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.

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

2.9%

RAIL

3.0%

SE Infrastructure

3.4%

SE Market


1 Year Return

57.1%

RAIL

12.2%

SE Infrastructure

9.1%

SE Market

Return vs Industry: RAIL exceeded the Swedish Infrastructure industry which returned 12.2% over the past year.

Return vs Market: RAIL exceeded the Swedish Market which returned 9.1% over the past year.


Shareholder returns

RAILIndustryMarket
7 Day2.9%3.0%3.4%
30 Day20.1%1.4%0.6%
90 Day26.9%-1.8%2.9%
1 Year57.1%57.1%15.9%12.2%13.7%9.1%
3 Year-0.08%-3.4%45.4%32.2%31.2%11.6%
5 Year124.9%107.6%82.2%53.6%64.2%29.2%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: RAIL (SEK24.5) is trading below our estimate of fair value (SEK59.48)

Significantly Undervalued: 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 (131.9x) compared to the Infrastructure industry average (17.5x).

PE vs Market: RAIL is poor value based on its PE Ratio (131.9x) compared to the Swedish market (16.8x).


Price to Earnings Growth Ratio

Low PEG Ratio: RAIL is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: RAIL is overvalued based on its PB Ratio (4x) compared to the XE Infrastructure industry average (1.8x).


Next Steps

Future Growth

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

57.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RAIL's forecast earnings growth (57.5% per year) is above the savings rate (0.4%).

Earnings vs Market: RAIL's earnings (57.5% per year) are forecast to grow faster than the Swedish market (9% per year).

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

Revenue vs Market: RAIL's revenue (16% per year) is forecast to grow faster than the Swedish market (4.5% per year).

High Growth Revenue: RAIL's revenue (16% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: RAIL's Return on Equity is forecast to be high in 3 years time (23%)


Next Steps

Past Performance

How has Railcare Group performed over the past 5 years?

-35.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RAIL's earnings have declined by -35.9% per year over the past 5 years.

Accelerating Growth: RAIL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RAIL had negative earnings growth (-64.7%) over the past year, making it difficult to compare to the Infrastructure industry average (9.8%).


Return on Equity

High ROE: RAIL's Return on Equity (3%) is considered low.


Return on Assets

ROA vs Industry: RAIL's Return on Assets is below or equal to the Infrastructure industry average last year.


Return on Capital Employed

ROCE Improving: RAIL's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Railcare Group's financial position?


Financial Position Analysis

Short Term Liabilities: RAIL's short term assets (SEK89.8M) do not cover its short term liabilities (SEK161.5M)

Long Term Liabilities: RAIL's short term assets (89.8M) do not cover its long term liabilities (171.2M)


Debt to Equity History and Analysis

Debt Level: RAIL's debt to equity ratio (124.4%) is considered high

Reducing Debt: RAIL's debt to equity ratio has increased from 82.4% to 124.4% over the past 5 years.

Debt Coverage: RAIL's debt is well covered by operating cash flow (31.6%).

Interest Coverage: RAIL's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet

Inventory Level: RAIL has a high level of physical assets or inventory.

Debt Coverage by Assets: RAIL's 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?

2.30%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.8%markettop25%4.7%industryaverage3.9%forecastin3Years2.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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


Current Payout to Shareholders

Dividend Coverage: RAIL is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RAIL's dividend in 3 years as they are not forecast to pay a notable one for the Swedish market.


Next Steps

Management

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

3.3yrs

Average board tenure


CEO

Daniel Öholm (48yo)

5.3yrs

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

Compensation vs. Market: Daniel's total compensation ($USD0.00) is too low to compare against companies of similar size in the Swedish market ($USD124.99K).

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


Board Age and Tenure

3.3yrs

Average Tenure

54yo

Average Age

Experienced Board: RAIL's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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: 12.8yrs
    • Compensation: kr1.80m
  • Håkan Pettersson

    Business Controller

    • Tenure: 0yrs
  • Daniel Öholm (48yo)

    Chief Executive Officer

    • Tenure: 5.3yrs
    • Compensation: kr1.32m
  • Lars Filipsson

    Operations Manager of Lease - Locomotives

    • Tenure: 0yrs
  • Sofie Dåversjö (31yo)

    IR & Communications Manager

    • Tenure: 0yrs
  • Mikael Forsfjäll (50yo)

    Chief Financial Officer

    • Tenure: 0yrs

Board Members

  • Anna Jiffer (48yo)

    Director

    • Tenure: 3.8yrs
    • Compensation: kr67.00k
  • Anders Westermark (60yo)

    Director

    • Tenure: 1.8yrs
  • Ulf Marklund (65yo)

    Deputy CEO & Director

    • Tenure: 12.8yrs
    • Compensation: kr1.80m
  • Adam Ådin (39yo)

    Director

    • Tenure: 2.8yrs
  • Catharina Elmsäter-Svärd (54yo)

    Chairman of the Board

    • Tenure: 3.8yrs
    • Compensation: kr67.00k
  • Björn Östlund

    Director

    • Tenure: 0.4yrs

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: kr556.916m
  • 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
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 Analysis2019/10/15 21:11
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
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.