OM:SECT B

Stock Analysis Report

Executive Summary

Sectra AB (publ) provides IT systems for managing medical images and patient information related to diagnostic imaging.


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SECT B has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.4%

SECT B

3.0%

SE Medical Equipment

4.0%

SE Market


1 Year Return

35.1%

SECT B

15.8%

SE Medical Equipment

-6.4%

SE Market

Return vs Industry: SECT B exceeded the Swedish Medical Equipment industry which returned 15.8% over the past year.

Return vs Market: SECT B exceeded the Swedish Market which returned -6.4% over the past year.


Shareholder returns

SECT BIndustryMarket
7 Day-0.4%3.0%4.0%
30 Day-2.6%0.2%-8.3%
90 Day-3.2%-9.2%-17.8%
1 Year35.1%35.1%17.7%15.8%-4.4%-6.4%
3 Year141.8%141.8%37.7%22.0%6.8%-8.3%
5 Year219.5%219.5%25.7%3.7%13.7%-9.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SECT B (SEK393) is trading above our estimate of fair value (SEK101.7)

Significantly Below Fair Value: SECT B is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SECT B is poor value based on its PE Ratio (66x) compared to the Medical Equipment industry average (53.6x).

PE vs Market: SECT B is poor value based on its PE Ratio (66x) compared to the Swedish market (15.3x).


Price to Earnings Growth Ratio

PEG Ratio: SECT B is poor value based on its PEG Ratio (6.1x)


Price to Book Ratio

PB vs Industry: SECT B is overvalued based on its PB Ratio (20.9x) compared to the SE Medical Equipment industry average (3.9x).


Next Steps

Future Growth

How is Sectra forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

10.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SECT B's forecast earnings growth (10.9% per year) is above the savings rate (-0.4%).

Earnings vs Market: SECT B's earnings (10.9% per year) are forecast to grow faster than the Swedish market (8.9% per year).

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

Revenue vs Market: SECT B's revenue (8.6% per year) is forecast to grow faster than the Swedish market (4.2% per year).

High Growth Revenue: SECT B's revenue (8.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SECT B's Return on Equity is forecast to be high in 3 years time (30.9%)


Next Steps

Past Performance

How has Sectra performed over the past 5 years?

13.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SECT B has high quality earnings.

Growing Profit Margin: SECT B's current net profit margins (13.7%) are lower than last year (14.3%).


Past Earnings Growth Analysis

Earnings Trend: SECT B's earnings have grown by 13% per year over the past 5 years.

Accelerating Growth: SECT B's earnings growth over the past year (23%) exceeds its 5-year average (13% per year).

Earnings vs Industry: SECT B earnings growth over the past year (23%) exceeded the Medical Equipment industry 12.6%.


Return on Equity

High ROE: SECT B's Return on Equity (31.6%) is considered high.


Next Steps

Financial Health

How is Sectra's financial position?


Financial Position Analysis

Short Term Liabilities: SECT B's short term assets (SEK889.2M) exceed its short term liabilities (SEK599.3M).

Long Term Liabilities: SECT B's short term assets (SEK889.2M) exceed its long term liabilities (SEK90.6M).


Debt to Equity History and Analysis

Debt Level: SECT B's debt to equity ratio (0.4%) is considered satisfactory.

Reducing Debt: SECT B's debt to equity ratio has reduced from 8.3% to 0.4% over the past 5 years.

Debt Coverage: SECT B's debt is well covered by operating cash flow (9674.2%).

Interest Coverage: SECT B earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

1.23%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

7.3yrs

Average management tenure


CEO

Torbjörn Kronander (62yo)

7.42s

Tenure

kr3,700,000

Compensation

Dr. Torbjörn Kronander, Ph.D., MBA, has been the Chief Executive Officer and President of Sectra Aktiebolag (publ) since November 1, 2012 and also serves as its Director since 1988. Dr. Kronander has also  ...


CEO Compensation Analysis

Compensation vs Market: Torbjörn's total compensation ($USD369.07K) is below average for companies of similar size in the Swedish market ($USD802.97K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Torbjörn Kronander
President7.42yrskr3.70m8.02% SEK1.2b
Robert Forchheimer
no datano data3.58% SEK542.5m
Viiveke Fåk
no datano data3.4% SEK514.8m
Ingemar Ingemarsson
no datano data0.71% SEK107.0m
Mats Franzén
Chief Financial Officer4.25yrsno data0.032% SEK4.9m
Fredrik Gustavsson
Chief Technology Officerno datano datano data
Helena Pettersson
Chief Investor Relations Officerno datano datano data
Lisa Everhill
Chief People & Brand Officerno datano data0.0069% SEK1.1m
Simo Pykälistö
President of Secure Communications Operating Area & Executive VP7.33yrsno data0.093% SEK14.0m
Marie Tragardh
President of Imaging IT Solutions Business Area7.33yrsno data0.12% SEK18.7m

7.3yrs

Average Tenure

49.5yo

Average Age

Experienced Management: SECT B's management team is seasoned and experienced (7.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Torbjörn Kronander
President7.42yrskr3.70m8.02% SEK1.2b
Jan-Olof Brüer
Chairman of the Board1.58yrskr402.00k7.97% SEK1.2b
Christer Nilsson
Independent Director12.25yrskr292.00k0.037% SEK5.7m
Anders Persson
Independent Director16.25yrskr265.00k0.10% SEK15.7m
Deborah Capello
Employee Representative Director6.25yrsno data0.00078% SEK118.0k
Bengt Hellman
Employee Representative Director5.25yrsno datano data
Tomas Puusepp
Independent Director3.25yrskr225.00kno data
Birgitta Hagenfeldt
Independent Director1.58yrskr177.00k0.0052% SEK785.4k
Filip Klintenstedt
Deputy Employee Representative Board Member1.25yrsno data0.0032% SEK491.8k
Jonas Yngvesson
Independent Director0.58yrno datano data

4.3yrs

Average Tenure

60yo

Average Age

Experienced Board: SECT B's board of directors are considered experienced (4.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SECT 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Sectra AB (publ)
  • Ticker: SECT B
  • Exchange: OM
  • Founded: 1978
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: kr15.133b
  • Shares outstanding: 38.51m
  • Website: https://www.sectra.com

Number of Employees


Location

  • Sectra AB (publ)
  • Teknikringen 20
  • Linköping
  • Östergötland County
  • 583 30
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SECT BOM (OMX Nordic Exchange Stockholm)YesSeries B SharesSESEKMar 1999
0A0LLSE (London Stock Exchange)YesSeries B SharesGBSEKMar 1999
SECTBSBATS-CHIXE (BATS 'Chi-X Europe')YesSeries B SharesGBSEKMar 1999

Biography

Sectra AB (publ) provides IT systems for managing medical images and patient information related to diagnostic imaging. The company’s Imaging IT Solutions segment develops and sells medical IT systems and services for managing, archiving, and presenting various types of medical images and patient information, as well as for operational follow-up and radiation dose monitoring; maintenance services in the form of support and system monitoring; and consulting services related to integration, system design, data migration, and business development. Its Secure Communications segment develops and sells products and services for secure voice and data communications, and protection of society’s sensitive IT infrastructure; customized encryption systems and products; and critical infrastructure, which offers security and threat analyses and system monitoring services for control systems in society’s critical operations. The company’s Business Innovation segment develops and sells IT systems for planning and monitoring orthopedic surgery; and products for medical education and research projects. It serves public and private healthcare providers comprising hospitals, and hospital and private clinic chains; and government agencies and defense departments. Sectra AB (publ) sells its products through its sales organizations and distribution partners in Africa, Europe, the Middle East, North America, Oceania, Southeast Asia, and Japan. The company was founded in 1978 and is headquartered in Linköping, 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 02:05
End of Day Share Price2020/04/07 00:00
Earnings2020/01/31
Annual Earnings2019/04/30


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.