OM:HUSQ B

Stock Analysis Report

Executive Summary

Husqvarna AB (publ) produces and sells outdoor power and garden watering products worldwide.


Snowflake Analysis

Solid track record with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.4%

HUSQ B

-1.2%

SE Consumer Durables

0.09%

SE Market


1 Year Return

-6.5%

HUSQ B

-1.2%

SE Consumer Durables

22.0%

SE Market

Return vs Industry: HUSQ B underperformed the Swedish Consumer Durables industry which returned -1.2% over the past year.

Return vs Market: HUSQ B underperformed the Swedish Market which returned 22% over the past year.


Shareholder returns

HUSQ BIndustryMarket
7 Day-1.4%-1.2%0.09%
30 Day-4.3%-3.0%4.7%
90 Day-5.6%-2.7%11.1%
1 Year-3.6%-6.5%3.5%-1.2%26.9%22.0%
3 Year2.0%-6.3%-3.1%-10.3%40.1%18.9%
5 Year27.0%10.6%7.3%-11.7%46.5%15.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

40.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HUSQ B (SEK72.16) is trading below our estimate of fair value (SEK120.2)

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


Price To Earnings Ratio

PE vs Industry: HUSQ B is poor value based on its PE Ratio (16.3x) compared to the Consumer Durables industry average (15.6x).

PE vs Market: HUSQ B is good value based on its PE Ratio (16.3x) compared to the Swedish market (20x).


Price to Earnings Growth Ratio

PEG Ratio: HUSQ B is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: HUSQ B is good value based on its PB Ratio (2.4x) compared to the SE Consumer Durables industry average (2.4x).


Next Steps

Future Growth

How is Husqvarna forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

10.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HUSQ B's forecast earnings growth (10.8% per year) is above the savings rate (-0.4%).

Earnings vs Market: HUSQ B's earnings (10.8% per year) are forecast to grow faster than the Swedish market (8.1% per year).

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

Revenue vs Market: HUSQ B's revenue (2.7% per year) is forecast to grow slower than the Swedish market (4.7% per year).

High Growth Revenue: HUSQ B's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HUSQ B's Return on Equity is forecast to be low in 3 years time (16.3%).


Next Steps

Past Performance

How has Husqvarna performed over the past 5 years?

9.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HUSQ B has high quality earnings.

Growing Profit Margin: HUSQ B's current net profit margins (6%) are higher than last year (2.9%).


Past Earnings Growth Analysis

Earnings Trend: HUSQ B's earnings have grown by 9.3% per year over the past 5 years.

Accelerating Growth: HUSQ B's earnings growth over the past year (108.5%) exceeds its 5-year average (9.3% per year).

Earnings vs Industry: HUSQ B earnings growth over the past year (108.5%) exceeded the Consumer Durables industry -1.7%.


Return on Equity

High ROE: HUSQ B's Return on Equity (14.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Husqvarna's financial position?


Financial Position Analysis

Short Term Liabilities: HUSQ B's short term assets (SEK18.2B) exceed its short term liabilities (SEK11.3B).

Long Term Liabilities: HUSQ B's short term assets (SEK18.2B) exceed its long term liabilities (SEK13.4B).


Debt to Equity History and Analysis

Debt Level: HUSQ B's debt to equity ratio (58%) is considered high.

Reducing Debt: HUSQ B's debt to equity ratio has reduced from 62.3% to 58% over the past 5 years.

Debt Coverage: HUSQ B's debt is well covered by operating cash flow (49%).

Interest Coverage: HUSQ B's interest payments on its debt are well covered by EBIT (6.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: HUSQ B's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

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

3.12%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Husqvarna before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.1%marketbottom25%1.6%markettop25%4.2%industryaverage3.9%forecastin3Years3.8%

Current dividend yield vs market & industry

Notable Dividend: HUSQ B's dividend (3.12%) is higher than the bottom 25% of dividend payers in the Swedish market (1.57%).

High Dividend: HUSQ B's dividend (3.12%) is low compared to the top 25% of dividend payers in the Swedish market (4.25%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.9%), HUSQ B's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HUSQ B's dividends in 3 years are forecast to be covered by earnings (50.1% payout ratio).


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Kai Wärn (60yo)

6.6yrs

Tenure

0

Mr. Kai Wärn has been the Chief Executive Officer and President of Husqvarna AB (publ) since July 01, 2013. Mr. Wärn served as an Industrial Adviser at IK Investment Partners. He looks after investments in ...


CEO Compensation Analysis

Compensation vs Market: Kai's total compensation ($USD0.00) is below average for companies of similar size in the Swedish market ($USD1.06M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kai Wärn
CEO, President & Director6.6yrsno data0.085% SEK35.0m
Glen Instone
CFO and Senior VP of Finance1.3yrsno data0.0045% SEK1.8m
Anders Johanson
Senior VP of Innovation & Technology and CTO4.3yrsno data0.0031% SEK1.3m
Pavel Hajman
Chief Information Officer & Senior VP of Operations Development0.3yrsno data0.018% SEK7.3m
Brian Belanger
Senior VP of Legal Affairs & General Counsel and Secretary to Board4.8yrsno data0.0076% SEK3.1m
Leigh Dagberg
Senior Vice President of People & Organization1.3yrsno data0.0023% SEK937.4k
Per Ericson
Senior Vice President of Business Development1.3yrsno data0.016% SEK6.7m
Sascha Menges
President of Husqvarna Division5.1yrsno data0.019% SEK8.0m
Henric Andersson
President of Construction Division4.4yrsno data0.0098% SEK4.0m
Pär Åström
President of Gardena Division2yrsno data0.011% SEK4.5m

3.2yrs

Average Tenure

49.5yo

Average Age

Experienced Management: HUSQ B's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kai Wärn
CEO, President & Director6.6yrsno data0.085% SEK35.0m
Thomas Johnstone
Independent Chairman of the Board4.8yrskr2.02m0.0028% SEK1.1m
Lars Pettersson
Independent Director5.8yrskr605.00k0.00087% SEK359.3k
Ulla Litzén
Independent Director9.8yrskr745.00k0.0018% SEK722.7k
Daniel Nodhäll
Independent Director6.8yrskr650.00k0.0018% SEK722.7k
Christine Robins
Independent Director2.8yrskr545.00kno data
Katarina Martinson
Independent Director7.9yrskr650.00k0.086% SEK35.5m
Bertrand Neuschwander
Independent Director3.8yrskr605.00k0.0013% SEK541.0k
Dan Byström
Deputy Director2.1yrsno datano data
Anders Köhler
Deputy Employee Representative of the Board of Director1.1yrsno data0.00019% SEK78.5k

5.3yrs

Average Tenure

58.5yo

Average Age

Experienced Board: HUSQ B's board of directors are considered experienced (5.3 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

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


Key Information

  • Name: Husqvarna AB (publ)
  • Ticker: HUSQ B
  • Exchange: OM
  • Founded: 1689
  • Industry: Household Appliances
  • Sector: Consumer Durables
  • Market Cap: kr41.295b
  • Shares outstanding: 572.20m
  • Website: https://www.husqvarnagroup.com/en

Number of Employees


Location

  • Husqvarna AB (publ)
  • Regeringsgatan 28
  • Stockholm
  • Stockholm County
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HUSQ BOM (OMX Nordic Exchange Stockholm)YesClass B SharesSESEKJun 2006
HUSQ AOM (OMX Nordic Exchange Stockholm)Class A SharesSESEKJun 2006
HRZDB (Deutsche Boerse AG)YesClass B SharesDEEURJun 2006
0GWILSE (London Stock Exchange)Class A SharesGBSEKJun 2006
0GTRLSE (London Stock Exchange)YesClass B SharesGBSEKJun 2006
HUSQ.FOTCPK (Pink Sheets LLC)YesClass B SharesUSUSDJun 2006
HUSQBSBATS-CHIXE (BATS 'Chi-X Europe')YesClass B SharesGBSEKJun 2006
HUSQASBATS-CHIXE (BATS 'Chi-X Europe')Class A SharesGBSEKJun 2006
HUQV.FOTCPK (Pink Sheets LLC)Class A SharesUSUSDJun 2006
HRZADB (Deutsche Boerse AG)Class A SharesDEEURJun 2006
HSQV.YOTCPK (Pink Sheets LLC)SPON ADRUSUSDJun 2006

Biography

Husqvarna AB (publ) produces and sells outdoor power and garden watering products worldwide. It operates through three divisions: Husqvarna, Gardena, and Construction. The Husqvarna division offers handheld products, such as chainsaws, brush cutters, trimmers, and leaf blowers; wheeled products, such as front riders, garden tractors, zero-turn mowers, walk-behind mowers, and snow throwers; robotic lawn mowers; and accessories and spare parts. The Gardena division provides watering management products, including garden hoses, connectors, reels, sprayers, sprinklers and sprinkler systems, water pumps, and watering controls; battery-and petrol-powered products, such as robotic mowers, trimmers, hedge cutters, and shrub shears; and garden tools comprising secateurs, loppers, axes, digging tools, and winter tools, as well as smart products consisting of Gardena Smart System, a connected automatic lawn care and water management solution. The Construction division offers construction products that include power cutters, drill motors, floor grinding machines, dust and slurry solutions, demolition robots, and diamond tools for construction and stone industries, as well as floor, tile and masonry, wall, and wire saws; and light compaction and concrete placement equipment. The company sells its products and solutions to forestry, tree care, landscaping, commercial lawn, and garden services sectors, as well as home and landowners primarily under the Husqvarna, Gardena, Diamant Boart, Zenoah, McCulloch, Jonsered, Flymo, and Klippo brands through dealers and retailers. Husqvarna AB (publ) was founded in 1689 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 Analysis2020/02/22 21:29
End of Day Share Price2020/02/21 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.