Monday 9 September 2013

Analysis of Lundbergs

A Swedish real estate and investment company

Company: L E Lundbergsföretagen AB

Business: A Swedish real estate and investment company. It is run by the fairly unknown and media shy Lundberg family. The investments are focused on Swedish strong, boring and unsexy companies for the entire list please look here

Active: In Sweden and the companies they have invested in are present all over the world but main focus is the Nordic countries and Europe.

P/E: 5.8

contrarian values of P/E, P/B, ROE as well as dividend

 The P/E is great with 5.8 and the P/B is only 0.6 which gives a very clear buy according to Graham. The earnings to sales are 26% and this investment company have a bit different stability to many other investment companies due to their large %-age of real estate. The ROE is touching 10% which is ok but not more and the book to debt is fully ok with 1.8. The growth during the last five years has been yearly -0.7% and the motivated P/E becomes 16 to 18 so Lundbergs is undervalued by the market. They pay a very tiny dividend of 1.7% which represents a measly 9.6% of their earnings so no reason why that should decrease or stop.
Conclusion: Lundbergs is a solid company that I would be interested in buying and holding for life. As long as Lundbergs keep running it I doubt something outrageous will happen in the company besides from getting bigger and richer and stronger and paying more dividends year after year after year. It will therefore be added to the Stock of Interest list.

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Anonymous said...

According to borsdata, The p/b, p/e and so on for Lundberg are different from your calculation. How comes?
Doro analysis?!

Fredrik von Oberhausen said...

The major reason for the difference is due to that i look at the data from 2012 and börsdata, which is an excellent site, are making a running update in which already quarter 1 & 2 from 2013 is included. This is why the values becomes so different.

Thank you for your suggestion. I will try to make a contrarian analysis of Doro.