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KARO

Karo PharmaOM:KARO Stock Report

Market Cap

kr13.0b

7D

4.3%

1Y

-16.0%

Updated

22 Oct, 2021

Data

Company Financials
KARO fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance1/6
Financial Health1/6
Dividends0/6

KARO Overview

Karo Pharma AB (publ) develops and markets prescription drugs and over-the-counter products for pharmacies and retail sector in Sweden, Norway, Denmark, Finland, France, rest of Europe, the United States, and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for Karo Pharma
Historical stock prices
Current Share Pricekr57.70
52 Week Highkr47.20
52 Week Lowkr69.70
Beta0.14
1 Month Change7.05%
3 Month Change2.12%
1 Year Change-16.01%
3 Year Change95.93%
5 Year Change66.76%
Change since IPO-97.76%

Recent News & Updates

Oct 14
Karo Pharma (STO:KARO) Has No Shortage Of Debt

Karo Pharma (STO:KARO) Has No Shortage Of Debt

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Jul 10
Is Karo Pharma (STO:KARO) A Risky Investment?

Is Karo Pharma (STO:KARO) A Risky Investment?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

KAROSE PharmaceuticalsSE Market
7D4.3%3.1%2.4%
1Y-16.0%-3.2%33.3%

Return vs Industry: KARO underperformed the Swedish Pharmaceuticals industry which returned -3.2% over the past year.

Return vs Market: KARO underperformed the Swedish Market which returned 33.3% over the past year.

Price Volatility

Is KARO's price volatile compared to industry and market?
KARO volatility
KARO Beta0.14
Industry Beta1.15
Market Beta1

Stable Share Price: KARO is less volatile than 75% of Swedish stocks over the past 3 months, typically moving +/- 4% a week.

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

About the Company

FoundedEmployeesCEOWebsite
1987192Christoffer Lorenzenhttps://www.karopharma.com

Karo Pharma AB (publ) develops and markets prescription drugs and over-the-counter products for pharmacies and retail sector in Sweden, Norway, Denmark, Finland, France, rest of Europe, the United States, and internationally. It offers dermatology products under the Decubal, Fungobase, indy beauty, Lucobase, Mildison, OLIVA, PoxClin, and PROPYLESS brands; intimate care products under the HemoClin, Multi-Gyn, Multi-Mam, Pevaryl, Scheriproct, and Selexid brand names; and foot care products under the CCS, Cortimyk, Footner, Nailner, Pevaryl, and wortie brands. The company also provides pain, cough, and cold products under the Bronkyl, Dolerin, Ibux, Mollipect, Nazamer, nozoil, Paracet, and Viruseptin brand names; prescription drugs under the Burinex, Centyl, and Kaleorid brands; and wellness products under the Flux, Allévo, Dosett, Dax, antibac, BAMSE, Betavivo, and Lactocare brands.

Karo Pharma Fundamentals Summary

How do Karo Pharma's earnings and revenue compare to its market cap?
KARO fundamental statistics
Market Capkr12.98b
Earnings (TTM)kr1.75m
Revenue (TTM)kr2.86b

7.4kx

P/E Ratio

4.5x

P/S Ratio

Valuation

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

7426x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate KARO's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate KARO's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: KARO is poor value based on its PE Ratio (7426x) compared to the Swedish Pharmaceuticals industry average (157.1x).

PE vs Market: KARO is poor value based on its PE Ratio (7426x) compared to the Swedish market (23.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: KARO is good value based on its PB Ratio (2.2x) compared to the SE Pharmaceuticals industry average (3.7x).


Future Growth

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

42.8%

Forecasted Pharmaceuticals & Biotech 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 Karo Pharma 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.


Past Performance

How has Karo Pharma performed over the past 5 years?

-2.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KARO has a large one-off loss of SEK60.8M impacting its June 30 2021 financial results.

Growing Profit Margin: KARO's current net profit margins (0.06%) are lower than last year (3.4%).


Past Earnings Growth Analysis

Earnings Trend: KARO has become profitable over the past 5 years, growing earnings by -2.3% per year.

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

Earnings vs Industry: KARO had negative earnings growth (-98%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (-43.2%).


Return on Equity

High ROE: KARO's Return on Equity (0.04%) is considered low.


Financial Health

How is Karo Pharma's financial position?


Financial Position Analysis

Short Term Liabilities: KARO's short term assets (SEK1.9B) do not cover its short term liabilities (SEK5.8B).

Long Term Liabilities: KARO's short term assets (SEK1.9B) exceed its long term liabilities (SEK1.6B).


Debt to Equity History and Analysis

Debt Level: KARO's debt to equity ratio (108.1%) is considered high.

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

Debt Coverage: KARO's debt is not well covered by operating cash flow (5.4%).

Interest Coverage: KARO's interest payments on its debt are not well covered by EBIT (1.2x coverage).


Balance Sheet


Dividend

What is Karo Pharma current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: KARO is not paying a notable dividend for the Swedish market.


Future Payout to Shareholders

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

1.4yrs

Average management tenure


CEO

Christoffer Lorenzen (46 yo)

2.25yrs

Tenure

kr11,887,000

Compensation

Mr. Christoffer Lorenzen has been the Chief Executive Officer of Karo Pharma AB since July 1, 2019. Mr. Lorenzen was an Executive Vice President of Food Cultures & Enzymes at Chr. Hansen Holding A/S from A...


CEO Compensation Analysis

Compensation vs Market: Christoffer's total compensation ($USD1.39M) is above average for companies of similar size in the Swedish market ($USD802.45K).

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


Leadership Team

Experienced Management: KARO's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: KARO's board of directors are not considered experienced ( 1.4 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: 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

Karo Pharma AB (publ)'s employee growth, exchange listings and data sources


Key Information

  • Name: Karo Pharma AB (publ)
  • Ticker: KARO
  • Exchange: OM
  • Founded: 1987
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: kr12.984b
  • Shares outstanding: 225.03m
  • Website: https://www.karopharma.com

Number of Employees


Location

  • Karo Pharma AB (publ)
  • Klara Norra Kyrkogata 33
  • Stockholm
  • Stockholm County
  • 111 22
  • Sweden

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 20:55
End of Day Share Price2021/10/22 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.