OM:ICA

Stock Analysis Report

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Market Cap

kr81.9b

Last Updated

2021/06/14 21:28 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Proven track record with adequate balance sheet and pays a dividend.


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 is less volatile than 75% of Swedish stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: ICA's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

-0.05%

ICA

0.4%

SE Consumer Retailing

0.5%

SE Market


1 Year Return

-3.1%

ICA

10.7%

SE Consumer Retailing

46.5%

SE Market

Return vs Industry: ICA underperformed the Swedish Consumer Retailing industry which returned 10.7% over the past year.

Return vs Market: ICA underperformed the Swedish Market which returned 46.5% over the past year.


Shareholder returns

ICAIndustryMarket
7 Day-0.05%0.4%0.5%
30 Day1.8%3.2%3.6%
90 Day-2.4%7.5%7.1%
1 Year1.3%-3.1%19.7%10.7%51.7%46.5%
3 Year63.9%49.7%26.4%8.4%74.1%57.2%
5 Year76.0%49.6%30.5%6.3%116.4%74.1%

Long-Term 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?

17.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ICA (SEK406.7) is trading below our estimate of fair value (SEK492.63)

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


Price To Earnings Ratio

PE vs Industry: ICA is good value based on its PE Ratio (19.7x) compared to the European Consumer Retailing industry average (21.1x).

PE vs Market: ICA is good value based on its PE Ratio (19.7x) compared to the Swedish market (24.1x).


Price to Earnings Growth Ratio

PEG Ratio: ICA is poor value based on its PEG Ratio (15.4x)


Price to Book Ratio

PB vs Industry: ICA's PB Ratio (2.2x) is in line with the XE Consumer Retailing industry average.


Future Growth

How is ICA Gruppen forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

1.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ICA's forecast earnings growth (1.3% per year) is above the savings rate (0.3%).

Earnings vs Market: ICA's earnings (1.3% per year) are forecast to grow slower than the Swedish market (3.6% per year).

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

Revenue vs Market: ICA's revenue (2.1% per year) is forecast to grow slower than the Swedish market (6.9% per year).

High Growth Revenue: ICA's revenue (2.1% 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 (10.9%).


Past Performance

How has ICA Gruppen performed over the past 5 years?

0.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ICA has high quality earnings.

Growing Profit Margin: ICA's current net profit margins (3.3%) are higher than last year (3%).


Past Earnings Growth Analysis

Earnings Trend: ICA's earnings have grown by 0.1% per year over the past 5 years.

Accelerating Growth: ICA's earnings growth over the past year (15.6%) exceeds its 5-year average (0.1% per year).

Earnings vs Industry: ICA earnings growth over the past year (15.6%) underperformed the Consumer Retailing industry 30.4%.


Return on Equity

High ROE: ICA's Return on Equity (11.3%) is considered low.


Financial Health

How is ICA Gruppen's financial position?


Financial Position Analysis

Short Term Liabilities: ICA's short term assets (SEK22.7B) do not cover its short term liabilities (SEK45.0B).

Long Term Liabilities: ICA's short term assets (SEK22.7B) do not cover its long term liabilities (SEK25.0B).


Debt to Equity History and Analysis

Debt Level: ICA's debt to equity ratio (17.8%) is considered satisfactory.

Reducing Debt: ICA's debt to equity ratio has reduced from 39.5% to 17.8% over the past 5 years.

Debt Coverage: ICA's debt is well covered by operating cash flow (187.8%).

Interest Coverage: ICA's interest payments on its debt are well covered by EBIT (12.6x coverage).


Balance Sheet


Dividend

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

3.20%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ICA's dividend (3.2%) is higher than the bottom 25% of dividend payers in the Swedish market (1.08%).

High Dividend: ICA's dividend (3.2%) is low compared to the top 25% of dividend payers in the Swedish market (3.4%).


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 (62.9%), 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 (64.6% payout ratio).


Next Steps

Management

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

7.3yrs

Average management tenure


CEO

Per Stromberg (57 yo)

8.08yrs

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. Stromberg has been the Chief Execu...


Leadership Team

Experienced Management: ICA's management team is seasoned and experienced (7.3 years average tenure).


Board Members

Experienced Board: ICA's board of directors are considered experienced (8.2 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.


Recent Insider Transactions

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: kr81.867b
  • 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


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 Balt...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/14 21:28
End of Day Share Price2021/06/14 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.