OM:GREEN

Stock Analysis Report

Green Landscaping Group

Executive Summary

Green Landscaping Group AB (publ) provides maintenance and planning services for outdoor environments in Sweden.

Rewards

Trading at 75.3% below its fair value

Earnings are forecast to grow 41.82% per year

Became profitable this year

Risk Analysis

Interest payments are not well covered by earnings

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

Does not have a meaningful market cap (SEK893M)



Snowflake Analysis

Reasonable growth potential with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: GREEN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.5%

GREEN

-5.4%

SE Commercial Services

-1.6%

SE Market


1 Year Return

-22.5%

GREEN

-40.1%

SE Commercial Services

-12.2%

SE Market

Return vs Industry: GREEN exceeded the Swedish Commercial Services industry which returned -38.6% over the past year.

Return vs Market: GREEN underperformed the Swedish Market which returned -11.6% over the past year.


Shareholder returns

GREENIndustryMarket
7 Day2.5%-5.4%-1.6%
30 Day-18.1%-34.7%-18.7%
90 Day-32.3%-43.4%-22.6%
1 Year-22.5%-22.5%-38.3%-40.1%-10.0%-12.2%
3 Yearn/a-36.1%-41.6%0.7%-13.9%
5 Yearn/a-27.6%-37.8%6.6%-15.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Green Landscaping Group 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: GREEN (SEK24.2) is trading below our estimate of fair value (SEK98.09)

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


Price To Earnings Ratio

PE vs Industry: GREEN is poor value based on its PE Ratio (120.7x) compared to the Commercial Services industry average (10.8x).

PE vs Market: GREEN is poor value based on its PE Ratio (120.7x) compared to the Swedish market (14.8x).


Price to Earnings Growth Ratio

PEG Ratio: GREEN is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: GREEN is overvalued based on its PB Ratio (4x) compared to the SE Commercial Services industry average (1.5x).


Next Steps

Future Growth

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

41.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GREEN's forecast earnings growth (41.8% per year) is above the savings rate (-0.4%).

Earnings vs Market: GREEN's earnings (41.8% per year) are forecast to grow faster than the Swedish market (8% per year).

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

Revenue vs Market: GREEN's revenue (8.1% per year) is forecast to grow faster than the Swedish market (4.1% per year).

High Growth Revenue: GREEN's revenue (8.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GREEN's Return on Equity is forecast to be low in 3 years time (18.1%).


Next Steps

Past Performance

How has Green Landscaping Group performed over the past 5 years?

56.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GREEN has high quality earnings.

Growing Profit Margin: GREEN became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GREEN has become profitable over the past 5 years, growing earnings by 56.8% per year.

Accelerating Growth: GREEN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GREEN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Commercial Services industry (11.3%).


Return on Equity

High ROE: GREEN's Return on Equity (3.3%) is considered low.


Next Steps

Financial Health

How is Green Landscaping Group's financial position?


Financial Position Analysis

Short Term Liabilities: GREEN's short term assets (SEK488.5M) do not cover its short term liabilities (SEK497.9M).

Long Term Liabilities: GREEN's short term assets (SEK488.5M) do not cover its long term liabilities (SEK647.4M).


Debt to Equity History and Analysis

Debt Level: GREEN's debt to equity ratio (229%) is considered high.

Reducing Debt: GREEN's debt to equity ratio has reduced from 233% to 229% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: GREEN's debt is not covered by short term assets (assets are 1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: GREEN is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: GREEN is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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

2.86%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate GREEN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate GREEN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GREEN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GREEN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GREEN'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?

2.3yrs

Average board tenure


CEO

Johan Nordström (54yo)

5.25s

Tenure

kr3,400,000

Compensation

Mr. Johan Nordström has been the Chief Executive Officer of Green Landscaping Holding AB (publ) since 2015 and serves as its Director since 2018. Other current assignments: Board member in Johan Nordst ...


CEO Compensation Analysis

Compensation vs Market: Johan's total compensation ($USD336.23K) is above average for companies of similar size in the Swedish market ($USD214.61K).

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


Board Members

NamePositionTenureCompensationOwnership
Johan Nordström
CEO & Director5.25yrskr3.40m10.15% SEK91.8m
Stefan Dahlbo
Director1.25yrsno datano data
Staffan Salén
Director2.25yrsno data18.28% SEK165.3m
Åsa Källenius
Independent Director2.17yrskr200.00k0.14% SEK1.3m
Per Sjöstrand
Chairman of the Board8.25yrskr300.00k4.52% SEK40.9m
Monica Trolle
Independent Director2.25yrskr200.00k0.077% SEK697.6k

2.3yrs

Average Tenure

54yo

Average Age

Experienced Board: GREEN's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 21.8%.


Top Shareholders

Company Information

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


Key Information

  • Name: Green Landscaping Group AB (publ)
  • Ticker: GREEN
  • Exchange: OM
  • Founded: 2008
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: kr904.320m
  • Shares outstanding: 36.91m
  • Website: https://www.greenlandscapinggroup.se

Number of Employees


Location

  • Green Landscaping Group AB (publ)
  • Klarabergsviadukten 70
  • Stockholm
  • Stockholm County
  • 111 64
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GREENOM (OMX Nordic Exchange Stockholm)YesShare CapitalSESEKMar 2018

Biography

Green Landscaping Group AB (publ) provides maintenance and planning services for outdoor environments in Sweden. It operates in three segments: Ground Maintenance & Landscaping, Sports Landscaping, and Arborist Services. The Ground Maintenance & Landscaping segment offers a range of green area maintenance services, including cleaning, lawn mowing, pruning, planting, harvesting, and road maintenance; and snow and ice removal services. It also provides landscaping services comprising project planning, surface planning, and renovation of green areas, as well as undertakes construction projects, such as playgrounds, sedum roofs, and other outdoor structures. This segment serves county councils, municipalities, property managers, property companies, and other owners or managers of green areas. The Sports Landscaping segment offers services, such as consulting and product sales, as well as maintenance of sports and leisure facilities, including golf courses and football fields; and planting and renovation of natural grass and hybrid grass pitches. The Arborist Services segment engages in the provision of consulting, tree care and felling, and biomass management services; administration and management of forested areas; and planting and maintenance of new trees. This segment serves land owners, such as municipalities and government authorities, as well as property owners, construction companies, housing cooperatives, and community associations. The company was founded in 2008 and 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 Analysis2020/04/03 23:30
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.