OM:GUNN

Stock Analysis Report

Executive Summary

Gunnebo AB (publ) develops and supplies security products, services, and software for banks, retail, mass transit, public and commercial buildings, and industrial and high-risk sites.

Snowflake

Fundamentals

Fair value with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

5.5%

GUNN

1.9%

SE Commercial Services

1.9%

SE Market


1 Year Return

-0.6%

GUNN

13.6%

SE Commercial Services

9.6%

SE Market

Return vs Industry: GUNN underperformed the Swedish Commercial Services industry which returned 13.6% over the past year.

Return vs Market: GUNN underperformed the Swedish Market which returned 9.6% over the past year.


Shareholder returns

GUNNIndustryMarket
7 Day5.5%1.9%1.9%
30 Day3.2%0.1%-0.3%
90 Day-3.2%-2.6%0.7%
1 Year5.7%-0.6%17.1%13.6%14.3%9.6%
3 Year-29.1%-37.9%15.1%5.2%31.5%11.9%
5 Year-21.3%-34.2%77.1%49.9%66.2%30.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Gunnebo undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: GUNN (SEK24.1) is trading below our estimate of fair value (SEK48.33)

Significantly Undervalued: GUNN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GUNN is poor value based on its PE Ratio (17.1x) compared to the Commercial Services industry average (17.1x).

PE vs Market: GUNN is poor value based on its PE Ratio (17.1x) compared to the Swedish market (16.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: GUNN is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: GUNN is overvalued based on its PB Ratio (1.6x) compared to the SE Commercial Services industry average (1.6x).


Next Steps

Future Growth

How is Gunnebo forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

31.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GUNN's forecast earnings growth (31.1% per year) is above the savings rate (0.4%).

Earnings vs Market: GUNN's earnings (31.1% per year) are forecast to grow faster than the Swedish market (8.9% per year).

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

Revenue vs Market: GUNN's revenue (2.2% per year) is forecast to grow slower than the Swedish market (4.5% per year).

High Growth Revenue: GUNN's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: GUNN's Return on Equity is forecast to be low in 3 years time (15.6%).


Next Steps

Past Performance

How has Gunnebo performed over the past 5 years?

-9.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GUNN's earnings have declined by -9.7% per year over the past 5 years.

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

Earnings vs Industry: GUNN had negative earnings growth (-14.3%) over the past year, making it difficult to compare to the Commercial Services industry average (1.3%).


Return on Equity

High ROE: GUNN's Return on Equity (9.6%) is considered low.


Return on Assets

ROA vs Industry: GUNN's Return on Assets is below or equal to the Commercial Services industry average last year.


Return on Capital Employed

ROCE Improving: GUNN's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Gunnebo's financial position?


Financial Position Analysis

Short Term Liabilities: GUNN's short term assets (SEK2.7B) exceeds its short term liabilities (SEK1.6B)

Long Term Liabilities: GUNN's short term assets (2.7B) exceeds its long term liabilities (2.5B)


Debt to Equity History and Analysis

Debt Level: GUNN's debt to equity ratio (175.9%) is considered high

Reducing Debt: Insufficient data to determine if GUNN's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: GUNN's debt is not well covered by operating cash flow (12.3%).

Interest Coverage: GUNN's interest payments on its debt are well covered by EBIT (5.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: GUNN's debt is covered by short term assets (assets are 1.326840x debt).


Next Steps

Dividend

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

2.07%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%1.8%markettop25%4.8%industryaverage3.1%forecastin3Years4.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: GUNN's dividend (2.07%) is higher than the bottom 25% of dividend payers in the Swedish market (1.79%).

High Dividend: GUNN's dividend (2.07%) is low compared to the top 25% of dividend payers in the Swedish market (4.78%).

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

Growing Dividend: GUNN has only been paying a dividend for 9 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.4%), GUNN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GUNN's dividends in 3 years are forecast to be well covered by earnings (45.2% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Henrik Lange (58yo)

4.8yrs

Tenure

kr9,559,000

Compensation

Mr. Henrik Lange serves as the Chief Executive Officer and President of Gunnebo AB and served as its Acting Senior Vice President of Region EMEA since September 14, 2016. Mr. Lange served as Acting Chief F ...


CEO Compensation Analysis

Compensation vs. Market: Henrik's total compensation ($USD0.00) is too low to compare against companies of similar size in the Swedish market ($USD323.47K).

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


Management Age and Tenure

3.8yrs

Average Tenure

51yo

Average Age

Experienced Management: GUNN's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

6.2yrs

Average Tenure

56yo

Average Age

Experienced Board: GUNN's board of directors are considered experienced (6.2 years average tenure).


Insider Trading

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


Recent Insider Transactions

Buykr650,25019 Jul 19
Stefan Syrén
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Safe Storage & Integrated Security
Shares25,000
Max Pricekr26.01
Buykr296,28620 Nov 18
Eva Elmstedt
EntityIndividual
Role
Member of the Board of Directors
Director
Shares12,587
Max Pricekr23.70
Buykr944,00017 Nov 18
Göran Bille
EntityIndividual
Role
Member of the Board of Directors
Director
Shares40,000
Max Pricekr23.60

Ownership Breakdown


Management Team

  • Henrik Lange (58yo)

    President & CEO

    • Tenure: 4.8yrs
    • Compensation: kr9.56m
  • Robert Hermans (51yo)

    Senior Vice President of Entrance Control

    • Tenure: 9.8yrs
  • Stefan Syrén (53yo)

    Senior Vice President of Safe Storage & Integrated Security

    • Tenure: 1.4yrs
  • Karin Nordén (41yo)

    Senior Vice President of Marketing & Communications

    • Tenure: 2.8yrs
  • Sacha de La Noë (49yo)

    Senior Vice President of Asia-Pacific

    • Tenure: 4.8yrs
  • Christian Carlsson (44yo)

    Senior Vice President of Human Resources & Sustainability

    • Tenure: 2.8yrs
  • Christian Weisser (53yo)

    Senior Vice President of Business Unit Cash Management

    • Tenure: 0.7yrs
  • Susanne Larsson (51yo)

    Group CFO and Head of Finance & IT

    • Tenure: 4.1yrs
  • Dan Schroeder (55yo)

    Senior Vice President of Region Americas

    • Tenure: 3.8yrs

Board Members

  • Martin Svalstedt (56yo)

    Chairman

    • Tenure: 11.8yrs
  • Mikael Jönsson (56yo)

    Director

    • Tenure: 19.8yrs
  • Göran Bille (64yo)

    Director

    • Tenure: 11.8yrs
  • Eva Elmstedt (59yo)

    Director

    • Tenure: 4.8yrs
  • Charlotte Jansdotter Karlberg (56yo)

    Director

    • Tenure: 7.6yrs
  • Crister Carlsson (54yo)

    Employee Representative Director

    • Tenure: 0.8yrs
    • Compensation: kr38.70k
  • Anna Saether (48yo)

    Director

    • Tenure: 2.5yrs
  • Micke Fridström (55yo)

    Employee Representative Director

    • Tenure: 1.8yrs

Company Information

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


Key Information

  • Name: Gunnebo AB (publ)
  • Ticker: GUNN
  • Exchange: OM
  • Founded: 1764
  • Industry: Security and Alarm Services
  • Sector: Commercial Services
  • Market Cap: kr2.303b
  • Shares outstanding: 95.56m
  • Website: https://www.gunnebo.com

Number of Employees


Location

  • Gunnebo AB (publ)
  • PO Box 5181
  • Gothenburg
  • 402 26
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GUNNOM (OMX Nordic Exchange Stockholm)YesOrdinary SharesSESEKDec 1993
0GNXLSE (London Stock Exchange)YesOrdinary SharesGBSEKDec 1993
GUNNsBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBSEKDec 1993

Biography

Gunnebo AB (publ) develops and supplies security products, services, and software for banks, retail, mass transit, public and commercial buildings, and industrial and high-risk sites. It offers cash manage ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 20:32
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.