Indutrade (OM:INDT) - Share price, News & Analysis

Q: What is the Fair Price of INDT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

INDT (SEK239.9) is trading above our estimate of [[fair value]] (SEK227.86)

INDT fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	2/6
Past Performance	5/6
Financial Health	5/6
Dividends	3/6

INDT Stock Overview

Indutrade AB (publ) manufactures, develops, and sells components, systems, and services to various industries worldwide.

Rewards

Earnings are forecast to grow 7.67% per year

Earnings have grown 16.4% per year over the past 5 years

Risk Analysis

Has a high level of debt

Indutrade Competitors

AB SKF

OM:SKF B

kr77.7b

Trelleborg

OM:TREL B

kr63.7b

Alfa Laval

OM:ALFA

kr127.0b

Sandvik

OM:SAND

kr232.8b

Price History & Performance

Summary of all time highs, changes and price drops for Indutrade
Historical stock prices
Current Share Price	kr239.90
52 Week High	kr293.40
52 Week Low	kr180.55
Beta	1.34
1 Month Change	15.84%
3 Month Change	9.19%
1 Year Change	-14.23%
3 Year Change	169.55%
5 Year Change	263.67%
Change since IPO	2,847.58%

Recent News & Updates

Aug 05

A Look At The Intrinsic Value Of Indutrade AB (publ) (STO:INDT)

Today we will run through one way of estimating the intrinsic value of Indutrade AB (publ) ( STO:INDT ) by taking the...

Jul 11

We Think Indutrade (STO:INDT) Can Manage Its Debt With Ease

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

	INDT	SE Machinery	SE Market
7D	5.2%	4.1%	3.5%
1Y	-14.2%	-15.6%	-20.7%

Return vs Industry: INDT exceeded the Swedish Machinery industry which returned -16.9% over the past year.

Return vs Market: INDT exceeded the Swedish Market which returned -20.9% over the past year.

Price Volatility

Is INDT's price volatile compared to industry and market?
INDT volatility
INDT Average Weekly Movement	5.6%
Machinery Industry Average Movement	6.4%
Market Average Movement	7.1%
10% most volatile stocks in SE Market	12.5%
10% least volatile stocks in SE Market	4.5%

Stable Share Price: INDT is less volatile than 75% of Swedish stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: INDT's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1919	8,397	Bo Annvik	https://www.indutrade.com

Indutrade AB (publ) manufactures, develops, and sells components, systems, and services to various industries worldwide. It operates through eight segments: Benelux, DACH, Finland, Flow Technology, Fluids and Mechanical Solutions, Industrial Components, Measurement and Sensor Technology, and UK. The company also provides components and systems for controlling, measuring, monitoring, and regulating flows, as well as for industrial production and maintenance; hydraulic and mechanical components; medical technology equipment; measurement instruments and systems, sensors, control and regulating technology, and monitoring equipment; and custom-manufactured products, design solutions, aftermarket and assembly services, and customization services.

Indutrade Fundamentals Summary

How do Indutrade's earnings and revenue compare to its market cap?
INDT fundamental statistics
Market Cap	kr87.40b
Earnings (TTM)	kr2.38b
Revenue (TTM)	kr24.10b

36.7x

P/E Ratio

3.6x

P/S Ratio

Is INDT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
INDT income statement (TTM)
Revenue	kr24.10b
Cost of Revenue	kr15.64b
Gross Profit	kr8.46b
Other Expenses	kr6.07b
Earnings	kr2.38b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 28, 2022

Earnings per share (EPS)	6.54
Gross Margin	35.09%
Net Profit Margin	9.89%
Debt/Equity Ratio	71.7%

How did INDT perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

35%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is INDT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for INDT?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for INDT. This is calculated by dividing INDT's market cap by their current preferred multiple.
What is INDT's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	kr87.40b

INDT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	3.9x
Enterprise Value/EBITDA	24.8x
PEG Ratio	4.8x

Price to Earnings Ratio vs Peers

How does INDT's PE Ratio compare to its peers?

INDT PE Ratio vs Peers

The above table shows the PE ratio for INDT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	18x
SKF B AB SKF	13x	13.9%	kr77.7b
TREL B Trelleborg	16.1x	-20.0%	kr63.7b
ALFA Alfa Laval	26.8x	12.4%	kr127.0b
SAND Sandvik	16.1x	8.9%	kr232.8b
INDT Indutrade	36.7x	7.7%	kr87.4b

Price-To-Earnings vs Peers: INDT is expensive based on its Price-To-Earnings Ratio (36.7x) compared to the peer average (18x).

Price to Earnings Ratio vs Industry

How does INDT's PE Ratio compare vs other companies in the SE Machinery Industry?

Price-To-Earnings vs Industry: INDT is expensive based on its Price-To-Earnings Ratio (36.7x) compared to the Swedish Machinery industry average (17.9x)

Price to Earnings Ratio vs Fair Ratio

What is INDT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

INDT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	36.7x
Fair PE Ratio	25x

Price-To-Earnings vs Fair Ratio: INDT is expensive based on its Price-To-Earnings Ratio (36.7x) compared to the estimated Fair Price-To-Earnings Ratio (25x).

Share Price vs Fair Value

What is the Fair Price of INDT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: INDT (SEK239.9) is trading above our estimate of fair value (SEK227.86)

Significantly Below Fair Value: INDT is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

7.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: INDT's forecast earnings growth (7.7% per year) is above the savings rate (0.4%).

Earnings vs Market: INDT's earnings (7.7% per year) are forecast to grow slower than the Swedish market (16.1% per year).

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

Revenue vs Market: INDT's revenue (5.4% per year) is forecast to grow slower than the Swedish market (10.9% per year).

High Growth Revenue: INDT's revenue (5.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: INDT's Return on Equity is forecast to be high in 3 years time (21.8%)

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Past Performance

How has Indutrade performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

16.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: INDT has high quality earnings.

Growing Profit Margin: INDT's current net profit margins (9.9%) are higher than last year (9.5%).

Past Earnings Growth Analysis

Earnings Trend: INDT's earnings have grown by 16.4% per year over the past 5 years.

Accelerating Growth: INDT's earnings growth over the past year (23.3%) exceeds its 5-year average (16.4% per year).

Earnings vs Industry: INDT earnings growth over the past year (23.3%) underperformed the Machinery industry 28.5%.

Return on Equity

High ROE: INDT's Return on Equity (21.7%) is considered high.

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Financial Health

How is Indutrade's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: INDT's short term assets (SEK11.4B) exceed its short term liabilities (SEK6.5B).

Long Term Liabilities: INDT's short term assets (SEK11.4B) exceed its long term liabilities (SEK7.3B).

Debt to Equity History and Analysis

Debt Level: INDT's net debt to equity ratio (60.2%) is considered high.

Reducing Debt: INDT's debt to equity ratio has reduced from 84.6% to 71.7% over the past 5 years.

Debt Coverage: INDT's debt is well covered by operating cash flow (31.3%).

Interest Coverage: INDT's interest payments on its debt are well covered by EBIT (32x coverage).

Balance Sheet

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Dividend

What is Indutrade current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

0.96%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: INDT's dividend (0.96%) isn’t notable compared to the bottom 25% of dividend payers in the Swedish market (1.45%).

High Dividend: INDT's dividend (0.96%) is low compared to the top 25% of dividend payers in the Swedish market (5.38%).

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (35.1%), INDT's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (41.7%), INDT's dividend payments are well covered by cash flows.

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Management

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

4.6yrs

Average management tenure

CEO

Bo Annvik (57 yo)

5.33yrs

Tenure

kr18,062,000

Compensation

Mr. Bo Annvik, M. Sc. (Econ.), has been the Chief Executive Officer and President of Indutrade AB (publ) since he joined in April 26, 2017. Mr. Annvik has been an Independent Director of SSAB AB (publ) sin...

CEO Compensation Analysis

Compensation vs Market: Bo's total compensation ($USD1.75M) is about average for companies of similar size in the Swedish market ($USD2.18M).

Compensation vs Earnings: Bo's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: INDT's management team is considered experienced (4.6 years average tenure).

Board Members

Experienced Board: INDT's board of directors are considered experienced (7.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: INDT 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/16 00:00
End of Day Share Price	2022/08/16 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31