OM:INISS B

Stock Analysis Report

Executive Summary

Inission AB (publ) provides production and logistics services in the field of industrial electronics in Sweden.

Rewards

Trading at 44.7% below its fair value

Earnings are forecast to grow 12.19% per year

Earnings grew by 77.2% over the past year

Risk Analysis

Has a high level of debt

Does not have a meaningful market cap (SEK534M)



Snowflake Analysis

Outstanding track record and good value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: INISS B has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

12.8%

INISS B

2.0%

SE Electrical

1.6%

SE Market


1 Year Return

143.1%

INISS B

30.4%

SE Electrical

25.4%

SE Market

Return vs Industry: INISS B exceeded the Swedish Electrical industry which returned 29.3% over the past year.

Return vs Market: INISS B exceeded the Swedish Market which returned 26.1% over the past year.


Shareholder returns

INISS BIndustryMarket
7 Day12.8%2.0%1.6%
30 Day7.9%10.7%2.6%
90 Day-1.6%11.2%8.5%
1 Year147.7%143.1%43.7%30.4%30.6%25.4%
3 Year148.2%143.6%23.0%-2.1%40.9%19.3%
5 Yearn/a170.7%123.2%58.5%24.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

38.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: INISS B (SEK109) is trading below our estimate of fair value (SEK197.03)

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


Price To Earnings Ratio

PE vs Industry: INISS B is good value based on its PE Ratio (12.2x) compared to the Electrical industry average (22x).

PE vs Market: INISS B is good value based on its PE Ratio (12.2x) compared to the Swedish market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: INISS B is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: INISS B is overvalued based on its PB Ratio (4.1x) compared to the SE Electrical industry average (3.9x).


Next Steps

Future Growth

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

12.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INISS B's forecast earnings growth (12.2% per year) is above the savings rate (-0.4%).

Earnings vs Market: INISS B's earnings (12.2% per year) are forecast to grow faster than the Swedish market (9.6% per year).

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

Revenue vs Market: INISS B's revenue (3.7% per year) is forecast to grow slower than the Swedish market (4.4% per year).

High Growth Revenue: INISS B's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: INISS B's Return on Equity is forecast to be high in 3 years time (27.3%)


Next Steps

Past Performance

How has Inission performed over the past 5 years?

30.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INISS B has high quality earnings.

Growing Profit Margin: INISS B's current net profit margins (4.5%) are higher than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: INISS B's earnings have grown significantly by 30.1% per year over the past 5 years.

Accelerating Growth: INISS B's earnings growth over the past year (77.2%) exceeds its 5-year average (30.1% per year).

Earnings vs Industry: INISS B earnings growth over the past year (77.2%) exceeded the Electrical industry 9.6%.


Return on Equity

High ROE: INISS B's Return on Equity (31.6%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Inission's financial position?


Financial Position Analysis

Short Term Liabilities: INISS B's short term assets (SEK448.7M) exceed its short term liabilities (SEK286.4M).

Long Term Liabilities: INISS B's short term assets (SEK448.7M) exceed its long term liabilities (SEK81.7M).


Debt to Equity History and Analysis

Debt Level: INISS B's debt to equity ratio (84.3%) is considered high.

Reducing Debt: INISS B's debt to equity ratio has increased from 55.1% to 84.3% over the past 5 years.

Debt Coverage: INISS B's debt is well covered by operating cash flow (56.4%).

Interest Coverage: INISS B's interest payments on its debt are well covered by EBIT (8.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: INISS B's debt is covered by short term assets (assets are 3.8x debt).


Next Steps

Dividend

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

1.22%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%1.6%markettop25%4.5%industryaverage2.2%forecastin3Years1.8%

Current dividend yield vs market & industry

Notable Dividend: INISS B's dividend (1.38%) isn’t notable compared to the bottom 25% of dividend payers in the Swedish market (1.57%).

High Dividend: INISS B's dividend (1.38%) is low compared to the top 25% of dividend payers in the Swedish market (4.45%).


Stability and Growth of Payments

Stable Dividend: INISS B has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: INISS B's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.8%), INISS B's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: INISS B's dividends in 3 years are forecast to be well covered by earnings (21.1% payout ratio).


Next Steps

Management

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


CEO

Fredrik Berghel (52yo)

5yrs

Tenure

0

Mr. Fredrik Berghel, M.Sc. (Eng.) has been Chief Executive Officer and President of Inission AB since 2015 and 2008 respectively. Mr. Berghel serves as Chairman of the Board at Inission Ab. He served as th ...


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Sellkr418,12726 Aug 19
Peter Lindegren
EntityIndividual
Role
Senior Key Executive
Head of Purchase
Shares3,671
Max Pricekr113.90
Buykr21,75620 Jul 19
Stefan Westberg
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares259
Max Pricekr84.00
Buykr31,11613 Jun 19
Stefan Westberg
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares554
Max Pricekr84.00
Buykr94,85124 May 19
Peter Lindegren
EntityIndividual
Role
Senior Key Executive
Head of Purchase
Shares1,171
Max Pricekr81.00
Buykr205,00013 May 19
Peter Lindegren
EntityIndividual
Role
Senior Key Executive
Head of Purchase
Shares2,500
Max Pricekr82.00
Buykr972,00011 Mar 19
Björn Lifvergren
EntityIndividual
Shares18,000
Max Pricekr54.00

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Peter Lindegren (54yo)

    Head of Purchase

    • Tenure: 4yrs
  • Stefan Westberg

    Chief Financial Officer

    • Fredrik Berghel (52yo)

      Chairman of the Board

      • Tenure: 5yrs
    • Olle Hulteberg (57yo)

      Head of Marketing & Operational Management and Director

      • Stefan Jonsson

        Head of Sales


        Board Members

        • Hans Linnarson (67yo)

          Board Member

          • Karin Skoglund (60yo)

            Director

            • Lars Wingefors (42yo)

              Director

              • Fredrik Berghel (52yo)

                Chairman of the Board

                • Tenure: 5yrs
              • Olle Hulteberg (57yo)

                Head of Marketing & Operational Management and Director

                • Lars Atterfors (53yo)

                  Director

                  • Mattias Hultheimer (48yo)

                    Director

                    Company Information

                    Inission AB (publ)'s company bio, employee growth, exchange listings and data sources


                    Key Information

                    • Name: Inission AB (publ)
                    • Ticker: INISS B
                    • Exchange: OM
                    • Founded: 1973
                    • Industry: Electrical Components and Equipment
                    • Sector: Capital Goods
                    • Market Cap: kr602.167m
                    • Shares outstanding: 4.90m
                    • Website: https://www.inission.com

                    Location

                    • Inission AB (publ)
                    • Lantvärnsgatan 4
                    • Karlstad
                    • Värmland County
                    • 652 21
                    • Sweden

                    Listings

                    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                    INISS BOM (OMX Nordic Exchange Stockholm)SER'B'NPV (POST SPLIT)SESEKNo data
                    INISS BOM (OMX Nordic Exchange Stockholm)YesClass B SharesSESEKJun 2015

                    Biography

                    Inission AB (publ) provides production and logistics services in the field of industrial electronics in Sweden. The company offers development, sourcing, manufacturing, logistics, and life cycle guarantee services for medical technology, automotive, measuring instruments, telecommunications, marine, and control technology industries. Inission AB (publ) was founded in 1973 and is based in Karlstad, Sweden. 


                    Company Analysis and Financial Data Status

                    All financial data provided by Standard & Poor's Capital IQ.
                    DataLast Updated (UTC time)
                    Company Analysis2020/01/21 22:01
                    End of Day Share Price2020/01/21 00:00
                    Earnings2019/09/30
                    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.