OM:HPOL B

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Market Cap

kr40.4b

Last Updated

2021/07/31 18:00 UTC

Data Sources

Company Financials +

Executive Summary

HEXPOL AB (publ) develops, manufactures, and sells various polymer compounds and engineered products in Sweden and internationally. More Details


Snowflake Analysis

Solid track record with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: HPOL B is less volatile than 75% of Swedish stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: HPOL B's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

0.2%

HPOL B

1.3%

SE Chemicals

0.06%

SE Market


1 Year Return

101.4%

HPOL B

91.4%

SE Chemicals

46.9%

SE Market

Return vs Industry: HPOL B exceeded the Swedish Chemicals industry which returned 91.2% over the past year.

Return vs Market: HPOL B exceeded the Swedish Market which returned 46.9% over the past year.


Shareholder returns

HPOL BIndustryMarket
7 Day0.2%1.3%0.06%
30 Day8.3%7.8%7.1%
90 Day12.6%4.8%9.5%
1 Year111.3%101.4%98.5%91.4%52.3%46.9%
3 Year34.4%24.5%47.3%37.5%78.8%61.5%
5 Year71.2%47.5%56.6%38.8%118.6%76.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

28.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HPOL B (SEK117.2) is trading below our estimate of fair value (SEK163.84)

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


Price To Earnings Ratio

PE vs Industry: HPOL B's PE Ratio (20.7x) is in line with the Swedish Chemicals industry average.

PE vs Market: HPOL B is good value based on its PE Ratio (20.7x) compared to the Swedish market (22.9x).


Price to Earnings Growth Ratio

PEG Ratio: HPOL B is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: HPOL B is good value based on its PB Ratio (4.1x) compared to the SE Chemicals industry average (4.8x).


Future Growth

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

5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HPOL B's forecast earnings growth (5.6% per year) is above the savings rate (0.3%).

Earnings vs Market: HPOL B's earnings (5.6% per year) are forecast to grow faster than the Swedish market (4.4% per year).

High Growth Earnings: HPOL B's earnings are forecast to grow, but not significantly.

Revenue vs Market: HPOL B's revenue (5.3% per year) is forecast to grow faster than the Swedish market (2.9% per year).

High Growth Revenue: HPOL B's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HPOL B's Return on Equity is forecast to be high in 3 years time (20%)


Past Performance

How has HEXPOL performed over the past 5 years?

2.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HPOL B has high quality earnings.

Growing Profit Margin: HPOL B's current net profit margins (13.4%) are higher than last year (8.3%).


Past Earnings Growth Analysis

Earnings Trend: HPOL B's earnings have grown by 2% per year over the past 5 years.

Accelerating Growth: HPOL B's earnings growth over the past year (60.3%) exceeds its 5-year average (2% per year).

Earnings vs Industry: HPOL B earnings growth over the past year (60.3%) exceeded the Chemicals industry 20.7%.


Return on Equity

High ROE: HPOL B's Return on Equity (20%) is considered low.


Financial Health

How is HEXPOL's financial position?


Financial Position Analysis

Short Term Liabilities: HPOL B's short term assets (SEK5.1B) exceed its short term liabilities (SEK3.2B).

Long Term Liabilities: HPOL B's short term assets (SEK5.1B) exceed its long term liabilities (SEK3.4B).


Debt to Equity History and Analysis

Debt Level: HPOL B's debt to equity ratio (25%) is considered satisfactory.

Reducing Debt: HPOL B's debt to equity ratio has increased from 12.1% to 25% over the past 5 years.

Debt Coverage: HPOL B's debt is well covered by operating cash flow (99.8%).

Interest Coverage: HPOL B's interest payments on its debt are well covered by EBIT (45.5x coverage).


Balance Sheet


Dividend

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

1.96%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HPOL B's dividend (1.96%) is higher than the bottom 25% of dividend payers in the Swedish market (0.93%).

High Dividend: HPOL B's dividend (1.96%) is low compared to the top 25% of dividend payers in the Swedish market (3.45%).


Stability and Growth of Payments

Stable Dividend: HPOL B's dividends per share have been stable in the past 10 years.

Growing Dividend: HPOL B's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.5%), HPOL B's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HPOL B's dividends in 3 years are forecast to be well covered by earnings (45.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

Georg Brunstam (64 yo)

0.58

Tenure

kr23,059,143

Compensation

Mr. Georg Brunstam serves as Independent Director at NIBE Industrier AB (publ) since 2021 and served as its Director since 2003 until 2021. He serves as Chairman of the Board at AAK AB (publ.) since May 30...


CEO Compensation Analysis

Compensation vs Market: Georg's total compensation ($USD2.68M) is above average for companies of similar size in the Swedish market ($USD1.05M).

Compensation vs Earnings: Georg's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: HPOL B's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: HPOL B's board of directors are considered experienced (6.3 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: HEXPOL AB (publ)
  • Ticker: HPOL B
  • Exchange: OM
  • Founded: 1893
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: kr40.368b
  • Shares outstanding: 344.44m
  • Website: https://www.hexpol.com

Number of Employees


Location

  • HEXPOL AB (publ)
  • Skeppsbron 3
  • Malmö
  • Skåne County
  • 211 20
  • Sweden

Listings


Biography

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 Eng...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 18:00
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.