OM:CAPAC

Stock Analysis Report

Executive Summary

Capacent Holding AB (publ) provides consulting services to industrial and service companies, B2B and B2C, private equity firms, financial institutions, and public sector entities.

Rewards

Trading at 83.1% below its fair value

Earnings are forecast to grow 80.2% per year

Risk Analysis

Dividend of 7.41% is not well covered by earnings

Profit margins (1.9%) are lower than last year (5.1%)

Does not have a meaningful market cap (SEK110M)



Snowflake Analysis

Undervalued with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.8%

CAPAC

6.2%

SE Professional Services

2.1%

SE Market


1 Year Return

-18.9%

CAPAC

44.7%

SE Professional Services

24.5%

SE Market

Return vs Industry: CAPAC underperformed the Swedish Professional Services industry which returned 35.3% over the past year.

Return vs Market: CAPAC underperformed the Swedish Market which returned 26.1% over the past year.


Shareholder returns

CAPACIndustryMarket
7 Day1.8%6.2%2.1%
30 Day-3.1%10.4%2.7%
90 Day-8.2%21.2%8.6%
1 Year-14.0%-18.9%61.5%44.7%29.7%24.5%
3 Year-3.5%-16.7%85.2%54.6%40.8%19.2%
5 Yearn/a146.6%93.2%58.0%24.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Capacent Holding 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: CAPAC (SEK40.5) is trading below our estimate of fair value (SEK239.36)

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


Price To Earnings Ratio

PE vs Industry: CAPAC is good value based on its PE Ratio (21.8x) compared to the Professional Services industry average (21.8x).

PE vs Market: CAPAC is poor value based on its PE Ratio (21.9x) compared to the Swedish market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: CAPAC is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: CAPAC is good value based on its PB Ratio (1.1x) compared to the SE Professional Services industry average (2.8x).


Next Steps

Future Growth

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

80.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CAPAC's forecast earnings growth (80.2% per year) is above the savings rate (-0.4%).

Earnings vs Market: CAPAC's earnings (80.2% per year) are forecast to grow faster than the Swedish market (9.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CAPAC's revenue (10.4% per year) is forecast to grow faster than the Swedish market (4.4% per year).

High Growth Revenue: CAPAC's revenue (10.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CAPAC's Return on Equity is forecast to be low in 3 years time (13.6%).


Next Steps

Past Performance

How has Capacent Holding performed over the past 5 years?

-7.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CAPAC has high quality earnings.

Growing Profit Margin: CAPAC's current net profit margins (1.9%) are lower than last year (5.1%).


Past Earnings Growth Analysis

Earnings Trend: CAPAC's earnings have declined by -7% per year over the past 5 years.

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

Earnings vs Industry: CAPAC had negative earnings growth (-61.3%) over the past year, making it difficult to compare to the Professional Services industry average (-16.7%).


Return on Equity

High ROE: CAPAC's Return on Equity (4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Capacent Holding's financial position?


Financial Position Analysis

Short Term Liabilities: CAPAC's short term assets (SEK65.6M) do not cover its short term liabilities (SEK85.2M).

Long Term Liabilities: CAPAC's short term assets (SEK65.6M) exceed its long term liabilities (SEK29.3M).


Debt to Equity History and Analysis

Debt Level: CAPAC's debt to equity ratio (21.6%) is considered satisfactory.

Reducing Debt: CAPAC's debt to equity ratio has increased from 7.8% to 21.6% over the past 5 years.

Debt Coverage: CAPAC's debt is well covered by operating cash flow (48.9%).

Interest Coverage: CAPAC's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet

Inventory Level: CAPAC has a low level of unsold assets or inventory.

Debt Coverage by Assets: CAPAC's debt is covered by short term assets (assets are 2.9x debt).


Next Steps

Dividend

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

7.43%

Current Dividend Yield


Dividend Yield vs Market

company7.4%marketbottom25%1.6%markettop25%4.4%industryaverage2.2%forecastin3Years8.8%

Current dividend yield vs market & industry

Notable Dividend: CAPAC's dividend (7.41%) is higher than the bottom 25% of dividend payers in the Swedish market (1.57%).

High Dividend: CAPAC's dividend (7.41%) is in the top 25% of dividend payers in the Swedish market (4.45%)


Stability and Growth of Payments

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

Growing Dividend: CAPAC has only been paying a dividend for 4 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (162%), CAPAC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CAPAC's dividends in 3 years are forecast to be covered by earnings (74.7% payout ratio).


Next Steps

Management

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

2.4yrs

Average board tenure


CEO

Edvard Björkenheim (49yo)

0yrs

Tenure

kr1,987,000

Compensation

Mr. Edvard Björkenheim serves as Chief Executive Officer at Capacent Holding AB (publ) and has been it's President. He was Group Managing Director at since 2014. Mr. Björkenheim has been Managing Director  ...


CEO Compensation Analysis

Compensation vs Market: Edvard's total compensation ($USD209.97K) is about average for companies of similar size in the Swedish market ($USD235.67K).

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


Board Age and Tenure

2.4yrs

Average Tenure

55yo

Average Age

Experienced Board: CAPAC's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buykr138,00021 May 19
Edvard Björkenheim
EntityIndividual
Role
Chief Executive Officer
President & CEO
Shares3,000
Max Pricekr46.00

Ownership Breakdown

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


Management Team

  • Edvard Björkenheim (49yo)

    President & CEO

    • Compensation: kr1.99m
  • Mattias Ek (47yo)

    Chief Financial Officer

    • Tenure: 2yrs

Board Members

  • Per Granath (65yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: kr125.00k
  • Cecilia Lager (56yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: kr125.00k
  • Joakim Hörwing (54yo)

    Chairman of the Board

    • Tenure: 1yrs
  • Per Lindholm (75yo)

    Independent Director

    • Tenure: 8yrs
    • Compensation: kr125.00k
  • Anna Gernandt (38yo)

    Board Member

    • Tenure: 1yrs
  • Ilgi Duran (32yo)

    Independent Director

    • Tenure: 1yrs

Company Information

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


Key Information

  • Name: Capacent Holding AB (publ)
  • Ticker: CAPAC
  • Exchange: OM
  • Founded:
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: kr109.710m
  • Shares outstanding: 2.72m
  • Website: https://capacent.com

Location

  • Capacent Holding AB (publ)
  • Hamngatan 15
  • PO Box 7715
  • Stockholm
  • Stockholm County
  • 103 95
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CAPACOM (OMX Nordic Exchange Stockholm)YesCommon SharesSESEKOct 2015

Biography

Capacent Holding AB (publ) provides consulting services to industrial and service companies, B2B and B2C, private equity firms, financial institutions, and public sector entities. Its services include strategy and organization, finance and performance management, operations excellence, working capital management, market and customer excellence, pricing and revenue management, and business analytics. The company was formerly known as ABB Financial Consulting. Capacent Holding AB (publ) 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 Analysis2020/01/19 21:42
End of Day Share Price2020/01/17 00:00
Earnings2019/09/30
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.