OM:CCC

Stock Analysis Report

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Executive Summary

Cavotec SA, an engineering group, designs, manufactures, and sells automated connection and electrification systems for ports, airports, and industrial applications worldwide.

Rewards

Trading at 55.6% below our estimate of its fair value

Earnings are forecast to grow 32.51% per year

Became profitable this year

Risk Analysis

No risks detected for CCC from our risk checks.


Snowflake Analysis

Flawless balance sheet and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.9%

CCC

-3.5%

SE Machinery

-1.7%

SE Market


1 Year Return

38.1%

CCC

18.5%

SE Machinery

10.8%

SE Market

Return vs Industry: CCC exceeded the Swedish Machinery industry which returned 18.5% over the past year.

Return vs Market: CCC exceeded the Swedish Market which returned 10.8% over the past year.


Shareholder returns

CCCIndustryMarket
7 Day-1.9%-3.5%-1.7%
30 Day0%-1.7%1.7%
90 Day14.2%21.3%18.2%
1 Year38.1%38.1%19.6%18.5%12.5%10.8%
3 Year-33.0%-36.9%34.1%14.7%24.4%11.3%
5 Year-26.3%-32.5%83.0%47.5%37.6%10.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CCC (SEK18.5) is trading below our estimate of fair value (SEK41.64)

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


Price To Earnings Ratio

PE vs Industry: CCC is poor value based on its PE Ratio (22.3x) compared to the SE Machinery industry average (21.7x).

PE vs Market: CCC is poor value based on its PE Ratio (22.3x) compared to the Swedish market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: CCC is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: CCC is good value based on its PB Ratio (1.6x) compared to the SE Machinery industry average (2.8x).


Next Steps

Future Growth

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

32.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CCC's forecast earnings growth (32.5% per year) is above the savings rate (0.5%).

Earnings vs Market: CCC's earnings (32.5% per year) are forecast to grow faster than the Swedish market (19.6% per year).

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

Revenue vs Market: CCC's revenue (7.6% per year) is forecast to grow faster than the Swedish market (6.3% per year).

High Growth Revenue: CCC's revenue (7.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CCC's Return on Equity is forecast to be low in 3 years time (11.5%).


Next Steps

Past Performance

How has Cavotec performed over the past 5 years?

-24.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CCC has high quality earnings.

Growing Profit Margin: CCC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CCC has become profitable over the past 5 years, growing earnings by -24.9% per year.

Accelerating Growth: CCC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CCC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Machinery industry (-23.2%).


Return on Equity

High ROE: CCC's Return on Equity (7%) is considered low.


Next Steps

Financial Health

How is Cavotec's financial position?


Financial Position Analysis

Short Term Liabilities: CCC's short term assets (€102.4M) exceed its short term liabilities (€61.1M).

Long Term Liabilities: CCC's short term assets (€102.4M) exceed its long term liabilities (€37.1M).


Debt to Equity History and Analysis

Debt Level: CCC's debt to equity ratio (13.9%) is considered satisfactory.

Reducing Debt: CCC's debt to equity ratio has reduced from 33.3% to 13.9% over the past 5 years.

Debt Coverage: CCC's debt is well covered by operating cash flow (130.6%).

Interest Coverage: CCC's interest payments on its debt are well covered by EBIT (7.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Cavotec current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CCC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CCC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CCC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CCC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: CCC is not paying a notable dividend for the Swedish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CCC's dividend in 3 years as they are not forecast to pay a notable one for the Swedish market.


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Mikael Norin (57 yo)

3.08yrs

Tenure

€949,100

Compensation

Mr. Mikael Norin has been Group Chief Executive Officer of Cavotec SA since July 1, 2017 and also served as its Executive Director since July 1, 2017. Mr. Norin served as the President of Americas of Recal ...


CEO Compensation Analysis

Compensation vs Market: Mikael's total compensation ($USD1.12M) is above average for companies of similar size in the Swedish market ($USD436.57K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mikael Norin
Group Chief Executive Officer3.08yrs€949.10k0.21%
€ 3.7m
Glenn Withers
Group Senior VP & CFO1.58yrsno datano data
Martin Riegger
Group Senior VP & COO2.08yrsno data0.011%
€ 185.1k
Patrick Rosenwald
Group Chief Technical Officer3.58yrsno datano data
Giorgio Lingiardi
Group Chief Information Officer12.58yrsno data0.096%
€ 1.7m
Johan Hähnel
Investor Relations Managerno datano datano data
Vanessa Tisci
Group General Counsel & Group Compliance Officer0.58yrno datano data
René Meldem
Group Senior VP & Chief Human Resources Officer2.5yrsno datano data
Sietse Nap
Managing Director of Netherlands Operations10.33yrsno datano data
Patrick Mares
President of Ports & Maritime Division1.42yrsno datano data
Memed Üzel
Group VP & Chief Commercial Officer1.58yrsno datano data
Juergen Strommer
Division President of Airports & Industry2.58yrsno data0.14%
€ 2.5m

2.5yrs

Average Tenure

53.5yo

Average Age

Experienced Management: CCC's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Roberto Italia
Director2.33yrs€31.35kno data
Fabio Cannavale
Independent Director10.58yrs€36.25k8.41%
€ 146.2m
Erik Lautmann
Independent Director13.58yrs€47.30k0.14%
€ 2.5m
Patrik Tigerschiöld
Chairman of the Board2.58yrs€103.35k1.27%
€ 22.2m
Annette Kumlien
Director1.25yrs€36.70kno data
Niklas Edling
Director1.25yrs€28.54k0.080%
€ 1.4m

2.5yrs

Average Tenure

55.5yo

Average Age

Experienced Board: CCC's board of directors are not considered experienced ( 2.5 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: 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.


Top Shareholders

Company Information

Cavotec SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cavotec SA
  • Ticker: CCC
  • Exchange: OM
  • Founded: 1974
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: kr1.739b
  • Shares outstanding: 94.01m
  • Website: https://www.cavotec.com

Number of Employees


Location

  • Cavotec SA
  • Via G.B. Pioda 14
  • Lugano
  • Ticino
  • 6900
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CCCOM (OMX Nordic Exchange Stockholm)YesRegistered SharesSESEKOct 2011
0Q4ILSE (London Stock Exchange)YesRegistered SharesGBSEKOct 2011
CAVE.FOTCPK (Pink Sheets LLC)YesRegistered SharesUSUSDOct 2011
CCCSBATS-CHIXE (BATS 'Chi-X Europe')YesRegistered SharesGBSEKOct 2011

Biography

Cavotec SA, an engineering group, designs, manufactures, and sells automated connection and electrification systems for ports, airports, and industrial applications worldwide. The company operates through ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/02 20:50
End of Day Share Price2020/07/31 00:00
Earnings2020/06/30
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.