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RAIL

Railcare Group OM:RAIL Stock Report

Last Price

kr19.10

Market Cap

kr460.8m

7D

1.4%

1Y

-8.4%

Updated

29 Jun, 2022

Data

Company Financials +
RAIL fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance2/6
Financial Health3/6
Dividends3/6

RAIL Stock Overview

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

Railcare Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Railcare Group
Historical stock prices
Current Share Pricekr19.10
52 Week Highkr24.00
52 Week Lowkr18.10
Beta0.39
1 Month Change-5.91%
3 Month Change-9.05%
1 Year Change-8.39%
3 Year Change-9.05%
5 Year Change-24.80%
Change since IPO165.28%

Recent News & Updates

Apr 28
Railcare Group (STO:RAIL) Is Due To Pay A Dividend Of kr0.60

Railcare Group (STO:RAIL) Is Due To Pay A Dividend Of kr0.60

Railcare Group AB (publ) ( STO:RAIL ) will pay a dividend of kr0.60 on the 12th of May. This payment means the dividend...

Shareholder Returns

RAILSE InfrastructureSE Market
7D1.4%-1.7%-0.06%
1Y-8.4%4.2%-22.4%

Return vs Industry: RAIL underperformed the Swedish Infrastructure industry which returned 5.8% over the past year.

Return vs Market: RAIL exceeded the Swedish Market which returned -22.4% over the past year.

Price Volatility

Is RAIL's price volatile compared to industry and market?
RAIL volatility
RAIL Average Weekly Movement4.1%
Infrastructure Industry Average Movement4.1%
Market Average Movement7.4%
10% most volatile stocks in SE Market12.3%
10% least volatile stocks in SE Market4.7%

Stable Share Price: RAIL is less volatile than 75% of Swedish stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: RAIL's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1992143Daniel Öholmhttps://www.railcare.se

Railcare Group AB (publ) provides railway maintenance services primarily in the Nordic region and the United Kingdom. The company offers maintenance services for railway re-ballasting beneath tracks and switches; special transport services, including locomotive and wagon rentals, and temporary personnel; and workshop services, such as repairs, upgrades, and regular maintenance. It also conducts construction and project transports, heavy transports, and special transports that require traffic permits; supplies personnel, locomotives, wagons, and machines; installs radio control systems and safety systems; and renovates and modifies railway vehicles.

Railcare Group Fundamentals Summary

How do Railcare Group's earnings and revenue compare to its market cap?
RAIL fundamental statistics
Market Capkr460.77m
Earnings (TTM)kr40.34m
Revenue (TTM)kr454.17m

11.4x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RAIL income statement (TTM)
Revenuekr454.17m
Cost of Revenuekr153.17m
Gross Profitkr301.00m
Other Expenseskr260.66m
Earningskr40.34m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 18, 2022

Earnings per share (EPS)1.67
Gross Margin66.27%
Net Profit Margin8.88%
Debt/Equity Ratio66.6%

How did RAIL perform over the long term?

See historical performance and comparison

Dividends

3.1%

Current Dividend Yield

36%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 RAIL?

Other financial metrics that can be useful for relative valuation.

RAIL 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/Revenue1.4x
Enterprise Value/EBITDA8.7x
PEG Ratio1.6x

Price to Earnings Ratio vs Peers

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

RAIL PE Ratio vs Peers
The above table shows the PE ratio for RAIL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average17.2x
FREETR Freetrailer Group
36.6xn/akr.315.5m
JETPAK Jetpak Top Holding
15.2x16.6%kr1.2b
TPIS3 Triunfo Participações e Investimentos
7.6xn/aR$203.0m
6888 Freetech Road Recycling Technology (Holdings)
7.8xn/aHK$250.3m
RAIL Railcare Group
11.4x7.2%kr460.8m

Price-To-Earnings vs Peers: RAIL is good value based on its Price-To-Earnings Ratio (11.4x) compared to the peer average (17.2x).


Price to Earnings Ratio vs Industry

How does RAIL's PE Ratio compare vs other companies in the European Infrastructure Industry?

Price-To-Earnings vs Industry: RAIL is good value based on its Price-To-Earnings Ratio (11.4x) compared to the European Infrastructure industry average (12.2x)


Price to Earnings Ratio vs Fair Ratio

What is RAIL'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.

RAIL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.4x
Fair PE Ratio12.1x

Price-To-Earnings vs Fair Ratio: RAIL is good value based on its Price-To-Earnings Ratio (11.4x) compared to the estimated Fair Price-To-Earnings Ratio (12.1x).


Share Price vs Fair Value

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

Below Fair Value: RAIL (SEK19.1) is trading below our estimate of fair value (SEK59.53)

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


Price to Earnings Growth Ratio

PEG Ratio: RAIL is poor value based on its PEG Ratio (1.6x)


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Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


7.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RAIL's forecast earnings growth (7.2% per year) is above the savings rate (0.3%).

Earnings vs Market: RAIL's earnings (7.2% per year) are forecast to grow slower than the Swedish market (9.6% per year).

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

Revenue vs Market: RAIL's revenue (7% per year) is forecast to grow faster than the Swedish market (5.5% per year).

High Growth Revenue: RAIL's revenue (7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RAIL's Return on Equity is forecast to be low in 3 years time (16%).


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Past Performance

How has Railcare Group performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


28.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RAIL has high quality earnings.

Growing Profit Margin: RAIL's current net profit margins (8.9%) are lower than last year (9.3%).


Past Earnings Growth Analysis

Earnings Trend: RAIL's earnings have grown significantly by 28.7% per year over the past 5 years.

Accelerating Growth: RAIL's earnings growth over the past year (8.6%) is below its 5-year average (28.7% per year).

Earnings vs Industry: RAIL earnings growth over the past year (8.6%) underperformed the Infrastructure industry 26.9%.


Return on Equity

High ROE: RAIL's Return on Equity (17.7%) is considered low.


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Financial Health

How is Railcare Group'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: RAIL's short term assets (SEK119.1M) do not cover its short term liabilities (SEK153.2M).

Long Term Liabilities: RAIL's short term assets (SEK119.1M) do not cover its long term liabilities (SEK184.3M).


Debt to Equity History and Analysis

Debt Level: RAIL's net debt to equity ratio (52.1%) is considered high.

Reducing Debt: RAIL's debt to equity ratio has reduced from 111.1% to 66.6% over the past 5 years.

Debt Coverage: RAIL's debt is well covered by operating cash flow (64.8%).

Interest Coverage: RAIL's interest payments on its debt are well covered by EBIT (12.4x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


3.14%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: RAIL's dividend (3.14%) is higher than the bottom 25% of dividend payers in the Swedish market (1.63%).

High Dividend: RAIL's dividend (3.14%) is low compared to the top 25% of dividend payers in the Swedish market (5.3%).


Stability and Growth of Payments

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

Growing Dividend: RAIL has only been paying a dividend for 7 years, and since then payments have not increased.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (35.9%), RAIL's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (33.8%), RAIL's dividend payments are well covered by cash flows.


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Management

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

4.6yrs

Average management tenure


CEO

Daniel Öholm (50 yo)

8yrs

Tenure

kr2,023,000

Compensation

Mr. Daniel Öholm serves as Business Area Manager UK at Railcare Group AB (publ) since 2021 and served as its Chief Executive Officer until 2021 and served the Co-Opted Chief Executive Officer since June 1,...


CEO Compensation Analysis

Compensation vs Market: Daniel's total compensation ($USD198.09K) is about average for companies of similar size in the Swedish market ($USD229.84K).

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


Leadership Team

Experienced Management: RAIL's management team is considered experienced (4.6 years average tenure).


Board Members

Experienced Board: RAIL's board of directors are considered experienced (5.9 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Railcare Group AB (publ)'s 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
  • Implied Market Cap: kr460.772m
  • Shares outstanding: 24.12m
  • Website: https://www.railcare.se

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/29 00:00
End of Day Share Price2022/06/29 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.