OM:HPOL B

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet established dividend payer.


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 +/- 4% a week.

Volatility Over Time: HPOL B's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-2.2%

HPOL B

-5.1%

SE Chemicals

-0.4%

SE Market


1 Year Return

-1.0%

HPOL B

3.6%

SE Chemicals

13.3%

SE Market

Return vs Industry: HPOL B underperformed the Swedish Chemicals industry which returned 4.4% over the past year.

Return vs Market: HPOL B underperformed the Swedish Market which returned 15.4% over the past year.


Shareholder returns

HPOL BIndustryMarket
7 Day-2.2%-5.1%-0.4%
30 Day4.1%11.3%4.0%
90 Day2.7%4.3%7.8%
1 Year1.6%-1.0%6.0%3.6%16.4%13.3%
3 Year9.7%1.5%15.1%7.1%45.2%27.9%
5 Year37.0%18.2%12.7%-2.7%85.8%46.5%

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?

16.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HPOL B (SEK89.75) is trading below our estimate of fair value (SEK107.46)

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


Price To Earnings Ratio

PE vs Industry: HPOL B is good value based on its PE Ratio (24x) compared to the SE Chemicals industry average (26.4x).

PE vs Market: HPOL B is poor value based on its PE Ratio (24x) compared to the Swedish market (23.8x).


Price to Earnings Growth Ratio

PEG Ratio: HPOL B is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: HPOL B is good value based on its PB Ratio (3x) compared to the SE Chemicals industry average (7.2x).


Next Steps

Future Growth

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

16.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HPOL B's forecast earnings growth (16.5% per year) is above the savings rate (0.4%).

Earnings vs Market: HPOL B's earnings (16.5% per year) are forecast to grow faster than the Swedish market (12% per year).

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

Revenue vs Market: HPOL B's revenue (4.9% per year) is forecast to grow faster than the Swedish market (3.4% per year).

High Growth Revenue: HPOL B's revenue (4.9% 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 low in 3 years time (16.5%).


Next Steps

Past Performance

How has HEXPOL performed over the past 5 years?

1.9%

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 (9.3%) are lower than last year (10.5%).


Past Earnings Growth Analysis

Earnings Trend: HPOL B's earnings have grown by 1.9% per year over the past 5 years.

Accelerating Growth: HPOL 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: HPOL B had negative earnings growth (-20%) over the past year, making it difficult to compare to the Chemicals industry average (-12%).


Return on Equity

High ROE: HPOL B's Return on Equity (12.5%) is considered low.


Next Steps

Financial Health

How is HEXPOL's financial position?


Financial Position Analysis

Short Term Liabilities: HPOL B's short term assets (SEK4.6B) exceed its short term liabilities (SEK3.4B).

Long Term Liabilities: HPOL B's short term assets (SEK4.6B) exceed its long term liabilities (SEK2.5B).


Debt to Equity History and Analysis

Debt Level: HPOL B's debt to equity ratio (22.1%) is considered satisfactory.

Reducing Debt: HPOL B's debt to equity ratio has increased from 13.6% to 22.1% over the past 5 years.

Debt Coverage: HPOL B's debt is well covered by operating cash flow (99.2%).

Interest Coverage: HPOL B's interest payments on its debt are well covered by EBIT (37.2x coverage).


Balance Sheet


Next Steps

Dividend

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

2.56%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HPOL B's dividend (2.56%) is higher than the bottom 25% of dividend payers in the Swedish market (0.93%).

High Dividend: HPOL B's dividend (2.56%) is low compared to the top 25% of dividend payers in the Swedish market (3.54%).


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 reasonable payout ratio (61.4%), HPOL B's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HPOL B's dividends in 3 years are forecast to be covered by earnings (51.7% payout ratio).


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Georg Brunstam (63 yo)

0.17

Tenure

kr1,000,000

Compensation

Mr. Georg Brunstam serves as Chairman of the Board at AAK AB (publ.) since May 30, 2018. He has been President and Chief Executive Officer of HEXPOL AB (publ) since November 20, 2020. He serves as the Pres...


CEO Compensation Analysis

Compensation vs Market: Georg's total compensation ($USD119.43K) is below average for companies of similar size in the Swedish market ($USD1.09M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Georg Brunstam
President & CEO0.17yrkr1.00m0.27%
SEK 86.8m
John Levinson
President of RheTech Compounding & RheTech Colors & RheTech Engineered Plastics - USAno datano datano data
Peter Rosén
Deputy CEO & CFO1.17yrsno data0.0049%
SEK 1.6m
Magnus Berglund
Senior Vice President of Strategy1.92yrsno data0.0049%
SEK 1.6m
Randy Simpson
Chief Operating Officer of HEXPOL Compounding - NAFTAno datano datano data
Ed Dowdall
Managing Director of HEXPOL Compounding UKno datano datano data
Milos Pitela
Managing Director of HEXPOL Compounding Czech Republicno datano datano data
Jerry Saxion
Managing Director of Goldkey Processing - USAno datano datano data
René Herbiet
Managing Director of HEXPOL Compounding Belgium and Germanyno datano datano data
Roger Jonsson
MD of Elastomeric Wheels - Sri Lanka and MD of Gislaved Gummi Lanka - Sri Lankano datano datano data
David Jia
Managing Director of Gislaved Gummi Chinano datano datano data
Peter Li
Managing Director of Stellana Chinano datano datano data

1.2yrs

Average Tenure

52yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Gun Nilsson
Independent Director3.67yrskr640.00k0.0014%
SEK 458.2k
Malin Persson
Independent Director14yrskr515.00kno data
Alf Göransson
Independent Chairman0.17yrkr390.00k0.00087%
SEK 274.9k
Jan-Anders Månson
Independent Director13yrskr390.00kno data
Kerstin Lindell
Independent Director4.75yrskr390.00k0.0014%
SEK 458.2k
Märta Andreen
Independent Director7yrskr565.00kno data

5.9yrs

Average Tenure

58yo

Average Age

Experienced Board: HPOL B's board of directors are considered experienced (5.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: HPOL B insiders have only sold shares 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: kr31.598b
  • Shares outstanding: 344.20m
  • Website: https://www.hexpol.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HPOL BOM (OMX Nordic Exchange Stockholm)YesClass B SharesSESEKJun 2008
4QT1DB (Deutsche Boerse AG)YesClass B SharesDEEURJun 2008
0R7OLSE (London Stock Exchange)YesClass B SharesGBSEKJun 2008
HXPL.FOTCPK (Pink Sheets LLC)YesClass B SharesUSUSDJun 2008
HPOLBSBATS-CHIXE (BATS 'Chi-X Europe')YesClass B SharesGBSEKJun 2008
HXXP.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDNov 2015

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 Analysis2021/01/15 18:47
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
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.