Svedbergs Group AB (SVED 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

Svedbergs Group AB

Nobia AB

USWE Sports AB

Duni AB

Why is Svedbergs Group AB ?

High Management Efficiency with a high ROCE of 14.42%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 8.87

Healthy long term growth as Net Sales has grown by an annual rate of 28.24% and Operating profit at 32.57%

Flat results in Jun 26

INTEREST(Q) At SEK 12.6 MM has Grown at 36.96%
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
DEBT-EQUITY RATIO (HY) Highest at 66.16 %

With ROE of 13.30%, it has a attractive valuation with a 1.84 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 6.82%, its profits have risen by 31.5% ; the PEG ratio of the company is 0.4

Underperformed the market in the last 1 year

The stock has generated a return of 6.82% in the last 1 year, much lower than market (OMX Stockholm 30) returns of 27.70%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Svedbergs Group AB should be less than 10%
Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

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

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

Is Svedbergs Group AB for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Svedbergs Group AB

6.82%

0.53

34.86%

OMX Stockholm 30

27.7%

1.79

15.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

28.24%

EBIT Growth (5y)

32.57%

EBIT to Interest (avg)

6.15

Debt to EBITDA (avg)

2.03

Net Debt to Equity (avg)

0.42

Sales to Capital Employed (avg)

0.93

Tax Ratio

23.01%

Dividend Payout Ratio

49.10%

Pledged Shares

Institutional Holding

ROCE (avg)

13.70%

ROE (avg)

19.12%

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

1.84

EV to EBIT

12.07

EV to EBITDA

9.56

EV to Capital Employed

1.55

EV to Sales

1.77

PEG Ratio

0.44

Dividend Yield

1.60%

ROCE (Latest)

12.83%

ROE (Latest)

13.30%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at SEK 292.13 MM

RAW MATERIAL COST(Y)

Fallen by -1.5% (YoY

NET SALES(Q)

Highest at SEK 591.9 MM

-9What is not working for the Company

INTEREST(Q)

At SEK 12.6 MM has Grown at 36.96%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

DEBT-EQUITY RATIO (HY)

Highest at 66.16 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.94 times

DIVIDEND PER SHARE(HY)

Lowest at SEK 5.21

OPERATING PROFIT MARGIN(Q)

Lowest at 16.93 %

NET PROFIT(Q)

Lowest at SEK 48.28 MM

EPS(Q)

Lowest at SEK 0.78

Here's what is working for Svedbergs Group AB

Operating Cash Flow

Highest at SEK 292.13 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 591.9 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (SEK MM)

Raw Material Cost

Fallen by -1.5% (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 22 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 Svedbergs Group AB

Interest

At SEK 12.6 MM has Grown at 36.96%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SEK MM)

Operating Profit Margin

Lowest at 16.93 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at SEK 48.28 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SEK MM)

EPS

Lowest at SEK 0.78

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (SEK)

Debt-Equity Ratio

Highest at 66.16 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 1.94 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Dividend per share

Lowest at SEK 5.21

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 (%)