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.

Risks

  • Troax Group is covered by less than 3 analysts.

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

-2.5%

TROAX

-1.5%

SE Machinery

0.2%

SE Market


1 Year Return

3.3%

TROAX

-0.7%

SE Machinery

1.7%

SE Market

TROAX outperformed the Machinery industry which returned -0.7% over the past year.

TROAX outperformed the Market in Sweden which returned 1.7% over the past year.


Share holder returns

TROAXIndustryMarket
7 Day-2.5%-1.5%0.2%
30 Day2.9%13.7%6.6%
90 Day1.9%1.7%2.7%
1 Year5.0%3.3%2.5%-0.7%6.0%1.7%
3 Year104.3%95.0%60.9%33.9%30.5%11.0%
5 Yearn/a98.9%56.5%56.6%23.4%

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 based on future cash flows and its price relative to the stock market?

22.95x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Troax Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Troax Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Troax Group is overvalued based on earnings compared to the SE Machinery industry average.

Troax Group is overvalued based on earnings compared to the Sweden market.


Price Based on Expected Growth

Troax Group is poor value based on expected growth next year.


Price Based on Value of Assets

Troax Group is overvalued based on assets compared to the SE Machinery industry average.


Next Steps

Future Growth

How is Troax Group expected 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 Estimates


Future Annual Growth Analysis

Troax Group's revenue is expected to grow by 6.9% yearly, however this is not considered high growth (20% yearly).

Troax Group's earnings are expected to grow by 8.2% yearly, however this is not considered high growth (20% yearly).

Troax Group's revenue growth is expected to exceed the Sweden market average.

Troax Group's earnings growth is positive but not above the Sweden market average.

Troax Group's earnings growth is expected to exceed the low risk savings rate of 0.4%.


Earnings per Share Growth Estimates


Future Return on Equity

Troax Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


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

Troax Group has delivered over 20% year on year earnings growth in the past 5 years.

Troax Group's 1-year earnings growth exceeds its 5-year average (26.8% vs 26.2%)

Troax Group's earnings growth has exceeded the SE Machinery industry average in the past year (26.8% vs 22.2%).


Return on Equity

Whilst Troax Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Troax Group used its assets more efficiently than the SE Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Troax Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Troax Group's financial position?


Financial Position Analysis

Troax Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Troax Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Troax Group's level of debt (102.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (132.2% vs 102.3% today).

Debt is well covered by operating cash flow (30.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 42.2x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

2.36%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Troax Group's pays a lower dividend yield than the bottom 25% of dividend payers in Sweden (1.86%).

Troax Group's dividend is below the markets top 25% of dividend payers in Sweden (4.8%).

Troax Group has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Troax Group only paid a dividend in the past 3 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2x coverage).


Next Steps

Management

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

11.7yrs

Average management tenure


CEO

Thomas Widstrand (62yo)

11.7yrs

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

Thomas's remuneration is about average for companies of similar size in Sweden.

Thomas's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

11.7yrs

Average Tenure

53yo

Average Age

The average tenure for the Troax Group management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

3.7yrs

Average Tenure

60yo

Average Age

The tenure for the Troax Group board of directors is about average.


Insider Trading

More shares have been bought than sold by Troax Group individual insiders 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: 11.7yrs
    • Compensation: €479.00k
  • David Teulon (66yo)

    MD & Regional Manager for UK/Ireland

    • Tenure: 11.7yrs
  • Anders Eklöf (49yo)

    Chief Financial Officer

    • Tenure: 2.4yrs
  • Wolfgang Falkenberg (57yo)

    MD & Regional Manager for Central Europe

    • Tenure: 11.7yrs
  • Javier Garcia (47yo)

    MD & Regional Manager for Southern Europe

    • Tenure: 11.7yrs
  • Jonas Rydqvist (47yo)

    MD & Regional Manager for Nordic Region

    • Tenure: 5.7yrs

Board Members

  • Eva Nygren (64yo)

    Director

    • Tenure: 3.7yrs
    • Compensation: €25.00k
  • Anna Stålenbring (58yo)

    Director

    • Tenure: 4.7yrs
    • Compensation: €30.00k
  • Bertil Persson (58yo)

    Director

    • Tenure: 1.7yrs
    • Compensation: €20.00k
  • Jan Svensson (63yo)

    Chairman

    • Tenure: 3.3yrs
    • Compensation: €54.00k
  • Thomas Widstrand (62yo)

    CEO, President & Director

    • Tenure: 11.7yrs
    • Compensation: €479.00k
  • Fredrik Hansson (48yo)

    Director

    • Tenure: 1.7yrs
    • Compensation: €17.00k
  • Bength Håkansson (62yo)

    Employee Representative Director

    • Tenure: 9.7yrs
  • Milenko Simic (52yo)

    Employee Representative Director

    • Tenure: 3.7yrs

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: kr6.084b
  • 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 Analysis2019/09/22 21:28
End of Day Share Price2019/09/20 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.