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IAR Systems Group

OM:IAR B
Snowflake Description

Flawless balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
IAR B
OM
SEK4B
Market Cap
  1. Home
  2. SE
  3. Software
Company description

IAR Systems Group AB (publ) provides software tools and services for the programming of processors in embedded systems worldwide. The last earnings update was 36 days ago. More info.


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IAR B Share Price and Events
7 Day Returns
-0.6%
OM:IAR B
-1.5%
SE Software
2%
SE Market
1 Year Returns
19.8%
OM:IAR B
16.7%
SE Software
3.9%
SE Market
IAR B Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
IAR Systems Group (IAR B) -0.6% 7.8% 10.9% 19.8% 65.3% 345.5%
SE Software -1.5% 6.2% 20.8% 16.7% 50.7% 139.6%
SE Market 2% 1.6% 13.8% 3.9% 13% 21.9%
1 Year Return vs Industry and Market
  • IAR B outperformed the Software industry which returned 16.7% over the past year.
  • IAR B outperformed the Market in Sweden which returned 3.9% over the past year.
Price Volatility
IAR B
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of IAR Systems Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for IAR Systems Group.

OM:IAR B Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.9%
Perpetual Growth Rate 10-Year SE Government Bond Rate 0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for OM:IAR B
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year SE Govt Bond Rate 0.4%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.136 (1 + (1- 22%) (0.08%))
1.091
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.09
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.43% + (1.091 * 5.96%)
6.94%

Discounted Cash Flow Calculation for OM:IAR B using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for IAR Systems Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

OM:IAR B DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (SEK, Millions) Source Present Value
Discounted (@ 6.94%)
2019 81.00 Analyst x2 75.74
2020 110.00 Analyst x2 96.19
2021 131.00 Analyst x2 107.12
2022 147.16 Est @ 12.34% 112.52
2023 160.06 Est @ 8.77% 114.45
2024 170.09 Est @ 6.27% 113.73
2025 177.78 Est @ 4.52% 111.15
2026 183.63 Est @ 3.29% 107.36
2027 188.10 Est @ 2.43% 102.84
2028 191.55 Est @ 1.83% 97.93
Present value of next 10 years cash flows SEK1,039.01
OM:IAR B DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= SEK191.55 × (1 + 0.43%) ÷ (6.94% – 0.43%)
SEK2,957.36
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= SEK2,957.36 ÷ (1 + 6.94%)10
SEK1,511.88
OM:IAR B Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= SEK1,039.01 + SEK1,511.88
SEK2,550.90
Equity Value per Share
(SEK)
= Total value / Shares Outstanding
= SEK2,550.90 / 13.62
SEK187.27
OM:IAR B Discount to Share Price
Calculation Result
Value per share (SEK) From above. SEK187.27
Current discount Discount to share price of SEK269.50
= -1 x (SEK269.50 - SEK187.27) / SEK187.27
-43.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of IAR Systems Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for IAR Systems Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are IAR Systems Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OM:IAR B PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in SEK SEK6.67
OM:IAR B Share Price ** OM (2019-03-21) in SEK SEK269.5
Sweden Software Industry PE Ratio Median Figure of 8 Publicly-Listed Software Companies 36.89x
Sweden Market PE Ratio Median Figure of 322 Publicly-Listed Companies 17.06x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of IAR Systems Group.

OM:IAR B PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= OM:IAR B Share Price ÷ EPS (both in SEK)

= 269.5 ÷ 6.67

40.39x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • IAR Systems Group is overvalued based on earnings compared to the SE Software industry average.
  • IAR Systems Group is overvalued based on earnings compared to the Sweden market.
Price based on expected Growth
Does IAR Systems Group's expected growth come at a high price?
Raw Data
OM:IAR B PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 40.39x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
18.1%per year
Sweden Software Industry PEG Ratio Median Figure of 7 Publicly-Listed Software Companies 2.08x
Sweden Market PEG Ratio Median Figure of 236 Publicly-Listed Companies 1.31x

*Line of best fit is calculated by linear regression .

OM:IAR B PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 40.39x ÷ 18.1%

2.23x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • IAR Systems Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on IAR Systems Group's assets?
Raw Data
OM:IAR B PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in SEK SEK40.38
OM:IAR B Share Price * OM (2019-03-21) in SEK SEK269.5
Sweden Software Industry PB Ratio Median Figure of 27 Publicly-Listed Software Companies 4.67x
Sweden Market PB Ratio Median Figure of 562 Publicly-Listed Companies 2.5x
OM:IAR B PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= OM:IAR B Share Price ÷ Book Value per Share (both in SEK)

= 269.5 ÷ 40.38

6.67x

* Primary Listing of IAR Systems Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • IAR Systems Group is overvalued based on assets compared to the SE Software industry average.
X
Value checks
We assess IAR Systems Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. IAR Systems Group has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is IAR Systems Group expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
18.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is IAR Systems Group expected to grow at an attractive rate?
  • IAR Systems Group's earnings growth is expected to exceed the low risk savings rate of 0.4%.
Growth vs Market Checks
  • IAR Systems Group's earnings growth is expected to exceed the Sweden market average.
  • IAR Systems Group's revenue growth is expected to exceed the Sweden market average.
Annual Growth Rates Comparison
Raw Data
OM:IAR B Future Growth Rates Data Sources
Data Point Source Value (per year)
OM:IAR B Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 18.1%
OM:IAR B Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 13.4%
Sweden Software Industry Earnings Growth Rate Market Cap Weighted Average 23.1%
Sweden Software Industry Revenue Growth Rate Market Cap Weighted Average 12.1%
Sweden Market Earnings Growth Rate Market Cap Weighted Average 8.4%
Sweden Market Revenue Growth Rate Market Cap Weighted Average 4.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OM:IAR B Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in SEK Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OM:IAR B Future Estimates Data
Date (Data in SEK Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 580 186 151 2
2020-12-31 517 163 129 2
2019-12-31 451 130 105 2
OM:IAR B Past Financials Data
Date (Data in SEK Millions) Revenue Cash Flow Net Income *
2018-12-31 385 93 88
2018-09-30 370 93 86
2018-06-30 356 109 79
2018-03-31 348 117 84
2017-12-31 345 124 80
2017-09-30 342 130 80
2017-06-30 339 130 82
2017-03-31 334 119 78
2016-12-31 328 114 74
2016-09-30 319 103 68
2016-06-30 318 91 65
2016-03-31 315 102 63

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • IAR Systems Group's earnings are expected to grow by 18.1% yearly, however this is not considered high growth (20% yearly).
  • IAR Systems Group's revenue is expected to grow by 13.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
OM:IAR B Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from IAR Systems Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OM:IAR B Future Estimates Data
Date (Data in SEK Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 10.91 12.85 8.96 2.00
2020-12-31 9.34 10.52 8.16 2.00
2019-12-31 7.65 7.70 7.59 2.00
OM:IAR B Past Financials Data
Date (Data in SEK Millions) EPS *
2018-12-31 6.67
2018-09-30 6.58
2018-06-30 6.14
2018-03-31 6.65
2017-12-31 6.33
2017-09-30 6.37
2017-06-30 6.48
2017-03-31 6.14
2016-12-31 5.86
2016-09-30 5.36
2016-06-30 5.12
2016-03-31 5.00

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • IAR Systems Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess IAR Systems Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Sweden market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Sweden market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
IAR Systems Group has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has IAR Systems Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare IAR Systems Group's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • IAR Systems Group's year on year earnings growth rate has been positive over the past 5 years.
  • IAR Systems Group's 1-year earnings growth is less than its 5-year average (9.5% vs 18.7%)
  • IAR Systems Group's earnings growth has not exceeded the SE Software industry average in the past year (9.5% vs 15.8%).
Earnings and Revenue History
IAR Systems Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from IAR Systems Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OM:IAR B Past Revenue, Cash Flow and Net Income Data
Date (Data in SEK Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 385.20 87.60 68.20
2018-09-30 370.00 85.50 60.20
2018-06-30 356.30 79.00 56.80
2018-03-31 347.50 84.00 49.20
2017-12-31 345.00 80.00 49.20
2017-09-30 342.40 80.40 49.80
2017-06-30 339.30 81.90 47.80
2017-03-31 334.30 77.60 44.90
2016-12-31 328.40 74.00 48.40
2016-09-30 319.30 67.70 50.10
2016-06-30 318.00 64.70 51.60
2016-03-31 315.30 63.10 55.20
2015-12-31 311.70 63.40 51.10
2015-09-30 301.90 60.20 48.80
2015-06-30 287.00 54.80 47.10
2015-03-31 270.60 49.20 43.10
2014-12-31 255.70 42.20 42.10
2014-09-30 251.10 38.50 40.80
2014-06-30 241.10 36.10 40.60
2014-03-31 234.50 32.40 41.30
2013-12-31 230.20 29.90 41.30
2013-09-30 228.20 17.50 42.40
2013-06-30 229.50 15.00 42.80
2013-03-31 229.80 13.70 45.20
2012-12-31 230.10 13.00 44.50
2012-09-30 228.10 29.10 44.30
2012-06-30 220.10 28.00 43.60
2012-03-31 212.60 28.60 37.50

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • IAR Systems Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • IAR Systems Group used its assets more efficiently than the SE Software industry average last year based on Return on Assets.
  • IAR Systems Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess IAR Systems Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
IAR Systems Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is IAR Systems Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up IAR Systems Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • IAR Systems Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • IAR Systems Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of IAR Systems Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 76.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from IAR Systems Group Company Filings, last reported 2 months ago.

OM:IAR B Past Debt and Equity Data
Date (Data in SEK Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 550.00 2.80 106.10
2018-09-30 556.30 2.90 91.50
2018-06-30 507.40 2.90 84.60
2018-03-31 507.60 2.30 114.50
2017-12-31 290.40 2.50 119.50
2017-09-30 272.40 2.70 90.00
2017-06-30 253.80 2.60 64.30
2017-03-31 297.90 2.50 120.50
2016-12-31 279.50 2.70 99.20
2016-09-30 258.10 2.20 63.80
2016-06-30 235.50 2.30 34.90
2016-03-31 305.70 2.10 106.00
2015-12-31 290.90 1.80 89.40
2015-09-30 277.40 1.90 64.50
2015-06-30 258.10 2.10 47.80
2015-03-31 307.70 2.10 86.00
2014-12-31 288.60 2.30 70.70
2014-09-30 275.70 2.30 58.80
2014-06-30 260.60 2.40 41.10
2014-03-31 309.40 2.50 95.70
2013-12-31 295.00 2.40 81.80
2013-09-30 267.00 2.70 54.80
2013-06-30 244.00 2.50 30.10
2013-03-31 260.50 2.30 46.40
2012-12-31 253.80 2.30 49.00
2012-09-30 259.40 1.70 40.20
2012-06-30 251.50 1.80 37.50
2012-03-31 245.60 1.90 32.70
  • IAR Systems Group's level of debt (0.5%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (0.8% vs 0.5% today).
  • Debt is well covered by operating cash flow (3307.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 64.2x coverage).
X
Financial health checks
We assess IAR Systems Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. IAR Systems Group has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.86%
Current annual income from IAR Systems Group dividends. Estimated to be 2.09% next year.
If you bought SEK2,000 of IAR Systems Group shares you are expected to receive SEK37 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • IAR Systems Group's pays a lower dividend yield than the bottom 25% of dividend payers in Sweden (1.93%).
  • IAR Systems Group's dividend is below the markets top 25% of dividend payers in Sweden (4.43%).
Upcoming dividend payment

Purchase IAR Systems Group on or before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OM:IAR B Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
Sweden Software Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 1.9%
Sweden Market Average Dividend Yield Market Cap Weighted Average of 247 Stocks 3.6%
Sweden Minimum Threshold Dividend Yield 10th Percentile 1.2%
Sweden Bottom 25% Dividend Yield 25th Percentile 1.9%
Sweden Top 25% Dividend Yield 75th Percentile 4.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

OM:IAR B Future Dividends Estimate Data
Date (Data in SEK) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 6.00 2.00
2020-12-31 5.63 2.00
2019-12-31 5.25 2.00
OM:IAR B Past Annualized Dividends Data
Date (Data in SEK) Dividend per share (annual) Avg. Yield (%)
2019-02-13 5.000 1.900
2018-04-25 5.000 1.947
2017-04-26 5.000 2.650
2016-04-27 7.000 3.842
2015-03-26 5.000 4.102
2015-02-12 5.000 4.850
2014-10-21 0.000 0.000
2014-08-19 0.000 0.000
2014-04-24 0.000 0.000
2014-03-26 3.000 4.729
2013-03-21 2.000 4.732
2013-02-04 2.000 4.970
2012-07-24 1.000 2.486
2012-03-06 1.000 2.605
2012-02-06 1.000 3.096
2011-10-25 0.000 0.000
2011-08-24 0.000 0.000
2011-05-03 0.000 0.000
2011-04-05 0.000 0.000
2011-02-10 0.000 0.000
2010-05-05 1.250 4.362
2010-01-15 1.250 4.644
2009-03-23 0.600 2.452

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of IAR Systems Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.8x coverage).
X
Income/ dividend checks
We assess IAR Systems Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can IAR Systems Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. IAR Systems Group has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Stefan Skarin
COMPENSATION SEK5,200,000
AGE 56
TENURE AS CEO 11.1 years
CEO Bio

Mr. Stefan Skarin has been the Chief Executive Officer and President of IAR Systems Group AB (publ) (also known as Intoi AB) at Signum Systems Corporation since February 2008. Mr. Skarin serves as the Chief Executive Officer of IAR Systems AB (publ). He served as the Managing Director of DistIT AB (Alternate Name: Deltaco AB (publ) and TurnIT AB). He has been a Director of I.A.R. Systems Group AB (publ) since 2002. He served as a Director of DistIT AB since April 2005 and Deltaco AB (publ) since April 2005. He served as a Director of Mycronic AB (publ) since May 3, 2016 until May 04, 2017. He holds an MBA from Lund University and attended Economic Studies at Stockholms universitet.

CEO Compensation
  • Stefan's compensation has increased by more than 20% in the past year.
  • Stefan's remuneration is about average for companies of similar size in Sweden.
Management Team Tenure

Average tenure and age of the IAR Systems Group management team in years:

9.9
Average Tenure
55.5
Average Age
  • The average tenure for the IAR Systems Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Stefan Skarin

TITLE
CEO, President & Director
COMPENSATION
SEK5M
AGE
56
TENURE
11.1 yrs

Stefan Ström

TITLE
Chief Financial Officer
COMPENSATION
SEK3M
AGE
60
TENURE
9.9 yrs

Mats Ullström

TITLE
COO & Product Director
AGE
55
TENURE
3.9 yrs

Petter Edman

TITLE
Chief Technology Officer
AGE
54

Ali Sebt

TITLE
Chief Corporate Development Officer
TENURE
0.8 yrs

Anders Vallenljord

TITLE
Chief Executive Officer of Nocom Sverige AB
AGE
50
TENURE
20.2 yrs

Claes Drougge

TITLE
Chief Executive Officer of Ocean Modules
AGE
58
Board of Directors Tenure

Average tenure and age of the IAR Systems Group board of directors in years:

1.9
Average Tenure
55
Average Age
  • The average tenure for the IAR Systems Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Maria Wasing

TITLE
Chairman
COMPENSATION
SEK300K
AGE
48
TENURE
1.9 yrs

Stefan Skarin

TITLE
CEO, President & Director
COMPENSATION
SEK5M
AGE
56
TENURE
17.2 yrs

Jonas Martensson

TITLE
Director
COMPENSATION
SEK200K
AGE
55
TENURE
9.2 yrs

Lisa Kaati

TITLE
Director
COMPENSATION
SEK100K
AGE
43
TENURE
1.9 yrs

Kent Sander

TITLE
Director
COMPENSATION
SEK100K
AGE
65
TENURE
1.9 yrs

Helena Nordman-Knutson

TITLE
Director
TENURE
0.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (SEK) Value (SEK)
X
Management checks
We assess IAR Systems Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. IAR Systems Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Will IAR Systems Group AB (publ)'s (STO:IAR B) Earnings Grow In The Year Ahead?

In December 2018, IAR Systems Group AB (publ) (STO:IAR B) announced its earnings update. … with earnings growth rate expected to be 20% next year, which is within range of the past five-year average earnings growth of 19% … Presently, with latest-twelve-month earnings at kr88m, we should see this growing to kr105m by 2020.

Simply Wall St -

Why IAR Systems Group AB (publ) (STO:IAR B) Could Be Worth Watching

saw a double-digit share price rise of over 10% in the past couple of months on the OM. … Less-covered, small caps sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing? … Today I will analyse the most recent data on IAR Systems Group’s outlook and valuation to see if the opportunity still exists

Simply Wall St -

Before Investing In IAR Systems Group AB (publ) (STO:IAR B), Consider This

IAR Systems Group AB (publ) (STO:IAR B) shareholders, and potential investors, need to understand how much cash the business makes from its core operational activities, as well as how much is invested back into the business. … I’ve analysed below, the health and outlook of IAR Systems Group’s cash flow, which will help you understand the stock from a cash standpoint. … IAR Systems Group’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure.

Simply Wall St -

IAR Systems Group AB (publ) (STO:IAR B): Are Analysts Bullish?

Want to participate in a short research study? … Help shape the future of investing tools and receive a $20 prize! … The latest earnings release IAR Systems Group AB (publ)'s (STO:IAR B) announced in December 2018a

Simply Wall St -

Company Info

Description

IAR Systems Group AB (publ) provides software tools and services for the programming of processors in embedded systems worldwide. It offers IAR Embedded Workbench software that enables developers to program processors in embedded systems. The company also offers C-RUN, an add-on product that analyzes the code when it is executed in a developer’s application, and allows the developer to identify errors and bugs at an early stage of the development process; and C-STAT, an add-on product that executes static code analysis. It serves industrial automation, medical technology, consumer electronics, and automotive industries. IAR Systems Group AB (publ) has collaboration with SiFive to deliver RISC-V implementations with compact code and high performance. The company was founded in 1983 and is headquartered in Uppsala, Sweden.

Details
Name: IAR Systems Group AB (publ)
IAR B
Exchange: OM
Founded: 1983
SEK3,671,051,653
13,621,713
Website: http://www.iar.com
Address: IAR Systems Group AB (publ)
Kungsgatan 33,
Uppsala,
Uppsala County, 111 56,
Sweden
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
OM IAR B Series B Shares OMX Nordic Exchange Stockholm SE SEK 07. Jan 1999
OTCPK IARS.F Series B Shares Pink Sheets LLC US USD 07. Jan 1999
DB NC91 Series B Shares Deutsche Boerse AG DE EUR 07. Jan 1999
LSE 0QTV Series B Shares London Stock Exchange GB SEK 07. Jan 1999
BATS-CHIXE IARBS Series B Shares BATS 'Chi-X Europe' GB SEK 07. Jan 1999
Number of employees
Current staff
Staff numbers
200
IAR Systems Group employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/21 20:55
End of day share price update: 2019/03/21 00:00
Last estimates confirmation: 2019/03/01
Last earnings filing: 2019/02/13
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.