x

Price-To-Earnings vs Fair Ratio: BALCO is good value based on its Price-To-Earnings Ratio (15.8x) compared to the estimated Fair Price-To-Earnings Ratio (22.8x).

Share Price vs Fair Value

What is the Fair Price of BALCO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BALCO (SEK67) is trading above our estimate of fair value (SEK46.58)

Significantly Below Fair Value: BALCO is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: BALCO is good value based on its PEG Ratio (0.6x)

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Future Growth

How is Balco Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

26.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BALCO's forecast earnings growth (26.7% per year) is above the savings rate (0.3%).

Earnings vs Market: BALCO's earnings (26.7% per year) are forecast to grow faster than the Swedish market (9.8% per year).

High Growth Earnings: BALCO's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BALCO's revenue (15.8% per year) is forecast to grow faster than the Swedish market (5.6% per year).

High Growth Revenue: BALCO's revenue (15.8% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if BALCO's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Balco Group performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

19.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BALCO has high quality earnings.

Growing Profit Margin: BALCO's current net profit margins (8%) are higher than last year (6.1%).

Past Earnings Growth Analysis

Earnings Trend: BALCO's earnings have grown by 19.1% per year over the past 5 years.

Accelerating Growth: BALCO's earnings growth over the past year (35.5%) exceeds its 5-year average (19.1% per year).

Earnings vs Industry: BALCO earnings growth over the past year (35.5%) exceeded the Building industry 34.7%.

Return on Equity

High ROE: BALCO's Return on Equity (13.1%) is considered low.

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Financial Health

How is Balco Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: BALCO's short term assets (SEK473.8M) exceed its short term liabilities (SEK307.1M).

Long Term Liabilities: BALCO's short term assets (SEK473.8M) exceed its long term liabilities (SEK252.7M).

Debt to Equity History and Analysis

Debt Level: BALCO's net debt to equity ratio (14.2%) is considered satisfactory.

Reducing Debt: BALCO's debt to equity ratio has reduced from 234% to 17.2% over the past 5 years.

Debt Coverage: BALCO's debt is not well covered by operating cash flow (17.5%).

Interest Coverage: BALCO's interest payments on its debt are well covered by EBIT (27.1x coverage).

Balance Sheet

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Dividend

What is Balco Group current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.99%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: BALCO's dividend (2.99%) is higher than the bottom 25% of dividend payers in the Swedish market (1.67%).

High Dividend: BALCO's dividend (2.99%) is low compared to the top 25% of dividend payers in the Swedish market (5.41%).

Stability and Growth of Payments

Stable Dividend: BALCO has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: BALCO's dividend payments have increased, but the company has only paid a dividend for 4 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (47%), BALCO's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (1154.3%), BALCO's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

5.8yrs

Average management tenure

CEO

Kenneth Lundahl (54 yo)

9.42yrs

Tenure

kr6,231,000

Compensation

Mr. Kenneth Lundahl serves as President and Chief Executive Officer at Slutplattan Solmo 110090 Ab (formerly known as Balco AB). Mr. Lundahl has been Chief Executive Officer of Balco Group AB (publ) since...

CEO Compensation Analysis

Compensation vs Market: Kenneth's total compensation ($USD615.32K) is above average for companies of similar size in the Swedish market ($USD233.45K).

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

Leadership Team

Experienced Management: BALCO's management team is seasoned and experienced (5.8 years average tenure).

Board Members

Experienced Board: BALCO's board of directors are considered experienced (3.6 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: Insufficient data to determine if 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/23 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31