Facebook Pixel

Clas Ohlson (in Model Portfolio Quality) surges >15% on the report – strong end to record year

Clas Ohlson, which is part of the Quality Model Portfolio, exceeded expectations by a wide margin. The share surged >15% on the news and is now trading at 7.5% FCFyield. “We are well positioned to continue creating value,” said CEO Kristofer Tonström in today's conference call.

Operating margin above target – and rising

Clas Ohlson ends the year with an operating margin of 10.1 %, well above the target level of 7–9 %. EBIT for Q4 landed at SEK 109 million (65), which exceeded estimates. According to the CEO, the currency tail from the dollar's weakening has not yet fully taken effect: “We expect positive currency effects in the coming quarters – there is nothing to indicate lower margins in the short term” (conf call).

Growth drivers deliver

All five product niches are growing, e-commerce is up 19% and now accounts for 21% of total sales. The broad offering provides resilience in weak seasons: “We have grown despite cool spring weather – lawn mowers and technology products took over where fans lost out”, said Tonström. The number of Club Clas members increased by 500,000 to 5.9 million.

Top-notch cash flow – continued investment pace

Free cash flow amounted to SEK 1.1 billion and the strong balance sheet enables both a dividend (SEK 7/share) and an increased investment rate. SEK 250 million will be invested in the coming year in the store network, automation and IT. “We have a scalable, efficient platform – now we are investing to grow further and take market share”, summarized Tonström (conf call).

Source: Factset

Model portfolio Quality +8.5% year to date, Model portfolio Opportunity +17.2%

Model portfolio Quality

Existing holdings +7.0%, including cash +8.5% so far this year. Read more about the portfolio, strategy and holdings here https://incirrata.se/quality/.

Model portfolio Opportunity

Existing holdings +16.0%, including cash +17.2% so far this year. Read more about the portfolio, strategy and holdings here https://incirrata.se/opportunity/


This marketing document has been issued by Incirrata AB. It is not intended to be distributed to, published for, made available to or used by individuals or legal entities that are nationals or residents of any state, country or jurisdiction where applicable laws and regulations prohibit its distribution, publication, making available or use. It is not directed to any person or entity to whom it would be illegal to send such marketing material. This document is for informational purposes only and shall not be construed as an offer, a solicitation or a recommendation to subscribe, purchase, sell or hold any security or financial instrument or to enter into any other transaction, such as the provision of investment advice or services, or as a contract document. Nothing in this document constitutes investment, legal, tax or accounting advice or a guarantee that any investment or strategy is suitable or appropriate for an investor's specific and individual circumstances, nor does it constitute personal investment advice to any investor.

This document reflects information, opinions and comments from Incirrata AB. at the time of its publication, which are subject to change without notice. The opinions and comments expressed by the authors in this document reflect their current views and may differ from conclusions in Incirrata AB's services or products, or third parties, who may have reached other conclusions. Market valuations, terms and calculations stated here are estimates only. The information provided comes from sources believed to be reliable, but Incirrata AB does not guarantee its completeness, accuracy, reliability or timeliness. Historical performance does not provide an indication of or guarantee of current or future performance. Incirrata AB assumes no responsibility for any loss arising from the use of this document.

Get news about research and portfolio changes

Contact

Johan Widmark

Phone: +46 73 919 66 41 

Email: johan@incirrata.se

About Incirrata

Incirrata's objective is to advise companies and individuals on investments that provide cost-effective exposure to growth combined with robust risk management.

Our services

Private

  • ISK / Depot
  • Monthly savings 
  • Analysis and news coverage
  • Personal service and portfolio management 
  • Wide range 

Business

  • Capital insurance / Escrow
  • Monthly savings 
  • Analysis and news coverage
  • Personal service and portfolio management 
  • Wide range