OM:HANDI

Stock Analysis Report

Executive Summary

Handicare Group AB (publ) provides mobility solutions for physically challenged or elderly people in North America, Asia, and Europe.

Snowflake

Fundamentals

Good value with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.3%

HANDI

-0.5%

SE Medical Equipment

1.9%

SE Market


1 Year Return

-12.2%

HANDI

34.2%

SE Medical Equipment

9.6%

SE Market

Return vs Industry: HANDI underperformed the Swedish Medical Equipment industry which returned 34.2% over the past year.

Return vs Market: HANDI underperformed the Swedish Market which returned 9.6% over the past year.


Shareholder returns

HANDIIndustryMarket
7 Day2.3%-0.5%1.9%
30 Day-0.6%-0.05%-0.3%
90 Day-5.0%-5.3%0.7%
1 Year-10.9%-12.2%35.6%34.2%14.3%9.6%
3 Yearn/a47.0%29.5%31.5%11.9%
5 Yearn/a70.1%42.0%66.2%30.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: HANDI (SEK36) is trading below our estimate of fair value (SEK74.89)

Significantly Undervalued: HANDI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HANDI is good value based on its PE Ratio (18.5x) compared to the Medical Equipment industry average (44.9x).

PE vs Market: HANDI is poor value based on its PE Ratio (18.5x) compared to the Swedish market (16.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: HANDI is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: HANDI is good value based on its PB Ratio (1.1x) compared to the SE Medical Equipment industry average (4.4x).


Next Steps

Future Growth

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

12.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HANDI's forecast earnings growth (12.2% per year) is above the savings rate (0.4%).

Earnings vs Market: HANDI's earnings (12.2% per year) are forecast to grow faster than the Swedish market (8.9% per year).

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

Revenue vs Market: HANDI's revenue (3.2% per year) is forecast to grow slower than the Swedish market (4.5% per year).

High Growth Revenue: HANDI's revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: HANDI's Return on Equity is forecast to be low in 3 years time (8.9%).


Next Steps

Past Performance

How has Handicare Group performed over the past 5 years?

86.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HANDI's earnings have grown significantly by 86.6% per year over the past 5 years.

Accelerating Growth: HANDI's earnings growth over the past year (40630.8%) exceeds its 5-year average (86.6% per year).

Earnings vs Industry: HANDI earnings growth over the past year (40630.8%) exceeded the Medical Equipment industry 17.3%.


Return on Equity

High ROE: HANDI's Return on Equity (5.9%) is considered low.


Return on Assets

ROA vs Industry: HANDI's Return on Assets is below or equal to the Medical Equipment industry average last year.


Return on Capital Employed

ROCE Improving: HANDI has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Handicare Group's financial position?


Financial Position Analysis

Short Term Liabilities: HANDI's short term assets (€107.9M) exceeds its short term liabilities (€45.0M)

Long Term Liabilities: HANDI's short term assets (107.9M) do not cover its long term liabilities (138.2M)


Debt to Equity History and Analysis

Debt Level: HANDI's debt to equity ratio (58.2%) is considered high

Reducing Debt: Insufficient data to determine if HANDI's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: HANDI's debt is not well covered by operating cash flow (18.2%).

Interest Coverage: HANDI's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet

Inventory Level: HANDI has a low level of unsold assets or inventory.

Debt Coverage by Assets: HANDI's debt is covered by short term assets (assets are 1.030560x debt).


Next Steps

Dividend

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

1.50%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%1.8%markettop25%4.8%industryaverage1.1%forecastin3Years3.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HANDI's dividend (1.5%) isn’t notable compared to the bottom 25% of dividend payers in the Swedish market (1.79%).

High Dividend: HANDI's dividend (1.5%) is low compared to the top 25% of dividend payers in the Swedish market (4.78%).

Stable Dividend: Whilst dividend payments have been stable, HANDI has been paying a dividend for less than 10 years.

Growing Dividend: HANDI's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.8%), HANDI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HANDI's dividends in 3 years are forecast to be well covered by earnings (32% payout ratio).


Next Steps

Management

What is the CEO of Handicare Group's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Staffan Ternström (54yo)

1.2yrs

Tenure

€429,949

Compensation

Mr. Staffan Ternström has been Chief Executive Officer and President of Handicare Group AB (publ) since August 14, 2018 and employed it in 2018. Mr. Ternström served as an Executive Vice President of Comme ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Staffan's total compensation is reasonable compared to companies of similar size in the Swedish market.

Compensation vs Earnings: Insufficient data to compare Staffan's compensation with company performance.


Management Age and Tenure

2.8yrs

Average Tenure

52yo

Average Age

Experienced Management: HANDI's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

2.8yrs

Average Tenure

51yo

Average Age

Experienced Board: HANDI's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Peter Lindquist (58yo)

    Executive Vice President of Commercial Europe

    • Tenure: 5.8yrs
  • Staffan Ternström (54yo)

    CEO & President

    • Tenure: 1.2yrs
    • Compensation: €429.95k
  • Mattias Hakeröd (45yo)

    Executive Vice President of Human Resources & Enabling Functions

    • Tenure: 0yrs
  • Helena Skarle (34yo)

    Executive Vice President of Patient Handling Europe & Asia Pacific.

    • Tenure: 3.8yrs
  • Francois Roblin (54yo)

    Executive Vice President of Group Purchasing & Product Development

    • Tenure: 5.8yrs
  • Peter Slack (45yo)

    Executive Vice President of Operations

    • Tenure: 2.8yrs
  • Pernilla Lindén (50yo)

    Chief Financial Officer

    • Tenure: 0.2yrs
  • Tom Vorpahl (64yo)

    President of North America

    • Tenure: 0.7yrs
  • Rebecca Karlsson

    Communication & Sustainability Director

    • Tenure: 0yrs

Board Members

  • Lars Marcher (57yo)

    Independent Chairman of the Board

    • Tenure: 2.8yrs
    • Compensation: €49.00k
  • Claes Åkesson (60yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: €27.00k
  • Christina Lindstedt (51yo)

    Director

    • Tenure: 0.4yrs
  • Joakim Andreasson (37yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: €25.00k
  • Maria Carell (46yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: €22.00k
  • Johan Ek (51yo)

    Vice Chairman

    • Tenure: 2.8yrs
    • Compensation: €18.00k
  • Jonas Arlebäck (49yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: €18.00k

Company Information

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


Key Information

  • Name: Handicare Group AB (publ)
  • Ticker: HANDI
  • Exchange: OM
  • Founded: 1986
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: kr2.122b
  • Shares outstanding: 58.94m
  • Website: https://www.handicaregroup.com

Number of Employees


Location

  • Handicare Group AB (publ)
  • Ingmar Bergmans gata 4
  • Stockholm
  • 114 34
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HANDIOM (OMX Nordic Exchange Stockholm)YesShare CapitalSESEKOct 2017
0TCXLSE (London Stock Exchange)YesShare CapitalGBSEKOct 2017
HANDISBATS-CHIXE (BATS 'Chi-X Europe')YesShare CapitalGBSEKOct 2017

Biography

Handicare Group AB (publ) provides mobility solutions for physically challenged or elderly people in North America, Asia, and Europe. The company manufactures and sells curved and straight stair lifts, tra ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 21:56
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.