OM:ALM

Stock Analysis Report

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Executive Summary

ALM Equity AB (publ) operates as a real estate development company in Sweden.


Snowflake Analysis

Slightly overvalued with imperfect balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

14.8%

ALM

5.1%

SE Real Estate

5.0%

SE Market


1 Year Return

120.0%

ALM

10.4%

SE Real Estate

10.9%

SE Market

Return vs Industry: ALM exceeded the Swedish Real Estate industry which returned 8.4% over the past year.

Return vs Market: ALM exceeded the Swedish Market which returned 9.4% over the past year.


Shareholder returns

ALMIndustryMarket
7 Day14.8%5.1%5.0%
30 Day43.2%9.6%12.7%
90 Day16.1%-18.1%1.4%
1 Year120.0%120.0%12.1%10.4%12.5%10.9%
3 Year47.7%47.7%41.6%33.1%16.4%0.7%
5 Year156.4%156.4%112.1%88.2%36.4%9.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ALM (SEK410) is trading below our estimate of fair value (SEK5887.57)

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


Price To Earnings Ratio

PE vs Industry: ALM is poor value based on its PE Ratio (20.4x) compared to the Real Estate industry average (8.3x).

PE vs Market: ALM is poor value based on its PE Ratio (20.4x) compared to the Swedish market (19.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ALM is overvalued based on its PB Ratio (2.1x) compared to the SE Real Estate industry average (1x).


Next Steps

Future Growth

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

-1.8%

Forecasted Real Estate 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 ALM Equity 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 ALM Equity performed over the past 5 years?

-7.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALM has a large one-off gain of SEK411.0M impacting its December 31 2019 financial results.

Growing Profit Margin: ALM became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ALM's earnings have declined by -7.8% per year over the past 5 years.

Accelerating Growth: ALM has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ALM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Real Estate industry (10.9%).


Return on Equity

High ROE: ALM's Return on Equity (13.1%) is considered low.


Next Steps

Financial Health

How is ALM Equity's financial position?


Financial Position Analysis

Short Term Liabilities: ALM's short term assets (SEK5.1B) exceed its short term liabilities (SEK2.9B).

Long Term Liabilities: ALM's short term assets (SEK5.1B) exceed its long term liabilities (SEK2.3B).


Debt to Equity History and Analysis

Debt Level: ALM's debt to equity ratio (128.1%) is considered high.

Reducing Debt: ALM's debt to equity ratio has increased from 121.4% to 128.1% over the past 5 years.

Debt Coverage: ALM's debt is not well covered by operating cash flow (16.8%).

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


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

14.4yrs

Average board tenure


CEO

Joakim Alm (58yo)

no data

Tenure

Mr. Joakim Alm founded ALM equity AB in 2006 and also serves as its Chief Executive Officer and President. Mr. Alm worked in financial management and as Project Leader at SAS from 1987 to 1989.He investiga ...


Board Members

NamePositionTenureCompensationOwnership
Joakim Alm
Founderno datano data57.49% SEK2.4b
Johan Fredrick Schering Wachtmeister
Independent Director14.42yrskr40.00k7.46% SEK310.6m
Gerard Versteegh
Independent Director14.42yrskr40.00k9.75% SEK406.1m
Johan Unger
Independent Director14.42yrskr40.00k1.49% SEK62.1m
Maria Wideroth
Independent Chairman of the Boardno datakr60.00k0.065% SEK2.7m

14.4yrs

Average Tenure

58yo

Average Age

Experienced Board: ALM's board of directors are seasoned and experienced ( 14.4 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

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


Key Information

  • Name: ALM Equity AB (publ)
  • Ticker: ALM
  • Exchange: OM
  • Founded: 2006
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: kr4.163b
  • Shares outstanding: 10.15m
  • Website: https://www.almequity.se

Number of Employees


Location

  • ALM Equity AB (publ)
  • Regeringsgatan 59
  • Stockholm
  • Stockholm County
  • 111 56
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALMOM (OMX Nordic Exchange Stockholm)YesClass A SharesSESEKApr 2009
ALM PREFOM (OMX Nordic Exchange Stockholm)NPV PRFSESEKJun 2012

Biography

ALM Equity AB (publ) operates as a real estate development company in Sweden. The company operates through five business areas: Project Development Housing, Construction Management, Real Estate Management, Financing, and Digital Services. The Project Development Housing business area engages in acquiring, structuring, financing, conceptualizing, and developing housing projects under the ALM Bostad and Småa brands. The Construction Management business area plans, manages, and controls construction projects under the 2A Entreprenad brand. The Real Estate Management business area is involved in the ownership, management, and rental of homes and other premises for companies, authorities, and individuals under the Svenska Nyttobostäder brand. The Financing business area offers financing solutions for developers, managers, and investors in housing and real estate projects under the Nordisk Fastighetskredit brand. The Digital Services business area develops software and services to establish digital communities and sharing economics under the Your Block brand. ALM Equity AB (publ) was founded in 2006 and is headquartered in Stockholm, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/03 21:00
End of Day Share Price2020/06/03 00:00
Earnings2019/12/31
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.