OM:SAAB B

Stock Analysis Report

Executive Summary

Saab AB (publ) provides products, services, and solutions for the military, defense, and civil security markets worldwide.


Snowflake Analysis

Undervalued with solid track record and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-8.8%

SAAB B

-5.4%

SE Aerospace & Defense

0.07%

SE Market


1 Year Return

-15.5%

SAAB B

-2.6%

SE Aerospace & Defense

21.9%

SE Market

Return vs Industry: SAAB B underperformed the Swedish Aerospace & Defense industry which returned -2.6% over the past year.

Return vs Market: SAAB B underperformed the Swedish Market which returned 22% over the past year.


Shareholder returns

SAAB BIndustryMarket
7 Day-8.8%-5.4%0.07%
30 Day-15.6%-9.1%3.7%
90 Day-15.4%-4.7%10.0%
1 Year-14.3%-15.5%-1.1%-2.6%26.8%21.9%
3 Year-12.1%-22.2%0.6%-10.8%40.1%18.9%
5 Year48.3%26.1%100.8%76.8%46.5%15.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SAAB B (SEK289.8) is trading below our estimate of fair value (SEK1350.86)

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


Price To Earnings Ratio

PE vs Industry: SAAB B is good value based on its PE Ratio (19.5x) compared to the Aerospace & Defense industry average (34.4x).

PE vs Market: SAAB B is good value based on its PE Ratio (19.5x) compared to the Swedish market (20x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SAAB B is good value based on its PB Ratio (1.9x) compared to the SE Aerospace & Defense industry average (2.7x).


Next Steps

Future Growth

How is Saab forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

14.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAAB B's forecast earnings growth (14.4% per year) is above the savings rate (-0.4%).

Earnings vs Market: SAAB B's earnings (14.4% per year) are forecast to grow faster than the Swedish market (8.1% per year).

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

Revenue vs Market: SAAB B's revenue (5.5% per year) is forecast to grow faster than the Swedish market (4.7% per year).

High Growth Revenue: SAAB B's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SAAB B's Return on Equity is forecast to be low in 3 years time (12%).


Next Steps

Past Performance

How has Saab performed over the past 5 years?

8.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SAAB B has high quality earnings.

Growing Profit Margin: SAAB B's current net profit margins (5.6%) are higher than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: SAAB B's earnings have grown by 8.9% per year over the past 5 years.

Accelerating Growth: SAAB B's earnings growth over the past year (51%) exceeds its 5-year average (8.9% per year).

Earnings vs Industry: SAAB B earnings growth over the past year (51%) exceeded the Aerospace & Defense industry 12.6%.


Return on Equity

High ROE: SAAB B's Return on Equity (9.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Saab's financial position?


Financial Position Analysis

Short Term Liabilities: SAAB B's short term assets (SEK38.5B) exceed its short term liabilities (SEK22.8B).

Long Term Liabilities: SAAB B's short term assets (SEK38.5B) exceed its long term liabilities (SEK16.2B).


Debt to Equity History and Analysis

Debt Level: SAAB B's debt to equity ratio (38.1%) is considered satisfactory.

Reducing Debt: SAAB B's debt to equity ratio has increased from 20.9% to 38.1% over the past 5 years.

Debt Coverage: SAAB B's debt is not well covered by operating cash flow (15.1%).

Interest Coverage: SAAB B's interest payments on its debt are well covered by EBIT (15.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: SAAB B's debt is covered by short term assets (assets are 4.9x debt).


Next Steps

Dividend

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

1.70%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Saab before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.7%marketbottom25%1.6%markettop25%4.2%industryaverage1.7%forecastin3Years2.3%

Current dividend yield vs market & industry

Notable Dividend: SAAB B's dividend (1.62%) is higher than the bottom 25% of dividend payers in the Swedish market (1.57%).

High Dividend: SAAB B's dividend (1.62%) is low compared to the top 25% of dividend payers in the Swedish market (4.25%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.6%), SAAB B's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SAAB B's dividends in 3 years are forecast to be well covered by earnings (32.6% payout ratio).


Next Steps

Management

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

7.1yrs

Average management tenure


CEO

Micael Johansson (59yo)

0.3yrs

Tenure

0

Mr. Micael Johansson, B.Sc., has been the Chief Executive Officer and President at SAAB AB (publ.) since October 23, 2019 and served as its Deputy Chief Executive Officer and Senior Executive Vice Presiden ...


Leadership Team

NamePositionTenureCompensationOwnership
Micael Johansson
CEO & President0.3yrsno data0.010% SEK3.8m
Magnus Örnberg
Executive VP & CFO7.3yrsno data0.014% SEK5.3m
Merton Kaplan
Head of Investor Relations0.3yrsno datano data
Annika Bäremo
Senior VP8yrsno data0.0080% SEK2.9m
Sebastian Carlsson
Senior VP & Head of Group Communication3.1yrsno data0.00073% SEK268.5k
Dean Rosenfield
Senior VP & Chief Marketing Officer (CMO)1.1yrsno datano data
Lena Eliasson
Senior VP & Head of Group Human Resources7.8yrsno data0.0094% SEK3.4m
Lars Tossman
Senior VP & Head of Business Area Kockums0yrsno datano data
Jonas Hjelm
Senior VP & Head of Business Area Aeronautics7.1yrsno data0.0037% SEK1.3m
Rustan Nicander
Head of Country Unit Switzerland & Southern Europe and VP8.4yrsno datano data

7.1yrs

Average Tenure

52yo

Average Age

Experienced Management: SAAB B's management team is seasoned and experienced (7.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Marcus Wallenberg
Chairman of the Board13.8yrskr1.79m0.094% SEK34.6m
Bert Ake Nordberg
Independent Director3.8yrskr680.00k0.0080% SEK2.9m
Joakim Westh
Independent Director10.1yrskr817.50k0.0075% SEK2.8m
Cecilia Chilò
Independent Director10.1yrskr592.50k0.0014% SEK518.6k
Sten Jakobsson
Deputy Chairman10.1yrskr812.50k0.0052% SEK1.9m
Nils Lindskog
Employee representative Director4.1yrsno data0.00095% SEK349.4k
Stefan Andersson
Employee representative Director12.1yrsno data0.0026% SEK967.3k
Göran Gustavsson
Employee representative Director3.1yrsno data0.0019% SEK680.4k
Sara Mazur
Independent Director6.8yrskr592.50k0.0019% SEK691.5k
Danica Jensfelt
Independent Director2.8yrskr592.50k0.0015% SEK551.7k

8.5yrs

Average Tenure

61.5yo

Average Age

Experienced Board: SAAB B's board of directors are considered experienced (8.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SAAB B insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.4%.


Top Shareholders

Company Information

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


Key Information

  • Name: Saab AB (publ)
  • Ticker: SAAB B
  • Exchange: OM
  • Founded: 1937
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: kr36.781b
  • Shares outstanding: 132.93m
  • Website: https://www.saabgroup.com

Number of Employees


Location

  • Saab AB (publ)
  • Olof Palmes gata 17
  • 5th floor
  • Stockholm
  • Stockholm County
  • 111 22
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SAAB BOM (OMX Nordic Exchange Stockholm)YesSeries B SharesSESEKJun 1998
SAAB.FOTCPK (Pink Sheets LLC)YesSeries B SharesUSUSDJun 1998
SDVDB (Deutsche Boerse AG)YesSeries B SharesDEEURJun 1998
0GWLLSE (London Stock Exchange)YesSeries B SharesGBSEKJun 1998
SAABBSBATS-CHIXE (BATS 'Chi-X Europe')YesSeries B SharesGBSEKJun 1998
SAAB.YOTCPK (Pink Sheets LLC)UNSPONSRED ADSUSUSDMar 2019

Biography

Saab AB (publ) provides products, services, and solutions for the military, defense, and civil security markets worldwide. The company develops military and civil aviation technology, as well as conducts studies on manned and unmanned aircraft systems. It also provides ground combat weapons, missile systems, torpedoes, unmanned underwater vehicles, training and simulation systems, and signature management systems for armed forces; and niche products for the civil and defense market, such as underwater vehicles for the offshore industry. In addition, the company offers solutions for safety and security, surveillance and decision support, and threat detection and protection, which include airborne, ground-based and naval radar, electronic warfare, and combat systems, as well as C4I solutions. Further, it provides product integration, support, technical maintenance, and logistics services, as well as products, solutions, and services for military and civil missions. Additionally, the company offers technology for traffic management and public safety; and supports industry, defense, and public sectors with services comprising cyber security, digitalization, and R&D. It also provides design, construction, and in-service support services for naval systems, such as surface combatants and submarines to the Swedish armed forces and other customers; and air-independent Stirling systems, mine countermeasure systems, and submarine rescue systems. Saab AB (publ) was founded in 1937 and is headquartered in Stockholm, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 20:52
End of Day Share Price2020/02/24 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.