OM:TROAX

Stock Analysis Report

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Executive Summary

Troax Group AB (publ), through its subsidiaries, develops and supplies metal-based mesh panel solutions in the Nordic region, the United Kingdom, North America, Continental Europe, and internationally. More Details


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TROAX is not significantly more volatile than the rest of Swedish stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: TROAX's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-0.7%

TROAX

0.7%

SE Machinery

0.7%

SE Market


1 Year Return

49.2%

TROAX

22.0%

SE Machinery

17.7%

SE Market

Return vs Industry: TROAX exceeded the Swedish Machinery industry which returned 21.4% over the past year.

Return vs Market: TROAX exceeded the Swedish Market which returned 17.1% over the past year.


Shareholder returns

TROAXIndustryMarket
7 Day-0.7%0.7%0.7%
30 Day13.2%15.6%11.9%
90 Day1.9%13.9%9.0%
1 Year50.4%49.2%23.0%22.0%19.6%17.7%
3 Year82.3%75.4%44.7%23.0%43.7%28.1%
5 Year382.3%344.8%140.9%94.2%65.1%33.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

44.37x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TROAX (SEK171.6) is trading above our estimate of fair value (SEK74.78)

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


Price To Earnings Ratio

PE vs Industry: TROAX is poor value based on its PE Ratio (44.4x) compared to the SE Machinery industry average (30.7x).

PE vs Market: TROAX is poor value based on its PE Ratio (44.4x) compared to the Swedish market (22.8x).


Price to Earnings Growth Ratio

PEG Ratio: TROAX is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: TROAX is overvalued based on its PB Ratio (9.8x) compared to the SE Machinery industry average (3.1x).


Next Steps

Future Growth

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

12.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TROAX's forecast earnings growth (12.9% per year) is above the savings rate (0.5%).

Earnings vs Market: TROAX's earnings (12.9% per year) are forecast to grow faster than the Swedish market (11.6% per year).

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

Revenue vs Market: TROAX's revenue (8.3% per year) is forecast to grow faster than the Swedish market (3.4% per year).

High Growth Revenue: TROAX's revenue (8.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TROAX's Return on Equity is forecast to be high in 3 years time (22.7%)


Next Steps

Past Performance

How has Troax Group performed over the past 5 years?

15.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TROAX has high quality earnings.

Growing Profit Margin: TROAX's current net profit margins (14%) are lower than last year (15.4%).


Past Earnings Growth Analysis

Earnings Trend: TROAX's earnings have grown by 15.9% per year over the past 5 years.

Accelerating Growth: TROAX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TROAX had negative earnings growth (-11.3%) over the past year, making it difficult to compare to the Machinery industry average (-33.8%).


Return on Equity

High ROE: TROAX's Return on Equity (22.1%) is considered high.


Next Steps

Financial Health

How is Troax Group's financial position?


Financial Position Analysis

Short Term Liabilities: TROAX's short term assets (€86.3M) exceed its short term liabilities (€28.3M).

Long Term Liabilities: TROAX's short term assets (€86.3M) do not cover its long term liabilities (€90.3M).


Debt to Equity History and Analysis

Debt Level: TROAX's debt to equity ratio (77.3%) is considered high.

Reducing Debt: TROAX's debt to equity ratio has reduced from 121.3% to 77.3% over the past 5 years.

Debt Coverage: TROAX's debt is well covered by operating cash flow (37.7%).

Interest Coverage: TROAX's interest payments on its debt are well covered by EBIT (39.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Troax Group current dividend yield, its reliability and sustainability?

0.56%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TROAX's dividend (0.56%) isn’t notable compared to the bottom 25% of dividend payers in the Swedish market (1.19%).

High Dividend: TROAX's dividend (0.56%) is low compared to the top 25% of dividend payers in the Swedish market (3.76%).


Stability and Growth of Payments

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

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TROAX's dividend in 3 years as they are not forecast to pay a notable one for the Swedish market.


Next Steps

Management

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

12.8yrs

Average management tenure


CEO

Thomas Widstrand (63 yo)

12.83yrs

Tenure

€387,000

Compensation

Mr. Thomas Widstrand has been the Chief Executive Officer and President of Troax Group AB since 2008. Mr. Widstrand served as General Manager of Competence Centre Indoor Perimeter Security at Gunnebo AB. H...


CEO Compensation Analysis

Compensation vs Market: Thomas's total compensation ($USD462.70K) is below average for companies of similar size in the Swedish market ($USD791.94K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Widstrand
CEO, President & Director12.83yrs€387.00k11.57%
€ 1.2b
Anders Eklöf
Chief Financial Officer3.58yrsno datano data
David Teulon
MD & Regional Manager for UK/Ireland12.83yrsno data0.050%
€ 5.0m
Wolfgang Falkenberg
MD & Regional Manager for Central Europe12.83yrsno data0.027%
€ 2.7m
Javier Garcia
MD & Regional Manager for Southern Europe12.83yrsno data0.084%
€ 8.3m
Jonas Rydqvist
MD & Regional Manager for Nordic Region6.83yrsno data0.015%
€ 1.5m

12.8yrs

Average Tenure

54yo

Average Age

Experienced Management: TROAX's management team is seasoned and experienced (12.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Widstrand
CEO, President & Director12.83yrs€387.00k11.57%
€ 1.2b
Eva Nygren
Independent Director4.83yrs€26.00k0.0025%
€ 250.6k
Anna Stålenbring
Independent Director5.83yrs€33.00k0.015%
€ 1.5m
Bertil Persson
Independent Director2.83yrs€31.00k0.0075%
€ 750.9k
Anders Mörck
Chairman of the Board0.42yrno datano data
Fredrik Hansson
Independent Director2.83yrs€24.00kno data
Bength Håkansson
Employee Representative Director10.83yrsno data0.0069%
€ 688.0k
Milenko Simic
Employee Representative Director4.83yrsno data0.000010%
€ 998.6

4.8yrs

Average Tenure

59yo

Average Age

Experienced Board: TROAX's board of directors are considered experienced (4.8 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Troax Group AB (publ)
  • Ticker: TROAX
  • Exchange: OM
  • Founded: 1955
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: kr9.986b
  • Shares outstanding: 59.87m
  • Website: https://www.troax.com

Number of Employees


Location

  • Troax Group AB (publ)
  • Tyngel 34
  • PO Box 89
  • Hillerstorp
  • Jönköping County
  • 335 04
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TROAXOM (OMX Nordic Exchange Stockholm)YesOrdinary A SharesSESEKMar 2015
5TOADB (Deutsche Boerse AG)YesOrdinary A SharesDEEURMar 2015
TROAXSBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary A SharesGBSEKMar 2015

Biography

Troax Group AB (publ), through its subsidiaries, develops and supplies metal-based mesh panel solutions in the Nordic region, the United Kingdom, North America, Continental Europe, and internationally. The...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 19:39
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
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.