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Mekonomen

BATS-CHIXE:MEKOS
Snowflake Description

Very undervalued with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MEKOS
BATS-CHIXE
SEK2B
Market Cap
  1. Home
  2. GB
  3. Retail
Company description

Mekonomen AB (publ) operates a chain of car service stores in Sweden, Norway, Denmark, Poland, and Finland. The last earnings update was 4 days ago. More info.


Add to Portfolio Compare Print
  • Mekonomen has significant price volatility in the past 3 months.
MEKOS Share Price and Events
7 Day Returns
-10.7%
BATS-CHIXE:MEKOS
-0.9%
GB Specialty Retail
0.1%
GB Market
1 Year Returns
-38.3%
BATS-CHIXE:MEKOS
-31.7%
GB Specialty Retail
-23.6%
GB Market
MEKOS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Mekonomen (MEKOS) -10.7% -42.4% -57.1% -38.3% -77.2% -82.9%
GB Specialty Retail -0.9% -29.3% -43.3% -31.7% -41.6% -47.1%
GB Market 0.1% -15.5% -27% -23.6% -24.3% -23.5%
1 Year Return vs Industry and Market
  • MEKOS underperformed the Specialty Retail industry which returned -31.7% over the past year.
  • MEKOS underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -23.6% over the past year.
Price Volatility
MEKOS
Industry
5yr Volatility vs Market

MEKOS Value

 Is Mekonomen undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Mekonomen to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Mekonomen.

BATS-CHIXE:MEKOS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.4%
Perpetual Growth Rate 10-Year GB Government Bond Rate 0.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BATS-CHIXE:MEKOS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 5.4%
Specialty Retail Unlevered Beta Simply Wall St/ S&P Global 0.83
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.834 (1 + (1- 22%) (261.41%))
2.028
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.53% + (2 * 5.44%)
11.41%

Discounted Cash Flow Calculation for BATS-CHIXE:MEKOS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Mekonomen is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

BATS-CHIXE:MEKOS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (SEK, Millions) Source Present Value
Discounted (@ 11.41%)
2020 852.50 Analyst x2 765.19
2021 928.00 Analyst x2 747.65
2022 1,129.00 Analyst x1 816.43
2023 1,193.18 Est @ 5.68% 774.48
2024 1,242.55 Est @ 4.14% 723.92
2025 1,280.52 Est @ 3.06% 669.64
2026 1,309.94 Est @ 2.3% 614.87
2027 1,333.10 Est @ 1.77% 561.65
2028 1,351.71 Est @ 1.4% 511.17
2029 1,367.07 Est @ 1.14% 464.03
Present value of next 10 years cash flows SEK6,649.00
BATS-CHIXE:MEKOS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= SEK1,367.07 × (1 + 0.53%) ÷ (11.41% – 0.53%)
SEK12,631.57
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= SEK12,631.57 ÷ (1 + 11.41%)10
SEK4,287.61
BATS-CHIXE:MEKOS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= SEK6,649.00 + SEK4,287.61
SEK10,936.61
Equity Value per Share
(SEK)
= Total value / Shares Outstanding
= SEK10,936.61 / 56.32
SEK194.18
BATS-CHIXE:MEKOS Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in BATS-CHIXE:MEKOS represents 0.88369x of OM:MEKO
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.88369x
Value per Share
(Listing Adjusted, SEK)
= Value per Share (SEK) x Listing Adjustment Factor
= SEK 194.18 x 0.88369
SEK171.59
Value per share (SEK) From above. SEK171.59
Current discount Discount to share price of SEK39.66
= -1 x (SEK39.66 - SEK171.59) / SEK171.59
76.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Mekonomen is available for.
Intrinsic value
>50%
Share price is SEK39.66 vs Future cash flow value of SEK171.59
Current Discount Checks
For Mekonomen to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Mekonomen's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Mekonomen's share price is below the future cash flow value, and 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 Mekonomen's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Mekonomen's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BATS-CHIXE:MEKOS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in SEK SEK7.33
OM:MEKO Share Price ** OM (2020-04-06) in SEK SEK44.88
United Kingdom of Great Britain and Northern Ireland Specialty Retail Industry PE Ratio Median Figure of 23 Publicly-Listed Specialty Retail Companies 7.37x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 748 Publicly-Listed Companies 12.61x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Mekonomen.

BATS-CHIXE:MEKOS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= OM:MEKO Share Price ÷ EPS (both in SEK)

= 44.88 ÷ 7.33

6.12x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Mekonomen is good value based on earnings compared to the GB Specialty Retail industry average.
  • Mekonomen is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Mekonomen's expected growth come at a high price?
Raw Data
BATS-CHIXE:MEKOS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 6.12x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
7%per year
United Kingdom of Great Britain and Northern Ireland Specialty Retail Industry PEG Ratio Median Figure of 15 Publicly-Listed Specialty Retail Companies 0.69x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 517 Publicly-Listed Companies 0.99x

*Line of best fit is calculated by linear regression .

BATS-CHIXE:MEKOS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 6.12x ÷ 7%

0.87x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Mekonomen is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Mekonomen's assets?
Raw Data
BATS-CHIXE:MEKOS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in SEK SEK76.40
OM:MEKO Share Price * OM (2020-04-06) in SEK SEK44.88
United Kingdom of Great Britain and Northern Ireland Specialty Retail Industry PB Ratio Median Figure of 36 Publicly-Listed Specialty Retail Companies 0.61x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,323 Publicly-Listed Companies 1.11x
BATS-CHIXE:MEKOS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= OM:MEKO Share Price ÷ Book Value per Share (both in SEK)

= 44.88 ÷ 76.40

0.59x

* Primary Listing of Mekonomen.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Mekonomen is good value based on assets compared to the GB Specialty Retail industry average.
X
Value checks
We assess Mekonomen's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Specialty Retail industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Specialty Retail industry average (and greater than 0)? (1 check)
  5. Mekonomen has a total score of 6/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

MEKOS Future Performance

 How is Mekonomen expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth 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 it right!
Annual Growth Rate
7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Mekonomen expected to grow at an attractive rate?
  • Mekonomen's earnings growth is expected to exceed the low risk savings rate of 0.5%.
Growth vs Market Checks
  • Mekonomen's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Mekonomen's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
BATS-CHIXE:MEKOS Future Growth Rates Data Sources
Data Point Source Value (per year)
BATS-CHIXE:MEKOS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 7%
BATS-CHIXE:MEKOS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 0.5%
United Kingdom of Great Britain and Northern Ireland Specialty Retail Industry Earnings Growth Rate Market Cap Weighted Average 15.7%
United Kingdom of Great Britain and Northern Ireland Specialty Retail Industry Revenue Growth Rate Market Cap Weighted Average 3.7%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 15.5%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 2.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BATS-CHIXE:MEKOS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in SEK Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BATS-CHIXE:MEKOS Future Estimates Data
Date (Data in SEK Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 12,098 1,337 491 1
2021-12-31 12,255 1,411 508 2
2020-12-31 12,024 1,343 456 2
2020-04-07
BATS-CHIXE:MEKOS Past Financials Data
Date (Data in SEK Millions) Revenue Cash Flow Net Income *
2019-12-31 12,017 1,142 413
2019-09-30 11,945 986 366
2019-06-30 10,901 605 339
2019-03-31 9,430 483 313
2018-12-31 7,951 331 260
2018-09-30 6,536 531 326
2018-06-30 6,063 565 330
2018-03-31 5,951 465 318
2017-12-31 6,000 496 361
2017-09-30 5,997 458 352
2017-06-30 6,016 458 344
2017-03-31 6,029 551 337

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Mekonomen's earnings are expected to grow by 7% yearly, however this is not considered high growth (20% yearly).
  • Mekonomen's revenue is expected to grow by 0.5% yearly, however this is not considered high growth (20% yearly).
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.
Raw Data
BATS-CHIXE:MEKOS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Mekonomen Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BATS-CHIXE:MEKOS Future Estimates Data
Date (Data in SEK Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 8.71 8.71 8.71 1.00
2021-12-31 9.01 9.74 8.28 2.00
2020-12-31 8.09 8.86 7.33 2.00
2020-04-07
BATS-CHIXE:MEKOS Past Financials Data
Date (Data in SEK Millions) EPS *
2019-12-31 7.33
2019-09-30 6.65
2019-06-30 6.79
2019-03-31 6.98
2018-12-31 6.55
2018-09-30 9.08
2018-06-30 9.19
2018-03-31 8.86
2017-12-31 10.06
2017-09-30 9.80
2017-06-30 9.58
2017-03-31 9.39

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Mekonomen is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Mekonomen's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Mekonomen has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MEKOS Past Performance

  How has Mekonomen performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Mekonomen's growth in the last year to its industry (Specialty Retail).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Mekonomen's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Mekonomen's 1-year earnings growth exceeds its 5-year average (58.8% vs -7%)
  • Mekonomen's earnings growth has exceeded the GB Specialty Retail industry average in the past year (58.8% vs 1.5%).
Earnings and Revenue History
Mekonomen's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Mekonomen Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BATS-CHIXE:MEKOS Past Revenue, Cash Flow and Net Income Data
Date (Data in SEK Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 12,017.00 413.00 3,951.00
2019-09-30 11,945.00 366.00 4,106.00
2019-06-30 10,901.00 339.00 3,960.00
2019-03-31 9,430.00 313.00 3,711.00
2018-12-31 7,951.00 260.00 3,413.00
2018-09-30 6,536.00 326.00 2,929.00
2018-06-30 6,063.00 330.00 2,736.00
2018-03-31 5,951.00 318.00 2,664.00
2017-12-31 6,000.00 361.00 2,635.00
2017-09-30 5,997.00 352.00 2,620.00
2017-06-30 6,016.00 344.00 2,634.00
2017-03-31 6,029.00 337.00 2,633.00
2016-12-31 5,934.00 335.00 2,595.00
2016-09-30 5,876.00 346.00 2,558.00
2016-06-30 5,849.00 375.00 2,517.00
2016-03-31 5,802.00 402.00 2,473.00
2015-12-31 5,761.00 423.00 2,449.00
2015-09-30 5,688.00 449.00 2,385.00
2015-06-30 5,622.00 474.00 2,326.00
2015-03-31 5,482.00 473.00 2,270.00
2014-12-31 5,390.00 460.00 2,220.00
2014-09-30 5,465.00 388.00 2,298.00
2014-06-30 5,543.00 351.00 2,366.00
2014-03-31 5,748.00 333.00 2,449.00
2013-12-31 5,863.00 307.00 2,523.00
2013-09-30 5,959.00 397.00 2,509.00
2013-06-30 5,975.00 389.00 2,512.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Mekonomen has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Mekonomen used its assets less efficiently than the GB Specialty Retail industry average last year based on Return on Assets.
  • Mekonomen's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Mekonomen's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Specialty Retail industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. 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.
Mekonomen has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MEKOS Health

 How is Mekonomen's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Mekonomen's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Mekonomen is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Mekonomen's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Mekonomen'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 checks below.
Assets
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 covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, 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.
Raw Data

All data from Mekonomen Company Filings, last reported 3 months ago.

BATS-CHIXE:MEKOS Past Debt and Equity Data
Date (Data in SEK Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 4,335.00 4,074.00 355.00
2019-09-30 4,347.00 4,045.00 213.00
2019-06-30 4,228.00 4,211.00 153.00
2019-03-31 4,034.00 4,375.00 177.00
2018-12-31 3,853.00 4,306.00 205.00
2018-09-30 2,340.00 5,976.00 346.00
2018-06-30 2,398.00 1,873.00 213.00
2018-03-31 2,487.00 1,721.00 183.00
2017-12-31 2,379.00 1,703.00 254.00
2017-09-30 2,323.00 1,830.00 194.00
2017-06-30 2,224.00 1,895.00 268.00
2017-03-31 2,396.00 1,766.00 296.00
2016-12-31 2,325.00 1,735.00 291.00
2016-09-30 2,276.00 1,818.00 182.00
2016-06-30 2,139.00 2,015.00 317.00
2016-03-31 2,257.00 1,876.00 238.00
2015-12-31 2,155.00 1,924.00 295.00
2015-09-30 2,111.00 2,032.00 256.00
2015-06-30 2,053.00 2,112.00 259.00
2015-03-31 2,204.00 2,093.00 380.00
2014-12-31 2,080.00 1,888.00 258.00
2014-09-30 2,344.00 1,968.00 197.00
2014-06-30 2,192.00 2,132.00 272.00
2014-03-31 2,331.00 2,038.00 287.00
2013-12-31 2,240.00 1,925.00 279.00
2013-09-30 2,217.00 1,942.00 162.00
2013-06-30 2,178.00 1,941.00 157.00
  • Mekonomen's level of debt (94%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (90.8% vs 94% today).
  • Debt is well covered by operating cash flow (28%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.1x coverage).
X
Financial health checks
We assess Mekonomen's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Mekonomen has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MEKOS Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Mekonomen dividends. Estimated to be 5.57% next year.
If you bought SEK2,000 of Mekonomen shares you are expected to receive SEK0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Mekonomen's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Mekonomen's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BATS-CHIXE:MEKOS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Specialty Retail Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 4.7%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 588 Stocks 5.6%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.3%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2.6%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 7.1%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BATS-CHIXE:MEKOS Future Dividends Estimate Data
Date (Data in SEK) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31 3.00 1.00
2020-12-31 2.00 1.00
2020-04-07
BATS-CHIXE:MEKOS Past Annualized Dividends Data
Date (Data in SEK) Dividend per share (annual) Avg. Yield (%)
2019-11-08 0.000 0.000
2019-08-23 0.000 0.000
2019-05-02 0.000 0.000
2019-04-03 0.000 0.000
2019-02-14 0.000 0.000
2018-03-28 7.000 6.239
2018-02-09 7.000 4.716
2017-04-25 7.000 4.318
2016-04-12 7.000 3.943
2015-04-14 7.000 3.579
2014-04-08 7.000 3.916
2013-04-17 7.000 3.554
2012-05-24 8.000 3.913
2011-03-24 8.000 3.645
2011-02-17 8.000 3.568
2010-04-08 7.000 3.757
2010-02-18 7.000 4.410

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Mekonomen has not reported any payouts.
  • Unable to verify if Mekonomen's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Mekonomen's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Mekonomen has not reported any payouts.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.6x coverage).
X
Income/ dividend checks
We assess Mekonomen's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Mekonomen afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Mekonomen has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MEKOS Management

 What is the CEO of Mekonomen's salary, the management and board of directors tenure and is there insider trading?

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.
CEO
Pehr Oscarson
COMPENSATION SEK6,947,000
AGE 56
TENURE AS CEO 3.1 years
CEO Bio

Mr. Pehr Oscarson has been the Chief Executive Officer and President of Mekonomen AB since March 1, 2017 and served as its Acting President and Chief Executive Officer from October 6, 2016 to March 1, 2017 and served as its Managing Director of MECA Scandinavia since 2014. Mr. Oscarson served as the President and Chief Executive Office at MECA Scandinavia AB since March 13, 2014. He served as Managing Director of MECA Sweden at MECA Scandinavia AB until March 13, 2014. He has held senior positions within MECA since 2001 and served as Executive Vice President and President of MECA Car Parts, as well as being responsible for market and concept development. Prior to this, he was President of the wholesale operation and the automotive store chain Swecars AB.

CEO Compensation
  • Pehr's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Pehr's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Mekonomen management team in years:

3.5
Average Tenure
53
Average Age
  • The tenure for the Mekonomen management team is about average.
Management Team

Pehr Oscarson

TITLE
President & CEO
COMPENSATION
SEK7M
AGE
56
TENURE
3.1 yrs

Helena Skåntorp

TITLE
Executive Vice Chairman
COMPENSATION
SEK400K
AGE
59

Åsa Källenius

TITLE
Chief Financial Officer
AGE
52
TENURE
2.7 yrs

Fredrik Sätterström

TITLE
Head of Investor Relations

Robert Hård

TITLE
Director of Legal Affairs & Sustainability
AGE
53
TENURE
17.3 yrs

Gabriella Granholm

TITLE
Director of Marketing & Communication
AGE
37

Bjornar Fjeld

TITLE
President of Norwegian Sales
TENURE
3.8 yrs
Board of Directors Tenure

Average tenure and age of the Mekonomen board of directors in years:

3
Average Tenure
58
Average Age
  • The tenure for the Mekonomen board of directors is about average.
Board of Directors

John Quinn

TITLE
Chairman of the Board
COMPENSATION
SEK655K
AGE
61
TENURE
3 yrs

Helena Skåntorp

TITLE
Executive Vice Chairman
COMPENSATION
SEK400K
AGE
59

Eivor Andersson

TITLE
Independent Director
COMPENSATION
SEK310K
AGE
58
TENURE
2.3 yrs

Kenny Bräck

TITLE
Independent Director
COMPENSATION
SEK285K
AGE
53
TENURE
12.9 yrs

Joe Holsten

TITLE
Director
COMPENSATION
SEK310K
AGE
67
TENURE
3.3 yrs

Magnus Håkansson

TITLE
Independent Director
COMPENSATION
SEK325K
AGE
56
TENURE
3 yrs

Arja Taaveniku

TITLE
Independent Director
AGE
51
TENURE
0.9 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Mekonomen individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (SEK) Value (SEK)
02. Apr 20 Buy Pehr Oscarson Individual 02. Apr 20 02. Apr 20 49,543 SEK35.97 SEK1,782,062
12. Mar 20 Buy Pehr Oscarson Individual 12. Mar 20 12. Mar 20 20,000 SEK59.62 SEK1,192,400
05. Mar 20 Buy Pehr Oscarson Individual 05. Mar 20 05. Mar 20 15,000 SEK68.70 SEK1,030,500
27. Feb 20 Buy Pehr Oscarson Individual 27. Feb 20 27. Feb 20 15,000 SEK77.04 SEK1,155,600
07. Feb 20 Buy Pehr Oscarson Individual 07. Feb 20 07. Feb 20 13,500 SEK81.35 SEK1,098,225
27. Aug 19 Buy Pehr Oscarson Individual 27. Aug 19 27. Aug 19 25,000 SEK75.38 SEK1,884,500
15. May 19 Buy Pehr Oscarson Individual 15. May 19 15. May 19 11,500 SEK74.10 SEK852,150
X
Management checks
We assess Mekonomen's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Mekonomen has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MEKOS News

Simply Wall St News

MEKOS Company Info

Description

Mekonomen AB (publ) operates a chain of car service stores in Sweden, Norway, Denmark, Poland, and Finland. It provides spare parts, consumables, and tools, as well as workshop services under the ProMeister brand; and car accessories under the Carwise brand. The company offers a range of solutions and products for the consumers and companies through its stores, affiliated workshops, and wholesale operations. It operates 460 store chains under the MECA, Mekonomen, and BilXtra brands; and 3,400 affiliated workshops under the BilXtra, MECA Car Service, Mekonomen Bilverkstad, Speedy, and MekoPartner brands. The company was founded in 1973 and is headquartered in Stockholm, Sweden.

Details
Name: Mekonomen AB (publ)
MEKOS
Exchange: BATS-CHIXE
Founded: 1973
SEK2,239,417,270
56,323,372
Website: http://www.mekonomen.com
Address: Mekonomen AB (publ)
Solnavägen 4,
11th Floor,
Stockholm,
Stockholm County, Sweden
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
OM MEKO Common Shares OMX Nordic Exchange Stockholm SE SEK 03. Aug 2007
DB 1OM Common Shares Deutsche Boerse AG DE EUR 03. Aug 2007
LSE 0HDJ Common Shares London Stock Exchange GB SEK 03. Aug 2007
BATS-CHIXE MEKOS Common Shares BATS 'Chi-X Europe' GB SEK 03. Aug 2007
Number of employees
Current staff
Staff numbers
5,308
Mekonomen employees.
Industry
Automotive Retail
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/07 19:39
End of day share price update: 2020/04/06 00:00
Last estimates confirmation: 2020/03/23
Last earnings filing: 2020/04/03
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.