Mekonomen (OM:MEKO) - Share price, News & Analysis

MEKO fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	2/6
Past Performance	2/6
Financial Health	5/6
Dividends	3/6

MEKO Stock Overview

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

Rewards

Trading at 72.9% below our estimate of its fair value

Earnings are forecast to grow 9.81% per year

Earnings have grown 13.7% per year over the past 5 years

Risk Analysis

Has a high level of debt

Unstable dividend track record

Mekonomen Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Mekonomen
Historical stock prices
Current Share Price	kr111.80
52 Week High	kr182.80
52 Week Low	kr98.30
Beta	1.33
1 Month Change	-5.89%
3 Month Change	-2.61%
1 Year Change	-27.54%
3 Year Change	51.39%
5 Year Change	-34.24%
Change since IPO	-8.92%

Shareholder Returns

	MEKO	SE Specialty Retail	SE 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 Movement	5.6%
Specialty Retail Industry Average Movement	6.2%
Market Average Movement	7.6%
10% most volatile stocks in SE Market	12.8%
10% least volatile stocks in SE Market	4.9%

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

Founded	Employees	CEO	Website
1973	5,115	Pehr Oscarson	https://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 Cap	kr6.30b
Earnings (TTM)	kr586.00m
Revenue (TTM)	kr12.72b

10.7x

P/E Ratio

0.5x

P/S Ratio

Is MEKO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MEKO income statement (TTM)
Revenue	kr12.72b
Cost of Revenue	kr6.75b
Gross Profit	kr5.97b
Other Expenses	kr5.38b
Earnings	kr586.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 24, 2022

Earnings per share (EPS)	10.40
Gross Margin	46.93%
Net Profit Margin	4.61%
Debt/Equity Ratio	58.7%

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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/23 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31