OM:RROS

Stock Analysis Report

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Executive Summary

Rottneros AB (publ) produces and sells pulp worldwide.


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: RROS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.9%

RROS

2.9%

SE Forestry

2.5%

SE Market


1 Year Return

-30.9%

RROS

10.9%

SE Forestry

3.8%

SE Market

Return vs Industry: RROS underperformed the Swedish Forestry industry which returned 6.3% over the past year.

Return vs Market: RROS underperformed the Swedish Market which returned 2.5% over the past year.


Shareholder returns

RROSIndustryMarket
7 Day-0.9%2.9%2.5%
30 Day-8.9%7.2%6.7%
90 Day-17.7%-4.3%-9.7%
1 Year-26.2%-30.9%13.6%10.9%5.2%3.8%
3 Year23.8%6.9%10.0%-24.9%9.7%-5.3%
5 Year93.3%40.5%63.2%3.6%24.2%0.06%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

41.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RROS (SEK8.71) is trading below our estimate of fair value (SEK14.86)

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


Price To Earnings Ratio

PE vs Industry: RROS is poor value based on its PE Ratio (11.3x) compared to the Forestry industry average (10.5x).

PE vs Market: RROS is good value based on its PE Ratio (11.3x) compared to the Swedish market (17.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RROS is overvalued based on its PB Ratio (1x) compared to the XE Forestry industry average (1x).


Next Steps

Future Growth

How is Rottneros forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

5.5%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Rottneros has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Rottneros performed over the past 5 years?

-0.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RROS has high quality earnings.

Growing Profit Margin: RROS's current net profit margins (5.1%) are lower than last year (11.6%).


Past Earnings Growth Analysis

Earnings Trend: RROS's earnings have declined by -0.6% per year over the past 5 years.

Accelerating Growth: RROS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RROS had negative earnings growth (-56.6%) over the past year, making it difficult to compare to the Forestry industry average (-6.6%).


Return on Equity

High ROE: RROS's Return on Equity (9.1%) is considered low.


Next Steps

Financial Health

How is Rottneros's financial position?


Financial Position Analysis

Short Term Liabilities: RROS's short term assets (SEK1.1B) exceed its short term liabilities (SEK465.0M).

Long Term Liabilities: RROS's short term assets (SEK1.1B) exceed its long term liabilities (SEK649.0M).


Debt to Equity History and Analysis

Debt Level: RROS's debt to equity ratio (30.7%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if RROS's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: RROS's debt is well covered by operating cash flow (91%).

Interest Coverage: RROS's interest payments on its debt are well covered by EBIT (8.5x coverage).


Balance Sheet


Next Steps

Dividend

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

4.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RROS's dividend (4.59%) is higher than the bottom 25% of dividend payers in the Swedish market (1.74%).

High Dividend: RROS's dividend (4.59%) is low compared to the top 25% of dividend payers in the Swedish market (6.37%).


Stability and Growth of Payments

Stable Dividend: RROS has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: RROS's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51.7%), RROS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Lennart Eberleh (50yo)

3.67yrs

Tenure

kr8,100,000

Compensation

Mr. Lennart Eberleh has been Chief Executive Officer and President of Rottneros AB (publ) since September 1, 2016 and its Acting Managing Director for Rottneros Mill since October 18, 2017. Mr. Eberleh ser ...


CEO Compensation Analysis

Compensation vs Market: Lennart's total compensation ($USD836.99K) is above average for companies of similar size in the Swedish market ($USD221.03K).

Compensation vs Earnings: Lennart's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Lennart Eberleh
CEO & President3.67yrskr8.10m0.054% SEK714.3k
Monica Pasanen
Chief Financial Officer3.25yrsno data0.016% SEK217.8k
Kasper Skuthälla
Sales & Business Development Director2.33yrsno data0.020% SEK261.3k
Ida Mörtsell
Director HR & Safety3.25yrsno data0.0067% SEK88.9k
Nils Hauri
Chief Innovation Officerno datano data0.0052% SEK69.6k
Robert Jensen
Managing Director of Vallviks Bruk ABno datano datano data

3.3yrs

Average Tenure

45.5yo

Average Age

Experienced Management: RROS's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Per Lundeen
Chairman of the Board3.67yrskr600.00k0.16% SEK2.2m
Roger Mattsson
Independent Director4yrskr300.00kno data
Gun-Marie Nilsson
Deputy Employee Representative Director7.33yrskr27.50k0.023% SEK304.9k
Marie Arwidson
Independent Director5yrskr300.00kno data
Ulf Carlson
Independent Director4yrskr300.00k0.00070% SEK9.3k
Dan Karlsson
Employee Representative Director4.33yrskr27.50kno data
Mika Palmu
Employee Representative Director3.67yrskr27.50kno data
Conny Mossberg
Director1yrkr200.00kno data
Jörgen Wasberg
Deputy Employee Representative Director1.33yrskr27.50k0.000070% SEK930.2

4.0yrs

Average Tenure

53yo

Average Age

Experienced Board: RROS's board of directors are considered experienced (4 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.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Rottneros AB (publ)
  • Ticker: RROS
  • Exchange: OM
  • Founded: 1916
  • Industry: Paper Products
  • Sector: Materials
  • Market Cap: kr1.329b
  • Shares outstanding: 152.57m
  • Website: https://www.rottneros.com

Number of Employees


Location

  • Rottneros AB (publ)
  • Vallviks Bruk
  • Vallvik
  • Gävleborg County
  • 826 79
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RROSOM (OMX Nordic Exchange Stockholm)YesOrdinary SharesSESEKSep 1992
RTER.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 1992
0H0LLSE (London Stock Exchange)YesOrdinary SharesGBSEKSep 1992
RTTN.YOTCPK (Pink Sheets LLC)ADRUSUSDAug 2015

Biography

Rottneros AB (publ) produces and sells pulp worldwide. It produces chemical pulp for use in electrical applications, filters, paper, and boards; mechanical pulp for use in paper, boards, tissue paper, and filters; and fiber trays for food and technical products. The company was founded in 1916 and is based in Vallvik, Sweden. Rottneros AB (publ) is a subsidiary of Arctic Paper S.A. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/26 14:41
End of Day Share Price2020/05/25 00:00
Earnings2020/03/31
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.