Wednesday 25 September 2013

Analysis of Fenix Outdoor

A Swedish outdoor wear producer

Company: Fenix Outdoor AB (sorry but their home page is only in Swedish!)

Business: A Swedish company producing outdoor camping equipment and outdoor wear. They have several, at least within Europe well known brands where they are currently making an organic expansion.  Some of the brands are Fjällräven, Tierra, Primus and the retail part called Naturkompaniet. In Germany the brands are for instance being sold in Globetrotter. For the full list of brands and some additional information please look here but it is in Swedish also.

Active: Very strong presence in the Nordic countries and are currently expanding in Europe.

P/E: 22.5

This company was analysed due to a request that can be found here.

contrarian values of P/E, P/B, ROE as well as dividend
The P/E of Fenix Outdoor is up as high as 22.5 and the P/B is far, far too high for my liking with 4.1 which then in total gives according to Graham a no go. They have a pretty good earnings to sales since it is 9% (their target is 10%) and their ROE is really good with 18%. The book to debt also is at a nice ratio with 3. In the last five years they have had an excellent yearly growth of 12.4% which means that a motivated P/E value would be 30 to 33. This means that the stock is today slightly undervalued by the market. They pay a dividend that based on Swedish standards are pretty low since it is only 1.5% but that also only represents 34% of the earnings so low risk for it decreasing.

Conclusion: I would not invest in it today due to the high P/E, P/B and the low dividends but it is definitely a very nice growth company with huge potential and their products are excellent. In my everyday life I very frequently use Fjällräven products. If the share price would one day drop by some units then I would have no fears in buying and holding.

If this analysis is outdated then you can request a new one.

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