OM:TROAX

Stock Analysis Report

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.

Snowflake

Fundamentals

Solid track record 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


Market Performance


7 Day Return

4.4%

TROAX

3.7%

SE Machinery

1.9%

SE Market


1 Year Return

17.0%

TROAX

9.3%

SE Machinery

9.6%

SE Market

Return vs Industry: TROAX exceeded the Swedish Machinery industry which returned 9.3% over the past year.

Return vs Market: TROAX exceeded the Swedish Market which returned 9.6% over the past year.


Shareholder returns

TROAXIndustryMarket
7 Day4.4%3.7%1.9%
30 Day-1.9%-4.3%-0.3%
90 Day5.6%0.8%0.7%
1 Year18.9%17.0%12.8%9.3%14.3%9.6%
3 Year95.4%86.6%55.0%29.0%31.5%11.9%
5 Yearn/a102.9%59.6%66.2%30.8%

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?

22.8x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: TROAX (SEK102) is trading above our estimate of fair value (SEK88.61)

Significantly Undervalued: 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 (22.8x) compared to the Machinery industry average (15.9x).

PE vs Market: TROAX is poor value based on its PE Ratio (22.8x) compared to the Swedish market (16.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: TROAX is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: TROAX is overvalued based on its PB Ratio (6.9x) compared to the SE Machinery industry average (2.9x).


Next Steps

Future Growth

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

8.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TROAX's forecast earnings growth (8.2% per year) is above the savings rate (0.4%).

Earnings vs Market: TROAX's earnings (8.2% per year) are forecast to grow slower than the Swedish market (8.9% per year).

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

Revenue vs Market: TROAX's revenue (6.9% per year) is forecast to grow faster than the Swedish market (4.5% per year).

High Growth Revenue: TROAX's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: TROAX's Return on Equity is forecast to be high in 3 years time (23.3%)


Next Steps

Past Performance

How has Troax Group performed over the past 5 years?

26.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TROAX's earnings have grown significantly by 26.2% per year over the past 5 years.

Accelerating Growth: TROAX's earnings growth over the past year (26.8%) exceeds its 5-year average (26.2% per year).

Earnings vs Industry: TROAX earnings growth over the past year (26.8%) exceeded the Machinery industry 22.2%.


Return on Equity

High ROE: Whilst TROAX's Return on Equity (30.33%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: TROAX has a higher Return on Assets than the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: TROAX has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Troax Group's financial position?


Financial Position Analysis

Short Term Liabilities: TROAX's short term assets (€70.5M) exceeds its short term liabilities (€29.7M)

Long Term Liabilities: TROAX's short term assets (70.5M) do not cover its long term liabilities (83.6M)


Debt to Equity History and Analysis

Debt Level: TROAX's debt to equity ratio (102.3%) is considered high

Reducing Debt: TROAX's debt to equity ratio has reduced from 132.2% to 102.3% over the past 5 years.

Debt Coverage: TROAX's debt is well covered by operating cash flow (30.8%).

Interest Coverage: TROAX's interest payments on its debt are well covered by EBIT (42.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: TROAX's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

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

1.62%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.8%markettop25%4.8%industryaverage2.7%forecastin3Years2.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TROAX's dividend (1.62%) isn’t notable compared to the bottom 25% of dividend payers in the Swedish market (1.79%).

High Dividend: TROAX's dividend (1.62%) is low compared to the top 25% of dividend payers in the Swedish market (4.78%).

Stable Dividend: TROAX has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: TROAX's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.7%), TROAX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TROAX's dividends in 3 years are forecast to be well covered by earnings (49.5% payout ratio).


Next Steps

Management

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

11.8yrs

Average management tenure


CEO

Thomas Widstrand (62yo)

11.8yrs

Tenure

€479,000

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 ($USD527.88K) is about average for companies of similar size in the Swedish market ($USD578.33K).

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


Management Age and Tenure

11.8yrs

Average Tenure

53yo

Average Age

Experienced Management: TROAX's management team is seasoned and experienced (11.8 years average tenure).


Board Age and Tenure

3.8yrs

Average Tenure

60yo

Average Age

Experienced Board: TROAX's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

Buy€276,00016 Aug 19
Anders Eklöf
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares3,000
Max Price€92.00
Buy€468,75015 May 19
Bertil Persson
EntityIndividual
Role
Member of the Board of Directors
Director
Shares4,500
Max Price€104.17

Ownership Breakdown


Management Team

  • Thomas Widstrand (62yo)

    CEO, President & Director

    • Tenure: 11.8yrs
    • Compensation: €479.00k
  • David Teulon (66yo)

    MD & Regional Manager for UK/Ireland

    • Tenure: 11.8yrs
  • Anders Eklöf (49yo)

    Chief Financial Officer

    • Tenure: 2.5yrs
  • Wolfgang Falkenberg (57yo)

    MD & Regional Manager for Central Europe

    • Tenure: 11.8yrs
  • Javier Garcia (47yo)

    MD & Regional Manager for Southern Europe

    • Tenure: 11.8yrs
  • Jonas Rydqvist (47yo)

    MD & Regional Manager for Nordic Region

    • Tenure: 5.8yrs

Board Members

  • Eva Nygren (64yo)

    Director

    • Tenure: 3.8yrs
    • Compensation: €25.00k
  • Anna Stålenbring (58yo)

    Director

    • Tenure: 4.8yrs
    • Compensation: €30.00k
  • Bertil Persson (58yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: €20.00k
  • Jan Svensson (63yo)

    Chairman

    • Tenure: 3.4yrs
    • Compensation: €54.00k
  • Thomas Widstrand (62yo)

    CEO, President & Director

    • Tenure: 11.8yrs
    • Compensation: €479.00k
  • Fredrik Hansson (48yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: €17.00k
  • Bength Håkansson (62yo)

    Employee Representative Director

    • Tenure: 9.8yrs
  • Milenko Simic (52yo)

    Employee Representative Director

    • Tenure: 3.8yrs

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: kr6.120b
  • Shares outstanding: 60.00m
  • Website: https://www.troax.com

Number of Employees


Location

  • Troax Group AB (publ)
  • Tyngel
  • 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 Analysis2019/10/14 21:41
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
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.