OM:NIBE B

Stock Analysis Report

Executive Summary

NIBE Industrier AB (publ), together with its subsidiaries, operates as a heating technology company in Nordic countries, Rest of Europe, North America, Australia, Asia, and internationally.

Rewards

Earnings are forecast to grow 10.07% per year

Earnings have grown 17.2% per year over the past 5 years

Risk Analysis

Has a high level of debt

Highly volatile share price over past 3 months



Snowflake Analysis

Excellent balance sheet with limited growth.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

4.3%

NIBE B

4.6%

SE Building

2.1%

SE Market


1 Year Return

73.5%

NIBE B

47.8%

SE Building

24.5%

SE Market

Return vs Industry: NIBE B exceeded the Swedish Building industry which returned 49.1% over the past year.

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


Shareholder returns

NIBE BIndustryMarket
7 Day4.3%4.6%2.1%
30 Day12.2%6.5%3.6%
90 Day43.0%12.0%9.7%
1 Year75.3%73.5%50.2%47.8%29.7%24.5%
3 Year151.4%143.6%64.8%56.7%40.8%19.2%
5 Year287.1%249.5%95.0%78.9%58.0%24.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

40.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NIBE B (SEK175) is trading above our estimate of fair value (SEK82.84)

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


Price To Earnings Ratio

PE vs Industry: NIBE B is poor value based on its PE Ratio (40.3x) compared to the Building industry average (20.5x).

PE vs Market: NIBE B is poor value based on its PE Ratio (40.3x) compared to the Swedish market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: NIBE B is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: NIBE B is overvalued based on its PB Ratio (5x) compared to the SE Building industry average (3x).


Next Steps

Future Growth

How is NIBE Industrier forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

10.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NIBE B's forecast earnings growth (10.1% per year) is above the savings rate (-0.4%).

Earnings vs Market: NIBE B's earnings (10.2% per year) are forecast to grow slower than the Swedish market (10.6% per year).

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

Revenue vs Market: NIBE B's revenue (6.4% per year) is forecast to grow faster than the Swedish market (4.4% per year).

High Growth Revenue: NIBE B's revenue (6.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NIBE B's Return on Equity is forecast to be low in 3 years time (14%).


Next Steps

Past Performance

How has NIBE Industrier performed over the past 5 years?

17.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NIBE B has high quality earnings.

Growing Profit Margin: NIBE B's current net profit margins (8.8%) are lower than last year (9.1%).


Past Earnings Growth Analysis

Earnings Trend: NIBE B's earnings have grown by 17.2% per year over the past 5 years.

Accelerating Growth: NIBE B's earnings growth over the past year (11.9%) is below its 5-year average (17.2% per year).

Earnings vs Industry: NIBE B earnings growth over the past year (11.9%) underperformed the Building industry 30.3%.


Return on Equity

High ROE: NIBE B's Return on Equity (12.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is NIBE Industrier's financial position?


Financial Position Analysis

Short Term Liabilities: NIBE B's short term assets (SEK13.3B) exceed its short term liabilities (SEK7.7B).

Long Term Liabilities: NIBE B's short term assets (SEK13.3B) exceed its long term liabilities (SEK12.1B).


Debt to Equity History and Analysis

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

Reducing Debt: NIBE B's debt to equity ratio has reduced from 120.3% to 60.2% over the past 5 years.

Debt Coverage: NIBE B's debt is well covered by operating cash flow (30.6%).

Interest Coverage: NIBE B's interest payments on its debt are well covered by EBIT (19.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: NIBE B's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

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

0.73%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%1.6%markettop25%4.4%industryaverage1.3%forecastin3Years0.9%

Current dividend yield vs market & industry

Notable Dividend: NIBE B's dividend (0.74%) isn’t notable compared to the bottom 25% of dividend payers in the Swedish market (1.57%).

High Dividend: NIBE B's dividend (0.74%) is low compared to the top 25% of dividend payers in the Swedish market (4.45%).


Stability and Growth of Payments

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

Growing Dividend: NIBE B 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: NIBE B is not paying a notable dividend for the Swedish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NIBE B'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 NIBE Industrier's salary, the management and board of directors tenure and is there insider trading?

7.0yrs

Average board tenure


CEO

Gerteric Lindquist (68yo)

0yrs

Tenure

kr6,324,000

Compensation

Mr. Gerteric Lindquist serves as the Chief Executive Officer and Managing Director of NIBE Industrier AB (publ) and served as its President. Mr. Lindquist also serves as the Chief Executive Officer and Man ...


CEO Compensation Analysis

Compensation vs Market: Gerteric's total compensation ($USD668.07K) is below average for companies of similar size in the Swedish market ($USD1.83M).

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


Board Age and Tenure

7.0yrs

Average Tenure

61.5yo

Average Age

Experienced Board: NIBE B's board of directors are considered experienced (7 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

Buykr254,76524 May 19
Hans Backman
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares2,030
Max Pricekr125.50
Buykr185,71203 Mar 19
Niklas Gunnarsson
EntityIndividual
Shares1,600
Max Pricekr116.07

Ownership Breakdown

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


Management Team

  • Gerteric Lindquist (68yo)

    CEO, MD & Director

    • Compensation: kr6.32m
  • Leif Gustavsson (74yo)

    Senior Advisor

    • Benny Torstensson

      Chief Information Officer

      • Hans Backman (53yo)

        Chief Financial Officer

        • Tenure: 8.2yrs
      • Christel Fritiofsson

        Head of Investor Relations

        • Kenneth Magnusson

          Chief Sustainability Officer


          Board Members

          • Anders Pålsson (61yo)

            Independent Director

            • Tenure: 9.7yrs
            • Compensation: kr360.00k
          • Georg Brunstam (62yo)

            Director

            • Tenure: 17yrs
            • Compensation: kr360.00k
          • Gerteric Lindquist (68yo)

            CEO, MD & Director

            • Compensation: kr6.32m
          • Hans Linnarson (67yo)

            Independent Chairman

            • Tenure: 4.4yrs
            • Compensation: kr720.00k
          • Helene Richmond (59yo)

            Independent Director

            • Tenure: 4.4yrs
            • Compensation: kr360.00k
          • Jenny Sjödahl (46yo)

            Independent director

            • Tenure: 2yrs
            • Compensation: kr360.00k

          Company Information

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


          Key Information

          • Name: NIBE Industrier AB (publ)
          • Ticker: NIBE B
          • Exchange: OM
          • Founded:
          • Industry: Building Products
          • Sector: Capital Goods
          • Market Cap: kr89.488b
          • Shares outstanding: 504.02m
          • Website: https://www.nibe.com

          Number of Employees


          Location

          • NIBE Industrier AB (publ)
          • Hannabadsvägen 5
          • Markaryd
          • Kronoberg County
          • 285 21
          • Sweden

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          NIBE BOM (OMX Nordic Exchange Stockholm)YesClass B SharesSESEKJun 1997
          NJBCDB (Deutsche Boerse AG)YesClass B SharesDEEURJun 1997
          0RH0LSE (London Stock Exchange)YesClass B SharesGBSEKJun 1997
          NIBEBSWX (SIX Swiss Exchange)YesClass B SharesCHCHFJun 1997
          NIBEBZBATS-CHIXE (BATS 'Chi-X Europe')YesClass B SharesGBCHFJun 1997
          NDRB.FOTCPK (Pink Sheets LLC)YesClass B SharesUSUSDJun 1997
          NIBEBSBATS-CHIXE (BATS 'Chi-X Europe')YesClass B SharesGBSEKJun 1997

          Biography

          NIBE Industrier AB (publ), together with its subsidiaries, operates as a heating technology company in Nordic countries, Rest of Europe, North America, Australia, Asia, and internationally. The company operates in three business areas: NIBE Climate Solutions, NIBE Element, and NIBE Stoves. The NIBE Climate Solutions business area manufactures and sells indoor climate comfort products, such as heat pumps, ventilation products and air conditioning, climate control systems, water heaters and accumulator tanks, district heating products, solar panels, domestic boilers, commercial washing machines, and tumble dryers for heating, cooling, heat recovery, and hot water applications in homes, apartment blocks, and commercial properties. The NIBE Element business area is involved in the manufacture and sale of components and solutions for measuring, controlling, and heating applications, which include tubular, aluminum, foil, thick film, PTC, high-power, and ceramic elements, as well as open spirals and tapes, heating cables and jackets, vacuum brazings, heat pump technology, resistors, and control equipment. The NIBE Stoves business area provides free-standing stoves, steel and stone surround inserts, wood-burning inserts for fireplaces, heat-retaining products, and chimney systems, as well as accessories comprising floor panels, wood storage, and connection pipes. NIBE Industrier AB (publ) is headquartered in Markaryd, Sweden. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/18 20:48
          End of Day Share Price2020/01/17 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.