OM:SAS

Stock Analysis Report

Executive Summary

SAS AB (publ), together with its subsidiaries, provides passenger flight transportation services in the Nordic and international route network.


Snowflake Analysis

Very undervalued with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SAS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.2%

SAS

-2.0%

SE Airlines

0.07%

SE Market


1 Year Return

-42.3%

SAS

1.1%

SE Airlines

21.9%

SE Market

Return vs Industry: SAS underperformed the Swedish Airlines industry which returned 1.1% over the past year.

Return vs Market: SAS underperformed the Swedish Market which returned 21.9% over the past year.


Shareholder returns

SASIndustryMarket
7 Day-3.2%-2.0%0.07%
30 Day-5.5%1.2%3.7%
90 Day-28.6%5.0%10.0%
1 Year-42.3%-42.3%5.4%1.1%26.8%21.9%
3 Year-8.5%-8.5%29.3%16.8%40.1%18.9%
5 Year-25.2%-25.2%34.0%16.4%46.5%15.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is SAS undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SAS (SEK13.68) is trading below our estimate of fair value (SEK333.01)

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


Price To Earnings Ratio

PE vs Industry: SAS is good value based on its PE Ratio (8.9x) compared to the Airlines industry average (10.2x).

PE vs Market: SAS is good value based on its PE Ratio (8.9x) compared to the Swedish market (20x).


Price to Earnings Growth Ratio

PEG Ratio: SAS is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: SAS is good value based on its PB Ratio (1x) compared to the XE Airlines industry average (2x).


Next Steps

Future Growth

How is SAS forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

32.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAS's forecast earnings growth (32% per year) is above the savings rate (-0.4%).

Earnings vs Market: SAS's earnings (32% per year) are forecast to grow faster than the Swedish market (8.1% per year).

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

Revenue vs Market: SAS's revenue (2.6% per year) is forecast to grow slower than the Swedish market (4.7% per year).

High Growth Revenue: SAS's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SAS's Return on Equity is forecast to be low in 3 years time (18.8%).


Next Steps

Past Performance

How has SAS performed over the past 5 years?

38.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SAS has a high level of non-cash earnings.

Growing Profit Margin: SAS's current net profit margins (1.3%) are lower than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: SAS has become profitable over the past 5 years, growing earnings by 38.2% per year.

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

Earnings vs Industry: SAS had negative earnings growth (-58.6%) over the past year, making it difficult to compare to the Airlines industry average (-17%).


Return on Equity

High ROE: SAS's Return on Equity (11.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SAS's financial position?


Financial Position Analysis

Short Term Liabilities: SAS's short term assets (SEK11.7B) do not cover its short term liabilities (SEK15.1B).

Long Term Liabilities: SAS's short term assets (SEK11.7B) do not cover its long term liabilities (SEK13.5B).


Debt to Equity History and Analysis

Debt Level: SAS's debt to equity ratio (118.4%) is considered high.

Reducing Debt: SAS's debt to equity ratio has reduced from 218.3% to 118.4% over the past 5 years.

Debt Coverage: SAS's debt is well covered by operating cash flow (52.1%).

Interest Coverage: SAS's interest payments on its debt are well covered by EBIT (9.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: SAS's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.6%markettop25%4.2%industryaverage3.8%forecastin3Years0%

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Gusta Gustafson (55yo)

9yrs

Tenure

kr17,725,000

Compensation

Mr. Richard Gustafson, also known as Gusta, has been Chief Executive Officer and President of SAS AB since February 1, 2011. Mr. Gustafson serves as the Chief Executive Officer at Scandinavian Airlines. He ...


CEO Compensation Analysis

Compensation vs Market: Gusta's total compensation ($USD1.82M) is above average for companies of similar size in the Swedish market ($USD548.30K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Rickard Gustafson
President & CEO9yrskr17.73m0.010% SEK547.4k
Torbjørn Wist
Executive VP & CFO1.9yrsno datano data
Charlotte Svensson
Executive VP & CIO0yrsno datano data
Michel Fischier
Vice President of Investor Relations1.1yrsno datano data
Marie Wohlfart
General Counsel & Board Secretary0yrsno datano data
Karin Nyman
Vice President of Communications3.9yrsno datano data
Carina Heander
Executive VP & Chief of Staff5.3yrsno datano data
Karl Sandlund
Executive VP & CCO6yrsno data0.00052% SEK27.2k
Kjetil Håbjørg
EVP & Chief Services Officer and Member of Group Management0.3yrsno data0.00065% SEK34.0k
Simon Hansen
Executive VP & COO of Airline Operations0.3yrsno datano data

2.9yrs

Average Tenure

50.5yo

Average Age

Experienced Management: SAS's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dag Mejdell
Independent Vice Chairman of the Board12.1yrskr435.00k0.0011% SEK57.6k
Monica Caneman
Independent Director10.1yrskr409.00k0.0010% SEK55.0k
Carsten Dilling
Independent Chairman of the Board1.8yrskr692.00k0.0092% SEK482.0k
Liv Fiksdahl
Independent Director1.8yrskr311.00kno data
Sanna Suvanto-Harsaae
Independent Director6.9yrskr311.00k0.00055% SEK28.8k
Lars-Johan Jarnheimer
Independent Director6.9yrskr359.00k0.0026% SEK136.6k
Christa Cerè
Employee Representative Director1.1yrskr203.00kno data
Cecilia van der Meulen
Employee Representative Director3.1yrskr311.00kno data
Endre Røros
Employee Representative Director2.1yrskr311.00kno data
Oscar Unger
Independent Director1.8yrskr359.00k0.0026% SEK136.6k

2.6yrs

Average Tenure

55.5yo

Average Age

Experienced Board: SAS's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: SAS AB (publ)
  • Ticker: SAS
  • Exchange: OM
  • Founded: 1946
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: kr5.234b
  • Shares outstanding: 382.58m
  • Website: https://www.sasgroup.net

Number of Employees


Location

  • SAS AB (publ)
  • Frosundaviks alle 1
  • Solna
  • Stockholm
  • Stockholm County
  • 195 87
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SASOM (OMX Nordic Exchange Stockholm)YesCommon SharesSESEKJul 2001
SAS NOKOB (Oslo Bors)YesCommon SharesNONOKJul 2001
SAS DKKCPSE (OMX Nordic Exchange Copenhagen)YesCommon SharesDKDKKJul 2001
SASD.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJul 2001
SSV2DB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2001
0O1WLSE (London Stock Exchange)YesCommon SharesGBSEKJul 2001
SASSBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBSEKJul 2001
SASCBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBDKKJul 2001
SASOBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBNOKJul 2001
SASD.YOTCPK (Pink Sheets LLC)ADRUSUSDDec 2008

Biography

SAS AB (publ), together with its subsidiaries, provides passenger flight transportation services in the Nordic and international route network. The company also provides ground handling services, technical maintenance and air cargo services. It operates a fleet of 158 aircraft. The company was founded in 1946 and is headquartered in Stockholm, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 21:14
End of Day Share Price2020/02/21 00:00
Earnings2019/10/31
Annual Earnings2019/10/31


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.