OM:JM

Stock Analysis Report

Executive Summary

JM AB (publ) develops and sells housing and residential areas in the Nordic region.

Rewards

Trading at 12.7% below its fair value

Pays a high and reliable dividend of 4.23%

Risk Analysis

Earnings are forecast to decline by an average of -2.2% per year for the next 3 years

Debt is not well covered by operating cash flow

High level of non-cash earnings



Snowflake Analysis

Established dividend payer and fair value.


Similar Companies

Skanska

OM:SKA B

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.6%

JM

0.6%

SE Consumer Durables

1.1%

SE Market


1 Year Return

52.9%

JM

15.2%

SE Consumer Durables

25.5%

SE Market

Return vs Industry: JM exceeded the Swedish Consumer Durables industry which returned 16.2% over the past year.

Return vs Market: JM exceeded the Swedish Market which returned 26.1% over the past year.


Shareholder returns

JMIndustryMarket
7 Day0.6%0.6%1.1%
30 Day6.9%3.7%2.8%
90 Day11.9%0.2%9.0%
1 Year63.8%52.9%21.4%15.2%30.7%25.5%
3 Year29.8%10.5%10.3%-5.8%40.5%19.0%
5 Year37.7%9.8%35.6%11.5%58.1%24.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

12.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JM (SEK285.7) is trading below our estimate of fair value (SEK327.22)

Significantly Below Fair Value: JM is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: JM is good value based on its PE Ratio (13.3x) compared to the Consumer Durables industry average (17.3x).

PE vs Market: JM is good value based on its PE Ratio (13.3x) compared to the Swedish market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: JM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: JM is overvalued based on its PB Ratio (3x) compared to the SE Consumer Durables industry average (2.2x).


Next Steps

Future Growth

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

-1.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JM's earnings are forecast to decline over the next 3 years (-2.2% per year).

Earnings vs Market: JM's earnings are forecast to decline over the next 3 years (-2.2% per year).

High Growth Earnings: JM's earnings are forecast to decline over the next 3 years.

Revenue vs Market: JM's revenue is expected to decline over the next 3 years (-0.03% per year).

High Growth Revenue: JM's revenue is forecast to decline over the next 3 years (-0.03% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JM's Return on Equity is forecast to be low in 3 years time (15.8%).


Next Steps

Past Performance

How has JM performed over the past 5 years?

6.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JM has a high level of non-cash earnings.

Growing Profit Margin: JM's current net profit margins (9.3%) are lower than last year (10.3%).


Past Earnings Growth Analysis

Earnings Trend: JM's earnings have grown by 6.2% per year over the past 5 years.

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

Earnings vs Industry: JM had negative earnings growth (-9.9%) over the past year, making it difficult to compare to the Consumer Durables industry average (-17%).


Return on Equity

High ROE: JM's Return on Equity (22.2%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is JM's financial position?


Financial Position Analysis

Short Term Liabilities: JM's short term assets (SEK21.9B) exceed its short term liabilities (SEK9.8B).

Long Term Liabilities: JM's short term assets (SEK21.9B) exceed its long term liabilities (SEK5.8B).


Debt to Equity History and Analysis

Debt Level: JM's debt to equity ratio (90.1%) is considered high.

Reducing Debt: JM's debt to equity ratio has increased from 21.1% to 90.1% over the past 5 years.

Debt Coverage: JM's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: JM's interest payments on its debt are well covered by EBIT (31.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: JM's debt is covered by short term assets (assets are 3.6x debt).


Next Steps

Dividend

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

4.20%

Current Dividend Yield


Dividend Yield vs Market

company4.2%marketbottom25%1.6%markettop25%4.4%industryaverage3.8%forecastin3Years4.4%

Current dividend yield vs market & industry

Notable Dividend: JM's dividend (4.23%) is higher than the bottom 25% of dividend payers in the Swedish market (1.57%).

High Dividend: JM's dividend (4.23%) is low compared to the top 25% of dividend payers in the Swedish market (4.45%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.2%), JM's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: JM's dividends in 3 years are forecast to be covered by earnings (64.5% payout ratio).


Next Steps

Management

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

9.1yrs

Average management tenure


CEO

Johan Skoglund (57yo)

17.2yrs

Tenure

kr6,525,000

Compensation

Mr. Johan Skoglund has been the Chief Executive Officer and President of JM AB (publ) since November 1, 2002. Mr. Skoglund has been a Director of Castellum Aktiebolag since March 25, 2010. He has been Dire ...


Management Age and Tenure

9.1yrs

Average Tenure

52yo

Average Age

Experienced Management: JM's management team is seasoned and experienced (9.1 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

59yo

Average Age

Experienced Board: JM's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

Insider Buying: JM insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sellkr502,84012 Nov 19
Jan Strömberg
EntityIndividual
Role
Member of the Board of Directors
Employee Representative Director
Shares2,000
Max Pricekr251.42
Sellkr258,00023 Jul 19
Per Lundquist
EntityIndividual
Role
Chief Operating Officer
Director of Operations Development
Shares1,000
Max Pricekr258.00
Buykr180,90030 Apr 19
Per Lundquist
EntityIndividual
Role
Chief Operating Officer
Director of Operations Development
Shares1,000
Max Pricekr180.90
Buykr613,80021 Mar 19
Kaj-Gustaf Bergh
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,300
Max Pricekr186.00
Buykr129,43816 Mar 19
Martin Asp
EntityIndividual
Role
Unit President
President of JM Norge AS and Business Unit Manager of JM Norway & JM Finland
Shares705
Max Pricekr183.60
Buykr186,13022 Feb 19
Thomas Thuresson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max Pricekr186.13

Ownership Breakdown

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


Management Team

  • Sören Bergström (63yo)

    Acting Business Unit Manager JM Construction and President of JM Entreprenad prenad

    • Claes Åkesson (60yo)

      CFO & Head of IR

      • Tenure: 22yrs
    • Johan Skoglund (57yo)

      President & CEO

      • Tenure: 17.2yrs
      • Compensation: kr6.53m
    • Per Lundquist (52yo)

      Director of Operations Development

      • Tenure: 3.4yrs
    • Helena Söderberg (52yo)

      Director of Human Resources

      • Tenure: 9.1yrs
    • Martin Asp (46yo)

      President of JM Norge AS and Business Unit Manager of JM Norway & JM Finland

      • Maria Bäckman (46yo)

        Chief Legal Counsel of Legal Affairs & Development and Secretary of the Board

        • Tenure: 7.3yrs
      • Christian Benfatto

        Senior Executive of Civil Engineering - JM Entreprenad AB

        • Sepideh Imani

          Head of Communication & Analysis


          Board Members

          • Thomas Thuresson (62yo)

            Independent Director

            • Tenure: 3.8yrs
            • Compensation: kr452.00k
          • Eva Nygren (64yo)

            Independent Director

            • Tenure: 6.8yrs
            • Compensation: kr452.00k
          • Kaj-Gustaf Bergh (64yo)

            Independent Director

            • Tenure: 6.8yrs
            • Compensation: kr363.00k
          • Fredrik Persson (51yo)

            Chairman of the Board

            • Tenure: 2.8yrs
            • Compensation: kr870.00k
          • Olav Line (61yo)

            Independent Director

            • Tenure: 2.8yrs
            • Compensation: kr393.00k
          • Jonny Änges (57yo)

            Employee Representative Deputy Director

            • Tenure: 5yrs
          • Annie Ånäs (48yo)

            Director

            • Tenure: 0.8yrs
          • Jan Strömberg (60yo)

            Employee Representative Director

            • Tenure: 9yrs
          • Kerstin Gillsbro (58yo)

            Director

            • Tenure: 0.8yrs
          • Peter Olsson (42yo)

            Employee Representative Director

            • Tenure: 1.8yrs

          Company Information

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


          Key Information

          • Name: JM AB (publ)
          • Ticker: JM
          • Exchange: OM
          • Founded: 1945
          • Industry: Homebuilding
          • Sector: Consumer Durables
          • Market Cap: kr19.880b
          • Shares outstanding: 69.58m
          • Website: https://www.jm.se

          Number of Employees


          Location

          • JM AB (publ)
          • Gustav III:s Boulevard 64
          • Solna
          • Stockholm County
          • 169 82
          • Sweden

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          JMMDB (Deutsche Boerse AG)YesCommon SharesDEEURAug 1992
          JMOM (OMX Nordic Exchange Stockholm)YesCommon SharesSESEKAug 1992
          0MI3LSE (London Stock Exchange)YesCommon SharesGBSEKAug 1992
          JMSBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBSEKAug 1992

          Biography

          JM AB (publ) develops and sells housing and residential areas in the Nordic region. The company operates in five segments: JM Residential Stockholm, JM Residential Sweden, JM International, JM Property Development, and JM Construction. It is involved in the planning, pre-construction, production, management, and sale of residential units; the development of rental housing, residential care facilities, and commercial properties; and contract work, primarily in the Greater Stockholm area. The company was founded in 1945 and is headquartered in Solna, Sweden. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/17 20:52
          End of Day Share Price2020/01/17 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.