OM:WALL B

Stock Analysis Report

Executive Summary

Wallenstam AB (publ) develops, builds, buys, sells, and manages residential and commercial properties for people and businesses in Gothenburg, Stockholm, and Helsingborg, Sweden.


Snowflake Analysis

Average dividend payer with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: WALL B has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.5%

WALL B

-4.8%

SE Real Estate

-6.2%

SE Market


1 Year Return

47.6%

WALL B

55.7%

SE Real Estate

15.8%

SE Market

Return vs Industry: WALL B underperformed the Swedish Real Estate industry which returned 57.8% over the past year.

Return vs Market: WALL B exceeded the Swedish Market which returned 15.2% over the past year.


Shareholder returns

WALL BIndustryMarket
7 Day-4.5%-4.8%-6.2%
30 Day5.5%3.8%-0.1%
90 Day19.2%14.4%4.2%
1 Year50.5%47.6%58.7%55.7%20.2%15.8%
3 Year87.4%75.6%96.4%79.8%29.4%10.8%
5 Year98.5%79.3%149.0%112.6%39.8%11.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

15.22x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WALL B (SEK129) is trading above our estimate of fair value (SEK29.03)

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


Price To Earnings Ratio

PE vs Industry: WALL B is poor value based on its PE Ratio (15.2x) compared to the Real Estate industry average (10.9x).

PE vs Market: WALL B is good value based on its PE Ratio (15.2x) compared to the Swedish market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: WALL B's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: WALL B is overvalued based on its PB Ratio (1.8x) compared to the SE Real Estate industry average (1.4x).


Next Steps

Future Growth

How is Wallenstam forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-20.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WALL B's earnings are forecast to decline over the next 3 years (-20.3% per year).

Earnings vs Market: WALL B's earnings are forecast to decline over the next 3 years (-20.3% per year).

High Growth Earnings: WALL B's earnings are forecast to decline over the next 3 years.

Revenue vs Market: WALL B's revenue (1.5% per year) is forecast to grow slower than the Swedish market (4.6% per year).

High Growth Revenue: WALL B's revenue (1.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WALL B's Return on Equity is forecast to be low in 3 years time (6.4%).


Next Steps

Past Performance

How has Wallenstam performed over the past 5 years?

8.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WALL B has a large one-off gain of SEK2.6B impacting its December 31 2019 financial results.

Growing Profit Margin: WALL B's current net profit margins are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: WALL B's earnings have grown by 8% per year over the past 5 years.

Accelerating Growth: WALL 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: WALL B had negative earnings growth (-8.7%) over the past year, making it difficult to compare to the Real Estate industry average (5.5%).


Return on Equity

High ROE: WALL B's Return on Equity (11.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Wallenstam's financial position?


Financial Position Analysis

Short Term Liabilities: WALL B's short term assets (SEK467.0M) do not cover its short term liabilities (SEK20.7B).

Long Term Liabilities: WALL B's short term assets (SEK467.0M) do not cover its long term liabilities (SEK10.2B).


Debt to Equity History and Analysis

Debt Level: WALL B's debt to equity ratio (101.9%) is considered high.

Reducing Debt: WALL B's debt to equity ratio has reduced from 125% to 101.9% over the past 5 years.

Debt Coverage: WALL B's debt is not well covered by operating cash flow (5.6%).

Interest Coverage: WALL B's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet

Inventory Level: WALL B has a high level of physical assets or inventory.

Debt Coverage by Assets: WALL B's debt is not covered by short term assets (assets are 0x debt).


Next Steps

Dividend

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

1.47%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Wallenstam before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.5%marketbottom25%1.7%markettop25%4.4%industryaverage2.0%forecastin3Years1.7%

Current dividend yield vs market & industry

Notable Dividend: WALL B's dividend (1.47%) isn’t notable compared to the bottom 25% of dividend payers in the Swedish market (1.67%).

High Dividend: WALL B's dividend (1.47%) is low compared to the top 25% of dividend payers in the Swedish market (4.36%).


Stability and Growth of Payments

Stable Dividend: WALL B's dividends per share have been stable in the past 10 years.

Growing Dividend: WALL B's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.4%), WALL B's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WALL B's dividends in 3 years are forecast to be covered by earnings (71.6% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Hans Wallenstam (58yo)

0

Hans Wallenstam serves as Chief Executive Officer of Wallenstam AB. Education: Bachelor of Science (Economics). Previous executive positions: - Finance Director, CEO Wallenstam i Göteborg AB. Ext ...


Leadership Team

NamePositionTenureCompensationOwnership
Hans Wallenstam
Chief Executive Officer0yrsno data1.77% SEK736.4m
Susann Linde
CFO, Head of Investor Relations & Finance Director0yrsno data0.041% SEK17.0m
Patrik Persson
Technical Director1.4yrsno datano data
Elisabeth Vansvik
Director of Communication2.8yrsno data0.0040% SEK1.7m
Mathias Aronsson
Vice CEO and Regional Director of Stockholm & Uppsala0yrsno data0.084% SEK35.0m
Marina Fritsche
Vice CEO & Regional Director of Gothenburg Business Area0.3yrsno data0.011% SEK4.7m
Ulf Ek
Senior Advisor1.4yrsno datano data

1.4yrs

Average Tenure

49yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Karin Weijber
Independent Director3.8yrskr155.00k0.00046% SEK191.8k
Anders Berntsson
Director23.1yrskr155.00k5.98% SEK2.5b
Ulrica Messing
Chairman of the Board0.4yrskr255.00k0.093% SEK38.9m
Agneta Wallenstam
Director10.1yrskr155.00k5.64% SEK2.4b

7.0yrs

Average Tenure

58yo

Average Age

Experienced Board: WALL B's board of directors are considered experienced (7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: WALL B insiders have bought more shares than they have sold 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

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


Key Information

  • Name: Wallenstam AB (publ)
  • Ticker: WALL B
  • Exchange: OM
  • Founded: 1944
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: kr41.699b
  • Shares outstanding: 323.00m
  • Website: https://www.wallenstam.se

Number of Employees


Location

  • Wallenstam AB (publ)
  • Kungsportsavenyen 2
  • Gothenburg
  • Västra Götaland County
  • 401 84
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WALL BOM (OMX Nordic Exchange Stockholm)YesClass B SharesSESEKMar 1993
WAECBST (Boerse-Stuttgart)YesClass B SharesDEEURMar 1993
0R7YLSE (London Stock Exchange)YesClass B SharesGBSEKMar 1993
WALLBSBATS-CHIXE (BATS 'Chi-X Europe')YesClass B SharesGBSEKMar 1993
WAECDB (Deutsche Boerse AG)YesClass B SharesDEEURMar 1993

Biography

Wallenstam AB (publ) develops, builds, buys, sells, and manages residential and commercial properties for people and businesses in Gothenburg, Stockholm, and Helsingborg, Sweden. Its property portfolio comprises approximately 200 properties, including 9,000 apartments and 1,000 commercial tenants primarily in Stockholm and Gothenburg. The company also generates and supplies wind power with a total combined installed output of 143 megawatts. Wallenstam AB (publ) was founded in 1944 and is headquartered in Gothenburg, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 20:43
End of Day Share Price2020/02/26 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.