OM:CTT

Stock Analysis Report

Executive Summary

CTT Systems AB provides aerospace products for active humidity control worldwide.

Snowflake

Fundamentals

Outstanding track record with flawless balance sheet.

Risks

  • CTT Systems is covered by less than 3 analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.3%

OM:CTT

4.9%

SE Aerospace & Defense

2.7%

SE Market


1 Year Return

-21.5%

OM:CTT

-26.9%

SE Aerospace & Defense

2.8%

SE Market

CTT outperformed the Aerospace & Defense industry which returned -26.9% over the past year.

CTT underperformed the Market in Sweden which returned 2.8% over the past year.


Share holder returns

CTTIndustryMarket
7 Day1.3%4.9%2.7%
30 Day-1.8%10.4%7.1%
90 Day-8.9%2.3%3.5%
1 Year-19.6%-21.5%-19.6%-26.9%7.2%2.8%
3 Year97.3%87.6%12.0%-0.7%32.9%13.1%
5 Year553.3%507.9%131.6%103.4%53.6%21.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

22.67x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

CTT Systems's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

CTT Systems's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

CTT Systems is good value based on earnings compared to the SE Aerospace & Defense industry average.

CTT Systems is overvalued based on earnings compared to the Sweden market.


Price Based on Expected Growth

CTT Systems is poor value based on expected growth next year.


Price Based on Value of Assets

CTT Systems is overvalued based on assets compared to the SE Aerospace & Defense industry average.


Next Steps

Future Growth

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

3.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

CTT Systems's revenue is expected to grow by 2.1% yearly, however this is not considered high growth (20% yearly).

CTT Systems's earnings are expected to grow by 3.7% yearly, however this is not considered high growth (20% yearly).

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

CTT Systems's earnings growth is positive but not above the Sweden market average.

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


Earnings per Share Growth Estimates


Future Return on Equity

CTT Systems is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has CTT Systems performed over the past 5 years?

40.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

CTT Systems has delivered over 20% year on year earnings growth in the past 5 years.

CTT Systems's 1-year earnings growth exceeds its 5-year average (62% vs 40.6%)

CTT Systems's earnings growth has exceeded the Europe Aerospace & Defense industry average in the past year (62% vs 16.4%).


Return on Equity

CTT Systems made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).


Return on Assets

CTT Systems used its assets more efficiently than the SE Aerospace & Defense industry average last year based on Return on Assets.


Return on Capital Employed

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


Next Steps

Financial Health

How is CTT Systems's financial position?


Financial Position Analysis

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

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


Debt to Equity History and Analysis

CTT Systems's level of debt (16.8%) 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 (161.4% vs 16.8% today).

Debt is well covered by operating cash flow (261%, greater than 20% of total debt).

CTT Systems earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 7x debt.


Next Steps

Dividend

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

3.12%

Expected Dividend Yield


Dividend Yield and Payments Analysis

CTT Systems's pays a higher dividend yield than the bottom 25% of dividend payers in Sweden (1.85%).

CTT Systems's dividend is below the markets top 25% of dividend payers in Sweden (4.81%).

Whilst dividend payments have been stable, CTT Systems has been paying a dividend for less than 10 years.

Dividend payments have increased, but CTT Systems only paid a dividend in the past 5 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.4x coverage).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Torbjörn Johansson (61yo)

22.7yrs

Tenure

kr2,155,000

Compensation

Mr. Torbjörn Johansson has been Chief Executive Officer of CTT Systems AB since 1997 and served as its and President until 2019. Mr. Torbjörn served as Technical Director of CTT Systems AB from 1996 to 199 ...


CEO Compensation Analysis

Torbjörn's remuneration is lower than average for companies of similar size in Sweden.

Insufficient data for Torbjörn to compare compensation growth.


Management Age and Tenure

3.7yrs

Average Tenure

56yo

Average Age

The tenure for the CTT Systems management team is about average.


Board Age and Tenure

1.7yrs

Average Tenure

55yo

Average Age

The average tenure for the CTT Systems 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

Buykr66,80022 May 19
Torbjörn Johansson
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares400
Max Pricekr167.00
Buykr80,27213 May 19
Peter Landquist
EntityIndividual
Role
Head of Sales
Vice President of Sales
Shares457
Max Pricekr175.65
Buykr43,03512 May 19
Tommy Ahlsved
EntityIndividual
Shares245
Max Pricekr175.65
Buykr51,11410 May 19
Stefan Hammar
EntityIndividual
Shares291
Max Pricekr175.65
Buykr308,26810 May 19
Torbjörn Johansson
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares1,755
Max Pricekr175.65
Buykr48,30409 May 19
Maria Wester
EntityIndividual
Role
Head of Human Resources
Quality & Human Resources Manager
Shares275
Max Pricekr175.65
Buykr62,18109 May 19
Daniel Ekstrand
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares354
Max Pricekr175.65
Buykr47,60109 May 19
Per Gustafsson
EntityIndividual
Shares271
Max Pricekr175.65
Buykr65,34209 May 19
Tony Rosendal
EntityIndividual
Role
Senior Key Executive
Head of Division
Shares372
Max Pricekr175.65
Buykr56,03309 May 19
Torleif Nilsson
EntityIndividual
Role
Head of Corporate Development
Development Manager
Shares319
Max Pricekr175.65
Buykr100,92023 Nov 18
Tony Rosendal
EntityIndividual
Role
Senior Key Executive
Head of Division
Shares870
Max Pricekr116.00
Buykr116,46120 Nov 18
Mats Lundin
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max Pricekr117.92
Buykr100,54015 Nov 18
Tony Rosendal
EntityIndividual
Role
Senior Key Executive
Head of Division
Shares840
Max Pricekr119.69
Buykr34,72007 Nov 18
Tommy Ahlsved
EntityIndividual
Shares280
Max Pricekr124.00
Buykr3,465,60206 Nov 18
Tomas Torlöf
EntityIndividual
Role
Chairman of the Board
Chairman
Shares29,372
Max Pricekr117.99
Buykr612,40005 Nov 18
Torbjörn Johansson
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares5,000
Max Pricekr122.48
Buykr89,90004 Nov 18
Peter Landquist
EntityIndividual
Role
Head of Sales
Vice President of Sales
Shares725
Max Pricekr124.00
Buykr140,22204 Nov 18
Torleif Nilsson
EntityIndividual
Role
Head of Corporate Development
Development Manager
Shares1,128
Max Pricekr124.31
Buykr123,60001 Nov 18
Mats Lundin
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max Pricekr123.60

Ownership Breakdown


Management Team

  • Torbjörn Johansson (61yo)

    Chief Executive Officer

    • Tenure: 22.7yrs
    • Compensation: kr2.16m
  • Maria Wester (53yo)

    Quality & Human Resources Manager

    • Tenure: 0yrs
  • Peter Landquist (61yo)

    Vice President of Sales

    • Tenure: 0yrs
  • Torleif Nilsson (59yo)

    Development Manager

    • Tenure: 0yrs
  • Tony Rosendal (52yo)

    Head of Division

    • Tenure: 2.7yrs
  • Daniel Ekstrand (38yo)

    Chief Financial Officer

    • Tenure: 3.7yrs

Board Members

  • Tomas Torlöf (52yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: kr256.25k
  • Mats Lundin (60yo)

    Director

    • Tenure: 0yrs
    • Compensation: kr125.27k
  • Björn Lenander (56yo)

    Director

    • Tenure: 0yrs
  • Annika Dalsvall (61yo)

    Director

    • Tenure: 6.7yrs
    • Compensation: kr140.00k
  • Per Fyrenius (54yo)

    Director

    • Tenure: 1.7yrs
  • Steven Buesing (45yo)

    Director

    • Tenure: 0.7yrs

Company Information

CTT Systems AB's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CTT Systems AB
  • Ticker: CTT
  • Exchange: OM
  • Founded:
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: kr1.927b
  • Shares outstanding: 12.53m
  • Website: https://www.ctt.se

Location

  • CTT Systems AB
  • Brukslagarvägen 5
  • Nyköping
  • Södermanland County
  • 611 31
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CTTOM (OMX Nordic Exchange Stockholm)YesShare CapitalSESEKMar 1998
0GUOLSE (London Stock Exchange)YesShare CapitalGBSEKMar 1998
CTTSBATS-CHIXE (BATS 'Chi-X Europe')YesShare CapitalGBSEKMar 1998

Biography

CTT Systems AB provides aerospace products for active humidity control worldwide. The company offers Zonal Drying system that prevents condensation in aircrafts, as well as Cabin Humidification system, inc ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 20:33
End of Day Share Price2019/09/13 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.