OM:AMBEA

Stock Analysis Report

Executive Summary

Ambea AB (publ), through its subsidiaries, primarily provides residential care services for people with disabilities and elderly care in Sweden and Norway.


Snowflake Analysis

Undervalued with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.8%

AMBEA

-0.6%

SE Healthcare

0.3%

SE Market


1 Year Return

-46.3%

AMBEA

-19.2%

SE Healthcare

-13.2%

SE Market

Return vs Industry: AMBEA underperformed the Swedish Healthcare industry which returned -19% over the past year.

Return vs Market: AMBEA underperformed the Swedish Market which returned -12.2% over the past year.


Shareholder returns

AMBEAIndustryMarket
7 Day-1.8%-0.6%0.3%
30 Day-30.4%-23.9%-19.3%
90 Day-46.0%-28.3%-23.1%
1 Year-45.4%-46.3%-18.3%-19.2%-11.0%-13.2%
3 Year-46.6%-48.3%-48.1%-50.0%-0.2%-14.7%
5 Yearn/a79.3%51.1%6.0%-16.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AMBEA (SEK41.65) is trading below our estimate of fair value (SEK166.05)

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


Price To Earnings Ratio

PE vs Industry: AMBEA is good value based on its PE Ratio (16.6x) compared to the Healthcare industry average (17x).

PE vs Market: AMBEA is poor value based on its PE Ratio (16.6x) compared to the Swedish market (14.3x).


Price to Earnings Growth Ratio

PEG Ratio: AMBEA is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: AMBEA is good value based on its PB Ratio (1x) compared to the SE Healthcare industry average (1.2x).


Next Steps

Future Growth

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

32.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMBEA's forecast earnings growth (32.6% per year) is above the savings rate (-0.4%).

Earnings vs Market: AMBEA's earnings (32.6% per year) are forecast to grow faster than the Swedish market (8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AMBEA's revenue (6.7% per year) is forecast to grow faster than the Swedish market (4.1% per year).

High Growth Revenue: AMBEA's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AMBEA's Return on Equity is forecast to be low in 3 years time (13.9%).


Next Steps

Past Performance

How has Ambea performed over the past 5 years?

25.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMBEA has a large one-off loss of SEK137.0M impacting its December 31 2019 financial results.

Growing Profit Margin: AMBEA's current net profit margins (1.9%) are lower than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: AMBEA's earnings have grown significantly by 25.4% per year over the past 5 years.

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

Earnings vs Industry: AMBEA had negative earnings growth (-27.1%) over the past year, making it difficult to compare to the Healthcare industry average (-25.3%).


Return on Equity

High ROE: AMBEA's Return on Equity (5.3%) is considered low.


Next Steps

Financial Health

How is Ambea's financial position?


Financial Position Analysis

Short Term Liabilities: AMBEA's short term assets (SEK1.5B) do not cover its short term liabilities (SEK4.4B).

Long Term Liabilities: AMBEA's short term assets (SEK1.5B) do not cover its long term liabilities (SEK5.4B).


Debt to Equity History and Analysis

Debt Level: AMBEA's debt to equity ratio (79%) is considered high.

Reducing Debt: AMBEA's debt to equity ratio has increased from 44.6% to 79% over the past 5 years.

Debt Coverage: AMBEA's debt is well covered by operating cash flow (30.8%).

Interest Coverage: AMBEA's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet

Inventory Level: AMBEA has a high level of physical assets or inventory.

Debt Coverage by Assets: AMBEA's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

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

3.86%

Forecast Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

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

High Dividend: Unable to evaluate AMBEA'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 AMBEA's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

3.3yrs

Average management tenure


CEO

Fredrik Gren (51yo)

8.17s

Tenure

kr9,141,257

Compensation

Mr. Fredrik Gren serves as the Chief Executive Officer and President of Ambea AB (Ambea) at Carema Care AB since February 1, 2012. Mr. Gren served as President of Ambea AB. He served as the Chief Executive ...


CEO Compensation Analysis

Compensation vs Market: Fredrik's total compensation ($USD898.07K) is above average for companies of similar size in the Swedish market ($USD650.81K).

Compensation vs Earnings: Fredrik's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Fredrik Gren
CEO & President8.17yrskr9.14m0.33% SEK12.9m
Daniel Warnholtz
Deputy CEO & CFO9.25yrsno data0.47% SEK18.6m
Jacob Persson
Head of Group Business Control & Investor Relations1.83yrsno datano data
Margareta Sööder
Director of Human Resourcesno datano datano data
Agneta Lindgren
Temporary Head of Nytida3.33yrsno datano data
Ulla Tansen
Business Area Head of Vardaga7.25yrsno data0.39% SEK15.4m
Lena Freiholtz
Head of Qualityno datano datano data
Magnus Åkerhielm
Business Area Manager of Nytida2.25yrsno data0.023% SEK891.3k
Miriam Toft
Business Area Manager of Altiden1.25yrsno data0.0021% SEK83.4k
Ingvild Kristiansen
Business Area Manager of Stendino datano datano data

3.3yrs

Average Tenure

58yo

Average Age

Experienced Management: AMBEA's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lars Gatenbeck
Director1.92yrskr175.52k0.0032% SEK125.1k
Liselott Kilaas
Independent Director0.92yrno datano data
Gunilla Rudebjer
Independent Director3.67yrskr400.00k0.014% SEK555.4k
Mikael Stöhr
Director1.92yrskr175.52kno data
Anders Bengt Borg
Director6.25yrskr365.00kno data
Lena Hofsberger
Chairperson7.25yrskr905.67k0.62% SEK24.2m
Daniel Björklund
Director0.92yrkr133.21kno data
Patricia Rodriguez
Employee Representative Director4.25yrsno datano data
Haralampos Kalpakas
Employee Representative Director4.25yrsno datano data
Magnus Sällström
Employee Representative Director4.25yrsno datano data

4.0yrs

Average Tenure

60yo

Average Age

Experienced Board: AMBEA's board of directors are considered experienced (4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: AMBEA insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 26.9%.


Top Shareholders

Company Information

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


Key Information

  • Name: Ambea AB (publ)
  • Ticker: AMBEA
  • Exchange: OM
  • Founded: 1996
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: kr3.933b
  • Shares outstanding: 94.44m
  • Website: https://www.ambea.com

Number of Employees


Location

  • Ambea AB (publ)
  • Evenemangsgatan 21, 6 tr
  • Box 1565
  • Solna
  • Stockholm County
  • 171 29
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
0RNXLSE (London Stock Exchange)YesOrdinary SharesGBSEKMar 2017
AMBEAOM (OMX Nordic Exchange Stockholm)YesOrdinary SharesSESEKMar 2017
AMBEASBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBSEKMar 2017
6MADB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2017

Biography

Ambea AB (publ), through its subsidiaries, primarily provides residential care services for people with disabilities and elderly care in Sweden and Norway. The company operates through four segments: Vardaga, Nytida, Hemita, and Klara. It offers services for the long and short-term residential facilities for children and adults, and with special service and daily activities for adults with an autism diagnosis and intellectual disabilities; elderly care in the form of special housing; and support services in the form of HVB homes, assisted housing, family homes, outpatient care, special housing, and institutional care for children, young people, and adults and families under the Nytida brand, as well as special housing services for the elderly, such as older people, who are unable to remain in their own homes under the Vardaga brand; disability care services in the form of residential care, rehabilitation, respite, and assessment under the Heimta brand. The company also provides training and staffing solutions for municipalities, county councils, and private operators under the Klara brand; and works with the temporary supply and recruitment of doctors and nurses, as well as offers residential and outpatient psychiatric support, and residential facilities for people with lifelong disabilities under the Heimta brand. In addition, it offers ambulatory services. Ambea AB (publ) was founded in 1996 and is headquartered in Solna, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 22:34
End of Day Share Price2020/04/03 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.