OM:NEXAM

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Nexam Chemical Holding

Executive Summary

Nexam Chemical Holding AB (publ) develops solutions that enhance properties and performance of various types of polymers. More Details


Snowflake Analysis

High growth potential with adequate balance sheet.

Share Price & News

How has Nexam Chemical Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NEXAM is not significantly more volatile than the rest of Swedish stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: NEXAM's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

13.4%

NEXAM

3.2%

SE Chemicals

1.6%

SE Market


1 Year Return

22.3%

NEXAM

4.7%

SE Chemicals

15.6%

SE Market

Return vs Industry: NEXAM exceeded the Swedish Chemicals industry which returned 8.1% over the past year.

Return vs Market: NEXAM exceeded the Swedish Market which returned 17.1% over the past year.


Shareholder returns

NEXAMIndustryMarket
7 Day13.4%3.2%1.6%
30 Day13.2%7.4%5.6%
90 Day10.8%8.8%10.9%
1 Year22.3%22.3%7.0%4.7%18.7%15.6%
3 Year8.4%8.4%20.0%11.8%48.6%30.9%
5 Year-17.9%-17.9%16.7%0.9%87.5%47.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Nexam Chemical Holding undervalued compared to its fair value and its price relative to the market?

4.09x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: NEXAM (SEK10.3) is trading above our estimate of fair value (SEK7.46)

Significantly Below Fair Value: NEXAM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NEXAM is unprofitable, so we can't compare its PE Ratio to the SE Chemicals industry average.

PE vs Market: NEXAM is unprofitable, so we can't compare its PE Ratio to the Swedish market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NEXAM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NEXAM is good value based on its PB Ratio (4.1x) compared to the SE Chemicals industry average (7.9x).


Next Steps

Future Growth

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

49.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NEXAM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.4%).

Earnings vs Market: NEXAM is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: NEXAM's is expected to become profitable in the next 3 years.

Revenue vs Market: NEXAM's revenue (25.6% per year) is forecast to grow faster than the Swedish market (3.4% per year).

High Growth Revenue: NEXAM's revenue (25.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NEXAM's Return on Equity is forecast to be low in 3 years time (7.6%).


Next Steps

Past Performance

How has Nexam Chemical Holding performed over the past 5 years?

13.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NEXAM is currently unprofitable.

Growing Profit Margin: NEXAM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NEXAM is unprofitable, but has reduced losses over the past 5 years at a rate of 13% per year.

Accelerating Growth: Unable to compare NEXAM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NEXAM is unprofitable, making it difficult to compare its past year earnings growth to the Chemicals industry (-12%).


Return on Equity

High ROE: NEXAM has a negative Return on Equity (-5.68%), as it is currently unprofitable.


Next Steps

Financial Health

How is Nexam Chemical Holding's financial position?


Financial Position Analysis

Short Term Liabilities: NEXAM's short term assets (SEK110.0M) exceed its short term liabilities (SEK39.3M).

Long Term Liabilities: NEXAM's short term assets (SEK110.0M) exceed its long term liabilities (SEK31.0M).


Debt to Equity History and Analysis

Debt Level: NEXAM's debt to equity ratio (19.9%) is considered satisfactory.

Reducing Debt: NEXAM's debt to equity ratio has increased from 0.1% to 19.9% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: NEXAM has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if NEXAM has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Nexam Chemical Holding current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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

1.9yrs

Average management tenure


CEO

Johan Arvidsson (51 yo)

1.92yrs

Tenure

kr2,357,752

Compensation

Mr. Johan Arvidsson served as Chief Sales Officer at Nexam Chemical Holding AB (publ) since August 1, 2016 until February 15, 2019 and serves as its Chief Executive Officer since February 15, 2019. Mr. Arv...


CEO Compensation Analysis

Compensation vs Market: Johan's total compensation ($USD284.40K) is about average for companies of similar size in the Swedish market ($USD241.80K).

Compensation vs Earnings: Insufficient data to compare Johan's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Johan Arvidsson
Chief Executive Officer1.92yrskr2.36m0.082%
SEK 650.0k
Daniel Röme
Co-Founderno datakr83.00kno data
Marcus Nyberg
Chief Financial Officer1.42yrsno datano data
Francesco Pisciotti
Chief Technology Officer1.92yrsno datano data
Lars Öhrn
Chief Marketing Officer5.67yrsno datano data
Lazlo Megyeri
MD & CEO of Hungary1.33yrsno datano data

1.9yrs

Average Tenure

46yo

Average Age

Experienced Management: NEXAM's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jonna Opitz
Independent Director2.67yrskr168.00kno data
Cecilia Johansson
Independent Director7yrskr168.00k0.082%
SEK 644.8k
Mats Persson
Independent Chairman of the Board1.17yrskr131.00kno data
Ronnie Törnqvist
Independent Director1.67yrskr85.00kno data

2.2yrs

Average Tenure

54yo

Average Age

Experienced Board: NEXAM's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: NEXAM 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 12.3%.


Top Shareholders

Company Information

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


Key Information

  • Name: Nexam Chemical Holding AB (publ)
  • Ticker: NEXAM
  • Exchange: OM
  • Founded: 2009
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: kr788.355m
  • Shares outstanding: 75.80m
  • Website: https://www.nexamchemical.com

Number of Employees


Location

  • Nexam Chemical Holding AB (publ)
  • Industrigatan 27
  • Lomma
  • Skåne County
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NEXAMOM (OMX Nordic Exchange Stockholm)YesShare CapitalSESEKApr 2013
NC4DB (Deutsche Boerse AG)YesShare CapitalDEEURApr 2013

Biography

Nexam Chemical Holding AB (publ) develops solutions that enhance properties and performance of various types of polymers. It offers various products that enhance the properties and durability of polyesters...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/22 19:57
End of Day Share Price2021/01/22 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.