OM:FAG

Stock Analysis Report

Executive Summary

AB Fagerhult, together with its subsidiaries, develops, manufactures, and markets professional lighting systems for public environments.

Rewards

Trading at 51.9% below its fair value

Earnings are forecast to grow 12.53% per year

Earnings have grown 15% per year over the past 5 years

Risk Analysis

Has a high level of debt

Unstable dividend track record

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Very undervalued with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.3%

FAG

3.5%

SE Electrical

0.3%

SE Market


1 Year Return

-53.8%

FAG

-10.5%

SE Electrical

-13.2%

SE Market

Return vs Industry: FAG underperformed the Swedish Electrical industry which returned -10.5% over the past year.

Return vs Market: FAG underperformed the Swedish Market which returned -13.2% over the past year.


Shareholder returns

FAGIndustryMarket
7 Day-4.3%3.5%0.3%
30 Day-27.3%-17.8%-19.3%
90 Day-41.2%-22.1%-23.1%
1 Year-45.2%-53.8%-2.7%-10.5%-11.0%-13.2%
3 Year-60.2%-67.5%-13.3%-28.7%-0.2%-14.7%
5 Year-6.4%-26.5%82.9%51.2%6.0%-16.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is AB Fagerhult 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: FAG (SEK34.55) is trading below our estimate of fair value (SEK71.88)

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


Price To Earnings Ratio

PE vs Industry: FAG is good value based on its PE Ratio (10.4x) compared to the Electrical industry average (22.7x).

PE vs Market: FAG is good value based on its PE Ratio (10.4x) compared to the Swedish market (14.4x).


Price to Earnings Growth Ratio

PEG Ratio: FAG is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: FAG is good value based on its PB Ratio (1.1x) compared to the SE Electrical industry average (2.6x).


Next Steps

Future Growth

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

12.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FAG's forecast earnings growth (12.5% per year) is above the savings rate (-0.4%).

Earnings vs Market: FAG's earnings (12.5% per year) are forecast to grow faster than the Swedish market (8.3% per year).

High Growth Earnings: FAG's earnings are forecast to grow, but not significantly.

Revenue vs Market: FAG's revenue (4.7% per year) is forecast to grow faster than the Swedish market (4.1% per year).

High Growth Revenue: FAG's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FAG's Return on Equity is forecast to be low in 3 years time (10.9%).


Next Steps

Past Performance

How has AB Fagerhult performed over the past 5 years?

15.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FAG has high quality earnings.

Growing Profit Margin: FAG's current net profit margins (6.5%) are lower than last year (9%).


Past Earnings Growth Analysis

Earnings Trend: FAG's earnings have grown by 15% per year over the past 5 years.

Accelerating Growth: FAG's earnings growth over the past year (1.1%) is below its 5-year average (15% per year).

Earnings vs Industry: FAG earnings growth over the past year (1.1%) underperformed the Electrical industry 13.1%.


Return on Equity

High ROE: FAG's Return on Equity (9.4%) is considered low.


Next Steps

Financial Health

How is AB Fagerhult's financial position?


Financial Position Analysis

Short Term Liabilities: FAG's short term assets (SEK4.0B) exceed its short term liabilities (SEK1.8B).

Long Term Liabilities: FAG's short term assets (SEK4.0B) do not cover its long term liabilities (SEK5.8B).


Debt to Equity History and Analysis

Debt Level: FAG's debt to equity ratio (68.2%) is considered high.

Reducing Debt: FAG's debt to equity ratio has reduced from 99.8% to 68.2% over the past 5 years.

Debt Coverage: FAG's debt is well covered by operating cash flow (26.9%).

Interest Coverage: FAG's interest payments on its debt are well covered by EBIT (10x coverage).


Balance Sheet

Inventory Level: FAG has a high level of physical assets or inventory.

Debt Coverage by Assets: FAG's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

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

4.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FAG's dividend (4.34%) is higher than the bottom 25% of dividend payers in the Swedish market (2.07%).

High Dividend: FAG's dividend (4.34%) is low compared to the top 25% of dividend payers in the Swedish market (6.37%).


Stability and Growth of Payments

Stable Dividend: FAG's dividend payments have been volatile in the past 10 years.

Growing Dividend: FAG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.2%), FAG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FAG's dividends in 3 years are forecast to be covered by earnings (51.2% payout ratio).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Bodil Gallon (51yo)

1.5s

Tenure

kr7,600,000

Compensation

Ms. Bodil Sonesson Gallon is President and Chief Executive Officer at AB Fagerhult since October 08, 2018. She was Vice President of Global Sales as Axis Communications AB, a subsidiary of Axis AB till Nov ...


CEO Compensation Analysis

Compensation vs Market: Bodil's total compensation ($USD746.65K) is about average for companies of similar size in the Swedish market ($USD653.62K).

Compensation vs Earnings: Bodil's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Bodil Gallon
CEO & President1.5yrskr7.60m0.0044% SEK266.5k
Michael Wood
Chief Financial Officer4.08yrsno data0.010% SEK629.9k
Michael Brüer
Chief Strategy & Communication Officer0.083yrno data0.0022% SEK133.3k
Jenny Evelius
Head of Human Resourcesno datano data0.012% SEK705.3k
Bo Eveborn
Managing Directorno datano datano data
Anders Fransson
Managing Director Fagerhults Belysning ABno datano data0.015% SEK884.8k
Andrea Sasso
CEO of iGuzzini illuminazioneno datano data0.048% SEK2.9m

1.5yrs

Average Tenure

51yo

Average Age

Experienced Management: FAG's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Eric Douglas
Independent Vice Chairmanno datakr400.00k0.29% SEK17.4m
Jan Svensson
Independent Chairmanno datakr700.00k0.021% SEK1.3m
Morten Falkenberg
Independent Director2.92yrskr400.00k0.0081% SEK494.8k
Magnus Nell
Employee Representative Directorno datano datano data
Lars-ÅKE Johansson
Employee Representative Directorno datano data0.0022% SEK131.4k
Cecilia Fasth
Independent Director6yrskr400.00k0.0052% SEK318.3k
Annica Bresky
Independent Director0.92yrkr400.00k0.0022% SEK130.8k
Catherina Fored
Independent Director7yrskr300.00kno data
Patrik Araldsson
Deputy Employee Representative Directorno datano datano data
Teresa Enander
Independent Director0.92yrkr400.00k0.0024% SEK144.8k

2.9yrs

Average Tenure

53yo

Average Age

Experienced Board: FAG's board of directors are not considered experienced ( 2.9 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: FAG insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 33.9%.


Top Shareholders

Company Information

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


Key Information

  • Name: AB Fagerhult
  • Ticker: FAG
  • Exchange: OM
  • Founded: 1945
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: kr6.086b
  • Shares outstanding: 176.14m
  • Website: https://www.fagerhult.com

Number of Employees


Location

  • AB Fagerhult
  • Habo
  • Jönköping County
  • 566 80
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FAGOM (OMX Nordic Exchange Stockholm)SHSSESEKNo data
FAGOM (OMX Nordic Exchange Stockholm)YesCommon SharesSESEKMay 1997
0RQHLSE (London Stock Exchange)YesCommon SharesGBSEKMay 1997
2F0DB (Deutsche Boerse AG)YesCommon SharesDEEURMay 1997

Biography

AB Fagerhult, together with its subsidiaries, develops, manufactures, and markets professional lighting systems for public environments. It offers indoor lighting products for public environments, such as offices, schools, hospitals, industry, etc. The company also provides various retail lighting solutions, including lighting systems, light sources, and services to retail environments. In addition, it offers outdoor lighting products for buildings, parks, recreational areas, pathways, etc. The company markets its products under 13 brand names, including FAGERHULT, ateljé Lyktan, Whitecroft lighting, eaglelightingaustralia, LTS, designplan LIGHTING, i VALO, arLIGHT, LIGHTING INNOVATIONS, LED LNEAR, we-ef, VEKO LIGHTSYSTEMS, and iGuzzini. It operates in Northern Europe, the United Kingdom, Ireland, Western and Southern Europe, Africa, Asia, the Pacific, and internationally. The company was formerly known as Fagerhults Elektriska and changed its name to AB Fagerhult in 1974. AB Fagerhult was founded in 1945 and is headquartered in Habo, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 22:23
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.