OM:MSON B

Stock Analysis Report

Executive Summary

Midsona AB (publ) develops, produces, and markets organic products, health foods, and self care products in Sweden, Norway, Finland, Denmark, and Germany.

Rewards

Trading at 71.7% below its fair value

Earnings are forecast to grow 44.99% per year

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record

Profit margins (3.2%) are lower than last year (4.9%)



Snowflake Analysis

Good value with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

4.3%

MSON B

2.6%

SE Personal Products

0.7%

SE Market


1 Year Return

-18.0%

MSON B

-17.9%

SE Personal Products

19.3%

SE Market

Return vs Industry: MSON B underperformed the Swedish Personal Products industry which returned -17.9% over the past year.

Return vs Market: MSON B underperformed the Swedish Market which returned 19.3% over the past year.


Shareholder returns

MSON BIndustryMarket
7 Day4.3%2.6%0.7%
30 Day12.3%7.9%0.05%
90 Day-5.5%-7.7%6.0%
1 Year-5.6%-18.0%-7.9%-17.9%24.3%19.3%
3 Year47.2%22.6%40.1%17.8%33.5%13.0%
5 Year176.2%69.4%100.0%78.8%63.5%28.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Midsona 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: MSON B (SEK51.5) is trading below our estimate of fair value (SEK182.17)

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


Price To Earnings Ratio

PE vs Industry: MSON B is poor value based on its PE Ratio (25x) compared to the Personal Products industry average (22.9x).

PE vs Market: MSON B is poor value based on its PE Ratio (25x) compared to the Swedish market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: MSON B is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: MSON B is good value based on its PB Ratio (1.4x) compared to the SE Personal Products industry average (3x).


Next Steps

Future Growth

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

45.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MSON B's forecast earnings growth (45% per year) is above the savings rate (-0.4%).

Earnings vs Market: MSON B's earnings (45% per year) are forecast to grow faster than the Swedish market (9.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MSON B's revenue (10% per year) is forecast to grow faster than the Swedish market (4.4% per year).

High Growth Revenue: MSON B's revenue (10% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MSON B's Return on Equity is forecast to be low in 3 years time (9.9%).


Next Steps

Past Performance

How has Midsona performed over the past 5 years?

15.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MSON B has high quality earnings.

Growing Profit Margin: MSON B's current net profit margins (3.2%) are lower than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: MSON B's earnings have grown by 15.5% per year over the past 5 years.

Accelerating Growth: MSON B's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MSON B had negative earnings growth (-26.9%) over the past year, making it difficult to compare to the Personal Products industry average (-1.9%).


Return on Equity

High ROE: MSON B's Return on Equity (5.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Midsona's financial position?


Financial Position Analysis

Short Term Liabilities: MSON B's short term assets (SEK1.0B) exceed its short term liabilities (SEK716.0M).

Long Term Liabilities: MSON B's short term assets (SEK1.0B) do not cover its long term liabilities (SEK1.7B).


Debt to Equity History and Analysis

Debt Level: MSON B's debt to equity ratio (76.8%) is considered high.

Reducing Debt: MSON B's debt to equity ratio has increased from 24.2% to 76.8% over the past 5 years.

Debt Coverage: MSON B's debt is not well covered by operating cash flow (10.5%).

Interest Coverage: MSON B's interest payments on its debt are well covered by EBIT (5.3x coverage).


Balance Sheet

Inventory Level: MSON B has a high level of physical assets or inventory.

Debt Coverage by Assets: MSON B's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

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

2.43%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%1.6%markettop25%4.7%industryaverage2.1%forecastin3Years3.3%

Current dividend yield vs market & industry

Notable Dividend: MSON B's dividend (2.43%) is higher than the bottom 25% of dividend payers in the Swedish market (1.61%).

High Dividend: MSON B's dividend (2.43%) is low compared to the top 25% of dividend payers in the Swedish market (4.69%).


Stability and Growth of Payments

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

Growing Dividend: MSON B's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (60.6%), MSON B's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MSON B's dividends in 3 years are forecast to be well covered by earnings (49.8% payout ratio).


Next Steps

Management

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

10.9yrs

Average management tenure


CEO

Peter Åsberg (53yo)

12yrs

Tenure

kr6,443,000

Compensation

Mr. Peter Åsberg has been the Chief Executive Officer and President of Midsona AB (publ) since December 2007 and served as its Director since 2015. Mr. Åsberg has been Marketing Director of Cloetta Fazer A ...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD683.37K) is about average for companies of similar size in the Swedish market ($USD561.61K).

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


Management Age and Tenure

10.9yrs

Average Tenure

53yo

Average Age

Experienced Management: MSON B's management team is seasoned and experienced (10.9 years average tenure).


Board Age and Tenure

4.0yrs

Average Tenure

56.5yo

Average Age

Experienced Board: MSON B's board of directors are considered experienced (4 years average tenure).


Insider Trading

Insider Buying: MSON B insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sellkr173,01006 Dec 19
Tobias Traneborn
EntityIndividual
Shares3,499
Max Pricekr49.50
Sellkr1,477,20001 Dec 19
Ulrika Palm
EntityIndividual
Role
Senior Key Executive
Head of Business Area Sweden & Division Director Nordics
Shares30,000
Max Pricekr49.24
Sellkr407,14713 Sep 19
Tobias Traneborn
EntityIndividual
Shares7,301
Max Pricekr56.78

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Peter Åsberg (53yo)

    President & CEO

    • Tenure: 12yrs
    • Compensation: kr6.44m
  • Lennart Svensson (58yo)

    Chief Financial Officer

    • Tenure: 10.9yrs
  • Björn Ullemark

    Head of Operations

    • Tenure: 0yrs
  • Ulrika Palm (46yo)

    Head of Business Area Sweden & Division Director Nordics

    • Tenure: 3.8yrs

Board Members

  • Birgitta Göransson (62yo)

    Director

    • Tenure: 4.9yrs
    • Compensation: kr245.00k
  • Henrik Stenqvist (52yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: kr275.00k
  • Johan Wester (53yo)

    Director

    • Tenure: 10.9yrs
    • Compensation: kr275.00k
  • Ola Erici (59yo)

    Chairman of the Board

    • Tenure: 3.7yrs
    • Compensation: kr550.00k
  • Peter Wahlberg (57yo)

    Director

    • Tenure: 4.2yrs
    • Compensation: kr255.00k
  • Kirsten Ægidius (56yo)

    Director

    • Tenure: 3.9yrs
    • Compensation: kr225.00k

Company Information

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


Key Information

  • Name: Midsona AB (publ)
  • Ticker: MSON B
  • Exchange: OM
  • Founded: 1892
  • Industry: Personal Products
  • Sector: Household
  • Market Cap: kr3.347b
  • Shares outstanding: 65.00m
  • Website: https://www.midsona.com

Number of Employees


Location

  • Midsona AB (publ)
  • Dockplatsen 16
  • PO Box 21009
  • Malmö
  • Skåne County
  • 200 21
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MSON AOM (OMX Nordic Exchange Stockholm)Series A SharesSESEKJun 1999
MSON BOM (OMX Nordic Exchange Stockholm)YesSeries B SharesSESEKJun 1999
0GY9LSE (London Stock Exchange)Series A SharesGBSEKJun 1999
0GSELSE (London Stock Exchange)YesSeries B SharesGBSEKJun 1999
MSONBSBATS-CHIXE (BATS 'Chi-X Europe')YesSeries B SharesGBSEKJun 1999

Biography

Midsona AB (publ) develops, produces, and markets organic products, health foods, and self care products in Sweden, Norway, Finland, Denmark, and Germany. The company offers protein bars and sports nutriti ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 20:52
End of Day Share Price2019/12/11 00:00
Earnings2019/09/30
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.