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

Fundamentals

Flawless balance sheet with reasonable growth potential.


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


Market Performance


7 Day Return

1.9%

SECT B

2.7%

SE Medical Equipment

2.7%

SE Market


1 Year Return

38.9%

SECT B

29.2%

SE Medical Equipment

10.0%

SE Market

Return vs Industry: SECT B exceeded the Swedish Medical Equipment industry which returned 29.2% over the past year.

Return vs Market: SECT B exceeded the Swedish Market which returned 10% over the past year.


Shareholder returns

SECT BIndustryMarket
7 Day1.9%2.7%2.7%
30 Day3.9%-0.4%1.9%
90 Day-4.6%-1.4%3.2%
1 Year38.9%38.9%30.6%29.2%14.7%10.0%
3 Year125.6%125.6%48.0%30.5%31.1%11.4%
5 Year254.3%254.3%67.9%40.1%61.5%27.2%

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?

62.61x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: SECT B (SEK321.5) is trading above our estimate of fair value (SEK149.52)

Significantly Undervalued: 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 (62.6x) compared to the Medical Equipment industry average (45.2x).

PE vs Market: SECT B is poor value based on its PE Ratio (62.6x) compared to the Swedish market (16.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: SECT B is poor value based on its PEG Ratio (4.4x)


Price to Book Ratio

PB vs Industry: SECT B is overvalued based on its PB Ratio (16.6x) compared to the SE Medical Equipment industry average (4.5x).


Next Steps

Future Growth

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

14.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SECT B's forecast earnings growth (14.2% per year) is above the savings rate (0.4%).

Earnings vs Market: SECT B's earnings (14.2% per year) are forecast to grow faster than the Swedish market (9.4% per year).

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

Revenue vs Market: SECT B's revenue (7.6% per year) is forecast to grow faster than the Swedish market (4.5% per year).

High Growth Revenue: SECT B's revenue (7.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SECT B's Return on Equity is forecast to be high in 3 years time (30.1%)


Next Steps

Past Performance

How has Sectra performed over the past 5 years?

11.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SECT B's earnings have grown by 11.6% per year over the past 5 years.

Accelerating Growth: SECT B's earnings growth over the past year (4.1%) is below its 5-year average (11.6% per year).

Earnings vs Industry: SECT B earnings growth over the past year (4.1%) underperformed the Medical Equipment industry 17.3%.


Return on Equity

High ROE: SECT B's Return on Equity (26.5%) is considered high.


Return on Assets

ROA vs Industry: SECT B has a higher Return on Assets than the Medical Equipment industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is Sectra's financial position?


Financial Position Analysis

Short Term Liabilities: SECT B's short term assets (SEK825.2M) exceeds its short term liabilities (SEK472.7M)

Long Term Liabilities: SECT B's short term assets (825.2M) exceeds its long term liabilities (104.0M)


Debt to Equity History and Analysis

Debt Level: SECT B's debt to equity ratio (0.9%) is considered satisfactory

Reducing Debt: SECT B's debt to equity ratio has reduced from 4.3% to 0.9% over the past 5 years.

Debt Coverage: SECT B's debt is well covered by operating cash flow (3205.6%).

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


Balance Sheet

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

Debt Coverage by Assets: SECT B's debt is covered by short term assets (assets are 127.917530x debt).


Next Steps

Dividend

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

1.50%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.8%markettop25%4.7%industryaverage1.1%forecastin3Years1.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

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

6.8yrs

Average management tenure


CEO

Torbjörn Kronander (62yo)

6.9yrs

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 ($USD380.92K) is below average for companies of similar size in the Swedish market ($USD828.76K).

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


Management Age and Tenure

6.8yrs

Average Tenure

49.5yo

Average Age

Experienced Management: SECT B's management team is seasoned and experienced (6.8 years average tenure).


Board Age and Tenure

1.8yrs

Average Tenure

63yo

Average Age

Experienced Board: SECT B's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

Buykr82,00001 Oct 19
Simo Pykälistö
EntityIndividual
Role
Senior Key Executive
President of Secure Communications Operating Area & Executive VP
Shares250
Max Pricekr328.00
Buykr46,07504 Sep 19
Per Andersnäs
EntityIndividual
Shares150
Max Pricekr307.50
Sellkr743,69212 Mar 19
Simo Pykälistö
EntityIndividual
Role
Senior Key Executive
President of Secure Communications Operating Area & Executive VP
Shares2,909
Max Pricekr258.77
Buykr60,90011 Dec 18
Per Andersnäs
EntityIndividual
Shares300
Max Pricekr203.25

Ownership Breakdown


Management Team

  • Robert Forchheimer

    • Tenure: 0yrs
  • Torbjörn Kronander (62yo)

    President

    • Tenure: 6.9yrs
    • Compensation: kr3.70m
  • Helena Pettersson (49yo)

    Chief Investor Relations Officer

    • Tenure: 0yrs
  • Simo Pykälistö (47yo)

    President of Secure Communications Operating Area & Executive VP

    • Tenure: 6.8yrs
  • Viiveke Fåk

    • Tenure: 0yrs
  • Ingemar Ingemarsson

    • Tenure: 0yrs
  • Marie Trägårdh (58yo)

    President of Imaging IT Solutions

    • Tenure: 6.8yrs
  • Fredrik Gustavsson

    Chief Technology Officer

    • Tenure: 0yrs
  • Lisa Everhill (40yo)

    Chief People & Brand Officer

    • Tenure: 0yrs
  • Mats Franzén (50yo)

    Chief Financial Officer

    • Tenure: 3.8yrs

Board Members

  • Jan-Olof Brüer (68yo)

    Chairman of the Board

    • Tenure: 1.1yrs
    • Compensation: kr402.00k
  • Christer Nilsson (67yo)

    Director

    • Tenure: 11.8yrs
    • Compensation: kr292.00k
  • Torbjörn Kronander (62yo)

    President

    • Tenure: 6.9yrs
    • Compensation: kr3.70m
  • Anders Persson (66yo)

    Director

    • Tenure: 15.8yrs
    • Compensation: kr265.00k
  • Tomas Puusepp (64yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: kr225.00k
  • Birgitta Hagenfeldt (58yo)

    Director

    • Tenure: 1.1yrs
    • Compensation: kr177.00k
  • Filip Klintenstedt (38yo)

    Deputy Employee Representative Board Member

    • Tenure: 0.8yrs
  • Andreas Örnéus (38yo)

    Deputy Employee Representative Board Member

    • Tenure: 1.8yrs
  • Jonas Yngvesson

    Director

    • Tenure: 0.08yrs

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: kr12.330b
  • Shares outstanding: 38.35m
  • 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
SECT IL BOM (OMX Nordic Exchange Stockholm)SER'B'NPV(RED SHS 16/10/19)SESEKOct 2019

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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 20:40
End of Day Share Price2019/10/17 00:00
Earnings2019/07/31
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.