OM:INTRUM

Stock Analysis Report

Executive Summary

Intrum AB (publ), together with its subsidiaries, provides credit management and financial services in Europe and internationally.

Rewards

Trading at 83.3% below its fair value

Earnings are forecast to grow 26.45% per year

Earnings grew by 35.5% over the past year

Pays a high and reliable dividend of 3.44%

Risk Analysis

Interest payments are not well covered by earnings



Snowflake Analysis

Very undervalued with solid track record and pays a dividend.


Similar Companies

Encore Capital Group

NasdaqGS:ECPG

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.2%

INTRUM

-2.1%

SE Commercial Services

-1.0%

SE Market


1 Year Return

17.0%

INTRUM

16.9%

SE Commercial Services

23.4%

SE Market

Return vs Industry: INTRUM underperformed the Swedish Commercial Services industry which returned 18.4% over the past year.

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


Shareholder returns

INTRUMIndustryMarket
7 Day0.2%-2.1%-1.0%
30 Day-2.0%-3.6%0.7%
90 Day1.8%0.2%5.8%
1 Year21.5%17.0%20.5%16.9%28.6%23.4%
3 Year-1.1%-11.3%15.8%5.7%36.4%15.4%
5 Year48.0%25.3%54.8%32.7%52.0%19.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Intrum 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: INTRUM (SEK275.8) is trading below our estimate of fair value (SEK1654.13)

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


Price To Earnings Ratio

PE vs Industry: INTRUM is good value based on its PE Ratio (14.1x) compared to the Commercial Services industry average (17.3x).

PE vs Market: INTRUM is good value based on its PE Ratio (14.1x) compared to the Swedish market (19.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: INTRUM is good value based on its PB Ratio (1.4x) compared to the SE Commercial Services industry average (1.8x).


Next Steps

Future Growth

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

26.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INTRUM's forecast earnings growth (26.5% per year) is above the savings rate (-0.4%).

Earnings vs Market: INTRUM's earnings (26.5% 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: INTRUM's revenue (13.1% per year) is forecast to grow faster than the Swedish market (4.4% per year).

High Growth Revenue: INTRUM's revenue (13.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: INTRUM's Return on Equity is forecast to be low in 3 years time (14%).


Next Steps

Past Performance

How has Intrum performed over the past 5 years?

18.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INTRUM has high quality earnings.

Growing Profit Margin: INTRUM's current net profit margins (17.3%) are higher than last year (14.5%).


Past Earnings Growth Analysis

Earnings Trend: INTRUM's earnings have grown by 18.5% per year over the past 5 years.

Accelerating Growth: INTRUM's earnings growth over the past year (35.5%) exceeds its 5-year average (18.5% per year).

Earnings vs Industry: INTRUM earnings growth over the past year (35.5%) exceeded the Commercial Services industry 5.9%.


Return on Equity

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


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Intrum's financial position?


Financial Position Analysis

Short Term Liabilities: INTRUM's short term assets (SEK10.5B) exceed its short term liabilities (SEK9.3B).

Long Term Liabilities: INTRUM's short term assets (SEK10.5B) do not cover its long term liabilities (SEK48.6B).


Debt to Equity History and Analysis

Debt Level: INTRUM's debt to equity ratio (177.1%) is considered high.

Reducing Debt: INTRUM's debt to equity ratio has increased from 175.7% to 177.1% over the past 5 years.

Debt Coverage: INTRUM's debt is not well covered by operating cash flow (13%).

Interest Coverage: INTRUM's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: INTRUM's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

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

3.48%

Current Dividend Yield


Dividend Yield vs Market

company3.5%marketbottom25%1.6%markettop25%4.5%industryaverage3.0%forecastin3Years5.9%

Current dividend yield vs market & industry

Notable Dividend: INTRUM's dividend (3.44%) is higher than the bottom 25% of dividend payers in the Swedish market (1.57%).

High Dividend: INTRUM's dividend (3.44%) is low compared to the top 25% of dividend payers in the Swedish market (4.45%).


Stability and Growth of Payments

Stable Dividend: INTRUM's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48.5%), INTRUM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: INTRUM's dividends in 3 years are forecast to be well covered by earnings (49.5% payout ratio).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Mikael Ericson (59yo)

3.8yrs

Tenure

kr13,131,000

Compensation

Mr. Mikael Ericson has been Chief Executive Officer and President of Lindorff Group AB since June 2017. Mr. Ericson has been the Chief Executive Officer and President of Intrum Justitia AB since March 1, 2 ...


CEO Compensation Analysis

Compensation vs Market: Mikael's total compensation ($USD1.39M) is above average for companies of similar size in the Swedish market ($USD1.01M).

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


Management Age and Tenure

2.6yrs

Average Tenure

49.5yo

Average Age

Experienced Management: INTRUM's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

2.5yrs

Average Tenure

54yo

Average Age

Experienced Board: INTRUM's board of directors are not considered experienced ( 2.5 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

Buykr125,86319 Sep 19
Mikael Ericson
EntityIndividual
Role
Chief Executive Officer
CEO & President
Shares500
Max Pricekr251.73
Sellkr250,53319 Sep 19
Mikael Ericson
EntityIndividual
Role
Chief Executive Officer
CEO & President
Shares1,000
Max Pricekr250.53
Buykr971,77403 May 19
Anders Engdahl
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares4,000
Max Pricekr242.94
Buykr490,00003 May 19
Mikael Ericson
EntityIndividual
Role
Chief Executive Officer
CEO & President
Shares2,000
Max Pricekr245.00
Sellkr11,140,00001 Mar 19
Marc Knothe
EntityIndividual
Shares40,000
Max Pricekr278.50

Ownership Breakdown

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


Management Team

  • Mats Gustafsson

    Acting Regional Managing Director of Scandinavia and Director of Group Business Development

    • Tenure: 11.3yrs
  • Mikael Ericson (59yo)

    CEO & President

    • Tenure: 3.8yrs
    • Compensation: kr13.13m
  • Niklas Lundquist (49yo)

    Chief Legal Officer

    • Tenure: 2.6yrs
  • Per Christofferson (51yo)

    Managing Director of Credit Management Services

    • Johan Brodin (51yo)

      Chief Risk Officer & CTO

      • Harry Vranjes (49yo)

        Chief Operating Officer

        • Jean-Luc Ferraton (46yo)

          Chief Human Resources Officer

          • Tenure: 7.8yrs
        • Anders Engdahl (45yo)

          Chief Financial Officer

          • Tenure: 0.7yrs
        • Anna Fall (50yo)

          Chief Brand & Communications Officer

          • Tenure: 1.3yrs
        • Viktor Lindeberg

          Head of Investor Relations

          • Tenure: 0.5yrs

        Board Members

        • Kristoffer Melinder (48yo)

          Director

          • Tenure: 2.5yrs
          • Compensation: kr600.00k
        • Per Larsson (58yo)

          Chairman

          • Tenure: 3yrs
          • Compensation: kr1.31m
        • Magnus Yngen (61yo)

          Deputy Chairman

          • Tenure: 2.5yrs
          • Compensation: kr700.00k
        • Ragnhild Wiborg (58yo)

          Independent Director

          • Tenure: 4.8yrs
          • Compensation: kr800.00k
        • Erik Näsvik (44yo)

          Director

          • Tenure: 3yrs
          • Compensation: kr600.00k
        • Magdalena Persson (48yo)

          Independent Director

          • Tenure: 1.8yrs
          • Compensation: kr600.00k
        • Hans Torsten Larsson (58yo)

          Independent Director

          • Tenure: 2.5yrs
          • Compensation: kr750.00k
        • Liv Fiksdahl (54yo)

          Director

          • Tenure: 0.8yrs
        • Andrés Rubio (51yo)

          Director

          • Tenure: 0.8yrs

        Company Information

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


        Key Information

        • Name: Intrum AB (publ)
        • Ticker: INTRUM
        • Exchange: OM
        • Founded: 1923
        • Industry: Diversified Support Services
        • Sector: Commercial Services
        • Market Cap: kr35.786b
        • Shares outstanding: 130.94m
        • Website: https://www.intrum.com

        Number of Employees


        Location

        • Intrum AB (publ)
        • Hesselmans Torg 14
        • Nacka
        • Stockholm
        • Stockholm County
        • 105 24
        • Sweden

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        INTRUMOM (OMX Nordic Exchange Stockholm)YesShare CapitalSESEKJun 2002
        0H9PLSE (London Stock Exchange)YesShare CapitalGBSEKJun 2002
        IJUDB (Deutsche Boerse AG)YesShare CapitalDEEURJun 2002
        ITJT.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDMar 2013

        Biography

        Intrum AB (publ), together with its subsidiaries, provides credit management and financial services in Europe and internationally. The company offers credit optimization services, including credit monitoring, credit decision, factoring, and credit information services; and debt collection, surveillance, and purchase services. It also provides payment services, such as reminder, payment guarantee, and VAT services; e-commerce services comprising credit management, payment solutions, and collection services; and accounts receivables services that include invoicing, payment booking, monitoring of due dates, reminder, and collection services; and factoring and portfolio investments. Intrum AB (publ) has strategic agreement with Piraeus Bank S.A. The company was formerly known as Intrum Justitia AB (publ). Intrum AB (publ) was founded in 1923 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 Analysis2020/01/23 20:43
        End of Day Share Price2020/01/23 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.