Husqvarna AB (HUSQ B) 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

Zinzino AB

Bergman & Beving AB

Electrolux Professional AB

Husqvarna AB

Why is Husqvarna AB ?

Poor long term growth as Operating profit has grown by an annual rate -8.12% of over the last 5 years

With ROE of 7.85%, it has a expensive valuation with a 0.97 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -29.02%, its profits have risen by 35.7% ; the PEG ratio of the company is 0.4

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -29.02% returns in the last 1 year, the stock has also underperformed OMX Stockholm 30 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Husqvarna AB for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Husqvarna AB

-29.02%

11.89

34.49%

OMX Stockholm 30

26.99%

1.74

15.47%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.13%

EBIT Growth (5y)

-8.12%

EBIT to Interest (avg)

6.92

Debt to EBITDA (avg)

1.58

Net Debt to Equity (avg)

0.51

Sales to Capital Employed (avg)

1.26

Tax Ratio

23.37%

Dividend Payout Ratio

40.42%

Pledged Shares

Institutional Holding

0.21%

ROCE (avg)

9.87%

ROE (avg)

12.08%

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

0.97

EV to EBIT

11.52

EV to EBITDA

5.88

EV to Capital Employed

0.98

EV to Sales

0.77

PEG Ratio

0.35

Dividend Yield

1.91%

ROCE (Latest)

8.52%

ROE (Latest)

7.85%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

11What is working for the Company

PRE-TAX PROFIT(Q)

At SEK 1,805 MM has Grown at 210.14%

NET PROFIT(Q)

At SEK 1,334.64 MM has Grown at 170.59%

RAW MATERIAL COST(Y)

Fallen by -2.58% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 37.7 %

NET SALES(Q)

At SEK 14,383 MM has Grown at 25.42%

OPERATING PROFIT MARGIN(Q)

Highest at 19.13 %

-5What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SEK 4,090 MM

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.08 times

DIVIDEND PER SHARE(HY)

Lowest at SEK 4.08

Here's what is working for Husqvarna AB

Pre-Tax Profit

At SEK 1,805 MM has Grown at 210.14%

over average net sales of the previous four periods of SEK 582 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (SEK MM)

Net Profit

At SEK 1,334.64 MM has Grown at 170.59%

over average net sales of the previous four periods of SEK 493.23 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (SEK MM)

Net Sales

At SEK 14,383 MM has Grown at 25.42%

over average net sales of the previous four periods of SEK 11,468 MM

MOJO Watch

Near term sales trend is positive

Net Sales (SEK MM)

Operating Profit Margin

Highest at 19.13 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Debt-Equity Ratio

Lowest at 37.7 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -2.58% (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

Here's what is not working for Husqvarna AB

Operating Cash Flow

Lowest at SEK 4,090 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (SEK MM)

Debtors Turnover Ratio

Lowest at 4.08 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend per share

Lowest at SEK 4.08

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (SEK)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)