L E Lundbergföretagen AB (publ), through its subsidiaries, manufactures and sells printing paper, paperboard, and sawn timber products primarily in Sweden.
The last earnings update was 7 days ago.
Discounted Cash Flow Calculation for DB:LU3B using Excess Returns Model Model
The calculations below outline how an intrinsic value for L E Lundbergföretagen is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
Amount off the current price
L E Lundbergföretagen
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
L E Lundbergföretagen
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
L E Lundbergföretagen's share price is below the future cash flow value, and at a moderate discount (> 20%).
L E Lundbergföretagen's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
L E Lundbergföretagen's
is considered below, and whether this is a fair price.
Price based on past earnings
L E Lundbergföretagen's earnings available for a low price, and how does
this compare to other companies in the same industry?
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 L E Lundbergföretagen 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 Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Diversified Financial industry annual growth in earnings.
Earnings growth vs Low Risk Savings
L E Lundbergföretagen
expected to grow at an
Unable to compare L E Lundbergföretagen's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare L E Lundbergföretagen's earnings growth to the Germany market average as no estimate data is available.
Unable to compare L E Lundbergföretagen's revenue growth to the Germany market average as no estimate data is available.
Unable to determine if L E Lundbergföretagen is high growth as no earnings estimate data is available.
Unable to determine if L E Lundbergföretagen is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
L E Lundbergföretagen's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
L E Lundbergföretagen
has a total score of
4/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
L E Lundbergföretagen's finances.
The net worth of a company is the difference between its assets and liabilities.
L E Lundbergföretagen's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
L E Lundbergföretagen's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
L E Lundbergföretagen's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is not covered by short term assets, assets are 0.5x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
Dr. Fredrik Lundberg serves as Director of Skanska AB since 2011. He is the Chairman of AB Industrivärden and Holmen AB. He is the Chairman of Hufvudstaden AB. He was Chairman of Indutrade AB until April 26, 2018. He has been an Independent Vice Chairman of Svenska Handelsbanken AB (publ) since April 23, 2008 and its Independent Director since 2002. He has been a Director of L E Lundbergföretagen AB and Stadium AB. He served President and Chief Executive Officer of L E Lundbergföretagen AB. Dr. Lundberg Hold M.Sc. Engineering, Royal Institute of Technology, Stockholm, MBA, Stockholm School of Economics, Dr. (Econ.) h.c., Stockholm School of Economics and Dr. (Eng.) h.c., Linköping University.
Fredrik's compensation has been consistent with company performance over the past year, both up more than 20%.
Fredrik's remuneration is lower than average for companies of similar size in Germany.
Chief Financial Officer
Director of Communications
Executive Vice President
Chief Executive Officer of Hufvudstaden
Board of Directors Tenure
Average tenure and age of the
L E Lundbergföretagen
board of directors in years:
The average tenure for the L E Lundbergföretagen board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
L E Lundbergföretagen AB (publ), through its subsidiaries, manufactures and sells printing paper, paperboard, and sawn timber products primarily in Sweden. It operates through four segments: Lundberg’s Real Estate Operations, Lundberg's Equity Management, Hufvudstaden, and Holmen. The company offers printing paper for magazines, product catalogs, direct advertising, books, and newspapers; and solid board and folding boxboards primarily for use as consumer packaging materials for confectionary, perfume, pharmaceuticals, and cosmetics, as well as for graphic-design applications. It is also involved in the forest and power operations; and equity management, including securities trading. In addition, the company invests in, develops, manages, and leases real estate properties, including residential, office, and retail properties. L E Lundbergföretagen AB (publ) was founded in 1944 and is headquartered in Stockholm, Sweden.
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