OM:MEKO

Stock Analysis Report

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Executive Summary

Mekonomen AB (publ) operates a chain of car service stores in Sweden, Norway, Denmark, Poland, and Finland.


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

MEKOIndustryMarket
7 Day4.8%3.5%2.6%
30 Day-7.1%-8.5%0.7%
90 Day80.9%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

Valuation

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

NamePositionTenureCompensationOwnership
Pehr Oscarson
President & CEO3.33yrskr7.02m0.39% SEK14.8m
Helena Skantorp
Executive Vice Chairmanno datakr1.12m0.0056% SEK211.4k
Asa Kallenius
Chief Financial Officer2.92yrsno data0.029% SEK1.1m
Fredrik Sätterström
Head of Investor Relationsno datano datano data
Robert Hård
Director of Legal Affairs & Sustainability17.5yrsno data0.0029% SEK109.5k
Gabriella Granholm
Director of Marketing & Communicationno datano data0.0023% SEK88.6k
Petra Bendelin
Director of Business Development & Strategyno datano data0.0031% SEK117.4k
Bjornar Fjeld
President of Norwegian Sales4.08yrsno datano data

3.7yrs

Average Tenure

54yo

Average Age

Experienced Management: MEKO's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Helena Skantorp
Executive Vice Chairmanno datakr1.12m0.0056% SEK211.4k
John Quinn
Chairman of the Board3.25yrskr645.00kno data
Joseph Holsten
Director3.5yrskr350.00kno data
Kenny Bräck
Independent Director13.17yrskr300.00k0.0028% SEK105.7k
Eivor Andersson
Independent Director2.5yrskr345.00kno data
Magnus Håkansson
Independent Director3.25yrskr350.00kno data
Arja Taaveniku
Independent Director1.17yrskr325.00kno 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MEKOOM (OMX Nordic Exchange Stockholm)YesCommon SharesSESEKAug 2007
0HDJLSE (London Stock Exchange)YesCommon SharesGBSEKAug 2007
MEKOSBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBSEKAug 2007
1OMDB (Deutsche Boerse AG)YesCommon SharesDEEURAug 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/04 20:52
End of Day Share Price2020/07/03 00:00
Earnings2020/03/31
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.