Hanza (OM:HANZA) - Share price, News & Analysis

Q: What is the Fair Price of HANZA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

HANZA (SEK39.6) is trading above our estimate of [[fair value]] (SEK14.4)

HANZA fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	3/6
Past Performance	5/6
Financial Health	3/6
Dividends	1/6

HANZA Stock Overview

Hanza AB (publ) provides manufacturing solutions.

Rewards

Price-To-Earnings ratio (15.7x) is below the Electronic industry average (25.7x)

Earnings are forecast to grow 15.12% per year

Earnings grew by 6846.2% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Hanza Competitors

NOTE

OM:NOTE

kr5.6b

Alcadon Group

OM:ALCA

kr1.4b

Beijer Electronics Group

OM:BELE

kr1.6b

Thunderful Group

OM:THUNDR

kr1.3b

Price History & Performance

Summary of all time highs, changes and price drops for Hanza
Historical stock prices
Current Share Price	kr39.60
52 Week High	kr72.00
52 Week Low	kr22.20
Beta	1.52
1 Month Change	-3.18%
3 Month Change	-10.71%
1 Year Change	72.93%
3 Year Change	155.48%
5 Year Change	264.98%
Change since IPO	46.67%

Recent News & Updates

Jun 15

When Should You Buy Hanza AB (publ) (STO:HANZA)?

While Hanza AB (publ) ( STO:HANZA ) might not be the most widely known stock at the moment, it saw a double-digit share...

Shareholder Returns

	HANZA	SE Electronic	SE Market
7D	-4.9%	0.6%	0.3%
1Y	72.9%	-19.6%	-24.3%

Return vs Industry: HANZA exceeded the Swedish Electronic industry which returned -19.1% over the past year.

Return vs Market: HANZA exceeded the Swedish Market which returned -24.2% over the past year.

Price Volatility

Is HANZA's price volatile compared to industry and market?
HANZA volatility
HANZA Average Weekly Movement	8.1%
Electronic Industry Average Movement	7.6%
Market Average Movement	7.3%
10% most volatile stocks in SE Market	12.5%
10% least volatile stocks in SE Market	4.7%

Stable Share Price: HANZA is not significantly more volatile than the rest of Swedish stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: HANZA's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2008	2,075	Erik Stenfors	https://www.hanza.com

Hanza AB (publ) provides manufacturing solutions. The company also offers cutting, bending, stamping, welding, and powder coating services for sheet and heavy mechanics; machining services, such as milling, turning, grinding, EMD, and surface treatment; and PCB assembly services. In addition, it provides cable harnesses solutions, including cutting, crimping, and marking, as well as assembly of harnesses based on customer requirements; and system integration and box build assembly services, which include final assembly of systems, testing, delivery to customer stock, and drop shipments to end customers.

Hanza Fundamentals Summary

How do Hanza's earnings and revenue compare to its market cap?
HANZA fundamental statistics
Market Cap	kr1.42b
Earnings (TTM)	kr90.30m
Revenue (TTM)	kr2.77b

15.7x

P/E Ratio

0.5x

P/S Ratio

Is HANZA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
HANZA income statement (TTM)
Revenue	kr2.77b
Cost of Revenue	kr1.52b
Gross Profit	kr1.25b
Other Expenses	kr1.16b
Earnings	kr90.30m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 26, 2022

Earnings per share (EPS)	2.52
Gross Margin	45.07%
Net Profit Margin	3.26%
Debt/Equity Ratio	77.4%

How did HANZA perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

20%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is HANZA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HANZA?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for HANZA. This is calculated by dividing HANZA's market cap by their current preferred multiple.
What is HANZA's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	kr1.42b

HANZA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.7x
Enterprise Value/EBITDA	9.7x
PEG Ratio	1x

Price to Earnings Ratio vs Peers

How does HANZA's PE Ratio compare to its peers?

HANZA PE Ratio vs Peers

The above table shows the PE ratio for HANZA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	24.7x
NOTE NOTE	25.7x	n/a	kr5.6b
ALCA Alcadon Group	30.1x	23.4%	kr1.4b
BELE Beijer Electronics Group	32.1x	43.9%	kr1.6b
THUNDR Thunderful Group	11x	33.0%	kr1.3b
HANZA Hanza	15.7x	15.1%	kr1.4b

Forward PE

Price-To-Earnings vs Peers: HANZA is good value based on its Price-To-Earnings Ratio (15.7x) compared to the peer average (24.7x).

Price to Earnings Ratio vs Industry

How does HANZA's PE Ratio compare vs other companies in the European Electronic Industry?

Price-To-Earnings vs Industry: HANZA is good value based on its Price-To-Earnings Ratio (15.7x) compared to the Swedish Electronic industry average (25.7x)

Price to Earnings Ratio vs Fair Ratio

What is HANZA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HANZA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	15.7x
Fair PE Ratio	25.4x

Price-To-Earnings vs Fair Ratio: HANZA is good value based on its Price-To-Earnings Ratio (15.7x) compared to the estimated Fair Price-To-Earnings Ratio (25.4x).

Share Price vs Fair Value

What is the Fair Price of HANZA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HANZA (SEK39.6) is trading above our estimate of fair value (SEK14.4)

Significantly Below Fair Value: HANZA is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: HANZA is poor value based on its PEG Ratio (1x)

Discover undervalued companies

Future Growth

How is Hanza forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

15.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: HANZA's forecast earnings growth (15.1% per year) is above the savings rate (0.4%).

Earnings vs Market: HANZA's earnings (15.1% per year) are forecast to grow faster than the Swedish market (9.6% per year).

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

Revenue vs Market: HANZA's revenue (5.9% per year) is forecast to grow faster than the Swedish market (5.5% per year).

High Growth Revenue: HANZA's revenue (5.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: HANZA's Return on Equity is forecast to be low in 3 years time (9.2%).

Discover growth companies

Past Performance

How has Hanza performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

37.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HANZA has high quality earnings.

Growing Profit Margin: HANZA's current net profit margins (3.3%) are higher than last year (0.06%).

Past Earnings Growth Analysis

Earnings Trend: HANZA has become profitable over the past 5 years, growing earnings by 37% per year.

Accelerating Growth: HANZA's earnings growth over the past year (6846.2%) exceeds its 5-year average (37% per year).

Earnings vs Industry: HANZA earnings growth over the past year (6846.2%) exceeded the Electronic industry 23.5%.

Return on Equity

High ROE: HANZA's Return on Equity (14.6%) is considered low.

Discover strong past performing companies

Financial Health

How is Hanza's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: HANZA's short term assets (SEK945.6M) exceed its short term liabilities (SEK936.3M).

Long Term Liabilities: HANZA's short term assets (SEK945.6M) exceed its long term liabilities (SEK483.4M).

Debt to Equity History and Analysis

Debt Level: HANZA's net debt to equity ratio (74.6%) is considered high.

Reducing Debt: HANZA's debt to equity ratio has increased from 62.2% to 77.4% over the past 5 years.

Debt Coverage: HANZA's debt is not well covered by operating cash flow (15.3%).

Interest Coverage: HANZA's interest payments on its debt are well covered by EBIT (6.4x coverage).

Balance Sheet

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Dividend

What is Hanza current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.26%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: HANZA's dividend (1.26%) isn’t notable compared to the bottom 25% of dividend payers in the Swedish market (1.65%).

High Dividend: HANZA's dividend (1.26%) is low compared to the top 25% of dividend payers in the Swedish market (5.42%).

Stability and Growth of Payments

Stable Dividend: HANZA has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: HANZA's dividend payments have increased, but the company has only paid a dividend for 3 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (19.8%), HANZA's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: HANZA is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

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

7.0yrs

Average management tenure

CEO

Erik Stenfors (56 yo)

14.42yrs

Tenure

kr4,429,000

Compensation

Mr. Erik Stenfors is Founder of Hanza AB (publ) (formerly known as Hanza Holding AB (publ)) and has been the Chief Executive Officer and President of Hanza AB (publ) (formerly known as Hanza Holding AB (pu...

CEO Compensation Analysis

Compensation vs Market: Erik's total compensation ($USD428.25K) is above average for companies of similar size in the Swedish market ($USD226.31K).

Compensation vs Earnings: Erik's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: HANZA's management team is seasoned and experienced (7 years average tenure).

Board Members

Experienced Board: HANZA's board of directors are considered experienced (5.4 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: HANZA insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/07/01 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31