Executive Summary
IAR Systems Group AB (publ) provides software tools and services for the programming of processors in embedded systems worldwide.
Snowflake
Excellent balance sheet average dividend payer.
Share Price & News
How has IAR Systems Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: IAR B's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-13.4%
IAR B
3.6%
SE Software
0.004%
SE Market
1 Year Return
-27.3%
IAR B
36.7%
SE Software
17.2%
SE Market
Return vs Industry: IAR B underperformed the Swedish Software industry which returned 36.7% over the past year.
Return vs Market: IAR B underperformed the Swedish Market which returned 17.2% over the past year.
Shareholder returns
| IAR B | Industry | Market | |
|---|---|---|---|
| 7 Day | -13.4% | 3.6% | 0.004% |
| 30 Day | -20.4% | 5.9% | 5.6% |
| 90 Day | -23.3% | 17.6% | 11.3% |
| 1 Year | -26.0%-27.3% | 38.2%36.7% | 22.3%17.2% |
| 3 Year | 1.6%-4.6% | 102.3%92.2% | 40.5%19.0% |
| 5 Year | 184.9%145.8% | 233.6%206.6% | 61.3%26.7% |
Price Volatility Vs. Market
How volatile is IAR Systems Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Do Directors Own IAR Systems Group AB (publ) (STO:IAR B) Shares?3 weeks ago | Simply Wall St
Do You Like IAR Systems Group AB (publ) (STO:IAR B) At This P/E Ratio?1 month ago | Simply Wall St
Evaluating IAR Systems Group AB (publ)’s (STO:IAR B) Investments In Its BusinessValuation
Is IAR Systems Group undervalued compared to its fair value and its price relative to the market?
8.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: IAR B (SEK178.8) is trading below our estimate of fair value (SEK194.36)
Significantly Below Fair Value: IAR B is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: IAR B is good value based on its PE Ratio (27.1x) compared to the Software industry average (39.3x).
PE vs Market: IAR B is poor value based on its PE Ratio (27.1x) compared to the Swedish market (18.1x).
Price to Earnings Growth Ratio
PEG Ratio: IAR B is poor value based on its PEG Ratio (1.5x)
Price to Book Ratio
PB vs Industry: IAR B is good value based on its PB Ratio (4.5x) compared to the SE Software industry average (5.3x).
Next Steps
Future Growth
How is IAR Systems Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
17.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: IAR B's forecast earnings growth (17.7% per year) is above the savings rate (0.4%).
Earnings vs Market: IAR B's earnings (17.7% per year) are forecast to grow faster than the Swedish market (9.4% per year).
High Growth Earnings: IAR B's earnings are forecast to grow, but not significantly.
Revenue vs Market: IAR B's revenue (14.3% per year) is forecast to grow faster than the Swedish market (4.3% per year).
High Growth Revenue: IAR B's revenue (14.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: IAR B's Return on Equity is forecast to be low in 3 years time (19.2%).
Next Steps
Past Performance
How has IAR Systems Group performed over the past 5 years?
15.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: IAR B has high quality earnings.
Growing Profit Margin: IAR B's current net profit margins (22.1%) are lower than last year (22.2%).
Past Earnings Growth Analysis
Earnings Trend: IAR B's earnings have grown by 15.2% per year over the past 5 years.
Accelerating Growth: IAR B's earnings growth over the past year (11.6%) is below its 5-year average (15.2% per year).
Earnings vs Industry: IAR B earnings growth over the past year (11.6%) exceeded the Software industry 3.1%.
Return on Equity
High ROE: IAR B's Return on Equity (16.3%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is IAR Systems Group's financial position?
Financial Position Analysis
Short Term Liabilities: IAR B's short term assets (SEK186.1M) exceeds its short term liabilities (SEK169.7M)
Long Term Liabilities: IAR B's short term assets (186.1M) exceeds its long term liabilities (60.9M)
Debt to Equity History and Analysis
Debt Level: IAR B's debt to equity ratio (5.5%) is considered satisfactory
Reducing Debt: IAR B's debt to equity ratio has increased from 0% to 5.5% over the past 5 years.
Debt Coverage: IAR B's debt is well covered by operating cash flow (323.9%).
Interest Coverage: IAR B's interest payments on its debt are well covered by EBIT (64.2x coverage).
Balance Sheet
Inventory Level: IAR B has a low level of unsold assets or inventory.
Debt Coverage by Assets: IAR B's debt is covered by short term assets (assets are 6.3x debt).
Next Steps
Dividend
What is IAR Systems Group's current dividend yield, its reliability and sustainability?
2.80%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: IAR B's dividend (2.8%) is higher than the bottom 25% of dividend payers in the Swedish market (1.73%).
High Dividend: IAR B's dividend (2.8%) is low compared to the top 25% of dividend payers in the Swedish market (4.8%).
Stability and Growth of Payments
Stable Dividend: IAR B's dividend payments have been volatile in the past 10 years.
Growing Dividend: IAR B's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (75.9%), IAR B's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: IAR B's dividends in 3 years are forecast to be covered by earnings (68% payout ratio).
Next Steps
Management
What is the CEO of IAR Systems Group's salary, the management and board of directors tenure and is there insider trading?
11.2yrs
Average management tenure
CEO
Stefan Skarin (57yo)
11.8yrs
Tenure
kr5,451,000
Compensation
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 Chi ...
CEO Compensation Analysis
Compensation vs Market: Stefan's total compensation ($USD561.56K) is above average for companies of similar size in the Swedish market ($USD301.62K).
Compensation vs Earnings: Stefan's compensation has been consistent with company performance over the past year.
Management Age and Tenure
11.2yrs
Average Tenure
57yo
Average Age
Experienced Management: IAR B's management team is seasoned and experienced (11.2 years average tenure).
Board Age and Tenure
2.6yrs
Average Tenure
53yo
Average Age
Experienced Board: IAR B's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.9%.
Management Team
Stefan Skarin (57yo)
CEO, President & Director
- Tenure: 11.8yrs
- Compensation: kr5.45m
Stefan Ström (61yo)
Chief Financial Officer
- Tenure: 10.6yrs
- Compensation: kr2.50m
Anders Vallenljord (51yo)
Chief Executive Officer of Nocom Sverige AB
- Tenure: 20.8yrs
Claes Drougge (59yo)
Chief Executive Officer of Ocean Modules
- Tenure: 0yrs
Ali Sebt
Chief Corporate Development Officer
- Tenure: 1.5yrs
Petter Edman (55yo)
Chief Technology Officer
- Tenure: 0yrs
Carl Toll (57yo)
COO & IT Manager
- Tenure: 0yrs
Anders Holmberg (52yo)
Chief Strategy Officer at IAR Systems
- Tenure: 0yrs
Haydn Povey
CEO of Secure Thingz
- Tenure: 0yrs
Board Members
Kent Sander (66yo)
Independent Director
- Tenure: 2.6yrs
Stefan Skarin (57yo)
CEO, President & Director
- Tenure: 11.8yrs
- Compensation: kr5.45m
Maria Wasing (49yo)
Chairman of the Board
- Tenure: 2.6yrs
Lisa Kaati (44yo)
Independent Director
- Tenure: 2.6yrs
Helena Nordman-Knutson
Independent Director
- Tenure: 1.6yrs
Company Information
IAR Systems Group AB (publ)'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: IAR Systems Group AB (publ)
- Ticker: IAR B
- Exchange: OM
- Founded: 1983
- Industry: Application Software
- Sector: Software
- Market Cap: kr2.437b
- Shares outstanding: 13.63m
- Website: https://www.iar.com
Number of Employees
Location
- IAR Systems Group AB (publ)
- Kungsgatan 33
- Stockholm
- Stockholm County
- 111 56
- Sweden
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NC91 | DB (Deutsche Boerse AG) | Yes | Series B Shares | DE | EUR | Jan 1999 |
| IAR B | OM (OMX Nordic Exchange Stockholm) | Yes | Series B Shares | SE | SEK | Jan 1999 |
| 0QTV | LSE (London Stock Exchange) | Yes | Series B Shares | GB | SEK | Jan 1999 |
| IARS.F | OTCPK (Pink Sheets LLC) | Yes | Series B Shares | US | USD | Jan 1999 |
| IARBS | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Series B Shares | GB | SEK | Jan 1999 |
Biography
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 progra ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/11/11 20:41 |
| End of Day Share Price | 2019/11/11 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.