OM:RAIL

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

High growth potential and good value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.4%

RAIL

-4.2%

SE Infrastructure

-1.7%

SE Market


1 Year Return

8.5%

RAIL

-35.1%

SE Infrastructure

10.8%

SE Market

Return vs Industry: RAIL exceeded the Swedish Infrastructure industry which returned -35.1% over the past year.

Return vs Market: RAIL underperformed the Swedish Market which returned 10.8% over the past year.


Shareholder returns

RAILIndustryMarket
7 Day1.4%-4.2%-1.7%
30 Day-2.7%-8.8%1.7%
90 Day-8.4%0.9%18.2%
1 Year9.9%8.5%-34.3%-35.1%12.5%10.8%
3 Year-9.3%-11.1%-29.9%-35.1%24.4%11.3%
5 Year-9.0%-15.2%-3.6%-16.5%37.6%10.1%

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 compared to its fair value and its price relative to the market?

28.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RAIL (SEK21.7) is trading below our estimate of fair value (SEK30.22)

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


Price To Earnings Ratio

PE vs Industry: RAIL is poor value based on its PE Ratio (19.2x) compared to the XE Infrastructure industry average (12.9x).

PE vs Market: RAIL is good value based on its PE Ratio (19.2x) compared to the Swedish market (21.4x).


Price to Earnings Growth Ratio

PEG Ratio: RAIL is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: RAIL is overvalued based on its PB Ratio (3x) compared to the XE Infrastructure industry average (1.4x).


Next Steps

Future Growth

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

20.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RAIL's forecast earnings growth (20.1% per year) is above the savings rate (0.5%).

Earnings vs Market: RAIL's earnings (20.1% per year) are forecast to grow faster than the Swedish market (19.6% per year).

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

Revenue vs Market: RAIL's revenue (10.1% per year) is forecast to grow faster than the Swedish market (6.3% per year).

High Growth Revenue: RAIL's revenue (10.1% 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 high in 3 years time (21.2%)


Next Steps

Past Performance

How has Railcare Group performed over the past 5 years?

-24.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RAIL has high quality earnings.

Growing Profit Margin: RAIL's current net profit margins (6.6%) are higher than last year (1%).


Past Earnings Growth Analysis

Earnings Trend: RAIL's earnings have declined by 24.8% per year over the past 5 years.

Accelerating Growth: RAIL's earnings growth over the past year (792.7%) exceeds its 5-year average (-24.8% per year).

Earnings vs Industry: RAIL earnings growth over the past year (792.7%) exceeded the Infrastructure industry -21.6%.


Return on Equity

High ROE: RAIL's Return on Equity (15.2%) is considered low.


Next Steps

Financial Health

How is Railcare Group's financial position?


Financial Position Analysis

Short Term Liabilities: RAIL's short term assets (SEK90.0M) do not cover its short term liabilities (SEK143.4M).

Long Term Liabilities: RAIL's short term assets (SEK90.0M) do not cover its long term liabilities (SEK160.3M).


Debt to Equity History and Analysis

Debt Level: RAIL's debt to equity ratio (93%) is considered high.

Reducing Debt: RAIL's debt to equity ratio has increased from 73.2% to 93% over the past 5 years.

Debt Coverage: RAIL's debt is well covered by operating cash flow (36.4%).

Interest Coverage: RAIL's interest payments on its debt are well covered by EBIT (7.4x coverage).


Balance Sheet


Next Steps

Dividend

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

1.38%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RAIL's dividend (1.38%) isn’t notable compared to the bottom 25% of dividend payers in the Swedish market (1.4%).

High Dividend: RAIL's dividend (1.38%) is low compared to the top 25% of dividend payers in the Swedish market (5.06%).


Stability and Growth of Payments

Stable Dividend: RAIL's dividend payments have been volatile in the past 10 years.

Growing Dividend: RAIL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.6%), RAIL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RAIL's dividends in 3 years are forecast to be well covered by earnings (31.6% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Transportation industry.

Management

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

4.1yrs

Average board tenure


CEO

Daniel Öholm (49 yo)

6.17yrs

Tenure

kr1,832,000

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

Compensation vs Market: Daniel's total compensation ($USD209.70K) is about average for companies of similar size in the Swedish market ($USD231.62K).

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


Board Members

NamePositionTenureCompensationOwnership
Ulf Marklund
Deputy CEO & Director13.58yrskr1.94m10.24%
SEK 52.8m
Anna Jiffer
Independent Director4.58yrskr100.00kno data
Anders Westermark
Director2.58yrskr100.00kno data
Adam Ådin
Director3.58yrskr100.00kno data
Catharina Elmsäter-Svärd
Independent Chairman of the Board4.58yrskr200.00kno data
Björn Östlund
Independent Director1.25yrskr100.00kno data

4.1yrs

Average Tenure

58yo

Average Age

Experienced Board: RAIL's board of directors are considered experienced (4.1 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 been diluted in the past year, with total shares outstanding growing by 3.3%.


Top Shareholders

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: kr515.811m
  • Shares outstanding: 23.77m
  • 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
RAILSBATS-CHIXE (BATS 'Chi-X Europe')YesClass A SharesGBSEKOct 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 Analysis2020/08/03 20:46
End of Day Share Price2020/08/03 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.