OM:OEM B

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with acceptable track record.


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


Market Performance


7 Day Return

-2.0%

OEM B

2.3%

SE Trade Distributors

2.2%

SE Market


1 Year Return

-3.9%

OEM B

40.6%

SE Trade Distributors

16.0%

SE Market

Return vs Industry: OEM B underperformed the Swedish Trade Distributors industry which returned 40.6% over the past year.

Return vs Market: OEM B underperformed the Swedish Market which returned 16% over the past year.


Shareholder returns

OEM BIndustryMarket
7 Day-2.0%2.3%2.2%
30 Day-10.0%0.6%2.7%
90 Day-14.7%2.2%4.2%
1 Year-0.9%-3.9%43.4%40.6%21.0%16.0%
3 Year50.1%37.3%100.3%81.6%34.5%14.2%
5 Year138.8%102.6%247.3%178.9%61.7%27.1%

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?

27.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OEM B (SEK198) is trading below our estimate of fair value (SEK272.51)

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


Price To Earnings Ratio

PE vs Industry: OEM B is poor value based on its PE Ratio (16.7x) compared to the Trade Distributors industry average (14x).

PE vs Market: OEM B is good value based on its PE Ratio (16.7x) compared to the Swedish market (16.9x).


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 (4.5x) compared to the SE Trade Distributors industry average (2.3x).


Next Steps

Future Growth

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

-3.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OEM B's earnings are forecast to decline over the next 3 years (-3.4% per year).

Earnings vs Market: OEM B's earnings are forecast to decline over the next 3 years (-3.4% per year).

High Growth Earnings: OEM B's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if OEM B's revenue is forecast to grow faster than the Swedish market.

High Growth Revenue: Insufficient data to determine if OEM B's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if OEM B's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has OEM International performed over the past 5 years?

13.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: OEM B's earnings have grown by 13.7% per year over the past 5 years.

Accelerating Growth: OEM B's earnings growth over the past year (7.7%) is below its 5-year average (13.7% per year).

Earnings vs Industry: OEM B earnings growth over the past year (7.7%) underperformed the Trade Distributors industry 11.7%.


Return on Equity

High ROE: OEM B's Return on Equity (27.2%) is considered high.


Return on Assets

ROA vs Industry: OEM B has a higher Return on Assets than the Trade Distributors industry average last year.


Return on Capital Employed

ROCE Improving: OEM B's Return on Capital Employed has declined over the past 3 years.


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) exceeds its short term liabilities (SEK574.0M)

Long Term Liabilities: OEM B's short term assets (1.2B) exceeds its long term liabilities (147.0M)


Debt to Equity History and Analysis

Debt Level: OEM B's debt to equity ratio (19.5%) is considered satisfactory

Reducing Debt: OEM B's debt to equity ratio has reduced from 49.8% to 19.5% over the past 5 years.

Debt Coverage: OEM B's debt is well covered by operating cash flow (148.9%).

Interest Coverage: OEM B's interest payments on its debt are well covered by EBIT (292.3x 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 6.128370x debt).


Next Steps

Dividend

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

3.41%

Current Dividend Yield


Dividend Yield vs Market

company3.4%marketbottom25%1.8%markettop25%4.7%industryaverage1.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: OEM B's dividend (3.41%) is higher than the bottom 25% of dividend payers in the Swedish market (1.81%).

High Dividend: OEM B's dividend (3.41%) is low compared to the top 25% of dividend payers in the Swedish market (4.71%).

Stable Dividend: OEM B's dividend payments have been volatile 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 (56.9%), 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

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

12.1yrs

Average management tenure


CEO

Jörgen Zahlin (55yo)

17.8yrs

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 ($USD695.75K) is about average for companies of similar size in the Swedish market ($USD478.96K).

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


Management Age and Tenure

12.1yrs

Average Tenure

57yo

Average Age

Experienced Management: OEM B's management team is seasoned and experienced (12.1 years average tenure).


Board Age and Tenure

2.5yrs

Average Tenure

57yo

Average Age

Experienced Board: OEM B's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Jörgen Zahlin (55yo)

    MD & CEO

    • Tenure: 17.8yrs
    • Compensation: kr6.70m
  • Jan Hultman (74yo)

    Deputy MD & Business Development Manager - Group Electronics

    • Tenure: 17.8yrs
  • Jan Cnattingius (64yo)

    Finance Director

    • Tenure: 0yrs
  • Urban Malm (57yo)

    Managing Director of OEM Electonics AB

    • Tenure: 0yrs
  • Jens Kjellsson (51yo)

    Managing Director of OEM Automatic AB

    • Tenure: 6.5yrs
  • Patrick Nyström (61yo)

    Head of Region Finland

    • Tenure: 0yrs
  • Patrik Jägenstedt

    Head of Development for Automatic Lawnmowers At Husqvarna

    • Tenure: 0yrs
  • Björn Pettersson (50yo)

    Head of Marketing & Business Development

    • Tenure: 2.8yrs

Board Members

  • Petter Stillström (47yo)

    Chairman of the Board

    • Tenure: 2.5yrs
    • Compensation: kr500.00k
  • Åsa Winberg (62yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: kr200.00k
  • Agne Svenberg (78yo)

    Director

    • Tenure: 5.8yrs
  • Ulf Barkman (62yo)

    Independent Director

    • Tenure: 22.8yrs
    • Compensation: kr300.00k
  • Jörgen Rosengren (52yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: kr200.00k
  • Richard Pantzar

    Director

    • Tenure: 0.8yrs
  • Mattias Franzén (51yo)

    Director

    • Tenure: 0.8yrs

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: kr4.575b
  • 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
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 component ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 20:56
End of Day Share Price2019/10/22 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.