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.

Rewards

PE ratio (15.9x) is below the Swedish market (18.6x)

Pays a high and reliable dividend of 1.71%

Risk Analysis

Earnings are forecast to decline by an average of -14.1% per year for the next 3 years

Debt is not well covered by operating cash flow

Large one-off items impacting financial results

Profit margins (82.8%) are lower than last year



Snowflake Analysis

Established 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

2.7%

WALL B

0.6%

SE Real Estate

1.0%

SE Market


1 Year Return

34.8%

WALL B

54.0%

SE Real Estate

22.5%

SE Market

Return vs Industry: WALL B underperformed the Swedish Real Estate industry which returned 54% over the past year.

Return vs Market: WALL B exceeded the Swedish Market which returned 22.5% over the past year.


Shareholder returns

WALL BIndustryMarket
7 Day2.7%0.6%1.0%
30 Day6.4%8.0%0.7%
90 Day1.9%7.5%8.4%
1 Year37.4%34.8%57.0%54.0%27.6%22.5%
3 Year75.3%64.3%84.3%67.0%34.2%13.7%
5 Year100.6%81.1%178.0%136.9%61.8%27.0%

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?

15.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WALL B (SEK111.4) is trading above our estimate of fair value (SEK28.71)

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 (15.9x) compared to the Real Estate industry average (11x).

PE vs Market: WALL B is good value based on its PE Ratio (15.9x) compared to the Swedish market (18.6x).


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 (1.6x) compared to the SE Real Estate industry average (1.3x).


Next Steps

Future Growth

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

-14.1%

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 (-14.1% per year).

Earnings vs Market: WALL B's earnings are forecast to decline over the next 3 years (-14.1% 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% per year) is forecast to grow slower than the Swedish market (4.5% per year).

High Growth Revenue: WALL B's revenue (1% 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 (5.4%).


Next Steps

Past Performance

How has Wallenstam performed over the past 5 years?

12.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WALL B has a large one-off gain of SEK2.3B impacting its September 30 2019 financial results.

Growing Profit Margin: WALL B's current net profit margins (82.8%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: WALL B's earnings have grown by 12% 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 (-5.9%) over the past year, making it difficult to compare to the Real Estate industry average (-0.6%).


Return on Equity

High ROE: WALL B's Return on Equity (10.1%) 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 (SEK796.0M) do not cover its short term liabilities (SEK17.8B).

Long Term Liabilities: WALL B's short term assets (SEK796.0M) do not cover its long term liabilities (SEK12.3B).


Debt to Equity History and Analysis

Debt Level: WALL B's debt to equity ratio (106.7%) is considered high.

Reducing Debt: WALL B's debt to equity ratio has reduced from 128% to 106.7% over the past 5 years.

Debt Coverage: WALL B's debt is not well covered by operating cash flow (5.8%).

Interest Coverage: WALL B's interest payments on its debt are well covered by EBIT (3.1x 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?

1.70%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%1.6%markettop25%4.7%industryaverage1.9%forecastin3Years2.0%

Current dividend yield vs market & industry

Notable Dividend: WALL B's dividend (1.71%) is higher than the bottom 25% of dividend payers in the Swedish market (1.63%).

High Dividend: WALL B's dividend (1.71%) is low compared to the top 25% of dividend payers in the Swedish market (4.65%).


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 reasonably low payout ratio (27.1%), 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 (83.9% payout ratio).


Next Steps

Management

What is the CEO of Wallenstam's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Hans Wallenstam (58yo)

0yrs

Tenure

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 ...


Management Age and Tenure

1.3yrs

Average Tenure

49yo

Average Age

Experienced Management: WALL B's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

6.8yrs

Average Tenure

58yo

Average Age

Experienced Board: WALL B's board of directors are considered experienced (6.8 years average tenure).


Insider Trading

Insider Buying: WALL B insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buykr1,488,20005 Nov 19
Hans Wallenstam
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares14,000
Max Pricekr106.30
Buykr1,588,50004 Nov 19
Revialma Två Ab
EntityCompany
Shares15,000
Max Pricekr105.90
Buykr1,588,50004 Nov 19
Revialma Tre Ab
EntityCompany
Shares15,000
Max Pricekr105.90
Buykr1,588,50004 Nov 19
Revialma Fyra Ab
EntityCompany
Shares15,000
Max Pricekr105.90
Sellkr635,40004 Nov 19
Hans Wallenstam
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares6,000
Max Pricekr105.90
Buykr11,683,15425 Oct 19
Revialma Tre Ab
EntityCompany
Shares110,000
Max Pricekr108.57
Buykr11,683,15425 Oct 19
Revialma Två Ab
EntityCompany
Shares110,000
Max Pricekr108.57
Buykr11,683,15425 Oct 19
Revialma Fyra Ab
EntityCompany
Shares110,000
Max Pricekr108.57
Buykr103,50023 Oct 19
Susann Linde
EntityIndividual
Role
Chief Financial Officer
CFO, Head of Investor Relations & Finance Director
Shares1,000
Max Pricekr103.50
Buykr102,60023 Oct 19
Marina Fritsche
EntityIndividual
Role
Senior Key Executive
Vice CEO & Regional Director of Gothenburg Business Area
Shares1,000
Max Pricekr102.60
Buykr10,295,00016 Sep 19
Revialma Fyra Ab
EntityCompany
Shares100,000
Max Pricekr102.95
Buykr2,581,25016 Aug 19
Revialma Två Ab
EntityCompany
Shares25,000
Max Pricekr103.25
Buykr2,581,25016 Aug 19
Revialma Tre Ab
EntityCompany
Shares25,000
Max Pricekr103.25
Buykr2,581,25016 Aug 19
Revialma Fyra Ab
EntityCompany
Shares25,000
Max Pricekr103.25
Sellkr78,903,34911 Jun 19
Anders Berntsson
EntityIndividual
Role
Member of the Board of Directors
Director
Shares800,000
Max Pricekr100.00
Buykr2,324,50008 May 19
Revialma Två Ab
EntityCompany
Shares25,000
Max Pricekr92.98
Buykr2,324,50008 May 19
Revialma Tre Ab
EntityCompany
Shares25,000
Max Pricekr92.98
Buykr2,324,50008 May 19
Revialma Fyra Ab
EntityCompany
Shares25,000
Max Pricekr92.98
Buykr87,95028 Feb 19
Marina Fritsche
EntityIndividual
Role
Senior Key Executive
Vice CEO & Regional Director of Gothenburg Business Area
Shares1,000
Max Pricekr87.95

Ownership Breakdown

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


Management Team

  • Hans Wallenstam (58yo)

    Chief Executive Officer

    • Tenure: 0yrs
  • Ulf Ek (70yo)

    Senior Advisor

    • Tenure: 1.3yrs
  • Mathias Aronsson (47yo)

    Vice CEO and Regional Director of Stockholm & Uppsala

    • Tenure: 0yrs
  • Elisabeth Vansvik (49yo)

    Director of Communication

    • Tenure: 2.7yrs
  • Susann Linde (40yo)

    CFO, Head of Investor Relations & Finance Director

    • Tenure: 0yrs
  • Marina Fritsche (52yo)

    Vice CEO & Regional Director of Gothenburg Business Area

    • Tenure: 0.2yrs
  • Patrik Persson (45yo)

    Technical Director

    • Tenure: 1.3yrs

Board Members

  • Karin Weijber (47yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: kr155.00k
  • Anders Berntsson (65yo)

    Director

    • Tenure: 22.9yrs
    • Compensation: kr155.00k
  • Ulrica Messing (51yo)

    Chairman of the Board

    • Tenure: 0.3yrs
    • Compensation: kr255.00k
  • Agneta Wallenstam (67yo)

    Director

    • Tenure: 9.9yrs
    • Compensation: kr155.00k

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: kr35.272b
  • 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 com ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/06 20:34
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.