OM:CCC

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet and fair value.

Risks

  • Cavotec is covered by less than 3 analysts.

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


Market Performance


7 Day Return

-0.8%

OM:CCC

-1.3%

SE Machinery

-1.2%

SE Market


1 Year Return

-49.8%

OM:CCC

-9.0%

SE Machinery

-2.6%

SE Market

CCC underperformed the Machinery industry which returned -9.1% over the past year.

CCC underperformed the Market in Sweden which returned -2.7% over the past year.


Share holder returns

CCCIndustryMarket
7 Day-0.8%-1.3%-1.2%
30 Day-9.4%-6.6%-3.6%
90 Day-0.8%-8.7%-2.8%
1 Year-47.1%-49.8%-6.1%-9.0%1.4%-2.6%
3 Year-43.1%-47.3%47.3%22.7%25.3%6.6%
5 Year-43.5%-49.0%65.2%30.4%44.9%14.3%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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

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


Price Based on Earnings

Cavotec is loss making, we can't compare its value to the SE Machinery industry average.

Cavotec is loss making, we can't compare the value of its earnings to the Sweden market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Cavotec, we can't assess if its growth is good value.


Price Based on Value of Assets

Cavotec is good value based on assets compared to the SE Machinery industry average.


Next Steps

Future Growth

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

88.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Cavotec's revenue is expected to grow by 4% yearly, however this is not considered high growth (20% yearly).

Cavotec's earnings are expected to grow significantly at over 20% yearly.

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

Cavotec's earnings growth is expected to exceed the Sweden market average.

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


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has Cavotec performed over the past 5 years?

-61.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Cavotec does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Cavotec's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Cavotec's 1-year growth to the SE Machinery industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Cavotec has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Cavotec has efficiently used its assets last year compared to the SE Machinery industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Cavotec improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Cavotec's financial position?


Financial Position Analysis

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

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


Debt to Equity History and Analysis

Cavotec's level of debt (34.3%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (53.9% vs 34.3% today).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 3.3x debt.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Whilst loss making Cavotec has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making Cavotec has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 40.6% per year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Cavotec's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Cavotec's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Cavotec has not reported any payouts.

Unable to verify if Cavotec's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Cavotec has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Cavotec's dividends in 3 years as they are not expected to pay a notable one for Sweden.


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Mikael Norin (56yo)

2.1yrs

Tenure

€1,048,671

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

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

Mikael's compensation has increased whilst company is loss making.


Management Age and Tenure

1.8yrs

Average Tenure

53.5yo

Average Age

The average tenure for the Cavotec management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.5yrs

Average Tenure

54.5yo

Average Age

The average tenure for the Cavotec board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

Buykr60,37427 Mar 19
Martin Riegger
EntityIndividual
Role
Group Senior VP & COO
Shares4,961
Max Pricekr12.20
Buykr102,00021 Mar 19
Juergen Strommer
EntityIndividual
Shares8,500
Max Pricekr12.00
Buykr608,19712 Mar 19
Mikael Norin
EntityIndividual
Role
Group Chief Executive Officer
Shares49,998
Max Pricekr12.49
Buykr154,62229 Dec 18
Mikael Norin
EntityIndividual
Role
Group Chief Executive Officer
Shares11,894
Max Pricekr13.00
Buykr289,38022 Dec 18
Erik Lautmann
EntityIndividual
Role
Member of the Board of Directors
Shares22,260
Max Pricekr13.00
Sellkr384,86014 Dec 18
Patrick Rosenwald
EntityIndividual
Role
Group Chief Technical Officer
Shares27,490
Max Pricekr14.00

Ownership Breakdown


Management Team

  • Martin Riegger (53yo)

    Group Senior VP & COO

    • Tenure: 1.1yrs
  • Isabelle Scherer - Friedhoff (42yo)

    Group Legal Counsel & Group Compliance Officer

  • Mikael Norin (56yo)

    Group Chief Executive Officer

    • Tenure: 2.1yrs
    • Compensation: 1.05m
  • Patrick Mares (57yo)

    President of Ports & Maritime Division

    • Tenure: 0.4yrs
  • Glenn Withers (52yo)

    Group Senior VP & CFO

    • Tenure: 0.6yrs
  • Giorgio Lingiardi (61yo)

    Group Chief Information Officer

    • Tenure: 11.6yrs
  • Patrick Rosenwald (49yo)

    Group Chief Technical Officer

    • Tenure: 2.6yrs
  • Johan Hähnel

    Investor Relations Manager

  • René Meldem (54yo)

    Group Senior VP & Chief Human Resources Officer

    • Tenure: 1.5yrs
  • Sietse Nap

    Managing Director of Netherlands Operations

    • Tenure: 9.3yrs

Board Members

  • Roberto Italia (53yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: 28.75k
  • Fabio Cannavale (54yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: 36.25k
  • Erik Lautmann (69yo)

    Independent Director

    • Tenure: 12.6yrs
    • Compensation: 45.64k
  • Patrik Tigerschiöld (55yo)

    Chairman of the Board

    • Tenure: 1.6yrs
    • Compensation: 88.33k
  • Annette Kumlien

    Director

    • Tenure: 0.3yrs
  • Niklas Edling

    Director

    • Tenure: 0.3yrs

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: kr1.169b
  • Shares outstanding: 93.51m
  • Website: Click here

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
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 Analysis2019/08/17 22:08
End of Day Share Price2019/08/16 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.