OM:BALCO

Stock Analysis Report

Executive Summary

Balco Group AB develops, produces, and sells balcony systems to tenant-owner associations, private landlords, and publicly housing and construction companies in Sweden, Norway, Denmark, Germany, Finland, the United Kingdom, the Netherlands, and Switzerland.


Snowflake Analysis

Excellent balance sheet with proven track record.

Share Price & News

How has Balco Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BALCO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.6%

BALCO

1.1%

SE Building

0.07%

SE Market


1 Year Return

92.1%

BALCO

34.2%

SE Building

21.9%

SE Market

Return vs Industry: BALCO exceeded the Swedish Building industry which returned 34.2% over the past year.

Return vs Market: BALCO exceeded the Swedish Market which returned 21.9% over the past year.


Shareholder returns

BALCOIndustryMarket
7 Day5.6%1.1%0.07%
30 Day8.4%3.0%3.7%
90 Day22.1%10.9%10.0%
1 Year98.3%92.1%36.4%34.2%26.8%21.9%
3 Yearn/a62.7%54.6%40.1%18.9%
5 Yearn/a85.5%70.2%46.5%15.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Balco Group undervalued compared to its fair value and its price relative to the market?

39.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BALCO (SEK106.5) is trading below our estimate of fair value (SEK173.5)

Significantly Below Fair Value: BALCO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BALCO is poor value based on its PE Ratio (22.2x) compared to the Building industry average (20.9x).

PE vs Market: BALCO is poor value based on its PE Ratio (22.2x) compared to the Swedish market (20x).


Price to Earnings Growth Ratio

PEG Ratio: BALCO is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: BALCO is overvalued based on its PB Ratio (4.5x) compared to the SE Building industry average (2.8x).


Next Steps

Future Growth

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

16.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BALCO's forecast earnings growth (16% per year) is above the savings rate (-0.4%).

Earnings vs Market: BALCO's earnings (16% per year) are forecast to grow faster than the Swedish market (8.1% per year).

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

Revenue vs Market: BALCO's revenue (10.5% per year) is forecast to grow faster than the Swedish market (4.7% per year).

High Growth Revenue: BALCO's revenue (10.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BALCO's Return on Equity is forecast to be high in 3 years time (21.4%)


Next Steps

Past Performance

How has Balco Group performed over the past 5 years?

55.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BALCO has high quality earnings.

Growing Profit Margin: BALCO's current net profit margins (8.4%) are higher than last year (7.3%).


Past Earnings Growth Analysis

Earnings Trend: BALCO has become profitable over the past 5 years, growing earnings by 55.5% per year.

Accelerating Growth: BALCO's earnings growth over the past year (33.9%) is below its 5-year average (55.5% per year).

Earnings vs Industry: BALCO earnings growth over the past year (33.9%) exceeded the Building industry 30.1%.


Return on Equity

High ROE: BALCO's Return on Equity (20%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Balco Group's financial position?


Financial Position Analysis

Short Term Liabilities: BALCO's short term assets (SEK458.8M) exceed its short term liabilities (SEK288.0M).

Long Term Liabilities: BALCO's short term assets (SEK458.8M) exceed its long term liabilities (SEK303.4M).


Debt to Equity History and Analysis

Debt Level: BALCO's debt to equity ratio (43.8%) is considered high.

Reducing Debt: BALCO's debt to equity ratio has reduced from 322.1% to 43.8% over the past 5 years.

Debt Coverage: BALCO's debt is well covered by operating cash flow (43%).

Interest Coverage: BALCO's interest payments on its debt are well covered by EBIT (16.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: BALCO's debt is covered by short term assets (assets are 2x debt).


Next Steps

Dividend

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

2.39%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company2.4%marketbottom25%1.6%markettop25%4.2%industryaverage1.5%forecastin3Years3.3%

Current dividend yield vs market & industry

Notable Dividend: BALCO's dividend (2.35%) is higher than the bottom 25% of dividend payers in the Swedish market (1.57%).

High Dividend: BALCO's dividend (2.35%) is low compared to the top 25% of dividend payers in the Swedish market (4.25%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, BALCO has been paying a dividend for less than 10 years.

Growing Dividend: BALCO's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.2%), BALCO's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BALCO's dividends in 3 years are forecast to be covered by earnings (53.2% payout ratio).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Kenneth Lundahl (52yo)

7.1yrs

Tenure

kr4,482,000

Compensation

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 se ...


CEO Compensation Analysis

Compensation vs Market: Kenneth's total compensation ($USD460.95K) is about average for companies of similar size in the Swedish market ($USD376.57K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kenneth Lundahl
President & CEO7.1yrskr4.48m1.53% SEK34.5m
Michael Grindborn
CFO, Head of IR & IT0.8yrsno datano data
Camilla Ekdahl
Chief Operating Officer0.3yrsno datano data
David Andersson
Marketing Manager6.1yrsno data0.50% SEK11.2m
Roger Andersson
Head of Sales10.1yrsno data0.11% SEK2.5m
Johan Fälth
Head of Marketing & Export0.3yrsno data0.12% SEK2.6m
Jesper Magnusson
Human Resources Manager6.1yrsno data0.092% SEK2.1m
Fredrik Hall
Head of Business Development0.8yrsno data1.4% SEK31.6m

3.5yrs

Average Tenure

50.5yo

Average Age

Experienced Management: BALCO's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ingalill Berglund
Independent Director4.1yrskr329.00k0.12% SEK2.6m
Åsa Winberg
Independent Director4.1yrskr237.00k0.25% SEK5.6m
Johannes Nyberg
Director1.8yrskr289.00kno data
Tomas Johansson
Independent Chairman0.8yrskr322.00k0.17% SEK3.8m
Carl-Mikael Lindholm
Director1.8yrskr269.00k0.14% SEK3.1m
Mikael Andersson
Director0.8yrsno datano data

1.8yrs

Average Tenure

58yo

Average Age

Experienced Board: BALCO's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: BALCO insiders have only sold shares 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

Balco Group AB's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Balco Group AB
  • Ticker: BALCO
  • Exchange: OM
  • Founded: 1987
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: kr2.260b
  • Shares outstanding: 21.62m
  • Website: https://www.balcogroup.se

Number of Employees


Location

  • Balco Group AB
  • Älgvägen 4
  • Växjö
  • Kronoberg County
  • 352 45
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
B9CDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2017
0RUWLSE (London Stock Exchange)YesOrdinary SharesGBSEKOct 2017
BALCOOM (OMX Nordic Exchange Stockholm)YesOrdinary SharesSESEKOct 2017
BALCOSBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBSEKOct 2017

Biography

Balco Group AB develops, produces, and sells balcony systems to tenant-owner associations, private landlords, and publicly housing 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 23:41
End of Day Share Price2020/02/24 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.