Transtema Group (OM:TRANS) - Share price, News & Analysis

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

TRANS (SEK25.1) is trading below our estimate of [[fair value]] (SEK41.47)

TRANS fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	1/6
Past Performance	6/6
Financial Health	5/6
Dividends	0/6

TRANS Stock Overview

Transtema Group AB provides services and solutions to customers in the areas of networking and communications in Sweden.

Rewards

Trading at 39.5% below our estimate of its fair value

Revenue is forecast to grow 9.21% per year

Earnings grew by 54.1% over the past year

Risk Analysis

Does not have a meaningful market cap (SEK977M)

Transtema Group Competitors

Bredband2 i Skandinavien

OM:BRE2

kr1.7b

Bahnhof

NGM:BAHN B

kr3.7b

Symphony Communication

SET:SYMC

฿2.6b

BENEFIT JAPAN

TSE:3934

JP¥11.4b

Price History & Performance

Summary of all time highs, changes and price drops for Transtema Group
Historical stock prices
Current Share Price	kr25.10
52 Week High	kr57.40
52 Week Low	kr21.60
Beta	0.50
1 Month Change	-8.06%
3 Month Change	-37.57%
1 Year Change	7.27%
3 Year Change	119.21%
5 Year Change	-58.68%
Change since IPO	397.03%

Recent News & Updates

Jun 14

Transtema Group's (STO:TRANS) Returns Have Hit A Wall

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? One common approach...

May 12

Here's Why I Think Transtema Group (STO:TRANS) Might Deserve Your Attention Today

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Shareholder Returns

	TRANS	SE Telecom	SE Market
7D	-1.2%	-0.5%	-2.9%
1Y	7.3%	3.2%	-25.5%

Return vs Industry: TRANS exceeded the Swedish Telecom industry which returned 4% over the past year.

Return vs Market: TRANS exceeded the Swedish Market which returned -24.9% over the past year.

Price Volatility

Is TRANS's price volatile compared to industry and market?
TRANS volatility
TRANS Average Weekly Movement	8.6%
Telecom Industry Average Movement	5.1%
Market Average Movement	7.4%
10% most volatile stocks in SE Market	12.2%
10% least volatile stocks in SE Market	4.7%

Stable Share Price: TRANS is not significantly more volatile than the rest of Swedish stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: TRANS's weekly volatility (9%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1997	1,156	Magnus Johansson	https://www.transtema.com

Transtema Group AB provides services and solutions to customers in the areas of networking and communications in Sweden. It offers design, construction, documentation, maintenance, and other consulting services for communications networks as well as data storage, networking, and IoT solutions. The company offers operation and maintenance services, including network monitoring, consulting, support, and field services; communication network, including fiber, mobile, copper mesh, and real estate network, IoT, wireless networks, mobile indoor coverage, network equipment; electricity, telecommunications and security, including electricity meter, charging stations, telesystem, and electrical installations; and data centers, site services.

Transtema Group Fundamentals Summary

How do Transtema Group's earnings and revenue compare to its market cap?
TRANS fundamental statistics
Market Cap	kr976.52m
Earnings (TTM)	kr74.96m
Revenue (TTM)	kr1.75b

13.0x

P/E Ratio

0.6x

P/S Ratio

Is TRANS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
TRANS income statement (TTM)
Revenue	kr1.75b
Cost of Revenue	kr636.69m
Gross Profit	kr1.11b
Other Expenses	kr1.03b
Earnings	kr74.96m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.93
Gross Margin	63.55%
Net Profit Margin	4.29%
Debt/Equity Ratio	49.6%

How did TRANS perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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 TRANS?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for TRANS. This is calculated by dividing TRANS's market cap by their current preferred multiple.
What is TRANS's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	kr976.52m

TRANS 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	8.9x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

TRANS PE Ratio vs Peers

The above table shows the PE ratio for TRANS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	18.1x
BRE2 Bredband2 i Skandinavien	19.5x	13.3%	kr1.7b
BAHN B Bahnhof	23.4x	n/a	kr3.7b
SYMC Symphony Communication	19.1x	n/a	฿2.6b
3934 BENEFIT JAPAN	10.9x	n/a	JP¥11.4b
TRANS Transtema Group	13x	n/a	kr976.5m

Forward PE

Price-To-Earnings vs Peers: TRANS is good value based on its Price-To-Earnings Ratio (13x) compared to the peer average (18.1x).

Price to Earnings Ratio vs Industry

How does TRANS's PE Ratio compare vs other companies in the European Telecom Industry?

Price-To-Earnings vs Industry: TRANS is good value based on its Price-To-Earnings Ratio (13x) compared to the European Telecom industry average (14.7x)

Price to Earnings Ratio vs Fair Ratio

What is TRANS'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.

TRANS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	13x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate TRANS's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

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

Below Fair Value: TRANS (SEK25.1) is trading below our estimate of fair value (SEK41.47)

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

Price to Earnings Growth Ratio

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

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Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

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

9.2%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if TRANS's forecast earnings growth is above the savings rate (0.4%).

Earnings vs Market: Insufficient data to determine if TRANS's earnings are forecast to grow faster than the Swedish market

High Growth Earnings: Insufficient data to determine if TRANS's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TRANS's revenue (9.2% per year) is forecast to grow faster than the Swedish market (5.4% per year).

High Growth Revenue: TRANS's revenue (9.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if TRANS's Return on Equity is forecast to be high in 3 years time

Discover growth companies

Past Performance

How has Transtema Group performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

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

29.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TRANS has high quality earnings.

Growing Profit Margin: TRANS's current net profit margins (4.3%) are higher than last year (3.4%).

Past Earnings Growth Analysis

Earnings Trend: TRANS's earnings have grown significantly by 29.8% per year over the past 5 years.

Accelerating Growth: TRANS's earnings growth over the past year (54.1%) exceeds its 5-year average (29.8% per year).

Earnings vs Industry: TRANS earnings growth over the past year (54.1%) exceeded the Telecom industry 23.6%.

Return on Equity

High ROE: TRANS's Return on Equity (26.8%) is considered high.

Discover strong past performing companies

Financial Health

How is Transtema Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

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

Financial Position Analysis

Short Term Liabilities: TRANS's short term assets (SEK612.0M) do not cover its short term liabilities (SEK798.1M).

Long Term Liabilities: TRANS's short term assets (SEK612.0M) exceed its long term liabilities (SEK319.6M).

Debt to Equity History and Analysis

Debt Level: TRANS's net debt to equity ratio (1.5%) is considered satisfactory.

Reducing Debt: TRANS's debt to equity ratio has reduced from 55.2% to 49.6% over the past 5 years.

Debt Coverage: TRANS's debt is well covered by operating cash flow (120%).

Interest Coverage: TRANS's interest payments on its debt are well covered by EBIT (18.2x coverage).

Balance Sheet

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Dividend

What is Transtema Group current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate TRANS'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 TRANS's dividends per share have been stable in the past.

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as TRANS has not reported any payouts.

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Management

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

5.5yrs

Average board tenure

CEO

Magnus Johansson (59 yo)

8.5yrs

Tenure

kr2,364,000

Compensation

Mr. Magnus Johansson has been the Chief Executive Officer of Transtema Group AB since 2014 and served as Chief Executive Officer of Transtema AB since 1997. Mr. Johansson serves as the Chairman of the Boar...

CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Magnus's total compensation is reasonable compared to companies of similar size in the Swedish market.

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

Board Members

Experienced Board: TRANS's board of directors are considered experienced (5.5 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: TRANS 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	2022/07/05 00:00
End of Day Share Price	2022/07/05 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31