Again to Denmark with a brand new batch of 10 randomly chosen shares. What I’ve to say is that the Danish inventory maket actually provides all kinds of firms. From a Fintech lively in Africa, by way of transport and concrete blocks over to Medtech, right now’s choice has a number of totally different enterprise fashions. 4 of them I discovered really value to “watch” this time.
41. SPENN Know-how A/S
SPENN is a 80 mn EUR market cap firm that appears to supply a banking/buying and selling app. Nearly all of the enterprise appears to be in Africa (Zambia, Rwanda) by way of an organization that was acquired in 2021. their providing appears to comprise (in fact) Blockchain, Crypto, Fee and remittance providers.
The inventory chart seems fairly uninspiring:
The corporate is making vital losses and has solely restricted money left. There are some examples of Scandinavian firms which might be profitable in Africa (i.E. Milicom), however on this case it’s arduous to evaluate if their enterprise is aggressive. Total not very enticing at first sight, “cross”.
42. Torm PLC
TORM PLC is a 657 mn EUR market cap transport firm that engages within the transportation of refined oil merchandise and crude oil worldwide. The corporate transports gasoline, jet gasoline, naphtha, and diesel. As of March 1, 2021, it operated a fleet of roughly 80 vessels.
As many transport firms, outcomes appear to be very risky and the inventory value seems like that they needed to do some very diluting capital raises in 2014/2015:
Transport firms are clearly far exterior my circle of (in)competence, subsequently I’ll “cross”.
43. Nordfyns Financial institution
Nordfyns Financial institution is a 57 mn EUR market cap native Danish Financial institution. The Financial institution seems surprisingly worthwhile with 13% ROE and surprisingly low-cost at round 0,7x P/B and ~6xP/E. And this regardless of an already good run up within the share value over the earlier years:
Sadly, al the investor paperwork are in Danish, however I feel it may very well be value digging deeper how they handle to generate these outcomes. “Watch”.
44. DRILLING COMPANY OF 1972
Because the title clearly states, this 2 bn EUR market cap firm that has been IPOed/spun off from MAersk in 2019, solely focuses on oil and gasoline drilling within the North Sea. In response to the corporate itself, the corporate was established really 10 years earlier in 1962. AP Moeller, the household holding of Maersk nonetheless owns 50%
IPO buyers have little cause for pleasure regardless of the rebound in the previous couple of months:
Based mostly on current developments, the inventory may very well be value a punt, assuming that some drilling resumes within the North Sea quick time period. Some worth funds (Third Avenue, and many others.) are holding stakes. Nevertheless, as I’m wanting extra for long run performs, I’ll “cross”.
45. BankNordik A/S
One other small, 167 mn EUR market cap Financial institution that operates solely on the Faeroer Islands in Greenland. As the opposite Danish Banks, valuation is affordable and returns have been surprisingly good.
The corporate appears to have divested its remaining Danish Enterprise and distributed vital further dividends over the previous couple of months.
The drop within the share value appears to have been the ex dividend which included a portion of the “tremendous dividend” they introduced in 2021.
Total an fascinating candidate value to “watch”.
46. Royal Unibrew A/S
Royal Unibrew is a 4,1 bn EUR firm that produces quite a lot of drinks amongst them the (in) well-known Faxe Beer. The corporate is lively largely in Denmark, Germany and the Baltics and has been rising very properly during the last 10 years, greater than doubling its gross sales, quadrupling its revenue and virtually 10x on its share value:
The inventory is just not low-cost at a 24x trailing P/E, however the firm has extraordinary returns on Capital and fairness and 15% internet margins. This can be a inventory that belongs onto the “watch” checklist for additional inspection…
47. D/S Norden A/S
D/S Norden is a 1.3 bn EUR market cap transport firm (Tankers, dry bulk) that had been struggling for a while, however as many different transport firms, benefitted massively from the provision chain issues within the final 2 years. 2021 revenue was roughly 10x the 2019 revenue.
Because the inventory chart reveals, long run worth creation has been very restricted:
I’m not a “transport man”, subsequently I’ll “cross”.
48. H+H Worldwide
H+H is a 410 mn EUR market cap firm that may be a provider to the development trade. Their primary product are “aircrete” bricks with which one appears to have the ability to construct factories and many others.
The corporate is lively largely in Europe, russian actions have been offered in 2019. It seems like that the coompany additionally was the proprietor of Rockwool, one other listed Danish provider to the development trade.
The corporate is kind of worthwhile (double digit EBIT margins, 20% ROE), the inventory seems very low-cost at a trailing P/E of 9,6x.
The inventory has gone up properly earlier than retreating over the previous couple of months:
Though it’s not clear how lengthy the present growth in building will final and the way delicate tehy are with regard to excessive vitality costs, I’ll put them onto the prolonged “watch” checklist.
49. Scandinavian Funding Group
Scandinavian is a 23 mn EUR market cap firm that appears to take a position largely in Danish bonds, shares and actual property.Stories ar all in Danish and the inventory appears to point that they aren’t overly profitable. “Go”.
50. Ambu A/S
Ambu is a 3,6 bn EUR market cap firm that’s lively within the Medtech sector specializing on every little thing about (single use) endoscopes. Taking a look at their numbers, Ambu appears to have profited from Covid and has elevated gross sales by +50 during the last 2 years. As one may anticipate, gross margins are above 60% however for some causes working outcomes have been declining since 2018 and free money movement is unfavourable.
The inventory value displays the not so good backside line after a peak in 2021
At 7x gross sales and 200x trailing P/E even after the decline, this doesn’t appear to be an important worth proposition at this stage. “Go”.