OM:GAPW B

Stock Analysis Report

Executive Summary

Gapwaves AB (publ) provides wireless communication products.

Risk Analysis

Shareholders have been substantially diluted in the past year

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Does not have meaningful revenue (SEK14M)

+ 1 more risk


Snowflake Analysis

Excellent balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.5%

GAPW B

-1.4%

SE Communications

2.0%

SE Market


1 Year Return

41.8%

GAPW B

7.4%

SE Communications

21.6%

SE Market

Return vs Industry: GAPW B exceeded the Swedish Communications industry which returned 7.4% over the past year.

Return vs Market: GAPW B exceeded the Swedish Market which returned 21.6% over the past year.


Shareholder returns

GAPW BIndustryMarket
7 Day-3.5%-1.4%2.0%
30 Day-15.0%-0.9%-0.4%
90 Day-15.4%11.1%6.7%
1 Year41.8%41.8%8.6%7.4%26.7%21.6%
3 Year67.5%62.5%69.5%61.6%32.8%12.4%
5 Yearn/a9.8%-2.9%62.5%27.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Gapwaves undervalued compared to its fair value and its price relative to the market?

11.52x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate GAPW B's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate GAPW B's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: GAPW B is unprofitable, so we can't compare its PE Ratio to the Communications industry average.

PE vs Market: GAPW B is unprofitable, so we can't compare its PE Ratio to the Swedish market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GAPW B's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GAPW B is overvalued based on its PB Ratio (11.5x) compared to the SE Communications industry average (1.8x).


Next Steps

Future Growth

How is Gapwaves forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

25.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GAPW B is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: GAPW B is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: GAPW B is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if GAPW B's revenue is forecast to grow faster than the Swedish market.

High Growth Revenue: Insufficient data to determine if GAPW B's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GAPW B is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Gapwaves performed over the past 5 years?

-39.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GAPW B is currently unprofitable.

Growing Profit Margin: GAPW B is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GAPW B is unprofitable, and losses have increased over the past 5 years at a rate of -39% per year.

Accelerating Growth: Unable to compare GAPW B's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GAPW B is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (49.1%).


Return on Equity

High ROE: GAPW B has a negative Return on Equity (-73.89%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Gapwaves's financial position?


Financial Position Analysis

Short Term Liabilities: GAPW B's short term assets (SEK55.4M) exceed its short term liabilities (SEK13.5M).

Long Term Liabilities: GAPW B's short term assets (SEK55.4M) exceed its long term liabilities (SEK2.8M).


Debt to Equity History and Analysis

Debt Level: GAPW B's debt to equity ratio (7.5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if GAPW B's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: GAPW B has a low level of unsold assets or inventory.

Debt Coverage by Assets: GAPW B's debt is covered by short term assets (assets are 13.5x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: GAPW B has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: GAPW B has sufficient cash runway for 1.180417 years if free cash flow continues to reduce at historical rates of -20.9% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.6%markettop25%4.7%industryaverage3.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate GAPW B's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate GAPW B's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GAPW B's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GAPW B's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GAPW B's dividend in 3 years as they are not forecast to pay a notable one for the Swedish market.


Next Steps

Management

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

2.9yrs

Average board tenure


CEO

Lars-Inge Sjöqvist (61yo)

0yrs

Tenure

0

Mr. Lars-Inge Sjöqvist serves as Chief Executive Officer of Gapwaves AB (publ) and was its Director since 2014 until April 2019. Mr. Sjöqvist served as the Chief Executive Officer of Semcon AB. He served a ...


Board Age and Tenure

2.9yrs

Average Tenure

62yo

Average Age

Experienced Board: GAPW B's board of directors are not considered experienced ( 2.9 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.


Recent Insider Transactions

Buykr74,87519 Aug 19
Marcus Hasselblad
EntityIndividual
Shares2,500
Max Pricekr29.95
Sellkr372,80020 May 19
Lars-Inge Sjöqvist
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares20,000
Max Pricekr18.64

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 82.3%.


Management Team

  • Lars-Inge Sjöqvist (61yo)

    Chief Executive Officer

    • Tenure: 0yrs
  • Thomas Emanuelsson (61yo)

    Chief Technology Officer

    • Tenure: 0yrs
  • Per Andersson (36yo)

    Chief Financial Officer

    • Tenure: 0yrs
  • Martin Lundkvist (48yo)

    Vice President Sales & Marketing

    • Tenure: 0yrs

Board Members

  • Jan Wäreby (63yo)

    Independent Director

    • Tenure: 2.9yrs
  • Jonas Ehinger (50yo)

    Chairman

    • Tenure: 0.9yrs
  • Cécile Schilliger (69yo)

    Director

    • Tenure: 3.9yrs
  • Ahmad Kishk

    Member of the Advisory Board

    • Tenure: 0yrs
  • Stefano Maci

    Member of the Advisory Board

    • Tenure: 0yrs
  • Torbjörn Gustafsson (43yo)

    Independent Director

    • Tenure: 0.9yrs
  • Olle Axelsson (62yo)

    Independent Director

    • Tenure: 2.9yrs

Company Information

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


Key Information

  • Name: Gapwaves AB (publ)
  • Ticker: GAPW B
  • Exchange: OM
  • Founded: 2011
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: kr699.664m
  • Shares outstanding: 26.91m
  • Website: https://www.gapwaves.com

Location

  • Gapwaves AB (publ)
  • Banehagsgatan 22
  • Gothenburg
  • Västra Götaland County
  • 414 51
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GAPW BOM (OMX Nordic Exchange Stockholm)YesClass B SharesSESEKNov 2016
0GF1LSE (London Stock Exchange)YesClass B SharesGBSEKNov 2016

Biography

Gapwaves AB (publ) provides wireless communication products. It offers solutions for base stations, microwave radios, automotive radars, and space communications. The company was founded in 2011 and is bas ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 22:59
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
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.