Eurocon Consulting (NGM:EURO) - Share price, News & Analysis

Q: What is the Fair Price of EURO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

EURO (SEK7.6) is trading below our estimate of [[fair value]] (SEK25.97)

EURO fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	2/6
Past Performance	5/6
Financial Health	5/6
Dividends	4/6

EURO Stock Overview

Eurocon Consulting AB (publ) provides engineering services to forest, energy, mining, chemistry, workshop, IT, and life and pharmaceutical industries.

Rewards

Trading at 70.7% below our estimate of its fair value

Earnings are forecast to grow 4.11% per year

Earnings grew by 143.8% over the past year

Risk Analysis

Unstable dividend track record

Does not have a meaningful market cap (SEK332M)

Eurocon Consulting Competitors

Transcendent Group

OM:TRG

kr235.0m

Projektengagemang Sweden

OM:PENG B

kr392.9m

Modern Ekonomi Sverige Holding

OM:ME

kr147.7m

Novus Group International

NGM:NOVU

kr62.2m

Price History & Performance

Summary of all time highs, changes and price drops for Eurocon Consulting
Historical stock prices
Current Share Price	kr7.60
52 Week High	kr8.00
52 Week Low	kr5.12
Beta	1.08
1 Month Change	4.68%
3 Month Change	-1.30%
1 Year Change	49.02%
3 Year Change	26.67%
5 Year Change	19.69%
Change since IPO	334.29%

Shareholder Returns

	EURO	SE Professional Services	SE Market
7D	-2.1%	-3.0%	-0.1%
1Y	49.0%	-33.5%	-22.0%

Return vs Industry: EURO exceeded the Swedish Professional Services industry which returned -33.5% over the past year.

Return vs Market: EURO exceeded the Swedish Market which returned -22% over the past year.

Price Volatility

Is EURO's price volatile compared to industry and market?
EURO volatility
EURO Average Weekly Movement	5.6%
Professional Services Industry Average Movement	5.7%
Market Average Movement	7.3%
10% most volatile stocks in SE Market	12.9%
10% least volatile stocks in SE Market	4.6%

Stable Share Price: EURO is less volatile than 75% of Swedish stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: EURO's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1990	250	Peter Johansson	https://www.eurocon.se

Eurocon Consulting AB (publ) provides engineering services to forest, energy, mining, chemistry, workshop, IT, and life and pharmaceutical industries. It offers SiteBase, a software suite that streamlines and assures the quality of information management in a facility or project; to generate drawings and integrate 3D models; to manage documents, regulations, and specifications; and to import and export to excel and other external applications. The company was founded in 1990 and is headquartered in Örnsköldsvik, Sweden.

Eurocon Consulting Fundamentals Summary

How do Eurocon Consulting's earnings and revenue compare to its market cap?
EURO fundamental statistics
Market Cap	kr331.57m
Earnings (TTM)	kr27.19m
Revenue (TTM)	kr309.33m

12.2x

P/E Ratio

1.1x

P/S Ratio

Is EURO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
EURO income statement (TTM)
Revenue	kr309.33m
Cost of Revenue	kr241.14m
Gross Profit	kr68.19m
Other Expenses	kr41.01m
Earnings	kr27.19m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.62
Gross Margin	22.05%
Net Profit Margin	8.79%
Debt/Equity Ratio	3.1%

How did EURO perform over the long term?

See historical performance and comparison

Dividends

5.3%

Current Dividend Yield

64%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is EURO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EURO?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for EURO. This is calculated by dividing EURO's market cap by their current preferred multiple.
What is EURO's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	kr331.57m

EURO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1x
Enterprise Value/EBITDA	9x
PEG Ratio	3x

Price to Earnings Ratio vs Peers

How does EURO's PE Ratio compare to its peers?

EURO PE Ratio vs Peers

The above table shows the PE ratio for EURO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	29.5x
TRG Transcendent Group	17.5x	n/a	kr235.0m
PENG B Projektengagemang Sweden	20.4x	39.5%	kr392.9m
ME Modern Ekonomi Sverige Holding	65.5x	n/a	kr147.7m
NOVU Novus Group International	14.5x	n/a	kr62.2m
EURO Eurocon Consulting	12.2x	4.1%	kr331.6m

Price-To-Earnings vs Peers: EURO is good value based on its Price-To-Earnings Ratio (12.2x) compared to the peer average (29.5x).

Price to Earnings Ratio vs Industry

How does EURO's PE Ratio compare vs other companies in the European Professional Services Industry?

Price-To-Earnings vs Industry: EURO is good value based on its Price-To-Earnings Ratio (12.2x) compared to the Swedish Professional Services industry average (16.8x)

Price to Earnings Ratio vs Fair Ratio

What is EURO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EURO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12.2x
Fair PE Ratio	10.2x

Price-To-Earnings vs Fair Ratio: EURO is expensive based on its Price-To-Earnings Ratio (12.2x) compared to the estimated Fair Price-To-Earnings Ratio (10.2x).

Share Price vs Fair Value

What is the Fair Price of EURO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EURO (SEK7.6) is trading below our estimate of fair value (SEK25.97)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

4.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: EURO's forecast earnings growth (4.1% per year) is above the savings rate (0.4%).

Earnings vs Market: EURO's earnings (4.1% per year) are forecast to grow slower than the Swedish market (16.4% per year).

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

Revenue vs Market: EURO's revenue (7.6% per year) is forecast to grow slower than the Swedish market (11% per year).

High Growth Revenue: EURO's revenue (7.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: EURO's Return on Equity is forecast to be high in 3 years time (25.3%)

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Past Performance

How has Eurocon Consulting performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-11.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EURO has high quality earnings.

Growing Profit Margin: EURO's current net profit margins (8.8%) are higher than last year (4.5%).

Past Earnings Growth Analysis

Earnings Trend: EURO's earnings have declined by 11.9% per year over the past 5 years.

Accelerating Growth: EURO's earnings growth over the past year (143.8%) exceeds its 5-year average (-11.9% per year).

Earnings vs Industry: EURO earnings growth over the past year (143.8%) exceeded the Professional Services industry 54.3%.

Return on Equity

High ROE: EURO's Return on Equity (23.2%) is considered high.

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Financial Health

How is Eurocon Consulting's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: EURO's short term assets (SEK118.0M) exceed its short term liabilities (SEK78.1M).

Long Term Liabilities: EURO's short term assets (SEK118.0M) exceed its long term liabilities (SEK10.2M).

Debt to Equity History and Analysis

Debt Level: EURO has more cash than its total debt.

Reducing Debt: EURO's debt to equity ratio has increased from 0% to 3.1% over the past 5 years.

Debt Coverage: EURO's debt is well covered by operating cash flow (929.8%).

Interest Coverage: EURO's interest payments on its debt are well covered by EBIT (70.2x coverage).

Balance Sheet

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Dividend

What is Eurocon Consulting current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

5.26%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: EURO's dividend (5.26%) is higher than the bottom 25% of dividend payers in the Swedish market (1.46%).

High Dividend: EURO's dividend (5.26%) is low compared to the top 25% of dividend payers in the Swedish market (5.37%).

Stability and Growth of Payments

Stable Dividend: EURO's dividend payments have been volatile in the past 10 years.

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

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (64.2%), EURO's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (54.5%), EURO's dividend payments are covered by cash flows.

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Management

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

7.1yrs

Average board tenure

CEO

Peter Johansson (65 yo)

14.33yrs

Tenure

kr1,716,000

Compensation

Mr. Peter Johansson has been the Chief Executive Officer of Eurocon Consulting AB (publ) since April 2008 and serves as its President.

CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Peter's total compensation is reasonable compared to companies of similar size in the Swedish market.

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

Board Members

Experienced Board: EURO's board of directors are considered experienced (7.1 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: EURO insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/08/09 00:00
End of Day Share Price	2022/08/09 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31