OM:SEMC

Stock Analysis Report

Executive Summary

Semcon AB (publ) operates as a technology company in the fields of engineering services and product information in Sweden, the United Kingdom, Norway, and internationally.

Snowflake

Fundamentals

Very undervalued with flawless balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.7%

SEMC

0.4%

SE Professional Services

2.1%

SE Market


1 Year Return

6.7%

SEMC

6.1%

SE Professional Services

12.1%

SE Market

Return vs Industry: SEMC exceeded the Swedish Professional Services industry which returned 6.1% over the past year.

Return vs Market: SEMC underperformed the Swedish Market which returned 12.1% over the past year.


Shareholder returns

SEMCIndustryMarket
7 Day-0.7%0.4%2.1%
30 Day-2.9%-3.7%1.9%
90 Day-0.5%-7.7%3.8%
1 Year12.0%6.7%18.5%6.1%16.8%12.1%
3 Year36.7%18.1%44.0%20.1%32.3%12.4%
5 Year42.9%14.6%122.4%74.2%63.0%28.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Semcon 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: SEMC (SEK54.2) is trading below our estimate of fair value (SEK150.85)

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


Price To Earnings Ratio

PE vs Industry: SEMC is good value based on its PE Ratio (10.3x) compared to the Professional Services industry average (14.8x).

PE vs Market: SEMC is good value based on its PE Ratio (10.3x) compared to the Swedish market (16.9x).


Price to Earnings Growth Ratio

Low PEG Ratio: SEMC is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: SEMC is good value based on its PB Ratio (1.7x) compared to the SE Professional Services industry average (2.7x).


Next Steps

Future Growth

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

16.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SEMC's forecast earnings growth (16.4% per year) is above the savings rate (0.4%).

Earnings vs Market: SEMC's earnings (16.4% per year) are forecast to grow faster than the Swedish market (9.1% per year).

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

Revenue vs Market: SEMC's revenue (4% per year) is forecast to grow slower than the Swedish market (4.6% per year).

High Growth Revenue: SEMC's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if SEMC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Semcon performed over the past 5 years?

9.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SEMC's earnings have grown by 9.7% per year over the past 5 years.

Accelerating Growth: SEMC's earnings growth over the past year (14.4%) exceeds its 5-year average (9.7% per year).

Earnings vs Industry: SEMC earnings growth over the past year (14.4%) exceeded the Professional Services industry -10.2%.


Return on Equity

High ROE: SEMC's Return on Equity (16.4%) is considered low.


Return on Assets

ROA vs Industry: SEMC has a higher Return on Assets than the Professional Services industry average last year.


Return on Capital Employed

ROCE Improving: SEMC has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Semcon's financial position?


Financial Position Analysis

Short Term Liabilities: SEMC's short term assets (SEK576.7M) exceeds its short term liabilities (SEK370.5M)

Long Term Liabilities: SEMC's short term assets (576.7M) exceeds its long term liabilities (152.4M)


Debt to Equity History and Analysis

Debt Level: SEMC is debt free.

Reducing Debt: SEMC has no debt compared to 5 years ago when its debt to equity ratio was 18.7%.

Debt Coverage: SEMC has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SEMC has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if SEMC's debt is covered by short term assets.


Next Steps

Dividend

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

5.54%

Current Dividend Yield


Dividend Yield vs Market

company5.5%marketbottom25%1.8%markettop25%4.7%industryaverage2.8%forecastin3Years5.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SEMC's dividend (5.54%) is higher than the bottom 25% of dividend payers in the Swedish market (1.81%).

High Dividend: SEMC's dividend (5.54%) is in the top 25% of dividend payers in the Swedish market (4.7%)

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

Growing Dividend: SEMC's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.9%), SEMC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SEMC's dividends in 3 years are forecast to be well covered by earnings (43.6% payout ratio).


Next Steps

Management

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

7.3yrs

Average management tenure


CEO

Markus Granlund (44yo)

7.5yrs

Tenure

0

Mr. Markus Granlund has been a Director at Alecta pensionsförsäkring, ömsesidigt since 2019. He has been the Chief Executive Officer and President of Semcon AB (also know as Compliant Logistics AB) April 2 ...


Management Age and Tenure

7.3yrs

Average Tenure

47.5yo

Average Age

Experienced Management: SEMC's management team is seasoned and experienced (7.3 years average tenure).


Board Age and Tenure

3.5yrs

Average Tenure

53.5yo

Average Age

Experienced Board: SEMC's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

Buykr245,30002 Sep 19
Tore Bertilsson
EntityIndividual
Role
Chairman of the Board
Chairman
Shares5,000
Max Pricekr49.06
Buykr11,59930 Jul 19
Carin Wiberg
EntityIndividual
Role
Chief Legal Officer
General Counsel
Shares216
Max Pricekr53.70
Buykr19,27829 Jul 19
Björn Strömberg
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares359
Max Pricekr53.70
Buykr16,21729 Jul 19
Johan Ekener
EntityIndividual
Role
Senior Key Executive
Business Area President of Product Information
Shares302
Max Pricekr53.70
Buykr28,94429 Jul 19
Markus Granlund
EntityIndividual
Role
Chief Executive Officer
President & CEO
Shares539
Max Pricekr53.70
Buykr52,98224 Jul 19
Markus Granlund
EntityIndividual
Role
Chief Executive Officer
President & CEO
Shares956
Max Pricekr55.42
Buykr29,15124 Jul 19
Johan Ekener
EntityIndividual
Role
Senior Key Executive
Business Area President of Product Information
Shares526
Max Pricekr55.42
Buykr11,47223 Jul 19
Carin Wiberg
EntityIndividual
Role
Chief Legal Officer
General Counsel
Shares207
Max Pricekr55.42
Buykr17,45723 Jul 19
Björn Strömberg
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares315
Max Pricekr55.42
Buykr23,47514 May 19
Carin Wiberg
EntityIndividual
Role
Chief Legal Officer
General Counsel
Shares387
Max Pricekr60.66
Buykr58,77914 May 19
Markus Granlund
EntityIndividual
Role
Chief Executive Officer
President & CEO
Shares969
Max Pricekr60.66
Buykr32,87713 May 19
Johan Ekener
EntityIndividual
Role
Senior Key Executive
Business Area President of Product Information
Shares542
Max Pricekr60.66
Buykr39,18613 May 19
Björn Strömberg
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares646
Max Pricekr60.66
Buykr43,77506 May 19
Johan Ekener
EntityIndividual
Role
Senior Key Executive
Business Area President of Product Information
Shares732
Max Pricekr59.80
Buykr26,19303 May 19
Björn Strömberg
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares438
Max Pricekr59.80
Buykr17,22303 May 19
Carin Wiberg
EntityIndividual
Role
Chief Legal Officer
General Counsel
Shares288
Max Pricekr59.80
Buykr79,47703 May 19
Markus Granlund
EntityIndividual
Role
Chief Executive Officer
President & CEO
Shares1,329
Max Pricekr59.80
Buykr71,42026 Feb 19
Markus Granlund
EntityIndividual
Role
Chief Executive Officer
President & CEO
Shares1,304
Max Pricekr54.77
Buykr28,59026 Feb 19
Carin Wiberg
EntityIndividual
Role
Chief Legal Officer
General Counsel
Shares522
Max Pricekr54.77
Buykr39,98226 Feb 19
Johan Ekener
EntityIndividual
Role
Senior Key Executive
Business Area President of Product Information
Shares730
Max Pricekr54.77
Buykr47,59526 Feb 19
Björn Strömberg
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares869
Max Pricekr54.77
Buykr58,39722 Feb 19
Johan Ekener
EntityIndividual
Role
Senior Key Executive
Business Area President of Product Information
Shares1,061
Max Pricekr55.04
Buykr106,00722 Feb 19
Markus Granlund
EntityIndividual
Role
Chief Executive Officer
President & CEO
Shares1,926
Max Pricekr55.04
Buykr149,55019 Nov 18
Tore Bertilsson
EntityIndividual
Role
Chairman of the Board
Chairman
Shares3,000
Max Pricekr49.85
Buykr17,23009 Nov 18
Carin Wiberg
EntityIndividual
Role
Chief Legal Officer
General Counsel
Shares327
Max Pricekr52.69
Buykr30,37704 Nov 18
Johan Ekener
EntityIndividual
Role
Senior Key Executive
Business Area President of Product Information
Shares571
Max Pricekr53.20
Buykr36,12302 Nov 18
Björn Strömberg
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares679
Max Pricekr53.20
Buykr21,65202 Nov 18
Carin Wiberg
EntityIndividual
Role
Chief Legal Officer
General Counsel
Shares407
Max Pricekr53.20
Buykr108,42202 Nov 18
Markus Granlund
EntityIndividual
Role
Chief Executive Officer
President & CEO
Shares2,038
Max Pricekr53.20

Ownership Breakdown


Management Team

  • Björn Strömberg (59yo)

    Chief Financial Officer

    • Tenure: 12.2yrs
  • Carin Wiberg (41yo)

    General Counsel

    • Tenure: 7.3yrs
  • Markus Granlund (44yo)

    President & CEO

    • Tenure: 7.5yrs
  • Johan Ekener (55yo)

    Business Area President of Product Information

    • Tenure: 15.8yrs
  • Mats Sällberg (52yo)

    VP & Employee Representative Director

    • Tenure: 5.6yrs
  • Per Nilsson (44yo)

    Director of Corporate Communications & Marketing

    • Tenure: 4.2yrs
  • Karin Eklund

    Head of User Experience

    • Tenure: 0yrs
  • Karin Russberg (50yo)

    Director of HR & Sustainability

    • Tenure: 2.2yrs
  • Daniel Rundgren (45yo)

    President of Engineering & Digital Services

    • Tenure: 1.2yrs
  • Sofia Lindqvist

    Investor relations Manager

    • Tenure: 0yrs

Board Members

  • Tore Bertilsson (68yo)

    Chairman

    • Tenure: 3.5yrs
  • Karl Thedéen (56yo)

    Director

    • Tenure: 3.5yrs
  • Christer Eriksson (50yo)

    Employee Representative Director

    • Tenure: 12.8yrs
  • Jeanette Reuterskiöld (45yo)

    Director

    • Tenure: 3.5yrs
  • Mats Sällberg (52yo)

    VP & Employee Representative Director

    • Tenure: 5.6yrs
  • Lars-Ove Jansson (55yo)

    Employee Representative Director

    • Tenure: 1.8yrs
  • Carl Backman

    Director

    • Tenure: 0.5yrs
  • Eva Elmstand

    Director

    • Tenure: 0.5yrs

Company Information

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


Key Information

  • Name: Semcon AB (publ)
  • Ticker: SEMC
  • Exchange: OM
  • Founded: 1980
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: kr944.532m
  • Shares outstanding: 17.43m
  • Website: https://www.semcon.com

Number of Employees


Location

  • Semcon AB (publ)
  • Lindholmsallén 2
  • Gothenburg
  • Västra Götaland County
  • 417 80
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SEMCOM (OMX Nordic Exchange Stockholm)YesCommon SharesSESEKMay 1997
SZVBST (Boerse-Stuttgart)YesCommon SharesDEEURMay 1997
0O9PLSE (London Stock Exchange)YesCommon SharesGBSEKMay 1997
SEMCSBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBSEKMay 1997

Biography

Semcon AB (publ) operates as a technology company in the fields of engineering services and product information in Sweden, the United Kingdom, Norway, and internationally. The company operates through the  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 20:45
End of Day Share Price2019/10/18 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.