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MEKO

Mekonomen OM:MEKO Stock Report

Last Price

kr111.80

Market Cap

kr6.3b

7D

-4.6%

1Y

-27.5%

Updated

23 May, 2022

Data

Company Financials +
MEKO fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance2/6
Financial Health5/6
Dividends3/6

MEKO Stock Overview

Mekonomen AB (publ) operates and develops business in the automotive aftermarket in Sweden, Norway, Denmark, Poland, and Finland.

Mekonomen Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Mekonomen
Historical stock prices
Current Share Pricekr111.80
52 Week Highkr182.80
52 Week Lowkr98.30
Beta1.33
1 Month Change-5.89%
3 Month Change-2.61%
1 Year Change-27.54%
3 Year Change51.39%
5 Year Change-34.24%
Change since IPO-8.92%

Recent News & Updates

Shareholder Returns

MEKOSE Specialty RetailSE Market
7D-4.6%-3.3%0.05%
1Y-27.5%-36.9%-12.2%

Return vs Industry: MEKO exceeded the Swedish Specialty Retail industry which returned -37.9% over the past year.

Return vs Market: MEKO underperformed the Swedish Market which returned -12.7% over the past year.

Price Volatility

Is MEKO's price volatile compared to industry and market?
MEKO volatility
MEKO Average Weekly Movement5.6%
Specialty Retail Industry Average Movement6.2%
Market Average Movement7.6%
10% most volatile stocks in SE Market12.8%
10% least volatile stocks in SE Market4.9%

Stable Share Price: MEKO is less volatile than 75% of Swedish stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: MEKO's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19735,115Pehr Oscarsonhttps://www.mekonomen.com

Mekonomen AB (publ) operates and develops business in the automotive aftermarket in Sweden, Norway, Denmark, Poland, and Finland. It provides spare parts, consumables, and tools, as well as workshop services and car accessories under the ProMeister and Carwise brand. The company offers a range of solutions and products for the consumers and companies through its branches, affiliated workshops, and wholesale and logistics operations.

Mekonomen Fundamentals Summary

How do Mekonomen's earnings and revenue compare to its market cap?
MEKO fundamental statistics
Market Capkr6.30b
Earnings (TTM)kr586.00m
Revenue (TTM)kr12.72b

10.7x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MEKO income statement (TTM)
Revenuekr12.72b
Cost of Revenuekr6.75b
Gross Profitkr5.97b
Other Expenseskr5.38b
Earningskr586.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 24, 2022

Earnings per share (EPS)10.40
Gross Margin46.93%
Net Profit Margin4.61%
Debt/Equity Ratio58.7%

How did MEKO perform over the long term?

See historical performance and comparison

Dividends

2.7%

Current Dividend Yield

29%

Payout Ratio

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: MEKO (SEK111.8) is trading below our estimate of fair value (SEK412.23)

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


Price To Earnings Ratio

PE vs Industry: MEKO is good value based on its PE Ratio (10.7x) compared to the Swedish Specialty Retail industry average (16.4x).

PE vs Market: MEKO is good value based on its PE Ratio (10.7x) compared to the Swedish market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: MEKO is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: MEKO is good value based on its PB Ratio (1.2x) compared to the SE Specialty Retail industry average (2.7x).


Future Growth

How is Mekonomen forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


9.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MEKO's forecast earnings growth (9.8% per year) is above the savings rate (0.3%).

Earnings vs Market: MEKO's earnings (9.8% per year) are forecast to grow faster than the Swedish market (9.7% per year).

High Growth Earnings: MEKO's earnings are forecast to grow, but not significantly.

Revenue vs Market: MEKO's revenue (2.2% per year) is forecast to grow slower than the Swedish market (5.8% per year).

High Growth Revenue: MEKO's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MEKO's Return on Equity is forecast to be low in 3 years time (12.2%).


Past Performance

How has Mekonomen performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


13.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MEKO has high quality earnings.

Growing Profit Margin: MEKO's current net profit margins (4.6%) are lower than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: MEKO's earnings have grown by 13.7% per year over the past 5 years.

Accelerating Growth: MEKO's earnings growth over the past year (6.2%) is below its 5-year average (13.7% per year).

Earnings vs Industry: MEKO earnings growth over the past year (6.2%) underperformed the Specialty Retail industry 35.7%.


Return on Equity

High ROE: MEKO's Return on Equity (11%) is considered low.


Financial Health

How is Mekonomen's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: MEKO's short term assets (SEK5.7B) exceed its short term liabilities (SEK3.4B).

Long Term Liabilities: MEKO's short term assets (SEK5.7B) exceed its long term liabilities (SEK4.5B).


Debt to Equity History and Analysis

Debt Level: MEKO's net debt to equity ratio (48.8%) is considered high.

Reducing Debt: MEKO's debt to equity ratio has reduced from 73.7% to 58.7% over the past 5 years.

Debt Coverage: MEKO's debt is well covered by operating cash flow (28.6%).

Interest Coverage: MEKO's interest payments on its debt are well covered by EBIT (8.7x coverage).


Balance Sheet


Dividend

What is Mekonomen current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.68%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MEKO's dividend (2.68%) is higher than the bottom 25% of dividend payers in the Swedish market (1.46%).

High Dividend: MEKO's dividend (2.68%) is low compared to the top 25% of dividend payers in the Swedish market (4.88%).


Stability and Growth of Payments

Stable Dividend: MEKO's dividend payments have been volatile in the past 10 years.

Growing Dividend: MEKO's dividend payments have fallen over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (28.7%), MEKO's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (19.4%), MEKO's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

4.8yrs

Average management tenure


CEO

Pehr Oscarson (58 yo)

5.17yrs

Tenure

kr9,835,000

Compensation

Mr. Pehr Oscarson has been the Chief Executive Officer and President of Mekonomen AB since March 1, 2017 and served as its Acting President and Chief Executive Officer from October 6, 2016 to March 1, 2017...


CEO Compensation Analysis

Compensation vs Market: Pehr's total compensation ($USD1.00M) is above average for companies of similar size in the Swedish market ($USD707.22K).

Compensation vs Earnings: Pehr's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: MEKO's management team is considered experienced (4.8 years average tenure).


Board Members

Experienced Board: MEKO's board of directors are considered experienced (5.1 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Mekonomen AB (publ)
  • Ticker: MEKO
  • Exchange: OM
  • Founded: 1973
  • Industry: Automotive Retail
  • Sector: Retail
  • Implied Market Cap: kr6.297b
  • Shares outstanding: 56.32m
  • Website: https://www.mekonomen.com

Number of Employees


Location

  • Mekonomen AB (publ)
  • SolnavAegen 4
  • 11th Floor
  • Stockholm
  • Stockholm County
  • Sweden

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/23 00:00
End of Day Share Price2022/05/23 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.