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 Analysis

Adequate balance sheet and fair value.


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

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


Market Performance


7 Day Return

4.7%

HANDI

6.4%

SE Medical Equipment

0.3%

SE Market


1 Year Return

-47.6%

HANDI

12.6%

SE Medical Equipment

-13.2%

SE Market

Return vs Industry: HANDI underperformed the Swedish Medical Equipment industry which returned 13% over the past year.

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


Shareholder returns

HANDIIndustryMarket
7 Day4.7%6.4%0.3%
30 Day-38.8%-8.9%-19.3%
90 Day-47.8%-12.5%-23.1%
1 Year-46.9%-47.6%14.5%12.6%-11.0%-13.2%
3 Yearn/a34.5%19.3%-0.2%-14.7%
5 Yearn/a27.5%5.1%6.0%-16.1%

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

Below Fair Value: HANDI (SEK20) is trading below our estimate of fair value (SEK68.81)

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


Price To Earnings Ratio

PE vs Industry: HANDI is unprofitable, so we can't compare its PE Ratio to the Medical Equipment industry average.

PE vs Market: HANDI 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 HANDI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HANDI is good value based on its PB Ratio (0.6x) compared to the SE Medical Equipment industry average (3.8x).


Next Steps

Future Growth

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

68.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HANDI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: HANDI is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: HANDI's is expected to become profitable in the next 3 years.

Revenue vs Market: HANDI's revenue (2.3% per year) is forecast to grow slower than the Swedish market (4.1% per year).

High Growth Revenue: HANDI's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HANDI's Return on Equity is forecast to be low in 3 years time (9.2%).


Next Steps

Past Performance

How has Handicare Group performed over the past 5 years?

79.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HANDI is currently unprofitable.

Growing Profit Margin: HANDI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HANDI is unprofitable, but has reduced losses over the past 5 years at a rate of 79.2% per year.

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

Earnings vs Industry: HANDI is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (12.6%).


Return on Equity

High ROE: HANDI has a negative Return on Equity (-1.33%), as it is currently unprofitable.


Next Steps

Financial Health

How is Handicare Group's financial position?


Financial Position Analysis

Short Term Liabilities: HANDI's short term assets (€105.0M) exceed its short term liabilities (€47.7M).

Long Term Liabilities: HANDI's short term assets (€105.0M) do not cover its long term liabilities (€123.1M).


Debt to Equity History and Analysis

Debt Level: HANDI's debt to equity ratio (54.8%) is considered high.

Reducing Debt: HANDI's debt to equity ratio has reduced from 245.2% to 54.8% over the past 5 years.


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 1.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable HANDI has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: HANDI is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 49.1% per year.


Next Steps

Dividend

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

8.14%

Forecast Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

3.8yrs

Average management tenure


CEO

Staffan Ternström (54yo)

1.67s

Tenure

€429,949

Compensation

Mr. Staffan Ternström has been Chief Executive Officer and President of Handicare Group AB (publ) since August 14, 2018 and has been its Acting President of America since November 22, 2019. Mr. Ternström s ...


CEO Compensation Analysis

Compensation vs Market: Staffan's total compensation ($USD463.86K) is above average for companies of similar size in the Swedish market ($USD210.15K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Staffan Ternström
President1.67yrs€429.95k0.025% 300.0k
Pernilla Lindén
CFO & IR0.67yrno datano data
Peter Slack
Executive Vice President of Operations3.25yrsno datano data
Rebecca Karlsson
Communication & Sustainability Directorno datano datano data
Mattias Hakeröd
Executive Vice President of Human Resources & Enabling Functionsno datano datano data
Helena Skarle
Executive Vice President of Patient Handling Europe & Asia Pacific.4.25yrsno data0.017% 200.0k
Peter Lindquist
Executive Vice President of Commercial Europe6.25yrsno datano data
Francois Roblin
Executive Vice President of Group Purchasing & Product Development6.25yrsno datano data
Erik Østby
Executive Vice President of Patient Handling Europe & ROW and Global Commercial Excellenceno datano datano data

3.8yrs

Average Tenure

52yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Lars Marcher
Independent Chairman of the Board3.25yrs€49.00k0.84% 9.9m
Claes Åkesson
Independent Director3yrs€27.00k0.042% 500.0k
Christina Lindstedt
Director0.92yrno datano data
Joakim Andreasson
Independent Director4.25yrs€25.00kno data
Maria Carell
Independent Director4.25yrs€22.00k0.046% 543.7k
Johan Ek
Vice Chairman3.25yrs€18.00k0.50% 5.9m
Jonas Arlebäck
Director1.92yrs€18.00k0.56% 6.6m

3.3yrs

Average Tenure

51yo

Average Age

Experienced Board: HANDI's board of directors are considered experienced (3.3 years average tenure).


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

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: kr1.179b
  • 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, transfer products, lifting and repositioning aids, vehicle conversion adaptations, and medical equipment and consumables, as well as offers maintenance and installation services. It serves hospitals, long-term care facilities, home care, and private individuals through dealers, and government and local authorities. The company was founded in 1986 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 Analysis2020/04/04 03:03
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.