OM:WESC

Stock Analysis Report

Executive Summary

WeSC AB (publ) develops and sells streetwear clothes and accessories for men and women in Sweden and internationally.


Snowflake Analysis

Weak fundamentals or lack of information.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-16.2%

WESC

19.6%

SE Luxury

7.3%

SE Market


1 Year Return

-85.0%

WESC

-53.8%

SE Luxury

-6.6%

SE Market

Return vs Industry: WESC underperformed the Swedish Luxury industry which returned -58.9% over the past year.

Return vs Market: WESC underperformed the Swedish Market which returned -9.8% over the past year.


Shareholder returns

WESCIndustryMarket
7 Day-16.2%19.6%7.3%
30 Day-48.3%-29.8%-2.6%
90 Day-31.1%-48.4%-17.3%
1 Year-85.0%-85.0%-52.3%-53.8%-4.7%-6.6%
3 Year-98.4%-98.4%-60.7%-64.0%7.0%-8.2%
5 Year-99.7%-99.7%63.7%46.9%15.3%-8.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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


In this section, we usually try to help investors determine whether WeSC is trading at an attractive price based on the cash flow it is expected to produce in the future. But as WeSC has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of WESC’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through WeSC regulatory filings.
  • Explore potentially undervalued companies in the Consumer Durables industry.

Future Growth

How is WeSC forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.0%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as WeSC has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has WeSC performed over the past 5 years?

15.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WESC is currently unprofitable.

Growing Profit Margin: WESC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WESC is unprofitable, but has reduced losses over the past 5 years at a rate of 15.4% per year.

Accelerating Growth: Unable to compare WESC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: WESC is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (-3.4%).


Return on Equity

High ROE: WESC's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is WeSC's financial position?


Financial Position Analysis

Short Term Liabilities: WESC has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: WESC has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: WESC has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: WESC's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: WESC has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: WESC has less than a year of cash runway if free cash flow continues to grow at historical rates of 5.3% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate WESC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate WESC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WESC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WESC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: WESC is not paying a notable dividend for the Swedish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WESC's dividend in 3 years as they are not forecast to pay a notable one for the Swedish market.


Next Steps

Management

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

12.3yrs

Average board tenure


CEO

Joseph Janus

no data

Tenure

kr1,961,000

Compensation

Mr. Joseph Janus serves as Chief Executive Officer of WeSC AB (publ). Mr. Janus leads the entire organization, working closely with the Stockholm based head of design, head of production and sales team. He ...


CEO Compensation Analysis

Compensation vs Market: Joseph's total compensation ($USD195.61K) is about average for companies of similar size in the Swedish market ($USD207.01K).

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


Board Members

NamePositionTenureCompensationOwnership
Theodor Dalenson
Chairman14.25yrskr200.00kno data
Anders Lönnqvist
Director6.25yrskr50.00kno data
Johan Hessius
Director12.25yrskr100.00kno data
Lena Keller
Director9.25yrskr20.00kno data
Anders Hedén
Director12.25yrskr263.00kno data
Carl Lewenhaupt
Directorno datakr50.00kno data
Fredrik Berglund
Directorno datakr50.00kno data
Camilla Öberg
Directorno datakr50.00kno data

12.3yrs

Average Tenure

61yo

Average Age

Experienced Board: WESC's board of directors are seasoned and experienced ( 12.3 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 529.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: WeSC AB (publ)
  • Ticker: WESC
  • Exchange: OM
  • Founded: 2000
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: kr39.997m
  • Shares outstanding: 6.45b
  • Website: https://www.wesc.com

Location

  • WeSC AB (publ)
  • Kungsgatan 8
  • C/O KG10
  • Stockholm
  • Stockholm County
  • 111 43
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WESCOM (OMX Nordic Exchange Stockholm)YesCommon SharesSESEKMay 2008

Biography

WeSC AB (publ) develops and sells streetwear clothes and accessories for men and women in Sweden and internationally. Its products include hoodies and sweaters, t-shirts, shirts, jackets and coats, jeans, knitwear, logo classics, shirts, trousers, and underwear, such as bags, hats and caps, and scarves and gloves. The company sells products under the WeSC brand name, as well as through stores. WeSC AB (publ) was founded in 2000 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 Analysis2020/04/10 02:52
End of Day Share Price2020/04/09 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.