OM:OEM B

Stock Analysis Report

Executive Summary

OEM International AB (publ), together with its subsidiaries, trades in industrial components and systems.


Snowflake Analysis

Flawless balance sheet with outstanding track record and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

6.8%

OEM B

5.4%

SE Trade Distributors

4.5%

SE Market


1 Year Return

1.8%

OEM B

0.1%

SE Trade Distributors

-10.2%

SE Market

Return vs Industry: OEM B underperformed the Swedish Trade Distributors industry which returned 3.4% over the past year.

Return vs Market: OEM B exceeded the Swedish Market which returned -7.1% over the past year.


Shareholder returns

OEM BIndustryMarket
7 Day6.8%5.4%4.5%
30 Day-18.4%-28.8%-23.1%
90 Day-20.7%-29.9%-23.8%
1 Year5.0%1.8%2.1%0.1%-7.4%-10.2%
3 Year9.9%0.5%54.0%40.2%-0.2%-15.4%
5 Year112.8%80.6%132.0%90.9%8.5%-14.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

40.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OEM B (SEK195) is trading below our estimate of fair value (SEK327.35)

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


Price To Earnings Ratio

PE vs Industry: OEM B is poor value based on its PE Ratio (15.6x) compared to the Trade Distributors industry average (10x).

PE vs Market: OEM B is poor value based on its PE Ratio (15.6x) compared to the Swedish market (14.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate OEM B's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: OEM B is overvalued based on its PB Ratio (4.2x) compared to the SE Trade Distributors industry average (1.4x).


Next Steps

Future Growth

How is OEM International forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

7.0%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as OEM International has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has OEM International performed over the past 5 years?

13.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OEM B has high quality earnings.

Growing Profit Margin: OEM B's current net profit margins (8.8%) are higher than last year (8%).


Past Earnings Growth Analysis

Earnings Trend: OEM B's earnings have grown by 13.4% per year over the past 5 years.

Accelerating Growth: OEM B's earnings growth over the past year (16.4%) exceeds its 5-year average (13.4% per year).

Earnings vs Industry: OEM B earnings growth over the past year (16.4%) exceeded the Trade Distributors industry 9.2%.


Return on Equity

High ROE: OEM B's Return on Equity (27.1%) is considered high.


Next Steps

Financial Health

How is OEM International's financial position?


Financial Position Analysis

Short Term Liabilities: OEM B's short term assets (SEK1.2B) exceed its short term liabilities (SEK514.3M).

Long Term Liabilities: OEM B's short term assets (SEK1.2B) exceed its long term liabilities (SEK143.9M).


Debt to Equity History and Analysis

Debt Level: OEM B's debt to equity ratio (10.1%) is considered satisfactory.

Reducing Debt: OEM B's debt to equity ratio has reduced from 40.3% to 10.1% over the past 5 years.

Debt Coverage: OEM B's debt is well covered by operating cash flow (270.8%).

Interest Coverage: OEM B's interest payments on its debt are well covered by EBIT (109.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: OEM B's debt is covered by short term assets (assets are 11x debt).


Next Steps

Dividend

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

3.59%

Current Dividend Yield


Upcoming Dividend Payment

TodayMar 28 2020Ex Dividend DateApr 23 2020Dividend Pay DateApr 29 20206 days from Ex DividendBuy in the next 25 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: OEM B's dividend (3.59%) is higher than the bottom 25% of dividend payers in the Swedish market (2.1%).

High Dividend: OEM B's dividend (3.59%) is low compared to the top 25% of dividend payers in the Swedish market (6.51%).


Stability and Growth of Payments

Stable Dividend: OEM B's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56%), OEM B's dividend payments are 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

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

12.5yrs

Average management tenure


CEO

Jörgen Zahlin (55yo)

18.17s

Tenure

kr6,700,000

Compensation

Mr. Jörgen Zahlin serves as Chairman of BE Group AB (publ) since September 18, 2019 and he has been its Director since April 26, 2013. Mr. Zahlin has been the Chief Executive Officer of OEM International A ...


CEO Compensation Analysis

Compensation vs Market: Jörgen's total compensation ($USD674.02K) is about average for companies of similar size in the Swedish market ($USD648.72K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jörgen Zahlin
MD & CEO18.17yrskr6.70m0.17% SEK7.8m
Johan Broman
Chief Financial Officerno datano datano data
Björn Pettersson
Head of Marketing & Business Development3.17yrsno datano data
Patrick Nyström
Head of Region Finlandno datano data0.097% SEK4.4m
Patrik Jägenstedt
Head of Development for Automatic Lawnmowers At Husqvarnano datano datano data
Jan Hultman
Deputy MD & Business Development Manager - Group Electronics18.17yrsno datano data
Urban Malm
Managing Director of OEM Electonics ABno datano data0.012% SEK546.1k
Jens Kjellsson
Managing Director of OEM Automatic AB6.92yrsno data0.048% SEK2.1m
Fredrik Falkenstrom
Managing Director of OEM Motor ABno datano datano data

12.5yrs

Average Tenure

53yo

Average Age

Experienced Management: OEM B's management team is seasoned and experienced (12.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Petter Stillstrom
Independent Chairman of the Board2.92yrskr500.00kno data
Åsa Winberg
Independent Director5.17yrskr200.00k0.0087% SEK390.2k
Agne Svenberg
Independent Director1.17yrsno data3.61% SEK162.6m
Ulf Barkman
Independent Director23.17yrskr300.00k0.18% SEK8.2m
Jörgen Rosengren
Independent Director2.92yrskr200.00k0.0032% SEK144.2k
Richard Pantzar
Independent Director1.17yrsno datano data
Mattias Franzén
Independent Director1.17yrsno datano data

2.9yrs

Average Tenure

52yo

Average Age

Experienced Board: OEM B's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

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


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: OEM International AB (publ)
  • Ticker: OEM B
  • Exchange: OM
  • Founded:
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: kr4.506b
  • Shares outstanding: 23.11m
  • Website: https://www.oem.se

Number of Employees


Location

  • OEM International AB (publ)
  • Förrådsvägen 2
  • Box 1009
  • Tranås
  • Jönköping County
  • 573 28
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OEM BOM (OMX Nordic Exchange Stockholm)SER'B'NPV (POST SPLIT)SESEKNo data
OEM BOM (OMX Nordic Exchange Stockholm)YesClass B SharesSESEKJun 1994
0QTYLSE (London Stock Exchange)YesClass B SharesGBSEKJun 1994
OEMBsBATS-CHIXE (BATS 'Chi-X Europe')YesClass B SharesGBSEKJun 1994
OEADB (Deutsche Boerse AG)YesClass B SharesDEEURJun 1994

Biography

OEM International AB (publ), together with its subsidiaries, trades in industrial components and systems. The company offers a range of industrial automation components in the areas of electrical components, flow technology, motors, transmissions and brakes, appliance components, lighting and installation components, and ball bearing solutions and seals. It serves machinery and appliance manufacturing industries, wholesalers and retailers, electrical contractors, catalogue distributors, strategic end users and electronics manufacturers, and strategic contract manufacturers, as well as installation companies. The company sells its products in Sweden, Finland, the Baltic States, China, Denmark, Norway, the United Kingdom, and East Central Europe. OEM International AB (publ) is headquartered in Tranås, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 21:47
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.