OM:CBTT B

Stock Analysis Report

Christian Berner Tech Trade

Executive Summary

Christian Berner Tech Trade AB (publ) supplies technical components, equipment, and materials to businesses and public sector organizations in the Nordic countries.

Rewards

Trading at 49.2% below its fair value

Earnings are forecast to grow 7.64% per year

Earnings have grown 23.2% per year over the past 5 years

Risk Analysis

Has a high level of debt

Unstable dividend track record

Highly volatile share price over past 3 months

Does not have a meaningful market cap (SEK308M)



Snowflake Analysis

Undervalued with acceptable track record.

Share Price & News

How has Christian Berner Tech Trade's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CBTT B's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.9%

CBTT B

14.9%

SE Electronic

11.7%

SE Market


1 Year Return

-37.7%

CBTT B

-15.4%

SE Electronic

-9.7%

SE Market

Return vs Industry: CBTT B underperformed the Swedish Electronic industry which returned -14.7% over the past year.

Return vs Market: CBTT B underperformed the Swedish Market which returned -10.3% over the past year.


Shareholder returns

CBTT BIndustryMarket
7 Day-0.9%14.9%11.7%
30 Day-36.0%-19.5%-16.3%
90 Day-42.3%-24.0%-21.1%
1 Year-36.2%-37.7%-14.3%-15.4%-7.1%-9.7%
3 Year-8.1%-14.9%12.3%7.4%2.2%-12.9%
5 Year93.6%69.2%41.4%30.8%10.1%-13.0%

Price Volatility Vs. Market

How volatile is Christian Berner Tech Trade's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Christian Berner Tech Trade undervalued compared to its fair value and its price relative to the market?

49.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CBTT B (SEK16.5) is trading below our estimate of fair value (SEK32.47)

Significantly Below Fair Value: CBTT B is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CBTT B is good value based on its PE Ratio (8.1x) compared to the Electronic industry average (16.4x).

PE vs Market: CBTT B is good value based on its PE Ratio (8.1x) compared to the Swedish market (14.1x).


Price to Earnings Growth Ratio

PEG Ratio: CBTT B is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: CBTT B is good value based on its PB Ratio (2x) compared to the SE Electronic industry average (2.2x).


Next Steps

Future Growth

How is Christian Berner Tech Trade forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

7.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CBTT B's forecast earnings growth (7.6% per year) is above the savings rate (-0.4%).

Earnings vs Market: CBTT B's earnings (7.6% per year) are forecast to grow slower than the Swedish market (7.8% per year).

High Growth Earnings: CBTT B's earnings are forecast to grow, but not significantly.

Revenue vs Market: CBTT B's revenue (3% per year) is forecast to grow slower than the Swedish market (4.1% per year).

High Growth Revenue: CBTT B's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CBTT B's Return on Equity is forecast to be high in 3 years time (22%)


Next Steps

Past Performance

How has Christian Berner Tech Trade performed over the past 5 years?

23.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CBTT B has high quality earnings.

Growing Profit Margin: CBTT B's current net profit margins (5.4%) are lower than last year (6.1%).


Past Earnings Growth Analysis

Earnings Trend: CBTT B's earnings have grown significantly by 23.2% per year over the past 5 years.

Accelerating Growth: CBTT B's earnings growth over the past year (0.4%) is below its 5-year average (23.2% per year).

Earnings vs Industry: CBTT B earnings growth over the past year (0.4%) underperformed the Electronic industry 8.3%.


Return on Equity

High ROE: CBTT B's Return on Equity (24.7%) is considered high.


Next Steps

Financial Health

How is Christian Berner Tech Trade's financial position?


Financial Position Analysis

Short Term Liabilities: CBTT B's short term assets (SEK184.6M) do not cover its short term liabilities (SEK188.7M).

Long Term Liabilities: CBTT B's short term assets (SEK184.6M) exceed its long term liabilities (SEK82.6M).


Debt to Equity History and Analysis

Debt Level: CBTT B's debt to equity ratio (50.1%) is considered high.

Reducing Debt: CBTT B's debt to equity ratio has increased from 6.4% to 50.1% over the past 5 years.

Debt Coverage: CBTT B's debt is well covered by operating cash flow (90.4%).

Interest Coverage: CBTT B's interest payments on its debt are well covered by EBIT (22.9x coverage).


Balance Sheet

Inventory Level: CBTT B has a high level of physical assets or inventory.

Debt Coverage by Assets: CBTT B's debt is covered by short term assets (assets are 2.4x debt).


Next Steps

Dividend

What is Christian Berner Tech Trade's current dividend yield, its reliability and sustainability?

4.55%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: CBTT B's dividend (4.55%) is higher than the bottom 25% of dividend payers in the Swedish market (2.14%).

High Dividend: CBTT B's dividend (4.55%) is low compared to the top 25% of dividend payers in the Swedish market (6.55%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, CBTT B has been paying a dividend for less than 10 years.

Growing Dividend: CBTT B's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.9%), CBTT B's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CBTT B's dividends in 3 years are forecast to be well covered by earnings (39.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

Bo Söderqvist (56yo)

10.17s

Tenure

Mr. Bo Söderqvist has been Chief Executive Officer and President ofChristian Berner Tech Trade AB (publ) since 2010. Mr. Söderqvist serves as the Chief Executive Officer of Christian Berner AB. Mr. Söderqv ...


Leadership Team

NamePositionTenureCompensationOwnership
Bo Söderqvist
CEO & President10.17yrsno data1.18% SEK3.6m
Torbjörn Gustafsson
Chief Financial Officer2.17yrsno data0.0024% SEK7.4k
Fredrik Berndtson
Chief Information Officer0.33yrno datano data
Ann Svensson
Marketing Managerno datano datano data
Herman Thon
Chief Executive Officer of Christian Berner AS3.17yrsno datano data
Joel Lybert
Chief Executive Officer at Zander & Ingeström AB0.33yrno datano data
Henrik Westerholm
CEO of Christian Berner Oy14.17yrsno data0.047% SEK144.0k
Hans Lindqvist
CEO of Christian Berner AB & Supply Chain Directorno datano data0.054% SEK165.0k
Erik Thorup
CEO of A/S Christian Bernerno datano data0.012% SEK36.0k

2.7yrs

Average Tenure

49yo

Average Age

Experienced Management: CBTT B's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lars Gatenbeck
Independent Director6.17yrskr202.00k0.14% SEK435.0k
Bertil Persson
Director2.17yrskr110.00kno data
Kurt Olofsson
Director16.17yrsno datano data
Joachim Berner
Chairman of the Board5.75yrsno datano data
Malin Domstad
Independent Director5.17yrskr132.00k0.0064% SEK19.8k
Kerstin Gillsbro
Director3.92yrskr142.00k0.028% SEK87.4k
Stina Wollenius
Board Member2.17yrskr89.00kno data
Claes Berg
Director1.17yrsno datano data

4.5yrs

Average Tenure

57.5yo

Average Age

Experienced Board: CBTT B's board of directors are considered experienced (4.5 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Christian Berner Tech Trade AB (publ)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Christian Berner Tech Trade AB (publ)
  • Ticker: CBTT B
  • Exchange: OM
  • Founded: 1897
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: kr308.336m
  • Shares outstanding: 18.69m
  • Website: https://www.christianberner.com

Number of Employees


Location

  • Christian Berner Tech Trade AB (publ)
  • Designvägen 1
  • Box 88
  • Mölnlycke
  • Västra Götaland County
  • 435 22
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CBTT BOM (OMX Nordic Exchange Stockholm)YesClass B SharesSESEKOct 2014
0RNWLSE (London Stock Exchange)YesClass B SharesGBSEKOct 2014
CBTTBSBATS-CHIXE (BATS 'Chi-X Europe')YesClass B SharesGBSEKOct 2014

Biography

Christian Berner Tech Trade AB (publ) supplies technical components, equipment, and materials to businesses and public sector organizations in the Nordic countries. Its materials technology business is focused on the sale of a range of materials, including plastics, and vibration-damping and noise-reduction solutions; and process and environment business focus on customers with a need for process equipment and turnkey systems. The company is also involved in the provision of consultation, analysis of the customer's technical requirements, development, installation, and services. It primarily serves pulp and paper, engineering, construction, and food industries, as well as petrochemicals and refineries. Christian Berner Tech Trade AB (publ) was founded in 1897 and is headquartered in Mölnlycke, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 22:50
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
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.