OM:RAIL

Stock Analysis Report

Executive Summary

Railcare Group AB (publ) provides railway maintenance services primarily in Scandinavia and the United Kingdom.

Snowflake

Fundamentals

High growth potential and slightly overvalued.

Risks

  • Railcare Group is covered by less than 3 analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

OM:RAIL

-1.6%

SE Infrastructure

-1.2%

SE Market


1 Year Return

4.6%

OM:RAIL

3.9%

SE Infrastructure

-2.6%

SE Market

RAIL matched the Infrastructure industry (3.9%) over the past year.

RAIL outperformed the Market in Sweden which returned -2.6% over the past year.


Share holder returns

RAILIndustryMarket
7 Day0%-1.6%-1.2%
30 Day-1.3%-3.8%-4.8%
90 Day13.9%1.7%-1.8%
1 Year4.6%4.6%7.5%3.9%1.5%-2.6%
3 Year-16.4%-19.1%42.3%29.3%24.4%6.0%
5 Year74.5%61.1%68.8%42.6%44.9%14.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Railcare Group undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Railcare Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Railcare Group's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Railcare Group is overvalued based on earnings compared to the Europe Infrastructure industry average.

Railcare Group is overvalued based on earnings compared to the Sweden market.


Price Based on Expected Growth

Railcare Group is poor value based on expected growth next year.


Price Based on Value of Assets

Railcare Group is overvalued based on assets compared to the Europe Infrastructure industry average.


Next Steps

Future Growth

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

56.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Railcare Group's revenue is expected to grow by 17.1% yearly, however this is not considered high growth (20% yearly).

Railcare Group's earnings are expected to grow significantly at over 20% yearly.

Railcare Group's revenue growth is expected to exceed the Sweden market average.

Railcare Group's earnings growth is expected to exceed the Sweden market average.

Railcare Group's earnings growth is expected to exceed the low risk savings rate of 0.4%.


Earnings per Share Growth Estimates


Future Return on Equity

Railcare Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Railcare Group performed over the past 5 years?

-30.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Railcare Group's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Railcare Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Railcare Group's 1-year earnings growth is negative, it can't be compared to the Europe Infrastructure industry average.


Return on Equity

Railcare Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Railcare Group used its assets less efficiently than the Europe Infrastructure industry average last year based on Return on Assets.


Return on Capital Employed

Railcare Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Railcare Group's financial position?


Financial Position Analysis

Railcare Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Railcare Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Railcare Group's level of debt (128.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (67.1% vs 128.6% today).

Debt is well covered by operating cash flow (24.4%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.3x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.5x debt.


Next Steps

Dividend

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

3.05%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate Railcare Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Railcare Group's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Railcare Group has not reported any payouts.

Unable to verify if Railcare Group's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Railcare Group has not reported any payouts.


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.3x coverage).


Next Steps

Management

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

3.1yrs

Average board tenure


CEO

Daniel Öholm (48yo)

5.2yrs

Tenure

kr1,315,000

Compensation

Mr. Daniel Öholm serves as Chief Executive Officer and served the Co-Opted Chief Executive Officer of Railcare Group AB (publ) since June 1, 2014. 


CEO Compensation Analysis

Daniel's remuneration is lower than average for companies of similar size in Sweden.

Daniel's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

3.1yrs

Average Tenure

54yo

Average Age

The tenure for the Railcare Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

Buykr1,300,00006 Dec 18
Norra Västerbotten Fastighets Aktiebolag
EntityCompany
Shares100,000
Max Pricekr13.00

Ownership Breakdown


Management Team

  • Ulf Marklund (65yo)

    Deputy CEO & Director

    • Tenure: 12.6yrs
    • Compensation: kr1.80m
  • Håkan Pettersson

    Business Controller

    • Tenure: 0.0yrs
  • Daniel Öholm (48yo)

    Chief Executive Officer

    • Tenure: 5.2yrs
    • Compensation: kr1.32m
  • Lars Filipsson

    Operations Manager of Lease - Locomotives

    • Tenure: 0.0yrs
  • Sofie Dåversjö (31yo)

    IR & Communications Manager

    • Tenure: 0.0yrs
  • Mikael Forsfjäll (50yo)

    Chief Financial Officer

    • Tenure: 0.0yrs

Board Members

  • Anna Jiffer (48yo)

    Director

    • Tenure: 3.6yrs
    • Compensation: kr67.00k
  • Anders Westermark (60yo)

    Director

    • Tenure: 1.6yrs
  • Ulf Marklund (65yo)

    Deputy CEO & Director

    • Tenure: 12.6yrs
    • Compensation: kr1.80m
  • Adam Ådin (39yo)

    Director

    • Tenure: 2.6yrs
  • Catharina Elmsäter-Svärd (54yo)

    Chairman of the Board

    • Tenure: 3.6yrs
    • Compensation: kr67.00k
  • Björn Östlund

    Director

    • Tenure: 0.3yrs

Company Information

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


Key Information

  • Name: Railcare Group AB (publ)
  • Ticker: RAIL
  • Exchange: OM
  • Founded: 1992
  • Industry: Highways and Railtracks
  • Sector: Transportation
  • Market Cap: kr443.001m
  • Shares outstanding: 23.01m
  • Website: https://www.railcare.se

Number of Employees


Location

  • Railcare Group AB (publ)
  • Näsuddsvägen 10
  • Box 34
  • Skelleftehamn
  • Västerbotten County
  • 932 21
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RAILOM (OMX Nordic Exchange Stockholm)YesClass A SharesSESEKOct 2007

Biography

Railcare Group AB (publ) provides railway maintenance services primarily in Scandinavia and the United Kingdom. The company offers works on the track area, including ballast change on line and in gear; dra ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 21:07
End of Day Share Price2019/08/19 00:00
Earnings2019/03/31
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.