Executive Summary
Mekonomen AB (publ) operates a chain of car service stores in Sweden, Norway, Denmark, Poland, and Finland.
Rewards
Risk Analysis
Snowflake Analysis
Very undervalued with moderate growth potential.
Share Price & News
How has Mekonomen's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MEKO's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
4.8%
MEKO
3.5%
SE Specialty Retail
2.6%
SE Market
1 Year Return
-14.6%
MEKO
-13.6%
SE Specialty Retail
6.0%
SE Market
Return vs Industry: MEKO matched the Swedish Specialty Retail industry which returned -13.6% over the past year.
Return vs Market: MEKO underperformed the Swedish Market which returned 6% over the past year.
Shareholder returns
| MEKO | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.8% | 3.5% | 2.6% |
| 30 Day | -7.1% | -8.5% | 0.7% |
| 90 Day | 80.9% | 27.7% | 25.9% |
| 1 Year | -14.6%-14.6% | -11.6%-13.6% | 7.5%6.0% |
| 3 Year | -49.2%-60.1% | -22.6%-32.8% | 20.5%7.7% |
| 5 Year | -53.9%-66.4% | -43.9%-54.2% | 37.8%10.6% |
Price Volatility Vs. Market
How volatile is Mekonomen's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 days ago | Simply Wall St
Mekonomen AB (publ)'s (STO:MEKO) Has Been On A Rise But Financial Prospects Look Weak: Is The Stock Overpriced?2 weeks ago | Simply Wall St
Is Mekonomen (STO:MEKO) A Risky Investment?1 month ago | Simply Wall St
A Rising Share Price Has Us Looking Closely At Mekonomen AB (publ)'s (STO:MEKO) P/E RatioValuation
Is Mekonomen 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: MEKO (SEK67.25) is trading below our estimate of fair value (SEK165.1)
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 (12.5x) compared to the Specialty Retail industry average (17x).
PE vs Market: MEKO is good value based on its PE Ratio (12.5x) compared to the Swedish market (19.9x).
Price to Earnings Growth Ratio
PEG Ratio: MEKO is good value based on its PEG Ratio (0.6x)
Price to Book Ratio
PB vs Industry: MEKO is good value based on its PB Ratio (0.9x) compared to the SE Specialty Retail industry average (2.3x).
Next Steps
Future Growth
How is Mekonomen forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
22.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MEKO's forecast earnings growth (22.3% per year) is above the savings rate (0.5%).
Earnings vs Market: MEKO's earnings (22.3% per year) are forecast to grow faster than the Swedish market (17.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: MEKO's revenue (1.1% per year) is forecast to grow slower than the Swedish market (6.2% per year).
High Growth Revenue: MEKO's revenue (1.1% 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 (9.2%).
Next Steps
Past Performance
How has Mekonomen performed over the past 5 years?
-6.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MEKO has high quality earnings.
Growing Profit Margin: MEKO's current net profit margins (2.5%) are lower than last year (3.3%).
Past Earnings Growth Analysis
Earnings Trend: MEKO's earnings have declined by -6.8% per year over the past 5 years.
Accelerating Growth: MEKO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: MEKO had negative earnings growth (-3.3%) over the past year, making it difficult to compare to the Specialty Retail industry average (-3.9%).
Return on Equity
High ROE: MEKO's Return on Equity (7.1%) is considered low.
Next Steps
Financial Health
How is Mekonomen's financial position?
Financial Position Analysis
Short Term Liabilities: MEKO's short term assets (SEK4.7B) exceed its short term liabilities (SEK3.3B).
Long Term Liabilities: MEKO's short term assets (SEK4.7B) do not cover its long term liabilities (SEK5.1B).
Debt to Equity History and Analysis
Debt Level: MEKO's debt to equity ratio (95%) is considered high.
Reducing Debt: MEKO's debt to equity ratio has increased from 95% to 95% over the past 5 years.
Debt Coverage: MEKO's debt is well covered by operating cash flow (25.2%).
Interest Coverage: MEKO's interest payments on its debt are well covered by EBIT (4.4x coverage).
Balance Sheet
Next Steps
Dividend
What is Mekonomen current dividend yield, its reliability and sustainability?
2.90%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate MEKO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate MEKO'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 MEKO's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if MEKO's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: MEKO is not paying a notable dividend for the Swedish market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of MEKO'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?
3.7yrs
Average management tenure
CEO
Pehr Oscarson (57yo)
3.33yrs
Tenure
kr7,024,000
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 ($USD753.73K) is about average for companies of similar size in the Swedish market ($USD666.60K).
Compensation vs Earnings: Pehr's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President & CEO | 3.33yrs | kr7.02m | 0.39% SEK14.8m | |
| Executive Vice Chairman | no data | kr1.12m | 0.0056% SEK211.4k | |
| Chief Financial Officer | 2.92yrs | no data | 0.029% SEK1.1m | |
| Head of Investor Relations | no data | no data | no data | |
| Director of Legal Affairs & Sustainability | 17.5yrs | no data | 0.0029% SEK109.5k | |
| Director of Marketing & Communication | no data | no data | 0.0023% SEK88.6k | |
| Director of Business Development & Strategy | no data | no data | 0.0031% SEK117.4k | |
| President of Norwegian Sales | 4.08yrs | no data | no data |
3.7yrs
Average Tenure
54yo
Average Age
Experienced Management: MEKO's management team is considered experienced (3.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Vice Chairman | no data | kr1.12m | 0.0056% SEK211.4k | |
| Chairman of the Board | 3.25yrs | kr645.00k | no data | |
| Director | 3.5yrs | kr350.00k | no data | |
| Independent Director | 13.17yrs | kr300.00k | 0.0028% SEK105.7k | |
| Independent Director | 2.5yrs | kr345.00k | no data | |
| Independent Director | 3.25yrs | kr350.00k | no data | |
| Independent Director | 1.17yrs | kr325.00k | no data |
3.3yrs
Average Tenure
59yo
Average Age
Experienced Board: MEKO's board of directors are considered experienced (3.3 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 company bio, employee growth, exchange listings and data sources
Key Information
- Name: Mekonomen AB (publ)
- Ticker: MEKO
- Exchange: OM
- Founded: 1973
- Industry: Automotive Retail
- Sector: Retail
- Market Cap: kr3.788b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MEKO | OM (OMX Nordic Exchange Stockholm) | Yes | Common Shares | SE | SEK | Aug 2007 |
| 0HDJ | LSE (London Stock Exchange) | Yes | Common Shares | GB | SEK | Aug 2007 |
| MEKOS | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Common Shares | GB | SEK | Aug 2007 |
| 1OM | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Aug 2007 |
Biography
Mekonomen AB (publ) operates a chain of car service stores in Sweden, Norway, Denmark, Poland, and Finland. It provides spare parts, consumables, and tools, as well as workshop services under the ProMeister brand; and car accessories under the Carwise brand. The company offers a range of solutions and products for the consumers and companies through its stores, affiliated workshops, and wholesale operations. It operates 460 stores; and 3,600 affiliated workshops under the AutoMester, AlltiBil, BilXtra, CarPeople, Din Bilpartner, Hella Servicepartner, Inter Data Service, MECA Car Service, Mekonomen Bilverkstad, MekoPartner, O.K. Serwis, and Speedy brands. The company was founded in 1973 and is headquartered in Stockholm, Sweden.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/04 20:52 |
| End of Day Share Price | 2020/07/03 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.