OM:NEWA B

Stock Analysis Report

Executive Summary

New Wave Group AB (publ) designs, acquires, and develops brands and products in the corporate promo, sports, gifts, and home furnishings sectors in Sweden, the United States, rest of Nordic countries, Central Europe, Southern Europe, and internationally.


Snowflake Analysis

Undervalued established dividend payer.


Similar Companies

Share Price & News

How has New Wave Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-12.2%

NEWA B

-8.3%

SE Luxury

-6.2%

SE Market


1 Year Return

-14.2%

NEWA B

-20.3%

SE Luxury

15.8%

SE Market

Return vs Industry: NEWA B exceeded the Swedish Luxury industry which returned -20.1% over the past year.

Return vs Market: NEWA B underperformed the Swedish Market which returned 15.2% over the past year.


Shareholder returns

NEWA BIndustryMarket
7 Day-12.2%-8.3%-6.2%
30 Day-9.5%-6.2%-0.1%
90 Day-13.1%-8.4%4.2%
1 Year-11.7%-14.2%-17.8%-20.3%20.2%15.8%
3 Year-16.2%-22.9%-51.7%-55.3%29.4%10.8%
5 Year40.7%23.1%94.4%74.2%39.8%11.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is New Wave Group undervalued compared to its fair value and its price relative to the market?

36.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NEWA B (SEK56.3) is trading below our estimate of fair value (SEK82.87)

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


Price To Earnings Ratio

PE vs Industry: NEWA B is good value based on its PE Ratio (9.9x) compared to the Luxury industry average (17.4x).

PE vs Market: NEWA B is good value based on its PE Ratio (9.9x) compared to the Swedish market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: NEWA B is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: NEWA B is good value based on its PB Ratio (1x) compared to the SE Luxury industry average (1.6x).


Next Steps

Future Growth

How is New Wave Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

7.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NEWA B's forecast earnings growth (7.6% per year) is above the savings rate (-0.4%).

Earnings vs Market: NEWA B's earnings (7.6% per year) are forecast to grow slower than the Swedish market (8% per year).

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

Revenue vs Market: NEWA B's revenue (3.9% per year) is forecast to grow slower than the Swedish market (4.6% per year).

High Growth Revenue: NEWA B's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NEWA B's Return on Equity is forecast to be low in 3 years time (10.9%).


Next Steps

Past Performance

How has New Wave Group performed over the past 5 years?

19.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NEWA B has high quality earnings.

Growing Profit Margin: NEWA B's current net profit margins (5.4%) are lower than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: NEWA B's earnings have grown by 19% per year over the past 5 years.

Accelerating Growth: NEWA B's earnings growth over the past year (3.3%) is below its 5-year average (19% per year).

Earnings vs Industry: NEWA B earnings growth over the past year (3.3%) exceeded the Luxury industry -11.5%.


Return on Equity

High ROE: NEWA B's Return on Equity (9.8%) is considered low.


Next Steps

Financial Health

How is New Wave Group's financial position?


Financial Position Analysis

Short Term Liabilities: NEWA B's short term assets (SEK5.3B) exceed its short term liabilities (SEK1.6B).

Long Term Liabilities: NEWA B's short term assets (SEK5.3B) exceed its long term liabilities (SEK3.0B).


Debt to Equity History and Analysis

Debt Level: NEWA B's debt to equity ratio (66.6%) is considered high.

Reducing Debt: NEWA B's debt to equity ratio has reduced from 85% to 66.6% over the past 5 years.

Debt Coverage: NEWA B's debt is not well covered by operating cash flow (4%).

Interest Coverage: NEWA B's interest payments on its debt are well covered by EBIT (7.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: NEWA B's debt is covered by short term assets (assets are 2.1x debt).


Next Steps

Dividend

What is New Wave Group's current dividend yield, its reliability and sustainability?

4.14%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 27 2020Ex Dividend DateMay 14 2020Dividend Pay DateMay 20 20206 days from Ex DividendBuy in the next 76 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: NEWA B's dividend (3.91%) is higher than the bottom 25% of dividend payers in the Swedish market (1.67%).

High Dividend: NEWA B's dividend (3.91%) is low compared to the top 25% of dividend payers in the Swedish market (4.36%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.9%), NEWA B's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NEWA B's dividends in 3 years are forecast to be well covered by earnings (40.5% payout ratio).


Next Steps

Management

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

13.5yrs

Average management tenure


CEO

Torsten Jansson (57yo)

10.8yrs

Tenure

kr1,300,000

Compensation

Mr. Torsten Jansson, VD, has been the Group CEO since 2019 at New Wave Group AB (publ). Mr. Jansson serves as the President of New Wave Group AB (publ). He served as Managing Director at New Wave Group AB  ...


CEO Compensation Analysis

Compensation vs Market: Torsten's total compensation ($USD133.73K) is below average for companies of similar size in the Swedish market ($USD549.45K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Torsten Jansson
Founder10.8yrskr1.30m34.17% SEK1.3b
Lars Jönsson
Chief Financial Officer13.1yrsno datano data
Rebecka Zetterström
Corporate Legal Counsel and CSR Manager0yrsno datano data
Göran Härstedt
1st Senior Vice President19.1yrsno data0.17% SEK6.4m
Mark Cao
Chief Buying Officer2.9yrsno datano data
Tomas Jansson
Manager of Corporate Promo0yrsno data0.030% SEK1.1m
Leif Jondring
Managing Director of Jobman Workwear22.1yrsno datano data
Christophe Lardy
Managing Director of New Wave France SAS14yrsno datano data
Ernest Johnson
CEO of New Wave Group USA Inc & Area Manager North America0yrsno datano data

13.5yrs

Average Tenure

55.5yo

Average Age

Experienced Management: NEWA B's management team is seasoned and experienced (13.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Torsten Jansson
Founder10.8yrskr1.30m34.17% SEK1.3b
M. Widerberg
Independent Director6.1yrskr215.00k0.015% SEK562.9k
Mats Årjes
Independent Director13.1yrskr161.67k0.015% SEK562.9k
Olof Persson
Chairman of the Board3.8yrskr343.33k0.053% SEK2.0m
Christina Bellander
Independent Director10.8yrskr215.00k0.0030% SEK112.4k
Jonas Eriksson
Director0.8yrsno datano data
Magdalena Forsberg
Director0.8yrsno datano data

6.1yrs

Average Tenure

57yo

Average Age

Experienced Board: NEWA B's board of directors are considered experienced (6.1 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

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


Key Information

  • Name: New Wave Group AB (publ)
  • Ticker: NEWA B
  • Exchange: OM
  • Founded: 1990
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: kr3.735b
  • Shares outstanding: 66.34m
  • Website: https://www.nwg.se

Number of Employees


Location

  • New Wave Group AB (publ)
  • Kungsportsavenyen 10
  • Gothenburg
  • 411 36
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NEWA BOM (OMX Nordic Exchange Stockholm)YesSeries B SharesSESEKDec 1997
0KIZLSE (London Stock Exchange)YesSeries B SharesGBSEKDec 1997
NWGDB (Deutsche Boerse AG)YesSeries B SharesDEEURDec 1997
NEWABsBATS-CHIXE (BATS 'Chi-X Europe')YesSeries B SharesGBSEKDec 1997

Biography

New Wave Group AB (publ) designs, acquires, and develops brands and products in the corporate promo, sports, gifts, and home furnishings sectors in Sweden, the United States, rest of Nordic countries, Central Europe, Southern Europe, and internationally. The company operates through three segments: Corporate, Sports & Leisure, and Gifts & Home Furnishings. The Corporate segment offers promo wear products, such as garments made of various textiles, as well as leisure, work, and sports clothes under the D.A.D Sportswear, James Harvest Sportswear, Cottover, and Clique brand names; and promotional gifts, including pens, powerbanks, gift cards, handbags, bed linens, and towels under the d-vice, Queen Anne, and Toppoint brands. It also provides a range of work wear products comprising underwear, outer garments, reflective clothing, flame protective, and accessories for professional categories, which consist of construction and installation workers, painters and plasterers, transport and service, and hotel and restaurant workers under the Jobman and ProJob brand names. The Sports & Leisure segment provides clothes and shoes for sports, golf, hunting, fishing, and fashion trade under the Sköna Marie, Termo, PAX, Paris Glove, Laurentide, AHEAD, Craft, Seger, Auclair, Cutter & Buck, Clique Retail, Marstrand, and Speedo brand names. The Gifts & Home Furnishings segment provides gifts and home furnishing products under the Sagaform, Orrefors, Kosta Boda, Kosta Boda Art Hotel, Kosta Lodge, and Safaripark brand names. The company also offers its products through its outlets. New Wave Group AB (publ) was founded in 1990 and is headquartered in Gothenburg, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 20:38
End of Day Share Price2020/02/27 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.