OM:SECU B

Stock Analysis Report

Executive Summary

Securitas AB offers security services in North America, Europe, Latin America, Africa, the Middle East, Asia, and Australia.


Snowflake Analysis

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

4.1%

SECU B

3.6%

SE Commercial Services

4.5%

SE Market


1 Year Return

-31.4%

SECU B

-37.8%

SE Commercial Services

-10.2%

SE Market

Return vs Industry: SECU B exceeded the Swedish Commercial Services industry which returned -34.4% over the past year.

Return vs Market: SECU B underperformed the Swedish Market which returned -7.1% over the past year.


Shareholder returns

SECU BIndustryMarket
7 Day4.1%3.6%4.5%
30 Day-26.0%-37.8%-23.1%
90 Day-37.1%-43.3%-23.8%
1 Year-29.5%-31.4%-35.9%-37.8%-7.4%-10.2%
3 Year-20.1%-26.4%-34.1%-39.8%-0.2%-15.4%
5 Year-7.4%-19.1%-25.1%-35.6%8.5%-14.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Securitas 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: SECU B (SEK103.05) is trading below our estimate of fair value (SEK213.44)

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


Price To Earnings Ratio

PE vs Industry: SECU B is good value based on its PE Ratio (11.2x) compared to the Commercial Services industry average (11.5x).

PE vs Market: SECU B is good value based on its PE Ratio (11.2x) compared to the Swedish market (14.4x).


Price to Earnings Growth Ratio

PEG Ratio: SECU B is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: SECU B is overvalued based on its PB Ratio (1.9x) compared to the SE Commercial Services industry average (1.6x).


Next Steps

Future Growth

How is Securitas forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

7.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SECU B's forecast earnings growth (7.8% per year) is above the savings rate (-0.4%).

Earnings vs Market: SECU B's earnings (7.8% per year) are forecast to grow faster than the Swedish market (7.8% per year).

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

Revenue vs Market: SECU B's revenue (3.4% per year) is forecast to grow slower than the Swedish market (4.1% per year).

High Growth Revenue: SECU B's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SECU B's Return on Equity is forecast to be low in 3 years time (18.3%).


Next Steps

Past Performance

How has Securitas performed over the past 5 years?

7.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SECU B has high quality earnings.

Growing Profit Margin: SECU B's current net profit margins (3%) are higher than last year (3%).


Past Earnings Growth Analysis

Earnings Trend: SECU B's earnings have grown by 7.9% per year over the past 5 years.

Accelerating Growth: SECU B's earnings growth over the past year (11.3%) exceeds its 5-year average (7.9% per year).

Earnings vs Industry: SECU B earnings growth over the past year (11.3%) underperformed the Commercial Services industry 11.3%.


Return on Equity

High ROE: SECU B's Return on Equity (17.2%) is considered low.


Next Steps

Financial Health

How is Securitas's financial position?


Financial Position Analysis

Short Term Liabilities: SECU B's short term assets (SEK27.1B) exceed its short term liabilities (SEK19.9B).

Long Term Liabilities: SECU B's short term assets (SEK27.1B) exceed its long term liabilities (SEK22.7B).


Debt to Equity History and Analysis

Debt Level: SECU B's debt to equity ratio (94.4%) is considered high.

Reducing Debt: SECU B's debt to equity ratio has reduced from 126.8% to 94.4% over the past 5 years.

Debt Coverage: SECU B's debt is well covered by operating cash flow (31.1%).

Interest Coverage: SECU B's interest payments on its debt are well covered by EBIT (9.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: SECU B's debt is covered by short term assets (assets are 1.5x debt).


Next Steps

Dividend

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

4.66%

Current Dividend Yield


Upcoming Dividend Payment

TodayMar 28 2020Ex Dividend DateMay 08 2020Dividend Pay DateMay 14 20206 days from Ex DividendBuy in the next 40 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: SECU B's dividend (4.66%) is higher than the bottom 25% of dividend payers in the Swedish market (2.1%).

High Dividend: SECU B's dividend (4.66%) is low compared to the top 25% of dividend payers in the Swedish market (6.51%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.2%), SECU B's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SECU B's dividends in 3 years are forecast to be covered by earnings (51.4% payout ratio).


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Magnus Ahlqvist (45yo)

2s

Tenure

kr24,166,200

Compensation

Mr. Magnus Ahlqvist has been President and Chief Executive Officer of Securitas AB since March 1, 2018. Mr. Ahlqvist was Divisional President of Security Services Europe at Securitas AB since September  ...


CEO Compensation Analysis

Compensation vs Market: Magnus's total compensation ($USD2.43M) is above average for companies of similar size in the Swedish market ($USD1.37M).

Compensation vs Earnings: Insufficient data to compare Magnus's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Magnus Ahlqvist
President & CEO2yrskr24.17m0.030% SEK11.3m
Alf Göransson
Advisor to the President & CEO2yrskr15.79mno data
Bart Adam
Chief Financial Officer7.17yrsno data0.010% SEK3.8m
Martin Althén
Chief Information Officer3.42yrsno data0.00045% SEK169.2k
Lisa Sjökvist
Head of Investor Relations & Acting Senior VP of Corporate Communicationsno datano datano data
Frida Rosenholm
Senior Vice President & General Counsel1.83yrsno data0.00013% SEK48.9k
Cathryn Halton
Marketing and Communications Director4.33yrsno datano data
William Barthelemy
no datano data0.017% SEK6.4m
Jan Lindström
Senior Vice President of Finance13.17yrsno data0.0031% SEK1.2m
Aimé Lyagre
COO & CTO of Security Services Europe9.5yrsno data0.0050% SEK1.9m

3.9yrs

Average Tenure

53yo

Average Age

Experienced Management: SECU B's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ulf Cappelen
Independent Director11.92yrskr865.00k0.0011% SEK413.7k
Marie Ehrling
Chairman3.83yrskr2.10m0.0027% SEK1.0m
Dick Lennart Seger
Independent Director2.83yrskr580.00k0.000010% SEK3.8k
Carl Douglas
Vice Chairman12.17yrskr895.00kno data
Don Walker
Chairman of Security Services Usano datano datano data
Anders Böös
Independent Director3.83yrskr760.00k0.0069% SEK2.6m
Sofia Högberg
Independent Director15.17yrskr760.00kno data
Susanne Israelsson
Employee Representative Director16.17yrsno datano data
Åse Hjelm
Employee Representative Director12.17yrsno data0.000030% SEK11.3k
Jan Prang
Employee Representative Director12.17yrsno datano data

12.2yrs

Average Tenure

60yo

Average Age

Experienced Board: SECU B's board of directors are seasoned and experienced ( 12.2 years average tenure).


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Securitas AB's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Securitas AB
  • Ticker: SECU B
  • Exchange: OM
  • Founded: 1934
  • Industry: Security and Alarm Services
  • Sector: Commercial Services
  • Market Cap: kr37.606b
  • Shares outstanding: 364.93m
  • Website: https://www.securitas.com

Number of Employees


Location

  • Securitas AB
  • Lindhagensplan 70
  • Stockholm
  • Stockholm County
  • 102 28
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SCTB.FOTCPK (Pink Sheets LLC)YesSeries B SharesUSUSDJan 1992
S7MBDB (Deutsche Boerse AG)YesSeries B SharesDEEURJan 1992
SECU BOM (OMX Nordic Exchange Stockholm)YesSeries B SharesSESEKJan 1992
0IAHLSE (London Stock Exchange)YesSeries B SharesGBSEKJan 1992
SECUBSBATS-CHIXE (BATS 'Chi-X Europe')YesSeries B SharesGBSEKJan 1992
SCTB.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

Biography

Securitas AB offers security services in North America, Europe, Latin America, Africa, the Middle East, Asia, and Australia. The company operates through three segments: Security Services North America, Security Services Europe, and Security Services Ibero-America. It primarily offers on-site, mobile and remote guarding, electronic security, fire and safety, and corporate risk management services. The company also provides aviation security, canine, executive protection, loss prevention, receptionist/concierge, remote video, response/call-out, screening, alarm, security consulting, guarding, and track and trace services. It serves small, medium, and large sized businesses, as well as residential sites. Securitas AB was founded in 1934 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 Analysis2020/03/27 20:51
End of Day Share Price2020/03/27 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.