Bonäsudden Holding AB (publ), a real estate company, owns and manages real estate properties. The company's portfolio consists of rental apartments, and public service and commercial premises in central Linköping, Skäggetorp, Ljungsbro, Vikingstad, Nykil, Skeda Udde, Brokind, Bestorp, Bankekind, and Gistad. Its portfolio comprises of approximately 14 properties. Bonäsudden Holding AB (publ) was founded in 2014 and is based in Stockholm, Sweden.

Sweden

Bonäsudden Holding AB (publ)

Real Estate

The company tries to pay dividends regularly but only sometimes does so. It has paid dividends in roughly half the past ten years. Dividend per share (DPS) has grown yearly, but the dynamics are unclear. In the past 12 months, the dividend yield has barely been above zero and was substantially below that of its peers. On average, the company pays dividends twice a year. 

BONAS.ST reported revenue of SEK 51mn in the last 12 months, up 5% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. 

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Over the past six months the stock has exceeded the performance of this peer group by 13ppts and its growth decelerated by 10ppts in the past month. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is neither favourable nor unfavourable.

The company has reported average EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 52.5% in the last 12 months, up from 49.2% in FY23. 

Historically, BONAS.ST has reported very poor net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 2.9%, down from 3.0% in FY23. 

In the last 12 months, the return on capital employed (RoCE) grew to 0.3%, below the peers. 

Another important profitability metric, return on assets (RoA), amounted to 0.2% in the last 12 months, an increase from 0.2% in FY23. 

Bonäsudden Holding AB (publ) reported a return on equity (RoE) of 0.5% in the last 12 months, up from 0.4% in FY23. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -0.1 in the past several years. This ratio implies a fragile shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

BONAS.ST has very poor trading liquidity. It will take considerable time for the average private investor to sell a common position under normal market conditions. Liquidity is very unstable and becomes extremely unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. Another factor to consider is the substantial number of days with zero trading volumes, i.e., without any ability to sell a position. The stock has a tiny market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to weak positions in its industry, slow historical revenue growth, negligible return on capital, inadequate interest coverage, and poor cash flow generation. We note robust profitability, among the positive credit factors. 

In highly turbulent market conditions, BONAS.ST is as volatile as an index. In other words, the stock will move with the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be limited. 

In normal market circumstances, BONAS.ST is moderately volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will move slightly wider than the index. The stock's losses on its worst days (less than 1-5% of the time) will range from very low to minimal. 

Considering past and projected metrics, the stock is distinctly 'expensive' compared to its peers. Specifically, the stock is 'expensive' on P/E, neutral on EV/EBITDA, overpriced on P/FCF. 

Bonäsudden Holding AB (publ)

SEK 175

3

Bonäsudden Holding AB (publ)

SEK 175

3

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

SEK 175

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