OM:GRNG

Stock Analysis Report

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Executive Summary

Gränges AB (publ) develops, produces, and distributes rolled aluminum products for brazed heat exchanger and niche applications in Europe, Asia, and the Americas. More Details


Snowflake Analysis

Good value with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.7%

GRNG

2.6%

SE Metals and Mining

2.8%

SE Market


1 Year Return

-20.8%

GRNG

8.8%

SE Metals and Mining

17.9%

SE Market

Return vs Industry: GRNG underperformed the Swedish Metals and Mining industry which returned 8.8% over the past year.

Return vs Market: GRNG underperformed the Swedish Market which returned 17.9% over the past year.


Shareholder returns

GRNGIndustryMarket
7 Day-0.7%2.6%2.8%
30 Day8.8%8.6%5.5%
90 Day7.6%26.4%14.4%
1 Year-20.8%-20.8%11.3%8.8%20.0%17.9%
3 Year-6.7%-11.8%0.2%-8.3%38.0%23.2%
5 Year75.1%56.0%88.7%61.4%74.7%40.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GRNG (SEK79.15) is trading below our estimate of fair value (SEK79.34)

Significantly Below Fair Value: GRNG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: GRNG is poor value based on its PE Ratio (15.8x) compared to the SE Metals and Mining industry average (15.2x).

PE vs Market: GRNG is good value based on its PE Ratio (15.8x) compared to the Swedish market (22.2x).


Price to Earnings Growth Ratio

PEG Ratio: GRNG is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: GRNG is good value based on its PB Ratio (1.4x) compared to the SE Metals and Mining industry average (1.8x).


Next Steps

Future Growth

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

52.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GRNG's forecast earnings growth (52.1% per year) is above the savings rate (0.5%).

Earnings vs Market: GRNG's earnings (52.1% per year) are forecast to grow faster than the Swedish market (14.9% per year).

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

Revenue vs Market: GRNG's revenue (19.6% per year) is forecast to grow faster than the Swedish market (3.8% per year).

High Growth Revenue: GRNG's revenue (19.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GRNG's Return on Equity is forecast to be low in 3 years time (14.8%).


Next Steps

Past Performance

How has Gränges performed over the past 5 years?

9.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GRNG has high quality earnings.

Growing Profit Margin: GRNG's current net profit margins (3.4%) are lower than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: GRNG's earnings have grown by 9.3% per year over the past 5 years.

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

Earnings vs Industry: GRNG had negative earnings growth (-42.9%) over the past year, making it difficult to compare to the Metals and Mining industry average (-27.6%).


Return on Equity

High ROE: GRNG's Return on Equity (8.6%) is considered low.


Next Steps

Financial Health

How is Gränges's financial position?


Financial Position Analysis

Short Term Liabilities: GRNG's short term assets (SEK4.2B) exceed its short term liabilities (SEK2.1B).

Long Term Liabilities: GRNG's short term assets (SEK4.2B) exceed its long term liabilities (SEK3.7B).


Debt to Equity History and Analysis

Debt Level: GRNG's debt to equity ratio (82.8%) is considered high.

Reducing Debt: GRNG's debt to equity ratio has increased from 47.7% to 82.8% over the past 5 years.

Debt Coverage: GRNG's debt is well covered by operating cash flow (42.1%).

Interest Coverage: GRNG's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet


Next Steps

Dividend

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

3.51%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

4.7yrs

Average management tenure


CEO

Johan Menckel (49 yo)

7.67yrs

Tenure

kr14,500,000

Compensation

Mr. Johan Menckel has been the Chief Executive Officer of Gränges AB (publ) (AKA Sapa AB) since 2013. Mr. Menckel served as Business Area President at SAPA Heat Transfer at Orkla ASA since February 1, 2012 ...


CEO Compensation Analysis

Compensation vs Market: Johan's total compensation ($USD1.66M) is above average for companies of similar size in the Swedish market ($USD794.12K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Johan Menckel
Chief Executive Officer7.67yrskr14.50m0.050%
SEK 3.0m
Oskar Hellstrom
Deputy CEO & CFO7.67yrskr9.80m0.020%
SEK 1.2m
Per Eriksson
Chairman Emeritus and Director of Technology16.42yrsno datano data
Torbjörn Sternsjö
Senior Vice President of Technology & Business Development3.67yrsno data0.021%
SEK 1.2m
Bilal Chebaro
Chief Information Officer5.67yrsno datano data
Niclas Nelson
General Counsel6.67yrsno data0.0066%
SEK 395.7k
Camilla Weiner
Senior Vice President of Corporate Responsibility & Communication1.67yrsno datano data
Tolga Egrilmezer
Executive Vice President of Business Development7yrsno datano data
Fredrik Spens
Deputy President of Europe & VP of Marketing & Sales2.67yrsno datano data
Magnus Carlström
Senior Vice President of Human Resources3.58yrsno datano data
John Thuestad
Executive Vice President of Extrusion Europe Business Areano datano datano data
Kent Schölin
Senior Vice President of Research & Innovation3.33yrsno data0.0062%
SEK 372.4k

4.7yrs

Average Tenure

54yo

Average Age

Experienced Management: GRNG's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Per Eriksson
Chairman Emeritus and Director of Technology16.42yrsno datano data
Öystein Larsen
Employee Representative Director10.67yrskr40.00k0.00062%
SEK 37.1k
Fredrik Arp
Chairman of the Board0.33yrno datano data
Stein Hagen
Chairman of Orkla ASAno datano datano data
Ragnhild Wiborg
Independent Director6.25yrskr366.67k0.0016%
SEK 93.2k
Carina Andersson
Independent Director6yrskr331.67k0.0032%
SEK 190.1k
Peter Carlsson
Independent Director4.67yrskr331.67kno data
Michael Lönn
Observerno datano datano data
Konny Svensson
Employee Representative Director6.67yrskr40.00k0.00031%
SEK 18.5k
Katarina Lindström
Independent Director4.42yrskr353.33k0.0066%
SEK 395.7k
Hans Porat
Independent Director4.42yrskr331.67kno data
Mats Backman
Independent Director2.33yrskr386.67k0.0066%
SEK 395.7k

5.3yrs

Average Tenure

61yo

Average Age

Experienced Board: GRNG's board of directors are considered experienced (5.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: GRNG insiders have bought more shares than they have sold 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

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


Key Information

  • Name: Gränges AB (publ)
  • Ticker: GRNG
  • Exchange: OM
  • Founded: 1896
  • Industry: Aluminum
  • Sector: Materials
  • Market Cap: kr5.977b
  • Shares outstanding: 75.52m
  • Website: https://www.granges.com

Number of Employees


Location

  • Gränges AB (publ)
  • Linnégatan 18
  • Stockholm
  • Stockholm County
  • 114 47
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GRNGOM (OMX Nordic Exchange Stockholm)YesCommon SharesSESEKOct 2014
GRNGSBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBSEKOct 2014
9GRDB (Deutsche Boerse AG)YesCommon SharesDEEUROct 2014
0R9XLSE (London Stock Exchange)YesCommon SharesGBSEKOct 2014

Biography

Gränges AB (publ) develops, produces, and distributes rolled aluminum products for brazed heat exchanger and niche applications in Europe, Asia, and the Americas. The company offers clad tubes, clad fins, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/21 03:14
End of Day Share Price2020/09/18 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.