Ambea AB (AMBEA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

AddLife AB

Medicover AB

Ambea AB

Humana AB

Bonzun AB

Why is Ambea AB ?

Poor long term growth as Operating profit has grown by an annual rate 14.28% of over the last 5 years

The company has declared Positive results for the last 6 consecutive quarters

OPERATING CASH FLOW(Y) Highest at SEK 2,169 MM
ROCE(HY) Highest at 13.02%
DIVIDEND PER SHARE(HY) Highest at SEK 10.85

With ROE of 13.24%, it has a fair valuation with a 2.11 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 18.73%, its profits have risen by 22.9% ; the PEG ratio of the company is 0.7

Consistent Returns over the last 3 years

Along with generating 18.73% returns in the last 1 year, the stock has outperformed OMX Stockholm 30 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Ambea AB should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Ambea AB for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Ambea AB

18.73%

2.60

31.02%

OMX Stockholm 30

10.97%

0.59

18.59%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.67%

EBIT Growth (5y)

14.28%

EBIT to Interest (avg)

1.87

Debt to EBITDA (avg)

1.91

Net Debt to Equity (avg)

0.71

Sales to Capital Employed (avg)

1.63

Tax Ratio

23.90%

Dividend Payout Ratio

33.35%

Pledged Shares

Institutional Holding

ROCE (avg)

8.59%

ROE (avg)

9.03%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.11

EV to EBIT

12.78

EV to EBITDA

5.90

EV to Capital Employed

1.56

EV to Sales

1.03

PEG Ratio

0.71

Dividend Yield

124.26%

ROCE (Latest)

12.23%

ROE (Latest)

13.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at SEK 2,169 MM

ROCE(HY)

Highest at 13.02%

DIVIDEND PER SHARE(HY)

Highest at SEK 10.85

NET SALES(Q)

Highest at SEK 4,193 MM

RAW MATERIAL COST(Y)

Fallen by -0.13% (YoY

CASH AND EQV(HY)

Highest at SEK 392 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 10.85 times

-6What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 436.81

INTEREST(Q)

Highest at SEK 144 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 15 %

PRE-TAX PROFIT(Q)

Lowest at SEK 157 MM

Here's what is working for Ambea AB

Operating Cash Flow

Highest at SEK 2,169 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (SEK MM)

Net Sales

Highest at SEK 4,193 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (SEK MM)

Dividend per share

Highest at SEK 10.85 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (SEK)

Cash and Eqv

Highest at SEK 392 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 10.85 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -0.13% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at SEK 394 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (SEK MM)

Here's what is not working for Ambea AB

Interest Coverage Ratio

Lowest at 436.81

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at SEK 144 MM

in the last five periods and Increased by 9.09% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SEK MM)

Operating Profit Margin

Lowest at 15 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at SEK 157 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SEK MM)

Pre-Tax Profit

Fallen at -23.04%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SEK MM)

Non Operating Income

Highest at SEK 0.42 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income