OM:TRAC B

Stock Analysis Report

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Executive Summary

AB Traction is a private equity firm specializing in distressed, middle market, later stage, mature, bridge, recapitalization, buyouts and PIPES investments. More Details


Snowflake Analysis

Excellent balance sheet unattractive dividend payer.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TRAC B is less volatile than 75% of Swedish stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: TRAC B's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-1.8%

TRAC B

6.1%

SE Capital Markets

1.6%

SE Market


1 Year Return

0.8%

TRAC B

73.9%

SE Capital Markets

15.6%

SE Market

Return vs Industry: TRAC B underperformed the Swedish Capital Markets industry which returned 70.5% over the past year.

Return vs Market: TRAC B underperformed the Swedish Market which returned 17.1% over the past year.


Shareholder returns

TRAC BIndustryMarket
7 Day-1.8%6.1%1.6%
30 Day2.2%11.4%5.6%
90 Day9.9%26.9%10.9%
1 Year3.4%0.8%76.3%73.9%18.7%15.6%
3 Year8.2%1.6%94.6%79.5%48.6%30.9%
5 Year88.4%71.0%154.8%115.3%87.5%47.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.03x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate TRAC B's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate TRAC B's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: TRAC B is unprofitable, so we can't compare its PE Ratio to the SE Capital Markets industry average.

PE vs Market: TRAC B is unprofitable, so we can't compare its PE Ratio to the Swedish market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TRAC B is good value based on its PB Ratio (1x) compared to the SE Capital Markets industry average (1.3x).


Next Steps

Future Growth

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

18.9%

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 AB Traction 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 AB Traction performed over the past 5 years?

-37.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRAC B is currently unprofitable.

Growing Profit Margin: TRAC B is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TRAC B is unprofitable, and losses have increased over the past 5 years at a rate of 37.7% per year.

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

Earnings vs Industry: TRAC B is unprofitable, making it difficult to compare its past year earnings growth to the Capital Markets industry (106.2%).


Return on Equity

High ROE: TRAC B has a negative Return on Equity (-2.61%), as it is currently unprofitable.


Next Steps

Financial Health

How is AB Traction's financial position?


Financial Position Analysis

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

Long Term Liabilities: TRAC B's short term assets (SEK1.6B) do not cover its long term liabilities (SEK-100.0K).


Debt to Equity History and Analysis

Debt Level: TRAC B is debt free.

Reducing Debt: TRAC B has not had any debt for past 5 years.

Debt Coverage: TRAC B has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: TRAC B has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is AB Traction current dividend yield, its reliability and sustainability?

2.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TRAC B's dividend (2.22%) is higher than the bottom 25% of dividend payers in the Swedish market (0.94%).

High Dividend: TRAC B's dividend (2.22%) is low compared to the top 25% of dividend payers in the Swedish market (3.41%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: TRAC B is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

6.0yrs

Average management tenure


CEO

Petter Stillström (48 yo)

20yrs

Tenure

kr300,000

Compensation

Mr. Petter Stillström, M.Sc., has been the Chief Executive Officer of AB Traction since 2001 and served as its President from 2001 until March 01, 2016. Mr. Stillström serves as Investment Manager at AB Tr...


CEO Compensation Analysis

Compensation vs Market: Petter's total compensation ($USD36.19K) is below average for companies of similar size in the Swedish market ($USD507.36K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Petter Stillström
CEO, Investment Manager & Director20yrskr300.00k18.74%
SEK 523.9m
James Ahrgren
Investment Managerno datano datano data
Joakim Skoglund
Asset Manager and Financial Analyst6yrsno datano data
Johan Nilsson Wall
1.75yrsno datano data

6.0yrs

Average Tenure

Experienced Management: TRAC B's management team is seasoned and experienced (6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Petter Stillström
CEO, Investment Manager & Director20yrskr300.00k18.74%
SEK 523.9m
Bengt Stillström
Chairmanno datano data39.09%
SEK 1.1b
Henrik Lange
Director1yrno datano data
Jonas Olavi
Director1yrno datano data

1.0yrs

Average Tenure

56yo

Average Age

Experienced Board: TRAC B's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.


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

AB Traction's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AB Traction
  • Ticker: TRAC B
  • Exchange: OM
  • Founded: 1974
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: kr2.795b
  • Shares outstanding: 14.79m
  • Website: https://www.traction.se

Location

  • AB Traction
  • Birger Jarlsgatan 33, 3 tr
  • Stockholm
  • 103 66
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TRAC BOM (OMX Nordic Exchange Stockholm)YesClass B SharesSESEKSep 1998
0GOSLSE (London Stock Exchange)YesClass B SharesGBSEKSep 1998
TRACBsBATS-CHIXE (BATS 'Chi-X Europe')YesClass B SharesGBSEKSep 1998

Biography

AB Traction is a private equity firm specializing in distressed, middle market, later stage, mature, bridge, recapitalization, buyouts and PIPES investments. It invests in public and private companies. In ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/22 19:12
End of Day Share Price2021/01/22 00:00
Earnings2020/09/30
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.