OM:BRG B

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Bergs Timber AB (publ) produces, distributes, and sells sawn and processed timber products in Sweden, the United Kingdom, and internationally. More Details


Snowflake Analysis

Adequate balance sheet with moderate growth potential.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.4%

BRG B

-3.0%

SE Forestry

-0.3%

SE Market


1 Year Return

6.0%

BRG B

2.2%

SE Forestry

16.9%

SE Market

Return vs Industry: BRG B exceeded the Swedish Forestry industry which returned 3.5% over the past year.

Return vs Market: BRG B underperformed the Swedish Market which returned 17.2% over the past year.


Shareholder returns

BRG BIndustryMarket
7 Day-0.4%-3.0%-0.3%
30 Day-0.4%-2.4%1.1%
90 Day-0.7%9.5%6.5%
1 Year6.0%6.0%5.2%2.2%19.1%16.9%
3 Year4.0%-1.1%13.5%1.6%36.4%21.8%
5 Year25.4%19.2%79.4%9.3%65.7%33.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

46.29x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BRG B (SEK2.67) is trading above our estimate of fair value (SEK1.1)

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


Price To Earnings Ratio

PE vs Industry: BRG B is poor value based on its PE Ratio (46.3x) compared to the XE Forestry industry average (12.6x).

PE vs Market: BRG B is poor value based on its PE Ratio (46.3x) compared to the Swedish market (23.2x).


Price to Earnings Growth Ratio

PEG Ratio: BRG B is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: BRG B is good value based on its PB Ratio (0.8x) compared to the XE Forestry industry average (1x).


Next Steps

Future Growth

How is Bergs Timber forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

37.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BRG B's forecast earnings growth (37% per year) is above the savings rate (0.5%).

Earnings vs Market: BRG B's earnings (37% per year) are forecast to grow faster than the Swedish market (13.9% per year).

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

Revenue vs Market: BRG B's revenue is expected to decline over the next 3 years (-13.3% per year).

High Growth Revenue: BRG B's revenue is forecast to decline over the next 3 years (-13.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BRG B's Return on Equity is forecast to be low in 3 years time (7.3%).


Next Steps

  • Explore growth companies in the Materials industry.

Past Performance

How has Bergs Timber performed over the past 5 years?

49.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BRG B has a large one-off gain of SEK27.9M impacting its June 30 2020 financial results.

Growing Profit Margin: BRG B's current net profit margins (0.6%) are lower than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: BRG B has become profitable over the past 5 years, growing earnings by 49.6% per year.

Accelerating Growth: BRG 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: BRG B had negative earnings growth (-84.7%) over the past year, making it difficult to compare to the Forestry industry average (-35.2%).


Return on Equity

High ROE: BRG B's Return on Equity (1.8%) is considered low.


Next Steps

Financial Health

How is Bergs Timber's financial position?


Financial Position Analysis

Short Term Liabilities: BRG B's short term assets (SEK1.3B) exceed its short term liabilities (SEK487.0M).

Long Term Liabilities: BRG B's short term assets (SEK1.3B) exceed its long term liabilities (SEK580.0M).


Debt to Equity History and Analysis

Debt Level: BRG B's debt to equity ratio (58.3%) is considered high.

Reducing Debt: BRG B's debt to equity ratio has reduced from 71.6% to 58.3% over the past 5 years.

Debt Coverage: BRG B's debt is well covered by operating cash flow (43.9%).

Interest Coverage: BRG B's interest payments on its debt are not well covered by EBIT (1.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Bergs Timber current dividend yield, its reliability and sustainability?

3.74%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate BRG B's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BRG B's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: BRG 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 BRG 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?

1.2yrs

Average management tenure


CEO

Peter Nilsson (57 yo)

7.75yrs

Tenure

kr5,134,000

Compensation

Mr. Peter Nilsson has been the Chief Executive Officer at Bergs Timber AB (publ) since 2013 and serves as its President. Mr. Nilsson served as Managing Director of Bergs Timber AB (publ) since 2013. He ser ...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD586.43K) is above average for companies of similar size in the Swedish market ($USD231.58K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Peter Nilsson
President7.75yrskr5.13m0.26%
SEK 2.4m
Anders Marklund
Chief Financial Officerno datano data0.0072%
SEK 66.7k
Roger Eckerstig
Technical Managerno datano datano data
Per-Åke Bergh
Sales Managerno datakr17.00kno data
Maria Berggren
Head of Personnelno datano datano data
Niklas Sjöfors
Head of Raw Materialno datano datano data
Jörgen Karlsson
Group Controller0.58yrno datano data
Nigel McKillop
Chief Executive Officer of Continental Wood Ltd.1.17yrsno datano data
Henrik Egnell
Plant Manager of Bitusno datakr515.00kno data

1.2yrs

Average Tenure

50yo

Average Age

Experienced Management: BRG B's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Michael Bertorp
Chairman of the Board2.42yrskr511.00k0.014%
SEK 133.5k
Reino Thapper
Employee Representative Director31.75yrsno datano data
Åke Bergh
Director45.75yrskr181.00k3.42%
SEK 31.7m
Jon Gudmundsson
Director4.33yrskr168.00kno data
Lars Pettersson
Employee Representative Director9.75yrsno datano data
Patrik Ivarsson
Deputy Director10.75yrsno data0.012%
SEK 112.1k
Lars Gustafsson
Director5.75yrskr181.00k0.35%
SEK 3.3m
Gudmundur Jónsson
Director2.42yrskr168.00kno data
Ingrida Bluma
Director2.42yrskr168.00kno data

5.8yrs

Average Tenure

64yo

Average Age

Experienced Board: BRG B's board of directors are considered experienced (5.8 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

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


Key Information

  • Name: Bergs Timber AB (publ)
  • Ticker: BRG B
  • Exchange: OM
  • Founded: 1919
  • Industry: Forest Products
  • Sector: Materials
  • Market Cap: kr925.765m
  • Shares outstanding: 346.73m
  • Website: https://www.bergstimber.se

Number of Employees


Location

  • Bergs Timber AB (publ)
  • Stora Torget 3
  • Vimmerby
  • Kalmar County
  • 598 37
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BRG BOM (OMX Nordic Exchange Stockholm)YesSeries B SharesSESEKAug 1992
0H2WLSE (London Stock Exchange)YesSeries B SharesGBSEKAug 1992
BRGBSBATS-CHIXE (BATS 'Chi-X Europe')YesSeries B SharesGBSEKAug 1992
2HWDB (Deutsche Boerse AG)YesSeries B SharesDEEURAug 1992

Biography

Bergs Timber AB (publ) produces, distributes, and sells sawn and processed timber products in Sweden, the United Kingdom, and internationally. It offers structural timber in spruce and pine forms; treated ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 21:24
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
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.