OM:BEGR

Stock Analysis Report

Executive Summary

BE Group AB (publ) operates as a trading and service company in steel, stainless steel, and aluminum products in Sweden, Finland, Estonia, Latvia, Lithuania, Poland, and the Czech Republic.

Snowflake

Fundamentals

Undervalued with excellent balance sheet.

Risks

  • BE Group is covered by less than 3 analysts.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0.2%

OM:BEGR

-0.07%

SE Trade Distributors

0.2%

SE Market


1 Year Return

-19.9%

OM:BEGR

10.1%

SE Trade Distributors

-1.9%

SE Market

BEGR underperformed the Trade Distributors industry which returned 10.1% over the past year.

BEGR underperformed the Market in Sweden which returned -1.9% over the past year.


Share holder returns

BEGRIndustryMarket
7 Day0.2%-0.07%0.2%
30 Day-7.6%-1.1%-3.7%
90 Day2.8%-0.2%-1.5%
1 Year-16.5%-19.9%12.4%10.1%2.2%-1.9%
3 Year9.0%4.6%84.8%68.9%26.0%7.4%
5 Year-62.3%-80.5%197.3%137.4%45.6%14.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is BE Group undervalued based on future cash flows and its price relative to the stock market?

44%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

BE Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

BE Group's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

BE Group is good value based on earnings compared to the SE Trade Distributors industry average.

BE Group is good value based on earnings compared to the Sweden market.


Price Based on Expected Growth

BE Group is poor value based on expected growth next year.


Price Based on Value of Assets

BE Group is good value based on assets compared to the SE Trade Distributors industry average.


Next Steps

Future Growth

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

3.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

BE Group's revenue is expected to grow by 0.4% yearly, however this is not considered high growth (20% yearly).

BE Group's earnings are expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).

BE Group's revenue growth is positive but not above the Sweden market average.

BE Group's earnings growth is positive but not above the Sweden market average.

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


Earnings per Share Growth Estimates


Future Return on Equity

BE Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has BE Group performed over the past 5 years?

54.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

BE Group has delivered over 20% year on year earnings growth in the past 5 years.

BE Group's 1-year earnings growth is less than its 5-year average (46% vs 54%)

BE Group's earnings growth has exceeded the SE Trade Distributors industry average in the past year (46% vs 12.5%).


Return on Equity

BE Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

BE Group used its assets less efficiently than the SE Trade Distributors industry average last year based on Return on Assets.


Return on Capital Employed

BE Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is BE Group's financial position?


Financial Position Analysis

BE Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

BE Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

BE Group's level of debt (60.7%) 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 (98.7% vs 60.7% today).

Debt is well covered by operating cash flow (35.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 7.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.6x debt.


Next Steps

Dividend

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

6.08%

Expected Dividend Yield


Dividend Yield and Payments Analysis

BE Group's pays a higher dividend yield than the bottom 25% of dividend payers in Sweden (1.93%).

BE Group's dividend is below the markets top 25% of dividend payers in Sweden (4.5%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).


Next Steps

Management

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

4.1yrs

Average board tenure


CEO

Anders Martinsson (51yo)

4.0yrs

Tenure

kr4,048,000

Compensation

Mr. Anders Martinsson has been the Chief Executive Officer and President of BE Group AB (publ) since September 2015 and also serves as its Business Area Manager of Sweden & Poland. Mr. Martinsson has been  ...


CEO Compensation Analysis

Anders's remuneration is higher than average for companies of similar size in Sweden.

Anders's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

4.1yrs

Average Tenure

51.5yo

Average Age

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


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

Buykr207,50021 Feb 19
Mikael Sjölund
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,000
Max Pricekr41.50
Buykr3,980,00021 Nov 18
AB Traction
EntityCompany
Shares100,000
Max Pricekr39.80

Ownership Breakdown


Management Team

  • Petra Fransson

    Head of HR Department

    • Tenure: 0.0yrs
  • Anders Martinsson (51yo)

    CEO, President and Business Area Manager of Sweden & Poland

    • Tenure: 4.0yrs
    • Compensation: kr4.05m
  • Daniel Fäldt (43yo)

    Chief Financial Officer

    • Tenure: 2.4yrs

Board Members

  • Petter Stillström (47yo)

    Chairman

    • Tenure: 4.6yrs
    • Compensation: kr460.00k
  • Jörgen Zahlin (55yo)

    Director

    • Tenure: 6.3yrs
    • Compensation: kr250.00k
  • Lars Nilsson (57yo)

    Director

    • Tenure: 13.6yrs
    • Compensation: kr280.00k
  • Mikael Sjölund (48yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: kr261.00k
  • Mikael Törnros (47yo)

    Employee Representative Director

    • Tenure: 3.6yrs
  • Carina Andersson (55yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: kr140.00k

Company Information

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


Key Information

  • Name: BE Group AB (publ)
  • Ticker: BEGR
  • Exchange: OM
  • Founded: 1885
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: kr533.601m
  • Shares outstanding: 12.98m
  • Website: https://www.begroup.com

Number of Employees


Location

  • BE Group AB (publ)
  • Krangatan 4B
  • Box 225
  • Malmö
  • Skåne County
  • 201 22
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BEGROM (OMX Nordic Exchange Stockholm)YesOrdinary SharesSESEKNov 2006
BGA1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2006
BEGRSBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBSEKNov 2006

Biography

BE Group AB (publ) operates as a trading and service company in steel, stainless steel, and aluminum products in Sweden, Finland, Estonia, Latvia, Lithuania, Poland, and the Czech Republic. It offers long  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 21:00
End of Day Share Price2019/08/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.