OM:ICA

Stock Analysis Report

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Executive Summary

ICA Gruppen AB (publ), together with its subsidiaries, engages in the grocery retail business primarily in Sweden and the Baltic countries.


Snowflake Analysis

Adequate balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.2%

ICA

2.0%

SE Consumer Retailing

5.1%

SE Market


1 Year Return

7.6%

ICA

0.2%

SE Consumer Retailing

10.9%

SE Market

Return vs Industry: ICA exceeded the Swedish Consumer Retailing industry which returned 0.2% over the past year.

Return vs Market: ICA underperformed the Swedish Market which returned 10.9% over the past year.


Shareholder returns

ICAIndustryMarket
7 Day-4.2%2.0%5.1%
30 Day1.9%4.0%14.4%
90 Day9.8%1.9%5.5%
1 Year9.1%7.6%3.3%0.2%12.5%10.9%
3 Year44.9%33.4%3.5%-6.6%17.6%1.7%
5 Year70.1%45.7%6.0%-10.2%38.3%11.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

23.69x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ICA (SEK423.6) is trading above our estimate of fair value (SEK417.67)

Significantly Below Fair Value: ICA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ICA is poor value based on its PE Ratio (23.7x) compared to the Consumer Retailing industry average (19.5x).

PE vs Market: ICA is poor value based on its PE Ratio (23.7x) compared to the Swedish market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: ICA is poor value based on its PEG Ratio (13.7x)


Price to Book Ratio

PB vs Industry: ICA is overvalued based on its PB Ratio (2.5x) compared to the XE Consumer Retailing industry average (1.6x).


Next Steps

Future Growth

How is ICA Gruppen forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

1.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ICA's forecast earnings growth (1.7% per year) is above the savings rate (0.5%).

Earnings vs Market: ICA's earnings (1.7% per year) are forecast to grow slower than the Swedish market (16.7% per year).

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

Revenue vs Market: ICA's revenue (2% per year) is forecast to grow slower than the Swedish market (5.8% per year).

High Growth Revenue: ICA's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ICA's Return on Equity is forecast to be low in 3 years time (11.1%).


Next Steps

Past Performance

How has ICA Gruppen performed over the past 5 years?

1.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ICA has high quality earnings.

Growing Profit Margin: ICA's current net profit margins (3%) are lower than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: ICA's earnings have grown by 1.5% per year over the past 5 years.

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

Earnings vs Industry: ICA had negative earnings growth (-1.1%) over the past year, making it difficult to compare to the Consumer Retailing industry average (2.7%).


Return on Equity

High ROE: ICA's Return on Equity (10.3%) is considered low.


Next Steps

Financial Health

How is ICA Gruppen's financial position?


Financial Position Analysis

Short Term Liabilities: ICA's short term assets (SEK22.3B) do not cover its short term liabilities (SEK43.8B).

Long Term Liabilities: ICA's short term assets (SEK22.3B) do not cover its long term liabilities (SEK24.5B).


Debt to Equity History and Analysis

Debt Level: ICA's debt to equity ratio (20.5%) is considered satisfactory.

Reducing Debt: ICA's debt to equity ratio has reduced from 24.1% to 20.5% over the past 5 years.

Debt Coverage: ICA's debt is well covered by operating cash flow (145.8%).

Interest Coverage: ICA's interest payments on its debt are well covered by EBIT (10.6x coverage).


Balance Sheet


Next Steps

Dividend

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

2.83%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ICA's dividend (2.83%) is higher than the bottom 25% of dividend payers in the Swedish market (1.6%).

High Dividend: ICA's dividend (2.83%) is low compared to the top 25% of dividend payers in the Swedish market (5.09%).


Stability and Growth of Payments

Stable Dividend: ICA's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (67.1%), ICA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ICA's dividends in 3 years are forecast to be covered by earnings (60.7% payout ratio).


Next Steps

Management

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

6.4yrs

Average management tenure


CEO

Per Strömberg (56yo)

7.08yrs

Tenure

kr10,358,000

Compensation

Mr. Per Stromberg has been the Chief Executive Officer and President of ICA Gruppen AB since May 20, 2013. He also serves as Industrial Advisor at Segulah Advisor AB. Mr. Strömberg has been the Chief Execu ...


CEO Compensation Analysis

Compensation vs Market: Per's total compensation ($USD0.00) is below average for companies of similar size in the Swedish market ($USD2.51M).

Compensation vs Earnings: Insufficient data to compare Per's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Per Strömberg
Chief Executive Officer7.08yrskr10.36m0.0070% SEK6.0m
Sven Lindskog
Chief Financial Officer5.75yrsno data0.0010% SEK886.1k
Maria Lundberg
Chief Information Officer2.42yrsno datano data
Frans Benson
Head of Investor Relations6.42yrsno datano data
Per Behm
General Counsel7.08yrsno datano data
Björn Olsson
Chief Corporate Communication Officerno datano data0.00096% SEK818.0k
Petra Albuschus
Chief Human Resource Officerno datano data0.00084% SEK715.7k
Anders Svensson
Deputy Chief Executive Officer6.25yrsno data0.0024% SEK2.0m
Kerstin Lindvall
Chief Corporate Responsibility Officer11.42yrsno data0.00037% SEK315.3k
Peter Muld
Chief Digital & Strategy Officer of ICA Swedenno datano datano data

6.4yrs

Average Tenure

51yo

Average Age

Experienced Management: ICA's management team is seasoned and experienced (6.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Cecilia Wennborg
Independent Director15.42yrskr825.00k0.0015% SEK1.3m
Claes-Göran Sylvén
Chairman7.17yrskr1.30m0.33% SEK278.7m
Fredrik Hägglund
Director7.17yrskr600.00k0.0085% SEK7.2m
Magnus Rehn
Representative Director7.17yrsno data0.00012% SEK102.2k
Magnus Moberg
Director12.17yrskr600.00k0.025% SEK21.2m
Andrea Joosen
Independent Director10.17yrskr650.00k0.00099% SEK843.5k
Anette Wiotti
Director3.17yrskr650.00k0.0032% SEK2.7m
Jonathon Clarke
Representative Director7.17yrsno datano data
Jeanette Jäger
Independent Director5.17yrskr600.00k0.00045% SEK383.4k
Lennart Evrell
Independent Director1.17yrskr650.00k0.00099% SEK843.5k

7.2yrs

Average Tenure

53yo

Average Age

Experienced Board: ICA's board of directors are considered experienced (7.2 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: ICA Gruppen AB (publ)
  • Ticker: ICA
  • Exchange: OM
  • Founded: 1917
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: kr85.206b
  • Shares outstanding: 201.15m
  • Website: https://www.icagruppen.se

Number of Employees


Location

  • ICA Gruppen AB (publ)
  • Box 4075
  • Solna
  • Stockholm County
  • 169 04
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ICAOM (OMX Nordic Exchange Stockholm)YesCommon SharesSESEKDec 2005
0NB9LSE (London Stock Exchange)YesCommon SharesGBSEKDec 2005
ICASBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBSEKDec 2005
ICCG.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 2005

Biography

ICA Gruppen AB (publ), together with its subsidiaries, engages in the grocery retail business primarily in Sweden and the Baltic countries. The company operates through five segments: ICA Sweden, Rimi Baltic, Apotek Hjärtat, ICA Real Estate, and ICA Bank. It offers various organic products, private label products, and non-food products; and conducts pharmacy operations. The company operates approximately 1300 stores and 390 pharmacies in Sweden; 86 stores Estonia; 130 stores in Latvia; and 61 stores in Lithuania. It also acquires, develops, and manages property portfolio in the retail segment; and provides banking and insurance products and services to private and business customers. The company was formerly known as Hakon Invest AB and changed its name to ICA Gruppen AB (publ) in May 2013. The company was founded in 1917 and is headquartered in Solna, Sweden. ICA Gruppen AB (publ) is a subsidiary of ICA-handlarnas Förbund. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/07 00:40
End of Day Share Price2020/06/05 00:00
Earnings2020/03/31
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.