OM:ELOS B

Stock Analysis Report

Executive Summary

Elos Medtech AB (publ) develops and manufactures medical devices and components for the medtech industry.

Rewards

Trading at 69.8% below its fair value

Earnings are forecast to grow 16.53% per year

Earnings grew by 83.9% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Highly volatile share price over past 3 months

Significant insider selling over the past 3 months

+ 2 more risks


Snowflake Analysis

Very undervalued with solid track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

3.8%

ELOS B

3.0%

SE Medical Equipment

4.0%

SE Market


1 Year Return

-8.5%

ELOS B

15.8%

SE Medical Equipment

-6.4%

SE Market

Return vs Industry: ELOS B underperformed the Swedish Medical Equipment industry which returned 17.3% over the past year.

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


Shareholder returns

ELOS BIndustryMarket
7 Day3.8%3.0%4.0%
30 Day-20.1%0.2%-8.3%
90 Day-31.7%-9.2%-17.8%
1 Year-7.4%-8.5%17.7%15.8%-4.4%-6.4%
3 Year-13.2%-23.0%37.7%22.0%6.8%-8.3%
5 Year-21.1%-32.6%25.7%3.7%13.7%-9.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Elos Medtech 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: ELOS B (SEK71.4) is trading below our estimate of fair value (SEK236.55)

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


Price To Earnings Ratio

PE vs Industry: ELOS B is good value based on its PE Ratio (15x) compared to the Medical Equipment industry average (51.5x).

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


Price to Earnings Growth Ratio

PEG Ratio: ELOS B is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: ELOS B is good value based on its PB Ratio (1.1x) compared to the SE Medical Equipment industry average (3.8x).


Next Steps

Future Growth

How is Elos Medtech forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

16.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ELOS B's forecast earnings growth (16.5% per year) is above the savings rate (-0.4%).

Earnings vs Market: ELOS B's earnings (16.5% per year) are forecast to grow faster than the Swedish market (8.9% per year).

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

Revenue vs Market: ELOS B's revenue (2.6% per year) is forecast to grow slower than the Swedish market (4.2% per year).

High Growth Revenue: ELOS B's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ELOS B's Return on Equity is forecast to be low in 3 years time (9%).


Next Steps

Past Performance

How has Elos Medtech performed over the past 5 years?

9.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ELOS B has high quality earnings.

Growing Profit Margin: ELOS B's current net profit margins (5.6%) are higher than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: ELOS B's earnings have grown by 9.3% per year over the past 5 years.

Accelerating Growth: ELOS B's earnings growth over the past year (83.9%) exceeds its 5-year average (9.3% per year).

Earnings vs Industry: ELOS B earnings growth over the past year (83.9%) exceeded the Medical Equipment industry 12.6%.


Return on Equity

High ROE: ELOS B's Return on Equity (7.1%) is considered low.


Next Steps

Financial Health

How is Elos Medtech's financial position?


Financial Position Analysis

Short Term Liabilities: ELOS B's short term assets (SEK305.4M) exceed its short term liabilities (SEK138.2M).

Long Term Liabilities: ELOS B's short term assets (SEK305.4M) do not cover its long term liabilities (SEK356.7M).


Debt to Equity History and Analysis

Debt Level: ELOS B's debt to equity ratio (55%) is considered high.

Reducing Debt: ELOS B's debt to equity ratio has increased from 38% to 55% over the past 5 years.

Debt Coverage: ELOS B's debt is well covered by operating cash flow (34.6%).

Interest Coverage: ELOS B's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet


Next Steps

Dividend

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

2.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ELOS B's dividend (2.1%) is higher than the bottom 25% of dividend payers in the Swedish market (2.07%).

High Dividend: ELOS B's dividend (2.1%) is low compared to the top 25% of dividend payers in the Swedish market (6.02%).


Stability and Growth of Payments

Stable Dividend: ELOS B has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: ELOS B has only been paying a dividend for 9 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.4%), ELOS B's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ELOS B's dividends in 3 years are forecast to be well covered by earnings (19.1% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Jan Wahlström (52yo)

3.75s

Tenure

Mr. Jan Wahlström has been the Chief Executive Officer and President of Elos Medtech AB since July 1, 2016. Mr. Wahlström joined Elos Medtech from his role as President of Larodan AB. Mr. Wahlström served  ...


Leadership Team

NamePositionTenureCompensationOwnership
Jan Wahlström
President & CEO3.75yrsno data0.076% SEK436.5k
Ewa Linsäter
Chief Financial Officer0.83yrno datano data
Malin Gustavsson
Marketing Directorno datano data0.0059% SEK33.8k
Anders Björklund
QA/RA Quality Directorno datano data0.0035% SEK20.3k
Sören Larsson
President of Forshemgruppen AB17.25yrsno datano data
Søren Olesen
CEO of Elos Medtech Pinol A/S & Business Unit Director of Dentalno datano data2.98% SEK17.2m
Mathias Andersson
Chief Executive Officer of Elos Medtech Microplast ABno datano data0.0062% SEK35.7k
Jodie Gilmore
CEO of Elos Medtech Onyx & Business Unit Director of Orthopedicsno datano datano data
Conny Jakobsson
Chief Executive Officer of Elos Medtech Tianjin Co. Ltdno datano datano data
Sam Svännel
Chief Executive Officer of Elos Medtech Timmersdala ABno datano datano data

3.8yrs

Average Tenure

49.5yo

Average Age

Experienced Management: ELOS B's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yvonne Mårtensson
Chairman3.25yrskr400.00k0.25% SEK1.4m
Jon Risfelt
Director3yrskr225.00k0.022% SEK128.5k
Jeppe Magnusson
Director8.25yrskr175.00k0.049% SEK281.7k
Anders Birgersson
Director4yrskr175.00k0.012% SEK67.5k
Claes Hansson
Director1.25yrsno datano data
Hanna Wilkman
Director1.25yrsno datano data

3.1yrs

Average Tenure

61.5yo

Average Age

Experienced Board: ELOS B's board of directors are considered experienced (3.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ELOS B 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 6.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: Elos Medtech AB (publ)
  • Ticker: ELOS B
  • Exchange: OM
  • Founded: 1923
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: kr576.055m
  • Shares outstanding: 8.07m
  • Website: https://www.elosmedtech.com

Number of Employees


Location

  • Elos Medtech AB (publ)
  • Torsgatan 5B
  • Gothenburg
  • Västra Götaland County
  • 411 04
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ELOS BOM (OMX Nordic Exchange Stockholm)YesSeries B SharesSESEKMay 1993
0IZXLSE (London Stock Exchange)YesSeries B SharesGBSEKMay 1993
ELOSBSBATS-CHIXE (BATS 'Chi-X Europe')YesSeries B SharesGBSEKMay 1993

Biography

Elos Medtech AB (publ) develops and manufactures medical devices and components for the medtech industry. The company operates in three segments: Orthopedics, Dental, and Life Science. Its products include implants, screws, plates, instruments, drills, pins and wires, prosthetics, digital dentistry workflow products, disposable plastics, HPLC fittings, and other medical plastic parts, as well as original equipment manufacturing products. The company also provides design and development, regulatory, prototyping, testing, process validation, and supply and inventory management, as well as design for manufacturing and engineering services. It has operations in Sweden, Denmark, China, and the United States. The company was formerly known as Elos AB (publ) and changed its name to Elos Medtech AB (publ) in April 2015. Elos Medtech AB (publ) was founded in 1923 and is based in Gothenburg, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 00:30
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.