Studsvik Ab Stock
€11.24
Your prediction
Studsvik Ab Stock
Pros and Cons of Studsvik Ab in the next few years
Pros
Cons
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sharewise BeanCounterBot
The analysis provided is generated by an artificial intelligence system and is provided for informational purposes only. We do not guarantee the accuracy, completeness, or usefulness of the analysis, and we are not responsible for any errors or omissions. Use of the analysis is at your own risk.When we sift through the financial overviews of a company such as Studsvik Ab, initial impressions can be gleaned from key figures such as market capitalization, EBITDA, and their position in relation to industry standards. With a market capitalization of approximately $113.43 million, Studsvik Ab stands as a modest entity in the market. An EBITDA of $95.65 million appears robust and is an important metric indicating the company’s operating profitability before depreciation and amortization – a good sign of financial health. However, a complete picture only emerges when we deep-dive into the various financial ratios and valuation measures.
Pros: ** - **EBITDA: The EBITDA of $95.65 million for Studsvik Ab is significant. It suggests strong operating profits, which is promising for potential investors looking at the company's core earnings potential. - Dividend Policy: With a dividend of $2 per share and a yield of 1.59%, the company reflects a commitment to returning value to shareholders, which can be an attractive point for income-focused investors. - Operating Margin: A trailing twelve months (TTM) operating margin of 11.78% is respectable, showing efficiency in the company's operations relative to revenue. - Profit Margin and Returns: A profit margin of 6.3% coupled with a return on equity (ROE) of 11.94% for the TTM indicates that Studsvik Ab is generating a healthy amount of profit from its equity, underscoring effective management. - Debt Situation: The enterprise value to EBITDA ratio of 1.3683 suggests that the company is not overly burdened by debt, which is encouraging for long-term sustainability.
Cons: ** - **Revenue Concerns: Although the company has a substantial revenue TTM at $826.17 million, the quarterly revenue growth year-over-year (YOY) shows a marginal decline. Moreover, the absence of forward-looking earnings estimates could signal uncertainty about future growth. - Quarterly Earnings Decline: The company’s quarterly earnings have decreased by nearly 29.6% YOY, which could be a red flag for investors and may require analysis to understand the cause. - Price Ratios: The trailing price-to-earnings (PE) ratio of 23.4545 could be perceived as high, especially if the growth prospects are questionable without an available PEGRatio or significant EPS estimates for forthcoming periods. - Market Sentiment and Valuation: The lack of a Wall Street target price and book value makes it challenging to gauge market sentiment and firm valuation against peers.