OTCPK:MMNN.F

Stock Analysis Report

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Executive Summary

Munters Group AB (publ) provides energy efficient air treatment and climate solutions for commercial and industrial applications in Sweden, the United States, Germany, China, and internationally.


Snowflake Analysis

Proven track record with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

MMNN.F

3.9%

US Building

1.6%

US Market


1 Year Return

-46.0%

MMNN.F

-8.9%

US Building

4.8%

US Market

Return vs Industry: MMNN.F underperformed the US Building industry which returned -4.9% over the past year.

Return vs Market: MMNN.F underperformed the US Market which returned 5.1% over the past year.


Shareholder returns

MMNN.FIndustryMarket
7 Day0%3.9%1.6%
30 Day0%3.1%2.3%
90 Dayn/a38.6%29.5%
1 Year-46.0%-46.0%-2.2%-8.9%7.1%4.8%
3 Yearn/a12.5%2.1%37.1%28.1%
5 Yearn/a46.4%22.5%67.2%48.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

28.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MMNN.F ($2.43) is trading above our estimate of fair value ($1.92)

Significantly Below Fair Value: MMNN.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MMNN.F is poor value based on its PE Ratio (28.2x) compared to the Building industry average (18.8x).

PE vs Market: MMNN.F is poor value based on its PE Ratio (28.2x) compared to the US market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: MMNN.F is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: MMNN.F is overvalued based on its PB Ratio (2.4x) compared to the US Building industry average (2.2x).


Next Steps

Future Growth

How is Munters Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

26.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MMNN.F's forecast earnings growth (26.9% per year) is above the savings rate (2.2%).

Earnings vs Market: MMNN.F's earnings (26.9% per year) are forecast to grow faster than the US market (22.6% per year).

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

Revenue vs Market: MMNN.F's revenue (6.1% per year) is forecast to grow slower than the US market (9% per year).

High Growth Revenue: MMNN.F's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MMNN.F's Return on Equity is forecast to be low in 3 years time (12.1%).


Next Steps

  • Explore growth companies in the Capital Goods industry.

Past Performance

How has Munters Group performed over the past 5 years?

28.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MMNN.F has high quality earnings.

Growing Profit Margin: MMNN.F's current net profit margins (4.7%) are higher than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: MMNN.F has become profitable over the past 5 years, growing earnings by 28.3% per year.

Accelerating Growth: MMNN.F's earnings growth over the past year (21.8%) is below its 5-year average (28.3% per year).

Earnings vs Industry: MMNN.F earnings growth over the past year (21.8%) exceeded the Building industry -6.8%.


Return on Equity

High ROE: MMNN.F's Return on Equity (8.6%) is considered low.


Next Steps

Financial Health

How is Munters Group's financial position?


Financial Position Analysis

Short Term Liabilities: MMNN.F's short term assets (SEK3.4B) exceed its short term liabilities (SEK2.3B).

Long Term Liabilities: MMNN.F's short term assets (SEK3.4B) do not cover its long term liabilities (SEK4.7B).


Debt to Equity History and Analysis

Debt Level: MMNN.F's debt to equity ratio (90.8%) is considered high.

Reducing Debt: MMNN.F's debt to equity ratio has reduced from 916.5% to 90.8% over the past 5 years.

Debt Coverage: MMNN.F's debt is not well covered by operating cash flow (18.6%).

Interest Coverage: MMNN.F's interest payments on its debt are well covered by EBIT (4x coverage).


Balance Sheet


Next Steps

Dividend

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

1.70%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: MMNN.F is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Klas Forsström (52yo)

0.83

Tenure

kr13,543,764

Compensation

Mr. Klas Forsström is President and Chief Executive Officer at Munters Group AB (publ) since August 12, 2019. Mr. Forsström served as the President of Sandvik Machining Solutions AB since April 1, 2017 unt ...


CEO Compensation Analysis

Compensation vs Market: Klas's total compensation ($USD1.44M) is below average for companies of similar size in the US market ($USD3.16M).

Compensation vs Earnings: Insufficient data to compare Klas's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Klas Forsström
President & CEO0.83yrkr13.54m0.020% SEK206.1k
Annette Kumlien
Group VP & CFO0.83yrno data0.0022% SEK22.2k
Stefan Mahl
VP & Interim Head of Strategic Operations0.42yrno datano data
Ann-Sofi Jönsson
Head of Investor Relations0.83yrno datano data
Sofia Gellar
Group Vice President of Human Resources1.75yrsno datano data
Peter Gisel-Ekdahl
President of Business Area AirTech0.58yrno data0.11% SEK1.1m
Johan Lekholm
Board Secretaryno datano datano data
Johan Ekeström
Interim President of FoodTech & VP of Finance-FoodTechno datano datano data

0.8yrs

Average Tenure

50.5yo

Average Age

Experienced Management: MMNN.F's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Magnus Lindquist
Independent Chairman of the Board1.5yrskr1.30mno data
Lena Olving
Independent Director3.42yrskr500.00k0.00028% SEK2.8k
Helen Gillstedt
Independent Director3.33yrskr550.00k0.0022% SEK22.2k
Juan Vargues
Independent Director1.08yrskr300.00kno data
Hakan Buskhe
Director0.083yrno datano data
Pia Nordqvist
Employee Representative Director10.42yrsno datano data
Kristian Sildeby
Director3.08yrskr438.00k0.0033% SEK33.2k
Per Hallius
Independent Director7.42yrskr400.00k0.046% SEK465.6k
Anna Westerberg
Independent Director0.083yrno datano data
Simon Henriksson
Deputy Employee Representative Director3.42yrsno data0.00019% SEK1.9k

3.2yrs

Average Tenure

56yo

Average Age

Experienced Board: MMNN.F's board of directors are considered experienced (3.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MMNN.F 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

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


Key Information

  • Name: Munters Group AB (publ)
  • Ticker: MMNN.F
  • Exchange: OTCPK
  • Founded: 1955
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: kr9.451b
  • Listing Market Cap: kr1.007b
  • Shares outstanding: 181.75m
  • Website: https://www.munters.com

Number of Employees


Location

  • Munters Group AB (publ)
  • Box 1188
  • Kista
  • Stockholm County
  • 164 26
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1MSDB (Deutsche Boerse AG)YesNew Common SharesDEEURMay 2017
0RPOLSE (London Stock Exchange)YesNew Common SharesGBSEKMay 2017
MTRSOM (OMX Nordic Exchange Stockholm)YesNew Common SharesSESEKMay 2017
MTRSSBATS-CHIXE (BATS 'Chi-X Europe')YesNew Common SharesGBSEKMay 2017
MMNN.FOTCPK (Pink Sheets LLC)YesNew Common SharesUSUSDMay 2017

Biography

Munters Group AB (publ) provides energy efficient air treatment and climate solutions for commercial and industrial applications in Sweden, the United States, Germany, China, and internationally. The company operates through two segments, AirTech and FoodTech. It offers air intakes/air inlets, temperature and humidity control products, coolers and humidifiers, dehumidifiers, fans and light traps, heaters, heat exchangers, mist eliminators, mass transfer equipment, and pollution control and VOC abatement products. The company also provides installation support, startup and commissioning, training, maintenance, and rotor performance check and replacement services, as well as upgrades and spare parts, and rental solutions. It serves agriculture, automotive, chemical processing, commercial and public building, construction, data center and telecom cooling, defense and aerospace, education, electronics, food and beverage, general and production, greenhouse, healthcare, pharmaceutical, power generation and distribution, recreation and leisure, retail and supermarket, shipbuilding and marine, steel, temporary structure, and water and waste water; oil, gas, and petroleum; pulp, paper, and printing; and storage, preservation, and archives industries. Munters Group AB (publ) was founded in 1955 and is headquartered in Kista, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/17 09:36
End of Day Share Price2020/03/20 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.