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HEXPOL

OM:HPOL B
Snowflake Description

Undervalued with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HPOL B
OM
SEK24B
Market Cap
  1. Home
  2. SE
  3. Materials
Company description

HEXPOL AB (publ) develops, manufactures, and sells various polymer compounds and engineered products in Sweden and internationally. The last earnings update was 32 days ago. More info.


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HPOL B Share Price and Events
7 Day Returns
-0.6%
OM:HPOL B
-3.3%
SE Chemicals
-1.2%
SE Market
1 Year Returns
-27.1%
OM:HPOL B
-23.3%
SE Chemicals
-2.6%
SE Market
HPOL B Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
HEXPOL (HPOL B) -0.6% -2.1% -4.5% -27.1% -9.6% 15.9%
SE Chemicals -3.3% -4.1% -6.2% -23.3% -10.1% 16.6%
SE Market -1.2% -4.8% -1.8% -2.6% 6% 14.3%
1 Year Return vs Industry and Market
  • HPOL B underperformed the Chemicals industry which returned -23.3% over the past year.
  • HPOL B underperformed the Market in Sweden which returned -2.6% over the past year.
Price Volatility
HPOL B
Industry
5yr Volatility vs Market

Value

 Is HEXPOL undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of HEXPOL to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for HEXPOL.

OM:HPOL B Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.3%
Perpetual Growth Rate 10-Year SE Government Bond Rate 0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for OM:HPOL B
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year SE Govt Bond Rate 0.4%
Equity Risk Premium S&P Global 6%
Chemicals Unlevered Beta Simply Wall St/ S&P Global 0.89
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.891 (1 + (1- 22%) (13.23%))
0.988
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.99
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.43% + (0.988 * 5.96%)
6.32%

Discounted Cash Flow Calculation for OM:HPOL B using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for HEXPOL is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

OM:HPOL B DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (SEK, Millions) Source Present Value
Discounted (@ 6.32%)
2020 1,860.67 Analyst x3 1,749.98
2021 2,060.67 Analyst x3 1,822.79
2022 2,210.59 Est @ 7.28% 1,839.09
2023 2,326.05 Est @ 5.22% 1,820.03
2024 2,414.13 Est @ 3.79% 1,776.58
2025 2,481.26 Est @ 2.78% 1,717.36
2026 2,532.79 Est @ 2.08% 1,648.75
2027 2,572.91 Est @ 1.58% 1,575.23
2028 2,604.80 Est @ 1.24% 1,499.89
2029 2,630.78 Est @ 1% 1,424.74
Present value of next 10 years cash flows SEK16,874.46
OM:HPOL B DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= SEK2,630.78 × (1 + 0.43%) ÷ (6.32% – 0.43%)
SEK44,854.69
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= SEK44,854.69 ÷ (1 + 6.32%)10
SEK24,291.72
OM:HPOL B Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= SEK16,874.46 + SEK24,291.72
SEK41,166.17
Equity Value per Share
(SEK)
= Total value / Shares Outstanding
= SEK41,166.17 / 344.20
SEK119.6
OM:HPOL B Discount to Share Price
Calculation Result
Value per share (SEK) From above. SEK119.60
Current discount Discount to share price of SEK69.50
= -1 x (SEK69.50 - SEK119.60) / SEK119.60
41.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price HEXPOL is available for.
Intrinsic value
42%
Share price is SEK69.5 vs Future cash flow value of SEK119.6
Current Discount Checks
For HEXPOL to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • HEXPOL's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • HEXPOL's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for HEXPOL's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are HEXPOL's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OM:HPOL B PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in SEK SEK4.82
OM:HPOL B Share Price ** OM (2019-08-19) in SEK SEK69.5
Europe Chemicals Industry PE Ratio Median Figure of 89 Publicly-Listed Chemicals Companies 16.96x
Sweden Market PE Ratio Median Figure of 322 Publicly-Listed Companies 15.9x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of HEXPOL.

OM:HPOL B PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= OM:HPOL B Share Price ÷ EPS (both in SEK)

= 69.5 ÷ 4.82

14.41x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HEXPOL is good value based on earnings compared to the Europe Chemicals industry average.
  • HEXPOL is good value based on earnings compared to the Sweden market.
Price based on expected Growth
Does HEXPOL's expected growth come at a high price?
Raw Data
OM:HPOL B PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.41x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
6.8%per year
Europe Chemicals Industry PEG Ratio Median Figure of 61 Publicly-Listed Chemicals Companies 1.52x
Sweden Market PEG Ratio Median Figure of 236 Publicly-Listed Companies 1.17x

*Line of best fit is calculated by linear regression .

OM:HPOL B PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.41x ÷ 6.8%

2.12x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HEXPOL is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on HEXPOL's assets?
Raw Data
OM:HPOL B PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in SEK SEK26.35
OM:HPOL B Share Price * OM (2019-08-19) in SEK SEK69.5
Sweden Chemicals Industry PB Ratio Median Figure of 11 Publicly-Listed Chemicals Companies 3.22x
Sweden Market PB Ratio Median Figure of 577 Publicly-Listed Companies 2.57x
OM:HPOL B PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= OM:HPOL B Share Price ÷ Book Value per Share (both in SEK)

= 69.5 ÷ 26.35

2.64x

* Primary Listing of HEXPOL.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HEXPOL is good value based on assets compared to the SE Chemicals industry average.
X
Value checks
We assess HEXPOL's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Chemicals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Chemicals industry average (and greater than 0)? (1 check)
  5. HEXPOL has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is HEXPOL expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is HEXPOL expected to grow at an attractive rate?
  • HEXPOL's earnings growth is expected to exceed the low risk savings rate of 0.4%.
Growth vs Market Checks
  • HEXPOL's earnings growth is positive but not above the Sweden market average.
  • HEXPOL's revenue growth is expected to exceed the Sweden market average.
Annual Growth Rates Comparison
Raw Data
OM:HPOL B Future Growth Rates Data Sources
Data Point Source Value (per year)
OM:HPOL B Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 6.8%
OM:HPOL B Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 6.3%
Sweden Chemicals Industry Earnings Growth Rate Market Cap Weighted Average 13.8%
Sweden Chemicals Industry Revenue Growth Rate Market Cap Weighted Average 9.4%
Sweden Market Earnings Growth Rate Market Cap Weighted Average 8.2%
Sweden Market Revenue Growth Rate Market Cap Weighted Average 4.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OM:HPOL B Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in SEK Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OM:HPOL B Future Estimates Data
Date (Data in SEK Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 17,414 2,312 1,923 4
2020-12-31 16,917 2,106 1,782 4
2019-12-31 15,582 1,949 1,661 4
OM:HPOL B Past Financials Data
Date (Data in SEK Millions) Revenue Cash Flow Net Income *
2019-06-30 14,490 1,962 1,660
2019-03-31 14,266 1,808 1,673
2018-12-31 13,770 1,806 1,646
2018-09-30 13,139 1,721 1,690
2018-06-30 12,632 1,776 1,619
2018-03-31 12,401 1,607 1,559
2017-12-31 12,230 1,699 1,527
2017-09-30 12,057 1,615 1,452
2017-06-30 11,863 1,656 1,458
2017-03-31 11,260 1,806 1,421
2016-12-31 10,879 1,710 1,397
2016-09-30 10,722 1,705 1,349

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • HEXPOL's earnings are expected to grow by 6.8% yearly, however this is not considered high growth (20% yearly).
  • HEXPOL's revenue is expected to grow by 6.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
OM:HPOL B Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from HEXPOL Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OM:HPOL B Future Estimates Data
Date (Data in SEK Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 5.56 5.68 5.50 4.00
2020-12-31 5.20 5.32 5.00 4.00
2019-12-31 4.87 5.05 4.74 4.00
OM:HPOL B Past Financials Data
Date (Data in SEK Millions) EPS *
2019-06-30 4.82
2019-03-31 4.86
2018-12-31 4.78
2018-09-30 4.91
2018-06-30 4.70
2018-03-31 4.53
2017-12-31 4.44
2017-09-30 4.22
2017-06-30 4.24
2017-03-31 4.13
2016-12-31 4.06
2016-09-30 3.92

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • HEXPOL is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess HEXPOL's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Sweden market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Sweden market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
HEXPOL has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has HEXPOL performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare HEXPOL's growth in the last year to its industry (Chemicals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • HEXPOL's year on year earnings growth rate has been positive over the past 5 years.
  • HEXPOL's 1-year earnings growth is less than its 5-year average (2.5% vs 9.4%)
  • HEXPOL's earnings growth has exceeded the Europe Chemicals industry average in the past year (2.5% vs 1.4%).
Earnings and Revenue History
HEXPOL's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from HEXPOL Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OM:HPOL B Past Revenue, Cash Flow and Net Income Data
Date (Data in SEK Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 14,490.00 1,660.00 755.00 99.00
2019-03-31 14,266.00 1,673.00 729.00 99.00
2018-12-31 13,770.00 1,646.00 686.00 99.00
2018-09-30 13,139.00 1,690.00 647.00 91.00
2018-06-30 12,632.00 1,619.00 614.00 91.00
2018-03-31 12,401.00 1,559.00 608.00 91.00
2017-12-31 12,230.00 1,527.00 592.00 91.00
2017-09-30 12,057.00 1,452.00 607.00 82.00
2017-06-30 11,863.00 1,458.00 607.00 82.00
2017-03-31 11,260.00 1,421.00 591.00 82.00
2016-12-31 10,879.00 1,397.00 585.00 82.00
2016-09-30 10,722.00 1,349.00 588.00 78.00
2016-06-30 10,752.00 1,368.00 568.00 78.00
2016-03-31 11,035.00 1,396.00 556.00 78.00
2015-12-31 11,229.00 1,393.00 543.00 78.00
2015-09-30 10,964.00 1,315.00 565.00 64.00
2015-06-30 10,504.00 1,237.00 542.00 64.00
2015-03-31 9,739.00 1,138.00 497.00 64.00
2014-12-31 8,919.00 1,048.00 448.00 64.00
2014-09-30 8,511.00 1,054.00 385.00 55.00
2014-06-30 8,238.00 1,006.00 376.00 55.00
2014-03-31 8,153.00 976.00 370.00 55.00
2013-12-31 8,036.00 930.00 378.00 55.00
2013-09-30 7,877.00 862.00 372.00 56.00
2013-06-30 7,818.00 822.00 386.00 56.00
2013-03-31 7,879.00 788.00 397.00 56.00
2012-12-31 8,007.00 753.00 400.00 56.00
2012-09-30 8,035.00 724.00 407.00 49.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • HEXPOL has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • HEXPOL used its assets more efficiently than the Europe Chemicals industry average last year based on Return on Assets.
  • HEXPOL's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess HEXPOL's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Chemicals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
HEXPOL has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is HEXPOL's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up HEXPOL's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • HEXPOL is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • HEXPOL's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of HEXPOL's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from HEXPOL Company Filings, last reported 1 month ago.

OM:HPOL B Past Debt and Equity Data
Date (Data in SEK Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 9,068.00 3,166.00 1,738.00
2019-03-31 9,387.00 2,390.00 1,219.00
2018-12-31 8,592.00 2,332.00 1,164.00
2018-09-30 8,151.00 1,685.00 1,656.00
2018-06-30 7,882.00 966.00 1,022.00
2018-03-31 7,682.00 840.00 1,107.00
2017-12-31 7,010.00 840.00 813.00
2017-09-30 6,353.00 1,554.00 967.00
2017-06-30 6,295.00 1,611.00 663.00
2017-03-31 7,824.00 22.00 1,003.00
2016-12-31 7,559.00 29.00 1,297.00
2016-09-30 6,879.00 278.00 1,037.00
2016-06-30 6,414.00 785.00 1,019.00
2016-03-31 6,452.00 269.00 983.00
2015-12-31 6,233.00 524.00 978.00
2015-09-30 5,976.00 819.00 858.00
2015-06-30 5,532.00 1,279.00 966.00
2015-03-31 5,805.00 1,197.00 965.00
2014-12-31 5,049.00 567.00 826.00
2014-09-30 4,480.00 825.00 789.00
2014-06-30 3,963.00 827.00 652.00
2014-03-31 3,877.00 936.00 803.00
2013-12-31 3,617.00 962.00 597.00
2013-09-30 3,324.00 1,308.00 605.00
2013-06-30 3,211.00 1,655.00 636.00
2013-03-31 3,086.00 1,771.00 724.00
2012-12-31 2,909.00 1,809.00 564.00
2012-09-30 2,721.00 1,453.00 541.00
  • HEXPOL's level of debt (34.9%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (20.8% vs 34.9% today).
  • Debt is well covered by operating cash flow (62%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 437.2x coverage).
X
Financial health checks
We assess HEXPOL's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. HEXPOL has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.24%
Current annual income from HEXPOL dividends. Estimated to be 4.52% next year.
If you bought SEK2,000 of HEXPOL shares you are expected to receive SEK65 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • HEXPOL's pays a higher dividend yield than the bottom 25% of dividend payers in Sweden (1.97%).
  • HEXPOL's dividend is below the markets top 25% of dividend payers in Sweden (4.54%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OM:HPOL B Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
Europe Chemicals Industry Average Dividend Yield Market Cap Weighted Average of 75 Stocks 3.3%
Sweden Market Average Dividend Yield Market Cap Weighted Average of 244 Stocks 3.7%
Sweden Minimum Threshold Dividend Yield 10th Percentile 1.3%
Sweden Bottom 25% Dividend Yield 25th Percentile 2%
Sweden Top 25% Dividend Yield 75th Percentile 4.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

OM:HPOL B Future Dividends Estimate Data
Date (Data in SEK) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 3.57 4.00
2020-12-31 3.47 4.00
2019-12-31 2.37 4.00
OM:HPOL B Past Annualized Dividends Data
Date (Data in SEK) Dividend per share (annual) Avg. Yield (%)
2019-03-20 2.250 2.978
2018-03-21 1.950 2.278
2017-02-03 1.750 2.056
2016-03-30 1.700 2.093
2015-03-30 1.200 1.366
2014-04-02 0.900 1.373
2013-05-03 0.600 1.269
2012-05-04 0.500 1.734
2011-05-06 0.300 1.687
2010-05-07 0.100 0.872

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, HEXPOL has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but HEXPOL only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of HEXPOL's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.5x coverage).
X
Income/ dividend checks
We assess HEXPOL's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can HEXPOL afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. HEXPOL has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mikael Fryklund
COMPENSATION SEK18,888,000
AGE 56
TENURE AS CEO 2.1 years
CEO Bio

Mr. Mikael Fryklund, M.Sc. Eng., B.Sc. serves as President of Trelleborg Industrial Solutions. Mr. Fryklund served as President of Trelleborg Industrial Solutions at Trelleborg AB from 2012 to March 17, 2017. He served as President of Industrial Products at Trelleborg AB. He served as a Director of Scandinavian Enviro Systems AB (publ) since April 28, 2015 until May 4, 2017.

CEO Compensation
  • Mikael's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Mikael's remuneration is higher than average for companies of similar size in Sweden.
Management Team Tenure

Average tenure and age of the HEXPOL management team in years:

2.1
Average Tenure
56
Average Age
  • The tenure for the HEXPOL management team is about average.
Management Team

Mikael Fryklund

TITLE
President & CEO
COMPENSATION
SEK19M
AGE
56
TENURE
2.1 yrs

John Levinson

TITLE
President of RheTech Compounding & RheTech Colors & RheTech Engineered Plastics - USA

Karin Gunnarsson

TITLE
CFO & Investor Relations Manager
AGE
57
TENURE
6.9 yrs

Magnus Berglund

TITLE
Senior Vice President of Strategy
AGE
48
TENURE
0.5 yrs

Randy Simpson

TITLE
Chief Operating Officer of HEXPOL Compounding - NAFTA

Ed Dowdall

TITLE
Managing Director of HEXPOL Compounding UK

Milos Pitela

TITLE
Managing Director of HEXPOL Compounding Czech Republic

Jerry Saxion

TITLE
Managing Director of Goldkey Processing - USA

René Herbiet

TITLE
Managing Director of HEXPOL Compounding Belgium and Germany

Roger Jonsson

TITLE
MD of Elastomeric Wheels - Sri Lanka and MD of Gislaved Gummi Lanka - Sri Lanka
Board of Directors Tenure

Average tenure and age of the HEXPOL board of directors in years:

5.6
Average Tenure
62
Average Age
  • The tenure for the HEXPOL board of directors is about average.
Board of Directors

Georg Brunstam

TITLE
Chairman of the Board
COMPENSATION
SEK3M
AGE
62
TENURE
2.3 yrs

Gun Nilsson

TITLE
Director
COMPENSATION
SEK570K
AGE
64
TENURE
2.3 yrs

Malin Persson

TITLE
Director
COMPENSATION
SEK470K
AGE
51
TENURE
12.6 yrs

Alf Göransson

TITLE
Director
COMPENSATION
SEK370K
AGE
62
TENURE
12.6 yrs

Jan-Anders Månson

TITLE
Director
COMPENSATION
SEK370K
AGE
67
TENURE
11.6 yrs

Märta Andreen

TITLE
Director
COMPENSATION
SEK520K
AGE
35
TENURE
5.6 yrs

Kerstin Lindell

TITLE
Director
COMPENSATION
SEK370K
AGE
52
TENURE
3.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (SEK) Value (SEK)
12. Mar 19 Sell Melker Schorling Tjanste AB Company 07. Mar 19 12. Mar 19 -3,199,514 SEK76.47 SEK-243,006,966
X
Management checks
We assess HEXPOL's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. HEXPOL has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is There An Opportunity With HEXPOL AB (publ)'s (STO:HPOL B) 41% Undervaluation?

We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) estimate 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF (SEK, Millions) SEK1.9b SEK2.1b SEK2.2b SEK2.3b SEK2.4b SEK2.5b SEK2.5b SEK2.6b SEK2.6b SEK2.6b Growth Rate Estimate Source Analyst x3 Analyst x3 Est @ 7.28% Est @ 5.22% Est @ 3.79% Est @ 2.78% Est @ 2.08% Est @ 1.58% Est @ 1.24% Est @ 1% Present Value (SEK, Millions) Discounted @ 6.35% SEK1.7k SEK1.8k SEK1.8k SEK1.8k SEK1.8k SEK1.7k SEK1.6k SEK1.6k SEK1.5k SEK1.4k ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= SEK16.9b We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … OM:HPOL B Intrinsic value, August 13th 2019 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Is HEXPOL (STO:HPOL B) A Risky Investment?

We note that HEXPOL AB (publ) (STO:HPOL B) does have debt on its balance sheet. … Because it carries more debt than cash, we think it's worth watching HEXPOL's balance sheet over time. … Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it.

Simply Wall St -

Update: HEXPOL (STO:HPOL B) Stock Gained 22% In The Last Five Years

For example, the HEXPOL AB (publ) (STO:HPOL B) share price is 22% higher than it was five years ago, which is more than the market average. … During five years of share price growth, HEXPOL achieved compound earnings per share (EPS) growth of 11% per year. … This EPS growth is higher than the 4.0% average annual increase in the share price.

Simply Wall St -

Is HEXPOL AB (publ)’s (STO:HPOL B) 18% ROCE Any Good?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for HEXPOL: 0.18 = kr2.2b ÷ (kr15b - kr2.9b) (Based on the trailing twelve months to March 2019.) Therefore, HEXPOL has an ROCE of 18%. … How HEXPOL's Current Liabilities Impact Its ROCE Short term (or current) liabilities, are things like supplier invoices, overdrafts, or tax bills that need to be paid within 12 months. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

Has HEXPOL AB (publ) (STO:HPOL B) Got Enough Cash?

Check out our latest analysis for HEXPOL HPOL B’s Debt (And Cash Flows) HPOL B has built up its total debt levels in the last twelve months, from kr840m to kr2.4b , which includes long-term debt. … With this growth in debt, the current cash and short-term investment levels stands at kr1.2b to keep the business going. … On top of this, HPOL B has produced kr1.8b in operating cash flow in the last twelve months, resulting in an operating cash to total debt ratio of 76%, signalling that HPOL B’s operating cash is sufficient to cover its debt.

Simply Wall St -

What Type Of Shareholder Owns HEXPOL AB (publ)'s (STO:HPOL B)?

Insider Ownership Of HEXPOL While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. … It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. … Private Company Ownership It seems that Private Companies own 24%, of the HPOL B stock.

Simply Wall St -

Is There An Opportunity With HEXPOL AB (publ)'s (STO:HPOL B) 23% Undervaluation?

Today, we will estimate the stock's intrinsic value. … by projecting its future cash flows and then discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model?

Simply Wall St -

Here's Why We Think HEXPOL (STO:HPOL B) Is Well Worth Watching

One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. … While we note HEXPOL's EBIT margins were flat over the last year, revenue grew by a solid 13% to kr14b. … You can take a look at the company's revenue and earnings growth trend, in the chart below.

Simply Wall St -

Should You Be Impressed By HEXPOL AB (publ)'s (STO:HPOL B) ROE?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Another way to think of that is that for every SEK1 worth of equity in the company, it was able to earn SEK0.19. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Should Investors Know About HEXPOL AB (publ)'s (STO:HPOL B) Growth?

The most recent earnings update HEXPOL AB (publ)'s (STO:HPOL B) released in December 2018a … revealed

Simply Wall St -

Company Info

Description

HEXPOL AB (publ) develops, manufactures, and sells various polymer compounds and engineered products in Sweden and internationally. It operates through two business areas, HEXPOL Compounding and HEXPOL Engineered Products. The HEXPOL Compounding business area offers rubber compounds, including elastomers, such as silicone and fluoro-carbon rubber; and thermoplastic elastomer and thermoplastic compounds for the automotive and engineering, busilng and construction, transportation, energy, oil and gas, consumer, and cable and wire industries, as well as manufacturers of medical technology. The HEXPOL Engineered Products business area provides gaskets for plate heat exchangers and other applications. It also provides polyurethane, plastic, and rubber wheels; and tires for manufacturers of plate hear exchangers, forklifts, and castor wheels, as well as material handling and electric-powered warehouse applications. The company was founded in 1893 and is headquartered in Malmö, Sweden.

Details
Name: HEXPOL AB (publ)
HPOL B
Exchange: OM
Founded: 1893
SEK23,921,988,960
344,201,280
Website: http://www.hexpol.com
Address: HEXPOL AB (publ)
Skeppsbron 3,
Malmö,
Skåne County, 211 20,
Sweden
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
OM HPOL B Class B Shares OMX Nordic Exchange Stockholm SE SEK 09. Jun 2008
OTCPK HXPL.F Class B Shares Pink Sheets LLC US USD 09. Jun 2008
DB 4QT1 Class B Shares Deutsche Boerse AG DE EUR 09. Jun 2008
LSE 0R7O Class B Shares London Stock Exchange GB SEK 09. Jun 2008
BATS-CHIXE HPOLBS Class B Shares BATS 'Chi-X Europe' GB SEK 09. Jun 2008
OTCPK HXXP.Y UNSPONSORED ADR Pink Sheets LLC US USD 30. Nov 2015
Number of employees
Current staff
Staff numbers
4,629
HEXPOL employees.
Industry
Specialty Chemicals
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/19 21:30
End of day share price update: 2019/08/19 00:00
Last estimates confirmation: 2019/07/25
Last earnings filing: 2019/07/18
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.