OM:OVZON

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Ovzon AB (publ) provides satellite based mobile broadband services in Sweden and internationally.


Snowflake Analysis

Flawless balance sheet with high growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

3.0%

OVZON

-2.0%

SE Telecom

0.1%

SE Market


1 Year Return

-33.3%

OVZON

-16.5%

SE Telecom

16.5%

SE Market

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

Return vs Market: OVZON underperformed the Swedish Market which returned 16.5% over the past year.


Shareholder returns

OVZONIndustryMarket
7 Day3.0%-2.0%0.1%
30 Day-14.6%-2.1%2.5%
90 Day9.8%6.7%18.0%
1 Year-32.6%-33.3%-12.2%-16.5%18.3%16.5%
3 Yearn/a5.5%-10.1%27.7%14.3%
5 Yearn/a-9.7%-30.7%43.7%15.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OVZON (SEK50.4) is trading below our estimate of fair value (SEK964.16)

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


Price To Earnings Ratio

PE vs Industry: OVZON is poor value based on its PE Ratio (39.4x) compared to the SE Telecom industry average (35.1x).

PE vs Market: OVZON is poor value based on its PE Ratio (39.4x) compared to the Swedish market (22.6x).


Price to Earnings Growth Ratio

PEG Ratio: OVZON is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: OVZON's PB Ratio (1.9x) is in line with the SE Telecom industry average.


Next Steps

Future Growth

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

93.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OVZON's forecast earnings growth (93.4% per year) is above the savings rate (0.5%).

Earnings vs Market: OVZON's earnings (93.4% per year) are forecast to grow faster than the Swedish market (19.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: OVZON's revenue (61.5% per year) is forecast to grow faster than the Swedish market (6.3% per year).

High Growth Revenue: OVZON's revenue (61.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OVZON's Return on Equity is forecast to be low in 3 years time (7.8%).


Next Steps

Past Performance

How has Ovzon performed over the past 5 years?

44.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OVZON has a high level of non-cash earnings.

Growing Profit Margin: OVZON's current net profit margins (16.9%) are higher than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: OVZON's earnings have grown significantly by 44.2% per year over the past 5 years.

Accelerating Growth: OVZON's earnings growth over the past year (290.4%) exceeds its 5-year average (44.2% per year).

Earnings vs Industry: OVZON earnings growth over the past year (290.4%) exceeded the Telecom industry 21.6%.


Return on Equity

High ROE: OVZON's Return on Equity (4.6%) is considered low.


Next Steps

Financial Health

How is Ovzon's financial position?


Financial Position Analysis

Short Term Liabilities: OVZON's short term assets (SEK395.0M) exceed its short term liabilities (SEK134.1M).

Long Term Liabilities: OVZON's short term assets (SEK395.0M) exceed its long term liabilities (SEK7.1M).


Debt to Equity History and Analysis

Debt Level: OVZON is debt free.

Reducing Debt: OVZON had no debt 5 years ago.

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

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


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if OVZON'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 OVZON's dividend in 3 years as they are not forecast to pay a notable one for the Swedish market.


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Magnus René (58 yo)

1.25yrs

Tenure

kr3,662,000

Compensation

Mr. Magnus René has been Deputy Chairman of Supervisory Board at SLM Solutions Group AG since September 6, 2019. He served as a Director of Integrum Ab (Publ) until November 2019. Mr. René has been Directo ...


CEO Compensation Analysis

Compensation vs Market: Magnus's total compensation ($USD420.55K) is about average for companies of similar size in the Swedish market ($USD463.03K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Magnus René
CEO & Director1.25yrskr3.66m0.22%
SEK 4.4m
Johan Brandt
Chief Financial Officer1.92yrsno data0.11%
SEK 2.2m
Kennet Lejnell
Chief Technology Officerno datakr1.36m0.54%
SEK 10.6m
Per Wahlberg
Executive Vice President of Business Development1.25yrskr2.03m0.97%
SEK 18.9m
James Gerow
Executive Vice President of Key Accountsno datano data0.12%
SEK 2.3m
Pål Ekberg
Executive Vice President of Satellite Operationsno datano data0.18%
SEK 3.5m
Thomas Buhre
Consultant1.92yrsno datano data

1.6yrs

Average Tenure

54yo

Average Age

Experienced Management: OVZON's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Magnus René
CEO & Director1.25yrskr3.66m0.22%
SEK 4.4m
Anders Björkman
Independent Chairman of the Board1.33yrskr300.00kno data
Patrik Tigerschiöld
Independent Director2.25yrskr150.00k0.52%
SEK 10.1m
Nicklas Paulson
Independent Director2.25yrskr150.00k0.026%
SEK 503.9k
Dan Jangblad
Director0.33yrno datano data
Cecilia Driving
Director0.33yrno datano data

1.8yrs

Average Tenure

57yo

Average Age

Experienced Board: OVZON's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 15.5%.


Top Shareholders

Company Information

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


Key Information

  • Name: Ovzon AB (publ)
  • Ticker: OVZON
  • Exchange: OM
  • Founded: 2006
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Market Cap: kr1.955b
  • Shares outstanding: 38.80m
  • Website: https://www.ovzon.com

Number of Employees


Location

  • Ovzon AB (publ)
  • Anderstorpsvägen 10
  • Solna
  • Stockholm County
  • 171 54
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OVZONOM (OMX Nordic Exchange Stockholm)YesClass A SharesSESEKMay 2018

Biography

Ovzon AB (publ) provides satellite based mobile broadband services in Sweden and internationally. Its services are used in live broadcast, wildlife preservation, drone operation, border security, and disas ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/06 21:49
End of Day Share Price2020/08/06 00:00
Earnings2020/03/31
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.