OTCPK:ELUX.Y

Stock Analysis Report

Executive Summary

AB Electrolux (publ), together with its subsidiaries, manufactures and sells household appliances and appliances for professional use.

Rewards

Trading at 30.5% below its fair value

Earnings are forecast to grow 33.75% per year

Pays a high and reliable dividend of 3.83%

Risk Analysis

Has a high level of debt

Dividend of 3.83% is not well covered by earnings

Profit margins (1.5%) are lower than last year (3.1%)



Snowflake Analysis

Established dividend payer with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.8%

ELUX.Y

-0.4%

US Consumer Durables

0.06%

US Market


1 Year Return

-11.9%

ELUX.Y

28.5%

US Consumer Durables

19.4%

US Market

Return vs Industry: ELUX.Y underperformed the US Consumer Durables industry which returned 28.5% over the past year.

Return vs Market: ELUX.Y underperformed the US Market which returned 19.4% over the past year.


Shareholder returns

ELUX.YIndustryMarket
7 Day-2.8%-0.4%0.06%
30 Day-11.2%3.4%1.1%
90 Day-9.6%8.5%8.9%
1 Year-9.3%-11.9%30.2%28.5%21.9%19.4%
3 Year-7.1%-14.7%32.9%27.0%48.9%39.3%
5 Year-20.2%-30.1%37.6%28.6%71.9%53.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

30.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ELUX.Y ($45.5) is trading below our estimate of fair value ($65.43)

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


Price To Earnings Ratio

PE vs Industry: ELUX.Y is poor value based on its PE Ratio (35x) compared to the Consumer Durables industry average (13.6x).

PE vs Market: ELUX.Y is poor value based on its PE Ratio (35x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: ELUX.Y is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: ELUX.Y is overvalued based on its PB Ratio (2.8x) compared to the US Consumer Durables industry average (1.5x).


Next Steps

Future Growth

How is AB Electrolux forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

33.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ELUX.Y's forecast earnings growth (33.7% per year) is above the savings rate (1.7%).

Earnings vs Market: ELUX.Y's earnings (33.7% per year) are forecast to grow faster than the US market (14.2% per year).

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

Revenue vs Market: ELUX.Y's revenue (2.3% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: ELUX.Y's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ELUX.Y's Return on Equity is forecast to be high in 3 years time (20.6%)


Next Steps

Past Performance

How has AB Electrolux performed over the past 5 years?

9.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ELUX.Y has high quality earnings.

Growing Profit Margin: ELUX.Y's current net profit margins (1.5%) are lower than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: ELUX.Y's earnings have grown by 9.1% per year over the past 5 years.

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

Earnings vs Industry: ELUX.Y had negative earnings growth (-52.1%) over the past year, making it difficult to compare to the Consumer Durables industry average (7.3%).


Return on Equity

High ROE: ELUX.Y's Return on Equity (8.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AB Electrolux's financial position?


Financial Position Analysis

Short Term Liabilities: ELUX.Y's short term assets (SEK61.6B) do not cover its short term liabilities (SEK62.6B).

Long Term Liabilities: ELUX.Y's short term assets (SEK61.6B) exceed its long term liabilities (SEK21.6B).


Debt to Equity History and Analysis

Debt Level: ELUX.Y's debt to equity ratio (52.4%) is considered high.

Reducing Debt: ELUX.Y's debt to equity ratio has reduced from 88.9% to 52.4% over the past 5 years.

Debt Coverage: ELUX.Y's debt is well covered by operating cash flow (71.3%).

Interest Coverage: ELUX.Y's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: ELUX.Y's debt is covered by short term assets (assets are 5.2x debt).


Next Steps

Dividend

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

3.83%

Current Dividend Yield


Dividend Yield vs Market

company3.8%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years3.9%

Current dividend yield vs market & industry

Notable Dividend: ELUX.Y's dividend (3.83%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: ELUX.Y's dividend (3.83%) is in the top 25% of dividend payers in the US market (3.7%)


Stability and Growth of Payments

Stable Dividend: ELUX.Y's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (134.2%), ELUX.Y's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ELUX.Y's dividends in 3 years are forecast to be well covered by earnings (46.7% payout ratio).


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Jonas Samuelson (51yo)

4yrs

Tenure

kr31,616,000

Compensation

Mr. Jonas Samuelson, M.Sc., Econ., has been a Director at Axel Johnson AB since 2018. Mr. Samuelson has been the Chief Executive Officer and President of AB Electrolux (publ) (Alternate Name: Electrolux AB ...


CEO Compensation Analysis

Compensation vs Market: Jonas's total compensation ($USD3.24M) is below average for companies of similar size in the US market ($USD6.27M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jonas Samuelson
President4yrskr31.62m0.016% SEK1.1m
Therese Friberg
Chief Financial Officer1.3yrsno data0.0022% SEK142.7k
Jan Brockmann
Executive VP & COO4.9yrsno data0.011% SEK748.9k
J. Iversen
Chief Information Officer3.2yrsno datano data
Sophie Arnius
Head of Investor Relations2.1yrsno datano data
Mikael Östman
Senior VP3.2yrsno data0.0014% SEK93.6k
Lars Petersen
Senior VP and Head of HR & Communications0yrsno data0.0077% SEK504.1k
Anna Ohlsson-Leijon
Executive VP & Head of Business Area Europe1.3yrsno data0.0045% SEK295.9k
Alberto Zanata
Executive VP & Head of Professional Products10.7yrsno data0.012% SEK754.2k
Gregoire Letort
Senior Vice President of Wine Appliances8.3yrsno datano data

3.2yrs

Average Tenure

52yo

Average Age

Experienced Management: ELUX.Y's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jonas Samuelson
President4yrskr31.62m0.016% SEK1.1m
Ulla Litzén
Independent Director3.8yrskr938.00k0.0014% SEK91.0k
Hasse Johansson
Independent Director11.8yrskr775.00k0.0014% SEK91.0k
Ulf Carlsson
Employee Representative Director19.1yrsno datano data
Petra Hedengran
Director5.9yrskr942.00k0.0038% SEK250.7k
Ulrika Saxon
Independent Director9.1yrskr695.00k0.00070% SEK45.8k
David Porter
Independent Director3.8yrskr595.00k0.00043% SEK28.2k
Viveca Brinkenfeldt-Lever
Employee Representative Director2.1yrsno datano data
Peter Ferm
Employee Representative Director2.1yrsno datano data
Staffan Bohman
Independent Chairman1.8yrskr1.83m0.017% SEK1.1m

3.8yrs

Average Tenure

57yo

Average Age

Experienced Board: ELUX.Y's board of directors are considered experienced (3.8 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

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


Key Information

  • Name: AB Electrolux (publ)
  • Ticker: ELUX.Y
  • Exchange: OTCPK
  • Founded: 1901
  • Industry: Household Appliances
  • Sector: Consumer Durables
  • Market Cap: kr63.971b
  • Listing Market Cap: kr6.547b
  • Shares outstanding: 287.40m
  • Website: https://www.electroluxgroup.com

Number of Employees


Location

  • AB Electrolux (publ)
  • S:t Göransgatan 143
  • Stadshagen
  • Stockholm
  • Stockholm County
  • 105 45
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ELUX.FOTCPK (Pink Sheets LLC)YesClass B SharesUSUSDJan 1980
ELUX BOM (OMX Nordic Exchange Stockholm)YesClass B SharesSESEKJan 1980
0MDTLSE (London Stock Exchange)YesClass B SharesGBSEKJan 1980
ELXDB (Deutsche Boerse AG)YesClass B SharesDEEURJan 1980
ELUXBSBATS-CHIXE (BATS 'Chi-X Europe')YesClass B SharesGBSEKJan 1980
ELUX.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDNov 1984
ELUX AOM (OMX Nordic Exchange Stockholm)Class A SharesSESEKJan 1992
0GQ1LSE (London Stock Exchange)Class A SharesGBSEKJan 1992

Biography

AB Electrolux (publ), together with its subsidiaries, manufactures and sells household appliances and appliances for professional use. It operates through six segments: Major Appliances Europe, Middle East and Africa; Major Appliances North America; Major Appliances Latin America; Major Appliances Asia/Pacific; Home Care & SDA; and Professional Products. The company offers various appliances, such as refrigerators, freezers, cookers, dryers, washing machines, dishwashers, room air-conditioners, microwave ovens, floor-care products, vacuum cleaners, water heaters, heat pumps, and other small domestic appliances, as well as consumables and accessories. It also provides professional products, including food-service equipment for hotels, restaurants, and institutions, as well as laundry equipment for apartment-house laundry rooms, launderettes, hotels, and other professional users. In addition, the company offers hobs, ovens, and hoods for households and professional kitchens; and tumble dryers. It provides its products under the Electrolux, AEG, Frigidaire, Zanussi, Anova, and Westinghouse brands. The company sells its products through retailers, buying groups, independent stores, and professional users in Sweden and internationally. AB Electrolux (publ) was founded in 1901 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 Analysis2020/02/18 23:53
End of Day Share Price2020/02/18 00:00
Earnings2019/12/31
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.