Executive Summary
Gränges AB (publ) develops, produces, and distributes rolled aluminum products for thermal management systems, specialty packaging, and niche applications in Europe, Asia, and the Americas. More Details
Rewards
Risk Analysis
Snowflake Analysis
Very undervalued 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 is not significantly more volatile than the rest of Swedish stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: GRNG's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
1.5%
GRNG
1.2%
SE Metals and Mining
0.4%
SE Market
1 Year Return
55.0%
GRNG
66.9%
SE Metals and Mining
48.9%
SE Market
Return vs Industry: GRNG underperformed the Swedish Metals and Mining industry which returned 66.9% over the past year.
Return vs Market: GRNG exceeded the Swedish Market which returned 48.9% over the past year.
Shareholder returns
| GRNG | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.5% | 1.2% | 0.4% |
| 30 Day | 2.9% | 1.9% | 3.4% |
| 90 Day | -7.6% | 5.6% | 7.4% |
| 1 Year | 76.4%55.0% | 71.7%66.9% | 54.3%48.9% |
| 3 Year | 8.3%-7.9% | 15.2%6.0% | 72.8%55.8% |
| 5 Year | 101.3%62.6% | 142.3%108.4% | 122.5%78.9% |
Long-Term 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
1 week ago | Simply Wall St
These 4 Measures Indicate That Gränges (STO:GRNG) Is Using Debt Extensively3 weeks ago | Simply Wall St
Gränges (STO:GRNG) Has Gifted Shareholders With A Fantastic 102% Total Return On Their Investment1 month ago | Simply Wall St
Three Days Left Until Gränges AB (publ) (STO:GRNG) Trades Ex-DividendValuation
Is Gränges 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: GRNG (SEK113.4) is trading below our estimate of fair value (SEK233.05)
Significantly Below Fair Value: GRNG is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: GRNG is good value based on its PE Ratio (22.7x) compared to the Swedish Metals and Mining industry average (23.3x).
PE vs Market: GRNG is good value based on its PE Ratio (22.7x) compared to the Swedish market (24x).
Price to Earnings Growth Ratio
PEG Ratio: GRNG is good value based on its PEG Ratio (1x)
Price to Book Ratio
PB vs Industry: GRNG is good value based on its PB Ratio (1.9x) compared to the SE Metals and Mining industry average (2.1x).
Future Growth
How is Gränges forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
23.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GRNG's forecast earnings growth (23.1% per year) is above the savings rate (0.3%).
Earnings vs Market: GRNG's earnings (23.1% per year) are forecast to grow faster than the Swedish market (3.7% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: GRNG's revenue (11.5% per year) is forecast to grow faster than the Swedish market (6.9% per year).
High Growth Revenue: GRNG's revenue (11.5% 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 (14.6%).
Past Performance
How has Gränges performed over the past 5 years?
-0.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GRNG has high quality earnings.
Growing Profit Margin: GRNG's current net profit margins (3.9%) are lower than last year (4.6%).
Past Earnings Growth Analysis
Earnings Trend: GRNG's earnings have declined by 0.9% 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 (-14.6%) over the past year, making it difficult to compare to the Metals and Mining industry average (-14.6%).
Return on Equity
High ROE: GRNG's Return on Equity (7.3%) is considered low.
Financial Health
How is Gränges's financial position?
Financial Position Analysis
Short Term Liabilities: GRNG's short term assets (SEK6.0B) exceed its short term liabilities (SEK4.9B).
Long Term Liabilities: GRNG's short term assets (SEK6.0B) exceed its long term liabilities (SEK2.8B).
Debt to Equity History and Analysis
Debt Level: GRNG's debt to equity ratio (58.6%) is considered high.
Reducing Debt: GRNG's debt to equity ratio has increased from 16% to 58.6% over the past 5 years.
Debt Coverage: GRNG's debt is well covered by operating cash flow (27.2%).
Interest Coverage: GRNG's interest payments on its debt are well covered by EBIT (10x coverage).
Balance Sheet
Dividend
What is Gränges's current dividend yield, its reliability and sustainability?
0.96%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: GRNG's dividend (0.97%) isn’t notable compared to the bottom 25% of dividend payers in the Swedish market (1.12%).
High Dividend: GRNG's dividend (0.97%) is low compared to the top 25% of dividend payers in the Swedish market (3.43%).
Stability and Growth of Payments
Stable Dividend: GRNG has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: GRNG has only been paying a dividend for 6 years, and since then payments have fallen.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (22.1%), GRNG's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: GRNG's dividends in 3 years are forecast to be well covered by earnings (34.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
7.4yrs
Average management tenure
CEO
Johan Menckel (49 yo)
8.42yrs
Tenure
kr15,800,000
Compensation
Mr. Johan Menckel has been Chief Executive Officer of Gränges AB (publ) (AKA Sapa AB) since 2013 and serves as its President. He has been Director of Securitas AB since May 5, 2021. Mr. Menckel served as B...
CEO Compensation Analysis
Compensation vs Market: Johan's total compensation ($USD1.90M) is above average for companies of similar size in the Swedish market ($USD868.60K).
Compensation vs Earnings: Johan's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: GRNG's management team is seasoned and experienced (7.4 years average tenure).
Board Members
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 been diluted in the past year, with total shares outstanding growing by 40.8%.
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: kr12.140b
- Shares outstanding: 106.31m
- Website: https://www.granges.com
Number of Employees
Location
- Gränges AB (publ)
- Linnégatan 18
- Stockholm
- Stockholm County
- 114 47
- Sweden
Listings
Biography
Gränges AB (publ) develops, produces, and distributes rolled aluminum products for thermal management systems, specialty packaging, and niche applications in Europe, Asia, and the Americas. The company off...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/06/14 19:20 |
| End of Day Share Price | 2021/06/14 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.