OM:CAG

Stock Analysis Report

Executive Summary

CAG Group AB (publ) engages in the IT-management, system development, operations, and training businesses in Sweden.

Snowflake

Fundamentals

Excellent balance sheet and fair value.

Risks

  • CAG Group is covered by less than 3 analysts.

Share Price & News

How has CAG Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

6.9%

OM:CAG

-0.4%

SE IT

0.6%

SE Market


1 Year Return

n/a

OM:CAG

3.9%

SE IT

-3.5%

SE Market

No trading data on CAG.

No trading data on CAG.


Share holder returns

CAGIndustryMarket
7 Day6.9%-0.4%0.6%
30 Day4.9%-3.9%-4.8%
90 Day18.1%1.2%-0.5%
1 Yearn/a5.7%3.9%0.7%-3.5%
3 Yearn/a65.5%56.5%23.7%5.1%
5 Yearn/a161.4%127.7%45.1%14.5%

Price Volatility Vs. Market

How volatile is CAG Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CAG Group undervalued based on future cash flows and its price relative to the stock market?

47%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

CAG Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

CAG Group's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

CAG Group is overvalued based on earnings compared to the SE IT industry average.

CAG Group is overvalued based on earnings compared to the Sweden market.


Price Based on Expected Growth

CAG Group is poor value based on expected growth next year.


Price Based on Value of Assets

CAG Group is good value based on assets compared to the SE IT industry average.


Next Steps

Future Growth

How is CAG Group expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

CAG Group's revenue is expected to grow by 6.3% yearly, however this is not considered high growth (20% yearly).

CAG Group's earnings are expected to grow by 8.7% yearly, however this is not considered high growth (20% yearly).

CAG Group's revenue growth is expected to exceed the Sweden market average.

CAG Group's earnings growth is expected to exceed the Sweden market average.

CAG Group's earnings growth is expected to exceed the low risk savings rate of 0.4%.


Earnings per Share Growth Estimates


Future Return on Equity

CAG Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has CAG Group performed over the past 5 years?

19.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

CAG Group's year on year earnings growth rate has been positive over the past 5 years.

CAG Group's 1-year earnings growth is less than its 5-year average (18.1% vs 19.6%)

CAG Group's earnings growth has exceeded the SE IT industry average in the past year (18.1% vs 15.9%).


Return on Equity

CAG Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

CAG Group used its assets less efficiently than the SE IT industry average last year based on Return on Assets.


Return on Capital Employed

CAG Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is CAG Group's financial position?


Financial Position Analysis

CAG Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

CAG Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

CAG Group's level of debt (22%) compared to net worth is satisfactory (less than 40%).

Unable to establish if CAG Group's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (87.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 27.3x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 5.8x debt.


Next Steps

Dividend

What is CAG Group's current dividend yield, its reliability and sustainability?

3.62%

Expected Dividend Yield


Dividend Yield and Payments Analysis

CAG Group's pays a higher dividend yield than the bottom 25% of dividend payers in Sweden (1.92%).

CAG Group's dividend is below the markets top 25% of dividend payers in Sweden (4.5%).

It is too early to tell whether CAG Group has stable dividend payments.

CAG Group only just started paying a dividend, it is too early to tell if payments are increasing.


Current Payout to Shareholders

Dividends paid are covered by earnings (2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.7x coverage).


Next Steps

Management

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

kr3m

CEO Compensation


CEO

Åsa Ericsson (54yo)

0.0yrs

Tenure

kr2,936,914

Compensation

Ms. Åsa Landén Ericsson serves as Chief Executive Officer of Enfo Pointer AB. Ms. Landén served as an Investment Manager at Catella Brand AB and Catella IT AB. She serves as President and Chief Executive O ...


CEO Compensation Analysis

Åsa's remuneration is higher than average for companies of similar size in Sweden.

Insufficient data for Åsa to compare compensation growth.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

Buykr5,37121 Feb 19
Åsa Ericsson
EntityIndividual
Role
Chief Executive Officer
President & CEO
Shares85
Max Pricekr63.19
Buykr115,85821 Feb 19
Åsa Ericsson
EntityIndividual
Role
Chief Executive Officer
President & CEO
Shares1,915
Max Pricekr60.50
Buykr6,50002 Jan 19
Marcus Claus
EntityIndividual
Shares100
Max Pricekr65.00
Buykr59,90012 Dec 18
Åsa Ericsson
EntityIndividual
Role
Chief Executive Officer
President & CEO
Shares1,000
Max Pricekr59.90
Buykr19,80010 Dec 18
Niclas Lindqvist
EntityIndividual
Shares300
Max Pricekr66.00

Ownership Breakdown


Management Team

  • Åsa Ericsson (54yo)

    President & CEO

    • Tenure: 0.0yrs
    • Compensation: kr2.94m
  • Håkan Kihlert (57yo)

    Chief Financial Officer

    • Tenure: 0.0yrs
  • Annika Rogneby

    Sales & Marketing Manager

    • Tenure: 0.6yrs

Board Members

  • Viveka Ekberg (57yo)

    Director

    • Tenure: 0.0yrs
    • Compensation: kr139.00k
  • Bo Lindström (76yo)

    Chairman of the Board

    • Tenure: 0.0yrs
    • Compensation: kr200.00k
  • Michael Ekman

    Director

    • Tenure: 0.0yrs
  • Bengt Lundgren

    Director

    • Tenure: 0.0yrs
    • Compensation: kr125.00k
  • Krister Stomberg

    Director

    • Tenure: 0.0yrs
  • Göran Westling

    Director

    • Tenure: 0.0yrs
    • Compensation: kr688.00k
  • Sara Mattsson

    Board Member

    • Tenure: 0.0yrs
    • Compensation: kr125.00k

Company Information

CAG Group AB (publ)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CAG Group AB (publ)
  • Ticker: CAG
  • Exchange: OM
  • Founded:
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: kr552.816m
  • Shares outstanding: 6.50m
  • Website: https://www.cag.se

Location

  • CAG Group AB (publ)
  • Kungsgatan 37
  • Box 22564
  • Stockholm
  • Stockholm County
  • 104 22
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CAGOM (OMX Nordic Exchange Stockholm)YesShare CapitalSESEKDec 2018

Biography

CAG Group AB (publ) engages in the IT-management, system development, operations, and training businesses in Sweden. The company offers IT-management services, such as process and requirements analysis, or ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/23 22:52
End of Day Share Price2019/08/23 00:00
Earnings2019/03/31
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.