OM:BRE2

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Bredband2 i Skandinavien

Executive Summary

Bredband2 i Skandinavien AB (publ) provides data communications and security solutions to individuals and companies in Sweden.


Snowflake Analysis

Outstanding track record with excellent balance sheet.

Share Price & News

How has Bredband2 i Skandinavien's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BRE2 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

9.1%

BRE2

-0.8%

SE Telecom

2.3%

SE Market


1 Year Return

80.0%

BRE2

-17.4%

SE Telecom

14.8%

SE Market

Return vs Industry: BRE2 exceeded the Swedish Telecom industry which returned -16.5% over the past year.

Return vs Market: BRE2 exceeded the Swedish Market which returned 16.5% over the past year.


Shareholder returns

BRE2IndustryMarket
7 Day9.1%-0.8%2.3%
30 Day15.0%-2.7%2.8%
90 Day20.0%4.0%15.9%
1 Year88.5%80.0%-13.2%-17.4%16.6%14.8%
3 Year105.7%80.9%5.3%-10.2%28.9%15.3%
5 Year280.8%215.8%-11.3%-31.9%41.7%13.5%

Price Volatility Vs. Market

How volatile is Bredband2 i Skandinavien's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Bredband2 i Skandinavien undervalued compared to its fair value and its price relative to the market?

16.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BRE2 (SEK1.8) is trading below our estimate of fair value (SEK2.16)

Significantly Below Fair Value: BRE2 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BRE2 is good value based on its PE Ratio (26.5x) compared to the SE Telecom industry average (35.1x).

PE vs Market: BRE2 is poor value based on its PE Ratio (26.5x) compared to the Swedish market (22.6x).


Price to Earnings Growth Ratio

PEG Ratio: BRE2 is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: BRE2 is overvalued based on its PB Ratio (49.4x) compared to the SE Telecom industry average (1.9x).


Next Steps

Future Growth

How is Bredband2 i Skandinavien forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BRE2's forecast earnings growth (9.1% per year) is above the savings rate (0.5%).

Earnings vs Market: BRE2's earnings (9.1% per year) are forecast to grow slower than the Swedish market (19.7% per year).

High Growth Earnings: BRE2's earnings are forecast to grow, but not significantly.

Revenue vs Market: BRE2's revenue (7.3% per year) is forecast to grow faster than the Swedish market (6.3% per year).

High Growth Revenue: BRE2's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BRE2's Return on Equity is forecast to be very high in 3 years time (71.2%).


Next Steps

Past Performance

How has Bredband2 i Skandinavien performed over the past 5 years?

18.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BRE2 has high quality earnings.

Growing Profit Margin: BRE2's current net profit margins (6.8%) are higher than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: BRE2's earnings have grown by 18.9% per year over the past 5 years.

Accelerating Growth: BRE2's earnings growth over the past year (39.3%) exceeds its 5-year average (18.9% per year).

Earnings vs Industry: BRE2 earnings growth over the past year (39.3%) exceeded the Telecom industry 21.6%.


Return on Equity

High ROE: BRE2's Return on Equity (186.4%) is considered outstanding.


Next Steps

Financial Health

How is Bredband2 i Skandinavien's financial position?


Financial Position Analysis

Short Term Liabilities: BRE2's short term assets (SEK221.1M) do not cover its short term liabilities (SEK250.7M).

Long Term Liabilities: BRE2's short term assets (SEK221.1M) exceed its long term liabilities (SEK4.8M).


Debt to Equity History and Analysis

Debt Level: BRE2 is debt free.

Reducing Debt: BRE2 currently has no debt however we can't compare to 5 years ago as we have no data for that period.

Debt Coverage: BRE2 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: BRE2 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Bredband2 i Skandinavien current dividend yield, its reliability and sustainability?

2.78%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BRE2's dividend (2.78%) is higher than the bottom 25% of dividend payers in the Swedish market (1.36%).

High Dividend: BRE2's dividend (2.78%) is low compared to the top 25% of dividend payers in the Swedish market (4.97%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, BRE2 has been paying a dividend for less than 10 years.

Growing Dividend: BRE2's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (73.7%), BRE2's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BRE2's dividends in 3 years are not forecast to be well covered by earnings (94.6% payout ratio).


Next Steps

Management

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

6.6yrs

Average management tenure


CEO

Daniel Krook (49 yo)

13.58yrs

Tenure

kr4,173,000

Compensation

Mr. Daniel Krook serves as the Chief Executive Officer, Managing Director and Director at Bredband2 i Skandinavien AB.


CEO Compensation Analysis

Compensation vs Market: Daniel's total compensation ($USD479.23K) is above average for companies of similar size in the Swedish market ($USD230.64K).

Compensation vs Earnings: Daniel's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Krook
CEO, MD & Director13.58yrskr4.17m2%
SEK 25.2m
Claes Fägersten
Chief Financial Officer10.58yrsno data0.33%
SEK 4.1m
Håkan Bengtsson
COO & Operations Manager2.58yrsno datano data
Joachim Landhager
CCO & Sales Manager6.58yrsno data0.24%
SEK 3.1m
Johanna Uhrfeldt
CMO & Marketing Manager1.17yrsno datano data

6.6yrs

Average Tenure

55yo

Average Age

Experienced Management: BRE2's management team is seasoned and experienced (6.6 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Bredband2 i Skandinavien AB (publ)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bredband2 i Skandinavien AB (publ)
  • Ticker: BRE2
  • Exchange: OM
  • Founded: 1989
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Market Cap: kr1.262b
  • Shares outstanding: 701.00m
  • Website: https://www.bredband2.com

Number of Employees


Location

  • Bredband2 i Skandinavien AB (publ)
  • Box 557
  • Malmö
  • Skåne County
  • 201 25
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BRE2OM (OMX Nordic Exchange Stockholm)YesClass B SharesSESEKDec 2001

Biography

Bredband2 i Skandinavien AB (publ) provides data communications and security solutions to individuals and companies in Sweden. The company offers mobile broadband, router, telephony, antivirus, and TV serv ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/06 21:34
End of Day Share Price2020/08/06 00:00
Earnings2020/06/30
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.