OTCPK:KARB.F

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Karo Pharma AB (publ) develops and markets prescription drugs, over-the-counter products, medical devices, and hospital supply products for pharmacies and the health care sectors in Sweden, Norway, Denmark, Finland, France, rest of Europe, the United States, and internationally.


Snowflake Analysis

Overvalued with poor track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

KARB.F

0.9%

US Pharmaceuticals

2.8%

US Market


1 Year Return

n/a

KARB.F

7.8%

US Pharmaceuticals

9.3%

US Market

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

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


Shareholder returns

KARB.FIndustryMarket
7 Day0%0.9%2.8%
30 Day3.5%1.0%8.9%
90 Dayn/a0.7%-0.5%
1 Yearn/a10.6%7.8%11.8%9.3%
3 Yearn/a26.1%17.0%31.4%22.7%
5 Yearn/a25.1%11.5%58.7%40.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

184.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate KARB.F's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate KARB.F's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: KARB.F is poor value based on its PE Ratio (184.6x) compared to the Pharmaceuticals industry average (16.6x).

PE vs Market: KARB.F is poor value based on its PE Ratio (184.6x) compared to the US market (15.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate KARB.F's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: KARB.F is good value based on its PB Ratio (2.1x) compared to the US Pharmaceuticals industry average (3.2x).


Next Steps

Future Growth

How is Karo Pharma forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

27.2%

Forecasted Pharmaceuticals & Biotech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Karo Pharma has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Karo Pharma performed over the past 5 years?

46.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KARB.F has a large one-off loss of SEK141.8M impacting its March 31 2020 financial results.

Growing Profit Margin: KARB.F's current net profit margins (2.4%) are lower than last year (36.5%).


Past Earnings Growth Analysis

Earnings Trend: KARB.F has become profitable over the past 5 years, growing earnings by 46.8% per year.

Accelerating Growth: KARB.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: KARB.F had negative earnings growth (-91.4%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (14.5%).


Return on Equity

High ROE: KARB.F's Return on Equity (1%) is considered low.


Next Steps

Financial Health

How is Karo Pharma's financial position?


Financial Position Analysis

Short Term Liabilities: KARB.F's short term assets (SEK1.4B) do not cover its short term liabilities (SEK3.6B).

Long Term Liabilities: KARB.F's short term assets (SEK1.4B) do not cover its long term liabilities (SEK2.7B).


Debt to Equity History and Analysis

Debt Level: KARB.F's debt to equity ratio (103.4%) is considered high.

Reducing Debt: Insufficient data to determine if KARB.F's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: KARB.F's debt is not well covered by operating cash flow (0.09%).

Interest Coverage: KARB.F's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate KARB.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 KARB.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 KARB.F's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: KARB.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 KARB.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

Christoffer Lorenzen (44yo)

0.92

Tenure

kr16,443,040

Compensation

Mr. Christoffer Lorenzen has been the Chief Executive Officer of Karo Pharma AB since July 1, 2019. Mr. Lorenzen was an Executive Vice President of Food Cultures & Enzymes at Chr. Hansen Holding A/S from A ...


CEO Compensation Analysis

Compensation vs Market: Christoffer's total compensation ($USD1.75M) is below average for companies of similar size in the US market ($USD4.76M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Christoffer Lorenzen
Chief Executive Officer0.92yrkr16.44mno data
Jon Johnsson
Chief Financial Officer0.67yrno datano data
Jonathan Kimber
Vice President of Operations0.75yrno datano data
Sofia Pedersen
Vice President of Scientific Affairsno datano datano data
Magnus Nylén
Chief Sales Officer0.75yrno datano data
SIMON Nyberg-Hansen
Managing Director of Norwayno datano datano data

0.8yrs

Average Tenure

44.5yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Håkan Åström
Independent Director3.42yrskr729.00kno data
Bo Hansen
Independent Chairman of the Board1.33yrskr662.00kno data
Vesa Koskinen
Director1.33yrskr239.00kno data
Erika Henriksson
Director1.33yrskr314.00kno data
Flemming Ørnskov
Independent Director0.67yrkr76.00kno data
Kristofer Tonström
Director0.083yrno datano data
Uta Kemmerich-Keil
Director0.083yrno datano data

1.3yrs

Average Tenure

61yo

Average Age

Experienced Board: KARB.F's board of directors are not considered experienced ( 1.3 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 37.5%.


Top Shareholders

Company Information

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


Key Information

  • Name: Karo Pharma AB (publ)
  • Ticker: KARB.F
  • Exchange: OTCPK
  • Founded: 1987
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: kr11.974b
  • Listing Market Cap: kr1.275b
  • Shares outstanding: 222.57m
  • Website: https://www.karopharma.com

Number of Employees


Location

  • Karo Pharma AB (publ)
  • Klara Norra Kyrkogata 33
  • Stockholm
  • Stockholm County
  • 111 22
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KA6NDB (Deutsche Boerse AG)YesCommon SharesDEEURApr 1998
KAROOM (OMX Nordic Exchange Stockholm)YesCommon SharesSESEKApr 1998
0RAQLSE (London Stock Exchange)YesCommon SharesGBSEKApr 1998
KARB.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDApr 1998
KAROSBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBSEKApr 1998

Biography

Karo Pharma AB (publ) develops and markets prescription drugs, over-the-counter products, medical devices, and hospital supply products for pharmacies and the health care sectors in Sweden, Norway, Denmark, Finland, France, rest of Europe, the United States, and internationally. Its prescription drugs include Mollipect and TheoDur for respiratory diseases; Probecid for gout; Burinex, Centyl K, Kaleorid, Suscard, Nitroglycerin BioPhausia, and Digoxin BioPhausia for cardiovascular diseases; Laxabon and Egazil for gastro/intestinal diseases; Condyline, Synalar, Mildison, Fonx, and Conotrane for dermatology diseases; Paraflex for musculoskeletal diseases; Dolerin, Citodon, Morfin Special, Paralgin forte, and Trampalgin for pain; Ibux, Paracet, and Viruseptin for pain, cough, and cold; Bronkyl and Bronkyl forte for cold/flu diseases; Selexid for antibiotics; Solvezink for zinc deficiency; Lithionit for CNS/psychiatry diseases; Metformin for diabetes; and Zonat for insomnia. The company also offers BabySlide, a medical device; Dosett, a solution for the storage of medicine; Mabs compression socks; and Swereco, which offers a product assortment of ergonomic products for people with disabilities. In addition, it provides skin care products, such as CCS gel, Decubal, Fungobase, Fungoral, Karbasal, KidsClin, Locobase, Oliva, PoxClin, and Propyless; foot care products, including CCS, Cortimyk, Footner, Nailner, and Wortie; and intimate care products comprising HemoClin, Multi-Gyn, Asan, Multi-Mam, and Pevaryl. Further, the company offers nutritional and wellness products, such as Allévo, Bamse, Betavivo, Clinomyn, DAX, Dosett, Flux, Dailycare/Lactocare, and Indy Beauty. It sells its products to retailers, pharmacies, and hospitals, as well as online. The company was formerly known as Karo Bio AB (publ) and changed its name to Karo Pharma AB (publ) in March 2016. Karo Pharma AB (publ) was founded in 1987 and is based in Stockholm, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/02 04:40
End of Day Share Price2020/05/26 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.