Securitas AB (publ)
Securitas AB (publ) Fundamental Analysis
Securitas AB (publ) (SCTBY) shows weak financial fundamentals with a PE ratio of 17.98, profit margin of 3.30%, and ROE of 13.05%. The company generates $154.8B in annual revenue with weak year-over-year growth of -4.20%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SCTBY's fundamental strength across five key dimensions:
Efficiency Score
WeakSCTBY struggles to generate sufficient returns from assets.
Valuation Score
ModerateSCTBY shows balanced valuation metrics.
Growth Score
WeakSCTBY faces weak or negative growth trends.
Financial Health Score
ModerateSCTBY shows balanced financial health with some risks.
Profitability Score
WeakSCTBY struggles to sustain strong margins.
Key Financial Metrics
Is SCTBY Expensive or Cheap?
P/E Ratio
SCTBY trades at 17.98 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SCTBY's PEG of 2.78 indicates potential overvaluation.
Price to Book
The market values Securitas AB (publ) at 2.34 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.91 times EBITDA. This is generally considered low.
How Well Does SCTBY Make Money?
Net Profit Margin
For every $100 in sales, Securitas AB (publ) keeps $3.30 as profit after all expenses.
Operating Margin
Core operations generate 6.98 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.05 in profit for every $100 of shareholder equity.
ROA
Securitas AB (publ) generates $4.63 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Securitas AB (publ) generates limited operating cash flow of $9.93B, signaling weaker underlying cash strength.
Free Cash Flow
Securitas AB (publ) produces free cash flow of $6.34B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $10.99 in free cash annually.
FCF Yield
SCTBY converts 6.85% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.98
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.78
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.34
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.60
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.35
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How SCTBY Stacks Against Its Sector Peers
| Metric | SCTBY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.98 | 25.84 | Better (Cheaper) |
| ROE | 13.05% | 1279.00% | Weak |
| Net Margin | 3.30% | -43714.00% (disorted) | Weak |
| Debt/Equity | 1.09 | 0.80 | Weak (High Leverage) |
| Current Ratio | 1.35 | 10.62 | Neutral |
| ROA | 4.63% | -1537441.00% (disorted) | Weak |
SCTBY outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Securitas AB (publ)'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
10.07%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
61.98%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-100.00%
Industry Style: Cyclical, Value, Infrastructure
Declining