OTCPK:SNDV.F

Stock Analysis Report

Executive Summary

Scandinavian Tobacco Group A/S manufactures and sells handmade and machine-made cigars, and pipe tobacco worldwide.

Snowflake

Fundamentals

Undervalued with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

SNDV.F

3.0%

US Tobacco

1.8%

US Market


1 Year Return

n/a

SNDV.F

-27.3%

US Tobacco

7.3%

US Market

Return vs Industry: Insufficient data to determine how SNDV.F performed against the US Tobacco industry.

Return vs Market: Insufficient data to determine how SNDV.F performed against the US Market.


Shareholder returns

SNDV.FIndustryMarket
7 Day0%3.0%1.8%
30 Day0%6.8%-0.7%
90 Day0%-12.9%0.06%
1 Yearn/a-22.5%-27.3%9.7%7.3%
3 Yearn/a-16.5%-27.7%46.3%36.9%
5 Yearn/a17.9%-5.7%64.5%46.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Scandinavian Tobacco 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: SNDV.F ($11.25) is trading below our estimate of fair value ($31.16)

Significantly Undervalued: SNDV.F is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SNDV.F is good value based on its PE Ratio (11.4x) compared to the Tobacco industry average (13.2x).

PE vs Market: SNDV.F is good value based on its PE Ratio (11.4x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: SNDV.F is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: SNDV.F is good value based on its PB Ratio (0.9x) compared to the US Tobacco industry average (4.2x).


Next Steps

Future Growth

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

10.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SNDV.F's forecast earnings growth (10.3% per year) is above the savings rate (2.7%).

Earnings vs Market: SNDV.F's earnings (10.3% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: SNDV.F's earnings are forecast to grow, but not significantly.

Revenue vs Market: SNDV.F's revenue (1.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: SNDV.F's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SNDV.F's Return on Equity is forecast to be low in 3 years time (9.3%).


Next Steps

Past Performance

How has Scandinavian Tobacco Group performed over the past 5 years?

1.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SNDV.F's earnings have grown by 1% per year over the past 5 years.

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

Earnings vs Industry: SNDV.F had negative earnings growth (-12.3%) over the past year, making it difficult to compare to the Tobacco industry average (6.7%).


Return on Equity

High ROE: SNDV.F's Return on Equity (7.8%) is considered low.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Scandinavian Tobacco Group's financial position?


Financial Position Analysis

Short Term Liabilities: SNDV.F's short term assets (DKK4.1B) exceeds its short term liabilities (DKK1.2B)

Long Term Liabilities: SNDV.F's short term assets (4.1B) exceeds its long term liabilities (3.9B)


Debt to Equity History and Analysis

Debt Level: SNDV.F's debt to equity ratio (34.6%) is considered satisfactory

Reducing Debt: SNDV.F's debt to equity ratio has increased from 34.6% to 34.6% over the past 5 years.

Debt Coverage: SNDV.F's debt is well covered by operating cash flow (32%).

Interest Coverage: SNDV.F's interest payments on its debt are well covered by EBIT (12x coverage).


Balance Sheet

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

Debt Coverage by Assets: SNDV.F's debt is covered by short term assets (assets are 1.401230x debt).


Next Steps

Dividend

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

7.74%

Current Dividend Yield


Dividend Yield vs Market

company7.7%marketbottom25%1.5%markettop25%3.7%industryaverage6.4%forecastin3Years9.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SNDV.F's dividend (7.74%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: SNDV.F's dividend (7.74%) is in the top 25% of dividend payers in the US market (3.72%)

Stable Dividend: Whilst dividend payments have been stable, SNDV.F has been paying a dividend for less than 10 years.

Growing Dividend: SNDV.F's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (88.4%), SNDV.F's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SNDV.F's dividends in 3 years are forecast to be covered by earnings (70.9% payout ratio).


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

Niels Frederiksen (55yo)

4.6yrs

Tenure

ø13,000,000

Compensation

Mr. Niels Frederiksen has been the Chief Executive Officer and President of Scandinavian Tobacco Group A/S since March 1, 2015 and serves as its Member of Executive Board. Mr. Frederiksen served as Executi ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Niels's total compensation is reasonable compared to companies of similar size in the US market.

Compensation vs Earnings: Niels's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

4.6yrs

Average Tenure

55yo

Average Age

Experienced Management: SNDV.F's management team is considered experienced (4.6 years average tenure).


Board Age and Tenure

2.8yrs

Average Tenure

59.5yo

Average Age

Experienced Board: SNDV.F's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Mette Valentin

    Senior Vice President of Group Legal & Public Affairs

    • Tenure: 0yrs
  • Dorte Morell

    Senior Vice President of Finance and Senior Vice President of Finance -House of Prince A/S

    • Tenure: 0yrs
  • Hanne Berg (53yo)

    Chief Human Resource Officer & Senior VP

    • Tenure: 2.4yrs
  • Thomas Lindegaard

    Senior Vice President of Scientific & Regulatory Affairs

    • Tenure: 0yrs
  • Christian Sørensen (55yo)

    Executive Vice President of Sales & Marketing

    • Tenure: 13.8yrs
    • Compensation: ø6.80m
  • Lars Wassberg

    Senior Vice President of Group Marketing

    • Tenure: 0yrs
  • Torben Sand

    Head of Investor Relations

    • Tenure: 0yrs
  • Marianne Bock (56yo)

    Executive VP & CFO

    • Tenure: 0yrs
    • Compensation: ø4.60m
  • Simon Augustesen

    Director of Group Communications

    • Tenure: 0yrs
  • Niels Frederiksen (55yo)

    CEO, President & Member of Executive Board

    • Tenure: 4.6yrs
    • Compensation: ø13.00m

Board Members

  • Nigel Northridge (63yo)

    Independent Chairman of the Board

    • Tenure: 2.4yrs
    • Compensation: ø1.40m
  • Henrik Brandt (64yo)

    Independent Vice-Chairman of the Board

    • Tenure: 2.4yrs
    • Compensation: ø800.00k
  • Henning Petersen (72yo)

    Independent Director

    • Tenure: 9yrs
    • Compensation: ø133.00k
  • Anders Obel (59yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: ø273.00k
  • Lindy Larsen (64yo)

    Employee Representative Director

    • Tenure: 3.3yrs
    • Compensation: ø400.00k
  • Hanne Malling (59yo)

    Employee Representative Director

    • Tenure: 9yrs
    • Compensation: ø400.00k
  • Kurt Asmussen (56yo)

    Employee Representative Director

    • Tenure: 9yrs
    • Compensation: ø400.00k
  • Dianne Blixt (60yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: ø550.00k
  • Marléne Forsell (43yo)

    Independent Director

    • Tenure: 0.5yrs
    • Compensation: ø550.00k
  • Mogens Olsen (52yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: ø400.00k

Company Information

Scandinavian Tobacco Group A/S's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Scandinavian Tobacco Group A/S
  • Ticker: SNDV.F
  • Exchange: OTCPK
  • Founded: 1750
  • Industry: Tobacco
  • Sector: Food, Beverage & Tobacco
  • Market Cap: ø7.727b
  • Listing Market Cap: ø1.144b
  • Shares outstanding: 99.63m
  • Website: https://www.st-group.com

Number of Employees


Location

  • Scandinavian Tobacco Group A/S
  • Sydmarken 42
  • Søborg
  • Capital Region of Denmark
  • 2860
  • Denmark

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STGCPSE (OMX Nordic Exchange Copenhagen)YesOrdinary SharesDKDKKFeb 2016
8ZIDB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2016
0RESLSE (London Stock Exchange)YesOrdinary SharesGBDKKFeb 2016
STGCBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBDKKFeb 2016
SNDV.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDFeb 2016
STG NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNFeb 2016
SKNV.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDJul 2017

Biography

Scandinavian Tobacco Group A/S manufactures and sells handmade and machine-made cigars, and pipe tobacco worldwide. It operates through five segments: Handmade Cigars, Machine-Made Cigars, Pipe Tobacco, Fi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 00:38
End of Day Share Price2019/07/19 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.