OM:GARO

Stock Analysis Report

Executive Summary

Garo Aktiebolag (publ) develops, manufactures, and markets products and systems for the electrical installations industry in Sweden.

Snowflake

Fundamentals

Excellent balance sheet with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

9.5%

GARO

2.1%

SE Electrical

3.4%

SE Market


1 Year Return

138.6%

GARO

6.8%

SE Electrical

9.1%

SE Market

Return vs Industry: GARO exceeded the Swedish Electrical industry which returned 6.8% over the past year.

Return vs Market: GARO exceeded the Swedish Market which returned 9.1% over the past year.


Shareholder returns

GAROIndustryMarket
7 Day9.5%2.1%3.4%
30 Day26.2%6.9%0.6%
90 Day6.6%-2.7%2.9%
1 Year142.8%138.6%17.6%6.8%13.7%9.1%
3 Year105.0%95.2%18.6%-6.3%31.2%11.6%
5 Yearn/a58.8%30.4%64.2%29.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

37.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: GARO (SEK346.5) is trading above our estimate of fair value (SEK134.19)

Significantly Undervalued: GARO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GARO is poor value based on its PE Ratio (37.9x) compared to the Electrical industry average (16.3x).

PE vs Market: GARO is poor value based on its PE Ratio (37.9x) compared to the Swedish market (16.8x).


Price to Earnings Growth Ratio

Low PEG Ratio: GARO is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: GARO is overvalued based on its PB Ratio (11.5x) compared to the SE Electrical industry average (3.8x).


Next Steps

Future Growth

How is Garo Aktiebolag forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

13.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GARO's forecast earnings growth (13.3% per year) is above the savings rate (0.4%).

Earnings vs Market: GARO's earnings (13.3% per year) are forecast to grow faster than the Swedish market (9% per year).

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

Revenue vs Market: GARO's revenue (10.4% per year) is forecast to grow faster than the Swedish market (4.5% per year).

High Growth Revenue: GARO's revenue (10.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: GARO's Return on Equity is forecast to be high in 3 years time (27.7%)


Next Steps

Past Performance

How has Garo Aktiebolag performed over the past 5 years?

23.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GARO's earnings have grown significantly by 23.4% per year over the past 5 years.

Accelerating Growth: GARO's earnings growth over the past year (9.3%) is below its 5-year average (23.4% per year).

Earnings vs Industry: GARO earnings growth over the past year (9.3%) underperformed the Electrical industry 9.3%.


Return on Equity

High ROE: GARO's Return on Equity (30.2%) is considered high.


Return on Assets

ROA vs Industry: GARO has a higher Return on Assets than the Electrical industry average last year.


Return on Capital Employed

ROCE Improving: GARO's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Garo Aktiebolag's financial position?


Financial Position Analysis

Short Term Liabilities: GARO's short term assets (SEK430.1M) exceeds its short term liabilities (SEK271.5M)

Long Term Liabilities: GARO's short term assets (430.1M) exceeds its long term liabilities (71.5M)


Debt to Equity History and Analysis

Debt Level: GARO's debt to equity ratio (36.2%) is considered satisfactory

Reducing Debt: GARO's debt to equity ratio has increased from 33.9% to 36.2% over the past 5 years.

Debt Coverage: GARO's debt is well covered by operating cash flow (82.4%).

Interest Coverage: GARO earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: GARO's debt is covered by short term assets (assets are 3.931440x debt).


Next Steps

Dividend

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

1.15%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%1.8%markettop25%4.7%industryaverage2.5%forecastin3Years1.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: GARO's dividend (1.15%) isn’t notable compared to the bottom 25% of dividend payers in the Swedish market (1.8%).

High Dividend: GARO's dividend (1.15%) is low compared to the top 25% of dividend payers in the Swedish market (4.72%).

Stable Dividend: GARO is not paying a notable dividend for the Swedish market, therefore no need to check if payments are stable.

Growing Dividend: GARO is not paying a notable dividend for the Swedish market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: GARO is not paying a notable dividend for .


Future Payout to Shareholders

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


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Patrik Andersson (41yo)

0.7yrs

Tenure

0

Mr. Patrik Andersson has been President and Chief Executive Officer at Garo Aktiebolag (publ) since May 2019. Mr. Andersson served as Marketing Manager at Garo Aktiebolag (publ) since 2015 until May 2019 a ...


Management Age and Tenure

3.0yrs

Average Tenure

49.5yo

Average Age

Experienced Management: GARO's management team is considered experienced (3 years average tenure).


Board Age and Tenure

1.4yrs

Average Tenure

61yo

Average Age

Experienced Board: GARO's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: GARO insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buykr5,46026 Aug 19
Per Holmstedt
EntityIndividual
Role
Member of the Board of Directors
Director
Shares20
Max Pricekr273.00
Sellkr746,16711 Jun 19
Jan Larsgaard
EntityIndividual
Role
Unit CEO
Chief Executive Officer of Garo Norway A/S
Shares2,551
Max Pricekr292.50
Sellkr411,91910 Jun 19
Jan Larsgaard
EntityIndividual
Role
Unit CEO
Chief Executive Officer of Garo Norway A/S
Shares1,500
Max Pricekr274.61
Sellkr237,60006 Jun 19
Jan Larsgaard
EntityIndividual
Role
Unit CEO
Chief Executive Officer of Garo Norway A/S
Shares880
Max Pricekr270.00
Sellkr791,57305 Jun 19
Jan Larsgaard
EntityIndividual
Role
Unit CEO
Chief Executive Officer of Garo Norway A/S
Shares2,934
Max Pricekr270.20
Sellkr45,56023 May 19
Per Holmstedt
EntityIndividual
Role
Member of the Board of Directors
Director
Shares170
Max Pricekr268.00
Buykr10,13410 Apr 19
Per Holmstedt
EntityIndividual
Role
Member of the Board of Directors
Director
Shares45
Max Pricekr225.20
Buykr5,50003 Apr 19
Per Holmstedt
EntityIndividual
Role
Member of the Board of Directors
Director
Shares25
Max Pricekr220.00
Buykr8,80002 Apr 19
Per Holmstedt
EntityIndividual
Role
Member of the Board of Directors
Director
Shares40
Max Pricekr220.00
Buykr18,10501 Apr 19
Per Holmstedt
EntityIndividual
Role
Member of the Board of Directors
Director
Shares85
Max Pricekr213.00
Buykr8,52029 Mar 19
Per Holmstedt
EntityIndividual
Role
Member of the Board of Directors
Director
Shares40
Max Pricekr213.00
Buykr374,82502 Nov 18
Rickard Blomqvist
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,500
Max Pricekr149.93

Ownership Breakdown


Management Team

  • Helena Claesson (50yo)

    Chief Financial Officer

    • Tenure: 0.8yrs
  • Jan Larsgaard (54yo)

    Chief Executive Officer of Garo Norway A/S

    • Tenure: 22.8yrs
  • Patrik Andersson (41yo)

    President & CEO

    • Tenure: 0.7yrs
  • Daniel Emilsson (44yo)

    Chief Technology Officer

    • Tenure: 3yrs
  • Joe Ree (57yo)

    CEO at GARO Electric IRL Ltd & Business Area Manager for GARO Other Markets

    • Tenure: 22.8yrs
  • Malin Thordén (49yo)

    Investor Relations Director

    • Tenure: 0yrs
  • Ingvar Grundborg

    Head of Product Area E-Mobility

    • Tenure: 0yrs

Board Members

  • Stefan Jonsson (66yo)

    Chairman of the Board

    • Tenure: 1.4yrs
    • Compensation: kr300.00k
  • Per Holmstedt (69yo)

    Director

    • Tenure: 21.8yrs
    • Compensation: kr200.00k
  • Rickard Blomqvist (48yo)

    Director

    • Tenure: 4.1yrs
    • Compensation: kr200.00k
  • Lars-ÅKE Rydh (66yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: kr100.00k
  • Susanna Hilleskog (56yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: kr100.00k
  • Mari-Katharina Kadowaki (55yo)

    Director

    • Tenure: 0.4yrs

Company Information

Garo Aktiebolag (publ)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Garo Aktiebolag (publ)
  • Ticker: GARO
  • Exchange: OM
  • Founded: 1939
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: kr3.465b
  • Shares outstanding: 10.00m
  • Website: https://www.garo.se

Number of Employees


Location

  • Garo Aktiebolag (publ)
  • Södergatan 26
  • Box 203
  • Gnosjö
  • Jönköping County
  • 335 33
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GAROOM (OMX Nordic Exchange Stockholm)YesShare CapitalSESEKMar 2016
0REYLSE (London Stock Exchange)YesShare CapitalGBSEKMar 2016
46GDB (Deutsche Boerse AG)YesShare CapitalDEEURMar 2016
GAROSBATS-CHIXE (BATS 'Chi-X Europe')YesShare CapitalGBSEKMar 2016

Biography

Garo Aktiebolag (publ) develops, manufactures, and markets products and systems for the electrical installations industry in Sweden. Its installation products include plugs and sockets, switches, switchboa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 21:53
End of Day Share Price2019/10/15 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.