OM:MMGR B

Stock Analysis Report

Executive Summary

Momentum Group AB (publ) resells industrial consumables and components; and provides services and maintenance to professional end users in the industrial and construction sectors in the Nordic region and internationally.

Snowflake

Fundamentals

Excellent balance sheet and good value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.7%

MMGR B

2.7%

SE Trade Distributors

2.1%

SE Market


1 Year Return

0.5%

MMGR B

22.4%

SE Trade Distributors

12.1%

SE Market

Return vs Industry: MMGR B underperformed the Swedish Trade Distributors industry which returned 22.4% over the past year.

Return vs Market: MMGR B underperformed the Swedish Market which returned 12.1% over the past year.


Shareholder returns

MMGR BIndustryMarket
7 Day1.7%2.7%2.1%
30 Day-0.3%-1.4%1.6%
90 Day-10.2%5.7%3.7%
1 Year3.4%0.5%25.2%22.4%16.8%12.1%
3 Yearn/a86.9%69.9%32.2%12.4%
5 Yearn/a241.0%174.2%62.8%28.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

39.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MMGR B (SEK99.1) is trading below our estimate of fair value (SEK162.6)

Significantly Below Fair Value: MMGR B is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MMGR B is good value based on its PE Ratio (12.2x) compared to the Trade Distributors industry average (14.4x).

PE vs Market: MMGR B is good value based on its PE Ratio (12.2x) compared to the Swedish market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: MMGR B is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: MMGR B is good value based on its PB Ratio (2.1x) compared to the SE Trade Distributors industry average (2.4x).


Next Steps

Future Growth

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

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MMGR B's forecast earnings growth (8.7% per year) is above the savings rate (0.4%).

Earnings vs Market: MMGR B's earnings (8.7% per year) are forecast to grow slower than the Swedish market (9.3% per year).

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

Revenue vs Market: MMGR B's revenue (3.7% per year) is forecast to grow slower than the Swedish market (4.5% per year).

High Growth Revenue: MMGR 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: Insufficient data to determine if MMGR B's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Momentum Group performed over the past 5 years?

22.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MMGR B's earnings have grown significantly by 22.7% per year over the past 5 years.

Accelerating Growth: MMGR B's earnings growth over the past year (11.3%) is below its 5-year average (22.7% per year).

Earnings vs Industry: MMGR B earnings growth over the past year (11.3%) underperformed the Trade Distributors industry 11.3%.


Return on Equity

High ROE: MMGR B's Return on Equity (16.8%) is considered low.


Return on Assets

ROA vs Industry: MMGR B's Return on Assets is below or equal to the Trade Distributors industry average last year.


Return on Capital Employed

ROCE Improving: MMGR B has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Momentum Group's financial position?


Financial Position Analysis

Short Term Liabilities: MMGR B's short term assets (SEK2.2B) exceeds its short term liabilities (SEK1.5B)

Long Term Liabilities: MMGR B's short term assets (2.2B) exceeds its long term liabilities (618.0M)


Debt to Equity History and Analysis

Debt Level: MMGR B's debt to equity ratio (24.3%) is considered satisfactory

Reducing Debt: Insufficient data to determine if MMGR B's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: MMGR B's debt is well covered by operating cash flow (84.8%).

Interest Coverage: MMGR B's interest payments on its debt are well covered by EBIT (42.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: MMGR B's debt is covered by short term assets (assets are 6.645450x debt).


Next Steps

Dividend

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

3.23%

Current Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%1.8%markettop25%4.6%industryaverage2.1%forecastin3Years4.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MMGR B's dividend (3.23%) is higher than the bottom 25% of dividend payers in the Swedish market (1.81%).

High Dividend: MMGR B's dividend (3.23%) is low compared to the top 25% of dividend payers in the Swedish market (4.65%).

Stable Dividend: Too early to tell whether MMGR B's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if MMGR B's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.4%), MMGR B's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.8yrs

Average board tenure


CEO

Ulf Lilius (47yo)

2.3yrs

Tenure

kr6,653,000

Compensation

Mr. Ulf Lilius, B.Sc. Econ., has been the President & Chief Executive Officer at Momentum Group AB since 2016. Mr. Lilius served as the Chief Executive Officer and President of B&B Tools AB from November 1 ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Ulf's total compensation is reasonable compared to companies of similar size in the Swedish market.

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


Board Age and Tenure

3.8yrs

Average Tenure

53yo

Average Age

Experienced Board: MMGR B's board of directors are considered experienced (3.8 years average tenure).


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

Buykr313,38319 Jul 19
Niklas Enmark
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares2,900
Max Pricekr108.30
Buykr161,60028 Nov 18
Niklas Enmark
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares2,000
Max Pricekr80.80
Buykr1,842,33328 Nov 18
Ulf Lilius
EntityIndividual
Role
Chief Executive Officer
President & CEO
Shares22,793
Max Pricekr80.96
Buykr219,00026 Oct 18
Niklas Enmark
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares2,500
Max Pricekr87.60

Ownership Breakdown


Management Team

  • Niklas Enmark (47yo)

    Executive VP & CFO

    • Tenure: 2.8yrs
    • Compensation: kr4.22m
  • Mats Karlqvist

    Head of Investor Relations

    • Tenure: 0yrs
  • Ulf Lilius (47yo)

    President & CEO

    • Tenure: 2.3yrs
    • Compensation: kr6.65m

Board Members

  • Gunilla Spongh (53yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: kr325.00k
  • Göran Näsholm (64yo)

    Independent Director

    • Tenure: 0.2yrs
  • Johan Sjö (52yo)

    Independent Chairman of the Board

    • Tenure: 0.2yrs
  • Charlotte Hansson (57yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: kr275.00k
  • Stefan Hedelius (50yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: kr275.00k

Company Information

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


Key Information

  • Name: Momentum Group AB (publ)
  • Ticker: MMGR B
  • Exchange: OM
  • Founded: 2016
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: kr2.752b
  • Shares outstanding: 27.77m
  • Website: https://www.momentum.group

Number of Employees


Location

  • Momentum Group AB (publ)
  • PO Box 5900
  • Stockholm
  • Stockholm County
  • 102 40
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MMGR BOM (OMX Nordic Exchange Stockholm)YesClass B SharesSESEKJun 2017
0RTKLSE (London Stock Exchange)YesClass B SharesGBSEKJun 2017
MMGRBSBATS-CHIXE (BATS 'Chi-X Europe')YesClass B SharesGBSEKJun 2017

Biography

Momentum Group AB (publ) resells industrial consumables and components; and provides services and maintenance to professional end users in the industrial and construction sectors in the Nordic region and i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 22:05
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.