OM:CTT

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Flawless balance sheet with high growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CTT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.3%

CTT

-2.2%

SE Aerospace & Defense

-1.5%

SE Market


1 Year Return

-26.2%

CTT

-9.8%

SE Aerospace & Defense

16.6%

SE Market

Return vs Industry: CTT underperformed the Swedish Aerospace & Defense industry which returned -9.8% over the past year.

Return vs Market: CTT underperformed the Swedish Market which returned 16.6% over the past year.


Shareholder returns

CTTIndustryMarket
7 Day-4.3%-2.2%-1.5%
30 Day-6.5%-4.1%2.1%
90 Day-25.5%9.0%11.7%
1 Year-24.0%-26.2%-9.6%-9.8%18.7%16.6%
3 Year-12.9%-18.5%-34.3%-42.1%31.8%17.7%
5 Year202.5%176.2%16.5%5.0%67.3%34.7%

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 compared to its fair value and its price relative to the market?

47.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CTT (SEK116) is trading below our estimate of fair value (SEK219.98)

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


Price To Earnings Ratio

PE vs Industry: CTT is poor value based on its PE Ratio (20.1x) compared to the XE Aerospace & Defense industry average (18.4x).

PE vs Market: CTT is good value based on its PE Ratio (20.1x) compared to the Swedish market (22.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CTT is overvalued based on its PB Ratio (6.8x) compared to the SE Aerospace & Defense industry average (1.8x).


Next Steps

Future Growth

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

27.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTT's forecast earnings growth (27.5% per year) is above the savings rate (0.5%).

Earnings vs Market: CTT's earnings (27.5% per year) are forecast to grow faster than the Swedish market (14.8% per year).

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

Revenue vs Market: CTT's revenue (16.5% per year) is forecast to grow faster than the Swedish market (3.8% per year).

High Growth Revenue: CTT's revenue (16.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CTT's Return on Equity is forecast to be high in 3 years time (31.5%)


Next Steps

Past Performance

How has CTT Systems performed over the past 5 years?

28.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTT has high quality earnings.

Growing Profit Margin: CTT's current net profit margins (24.3%) are higher than last year (23.3%).


Past Earnings Growth Analysis

Earnings Trend: CTT's earnings have grown significantly by 28.2% per year over the past 5 years.

Accelerating Growth: CTT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CTT had negative earnings growth (-14.7%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (-7.7%).


Return on Equity

High ROE: CTT's Return on Equity (33.9%) is considered high.


Next Steps

Financial Health

How is CTT Systems's financial position?


Financial Position Analysis

Short Term Liabilities: CTT's short term assets (SEK211.1M) exceed its short term liabilities (SEK69.1M).

Long Term Liabilities: CTT's short term assets (SEK211.1M) exceed its long term liabilities (SEK39.4M).


Debt to Equity History and Analysis

Debt Level: CTT's debt to equity ratio (15.3%) is considered satisfactory.

Reducing Debt: CTT's debt to equity ratio has reduced from 69% to 15.3% over the past 5 years.

Debt Coverage: CTT's debt is well covered by operating cash flow (195.4%).

Interest Coverage: CTT's interest payments on its debt are well covered by EBIT (22.2x coverage).


Balance Sheet


Next Steps

Dividend

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

3.49%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CTT's dividend (3.49%) is higher than the bottom 25% of dividend payers in the Swedish market (1.22%).

High Dividend: CTT's dividend (3.49%) is low compared to the top 25% of dividend payers in the Swedish market (4.28%).


Stability and Growth of Payments

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

Growing Dividend: CTT's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (70.1%), CTT's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CTT's dividends in 3 years are forecast to be covered by earnings (69.9% payout ratio).


Next Steps

Management

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

4.7yrs

Average management tenure


CEO

Torbjörn Johansson (62 yo)

23.67yrs

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Torbjörn Johansson
Chief Executive Officer23.67yrskr2.16m0.45%
SEK 6.6m
Daniel Ekstrand
Chief Financial Officer4.67yrsno data0.040%
SEK 580.1k
Peter Landquist
Vice President of Sales & Marketingno datano data0.056%
SEK 817.0k
Maria Wester
Quality & Human Resources Managerno datano data0.041%
SEK 594.2k
Tony Rosendal
Head of CTT-Bribo Division3.67yrsno data0.10%
SEK 1.5m

4.7yrs

Average Tenure

54yo

Average Age

Experienced Management: CTT's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tomas Torlöf
Chairmanno datakr317.50k13.4%
SEK 194.7m
Björn Lenander
Independent Director2.67yrskr168.37k0.0040%
SEK 58.0k
Annika Dalsvall
Independent Director7.67yrskr191.25k0.0020%
SEK 29.1k
Per Fyrenius
Independent Director2.67yrskr137.50k0.0059%
SEK 85.9k
Steven Buesing
Independent Director2.67yrskr137.50kno data
Anna Hojer
Director0.33yrno datano data

2.7yrs

Average Tenure

55yo

Average Age

Experienced Board: CTT's board of directors are not considered experienced ( 2.7 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: CTT 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

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: kr1.453b
  • Shares outstanding: 12.53m
  • Website: https://www.ctt.se

Number of Employees


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 Analysis2020/09/28 03:13
End of Day Share Price2020/09/25 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.