OM:LUND B

Stock Analysis Report

Executive Summary

L E Lundbergföretagen AB (publ), through its subsidiaries, manufactures and sells printing paper, paperboard, and sawn timber products in Sweden and internationally.


Snowflake Analysis

Good value with proven track record.

Share Price & News

How has L E Lundbergföretagen's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

4.3%

LUND B

5.7%

SE Diversified Financial

4.0%

SE Market


1 Year Return

43.4%

LUND B

-15.2%

SE Diversified Financial

-6.4%

SE Market

Return vs Industry: LUND B exceeded the Swedish Diversified Financial industry which returned -18% over the past year.

Return vs Market: LUND B exceeded the Swedish Market which returned -9.8% over the past year.


Shareholder returns

LUND BIndustryMarket
7 Day4.3%5.7%4.0%
30 Day2.4%-12.3%-8.3%
90 Day2.6%-25.5%-17.8%
1 Year43.4%43.4%-13.2%-15.2%-4.4%-6.4%
3 Year44.6%41.6%-4.5%-10.8%6.8%-8.3%
5 Year126.6%114.5%20.4%6.3%13.7%-9.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is L E Lundbergföretagen undervalued compared to its fair value and its price relative to the market?

26.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LUND B (SEK424.8) is trading below our estimate of fair value (SEK579.02)

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


Price To Earnings Ratio

PE vs Industry: LUND B is good value based on its PE Ratio (8.8x) compared to the Diversified Financial industry average (10.1x).

PE vs Market: LUND B is good value based on its PE Ratio (8.8x) compared to the Swedish market (15x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LUND B's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LUND B is overvalued based on its PB Ratio (1.3x) compared to the XE Diversified Financial industry average (0.7x).


Next Steps

Future Growth

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

-1.3%

Forecasted Diversified Financials 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 L E Lundbergföretagen 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 L E Lundbergföretagen performed over the past 5 years?

5.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LUND B has a large one-off gain of SEK14.2B impacting its December 31 2019 financial results.

Growing Profit Margin: LUND B's current net profit margins (43.1%) are higher than last year (18.3%).


Past Earnings Growth Analysis

Earnings Trend: LUND B's earnings have grown by 5.2% per year over the past 5 years.

Accelerating Growth: LUND B's earnings growth over the past year (232.2%) exceeds its 5-year average (5.2% per year).

Earnings vs Industry: LUND B earnings growth over the past year (232.2%) exceeded the Diversified Financial industry 3.9%.


Return on Equity

High ROE: LUND B's Return on Equity (15.6%) is considered low.


Next Steps

Financial Health

How is L E Lundbergföretagen's financial position?


Financial Position Analysis

Short Term Liabilities: LUND B's short term assets (SEK9.7B) do not cover its short term liabilities (SEK10.8B).

Long Term Liabilities: LUND B's short term assets (SEK9.7B) do not cover its long term liabilities (SEK39.0B).


Debt to Equity History and Analysis

Debt Level: LUND B's debt to equity ratio (15.3%) is considered satisfactory.

Reducing Debt: LUND B's debt to equity ratio has reduced from 24.4% to 15.3% over the past 5 years.

Debt Coverage: LUND B's debt is well covered by operating cash flow (32.3%).

Interest Coverage: LUND B's interest payments on its debt are well covered by EBIT (42x coverage).


Balance Sheet


Next Steps

Dividend

What is L E Lundbergföretagen's current dividend yield, its reliability and sustainability?

0.80%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LUND B's dividend (0.8%) isn’t notable compared to the bottom 25% of dividend payers in the Swedish market (2.07%).

High Dividend: LUND B's dividend (0.8%) is low compared to the top 25% of dividend payers in the Swedish market (6.02%).


Stability and Growth of Payments

Stable Dividend: LUND B is not paying a notable dividend for the Swedish market, therefore no need to check if payments are stable.

Growing Dividend: LUND B is not paying a notable dividend for the Swedish market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LUND B'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?

11.1yrs

Average board tenure


CEO

Fredrik Lundberg (68yo)

no data

Tenure

kr1,500,000

Compensation

Dr. Fredrik Lundberg serves as Director of Skanska AB since 2011. He is the Chairman of AB Industrivärden and Holmen AB. He is the Chairman of Hufvudstaden AB. He was Chairman of Indutrade AB until April 2 ...


CEO Compensation Analysis

Compensation vs Market: Fredrik's total compensation ($USD149.62K) is below average for companies of similar size in the Swedish market ($USD1.75M).

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


Board Members

NamePositionTenureCompensationOwnership
Fredrik Lundberg
Presidentno datakr1.50m42.33% SEK42.4b
Lars Pettersson
Independent Director8.25yrskr300.00k0.0016% SEK1.6m
Lilian Biner
Independent Director6.25yrskr300.00k0.00081% SEK811.2k
Carl Bennet
Independent Director11.08yrskr300.00k0.16% SEK161.5m
Sten Peterson
Director19.25yrskr300.00k0.031% SEK30.7m
Mats Guldbrand
Independent Chairman11.08yrskr800.00k0.069% SEK68.6m
Louise Lindh
Director10yrskr300.00k13.98% SEK14.0b
Katarina Martinson
Director11.25yrskr300.00k13.98% SEK14.0b

11.1yrs

Average Tenure

64yo

Average Age

Experienced Board: LUND B's board of directors are seasoned and experienced ( 11.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LUND B 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

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


Key Information

  • Name: L E Lundbergföretagen AB (publ)
  • Ticker: LUND B
  • Exchange: OM
  • Founded: 1944
  • Industry: Multi-Sector Holdings
  • Sector: Diversified Financials
  • Market Cap: kr100.142b
  • Shares outstanding: 248.00m
  • Website: https://www.lundbergforetagen.se

Number of Employees


Location

  • L E Lundbergföretagen AB (publ)
  • Hovslagargatan 5 B
  • PO Box 14048
  • Stockholm
  • Stockholm County
  • 104 40
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LUND BOM (OMX Nordic Exchange Stockholm)YesSeries B SharesSESEKAug 1992
0GWBLSE (London Stock Exchange)YesSeries B SharesGBSEKAug 1992
LUNDBSBATS-CHIXE (BATS 'Chi-X Europe')YesSeries B SharesGBSEKAug 1992
LU3BDB (Deutsche Boerse AG)YesSeries B SharesDEEURAug 1992

Biography

L E Lundbergföretagen AB (publ), through its subsidiaries, manufactures and sells printing paper, paperboard, and sawn timber products in Sweden and internationally. It operates through four segments: Lundberg’s Real Estate Operations, Lundberg's Equity Management, Hufvudstaden, and Holmen. The company offers printing paper for magazines, product catalogs, direct advertising, books, and newspapers; and solid board and folding boxboards primarily for use as consumer packaging materials for confectionary, perfume, pharmaceuticals, and cosmetics, as well as for graphic-design applications. It is also involved in the forest and power operations; and equity management, including securities trading. In addition, the company invests in, develops, manages, and leases real estate properties, including residential, office, and retail properties. L E Lundbergföretagen AB (publ) was founded in 1944 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 Analysis2020/04/07 20:43
End of Day Share Price2020/04/07 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.