Securitas AB Series B

Securitas is engaged in integrated security solutions. Co.'s main service offering categories are specialized guarding, mobile security services, monitoring, technical solutions and consulting and investigation services. Co. operates in 52 countries throughout North America, Europe, Latin America, the Middle East, Asia and Africa. Co. is organized into three business segments: Security Services North America, Security Services Europe and Security Services Ibero-America. In addition to the three business segments, Co. conducts guarding operations in the Middle East, Asia and Africa.
  • TickerSECU B
  • ISINSE0000163594
  • ExchangeNasdaq Nordic Stockholm
  • SectorSupport Services
  • CountrySweden

Analysts

Karl-Johan Bonnevier

Securitas (Buy, TP: SEK185.00) - Q2e to see operating leverage

We see relatively easy comparables YOY for Securitas for Q2 (results due at 13:00 CET on 31 July), and our estimates are just above consensus, indicating a non-event. We have made minimal adjustments to our 2019–2021e EPS, with management signalling a continued good price to wage cost balance and Technology Solutions growth (Q2e penetration: 21%). We still see the inflection point nearing when earnings leverage and valuation multiples expansion materialise. We reiterate our BUY and SEK185 target price.

1 director sold

A director at Securitas Ab sold 9,000 shares at 163.860SEK and the significance rating of the trade was 52/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The names of board m...

Karl-Johan Bonnevier

Full focus on technology

Quarterly updates and short-term valuations form the basis for a raft of equity research. In our view, however, this is only the starting point, and our value gap analysis tries to bridge this by looking at three key value drivers (internal efficiency, M&A, and financial re-engineering). In our second value gap piece, we showcase Dometic, Hexagon, HMS Networks, Husqvarna, Momentum Group and Securitas, having identified long-term value creation potential ranging from 50% to 120%.

Eivind Sars Veddeng ...
  • Håkon Astrup
  • Jon Masdal
  • Karl-Johan Bonnevier
  • Martin Arnell
  • Martin Hoang Nguyen
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Stefan Gauffin

Northern Lights

Karl-Johan Bonnevier

Securitas (Buy, TP: SEK185.00) - Organic growth remaining high

Securitas’ Q1 report showed continued strong organic growth (6.8% YOY) with returning earnings leverage (15bp YOY), with all geographies contributing and Technology Solutions growing 22% in Q1. With the future proofing of the Securitas service model with Technology Solutions as the main business driver, we see good support for continued valuation multiples expansion and we have raised our EPS forecasts for 2019–2021 by 2–4%, also suggesting continued positive momentum in earnings. We reiterate our BUY and have lifted our target price to SEK185 (180).

Karl-Johan Bonnevier

Securitas (Buy, TP: SEK185.00) - Q2e to see operating leverage

We see relatively easy comparables YOY for Securitas for Q2 (results due at 13:00 CET on 31 July), and our estimates are just above consensus, indicating a non-event. We have made minimal adjustments to our 2019–2021e EPS, with management signalling a continued good price to wage cost balance and Technology Solutions growth (Q2e penetration: 21%). We still see the inflection point nearing when earnings leverage and valuation multiples expansion materialise. We reiterate our BUY and SEK185 target price.

Karl-Johan Bonnevier

Full focus on technology

Quarterly updates and short-term valuations form the basis for a raft of equity research. In our view, however, this is only the starting point, and our value gap analysis tries to bridge this by looking at three key value drivers (internal efficiency, M&A, and financial re-engineering). In our second value gap piece, we showcase Dometic, Hexagon, HMS Networks, Husqvarna, Momentum Group and Securitas, having identified long-term value creation potential ranging from 50% to 120%.

Karl-Johan Bonnevier

Securitas (Buy, TP: SEK185.00) - Organic growth remaining high

Securitas’ Q1 report showed continued strong organic growth (6.8% YOY) with returning earnings leverage (15bp YOY), with all geographies contributing and Technology Solutions growing 22% in Q1. With the future proofing of the Securitas service model with Technology Solutions as the main business driver, we see good support for continued valuation multiples expansion and we have raised our EPS forecasts for 2019–2021 by 2–4%, also suggesting continued positive momentum in earnings. We reiterate our BUY and have lifted our target price to SEK185 (180).

Michael Field

Morningstar | Decent Start to Year for Security Giant Securitas

No-moat Securitas delivered a very decent first-quarter trading update, posting organic revenue growth of 7%, a slight improvement on the already high 6% delivered in 2018. Operating margins improved to 4.8% from 4.7% this time last year. Overall, the numbers were broadly inline with our expectations for the full year, and as such, we do not expect to make any material changes to our forecasts nor to our SEK 152 fair value estimate. We believe the shares are currently up with events. North America, which generates more than 40% of group sales, continued its strong pattern of growth. Europe, w...

Michael Field

Decent Start to Year for Security Giant Securitas

No-moat Securitas delivered a very decent first-quarter trading update, posting organic revenue growth of 7%, a slight improvement on the already high 6% delivered in 2018. Operating margins improved to 4.8% from 4.7% this time last year. Overall, the numbers were broadly inline with our expectations for the full year, and as such, we do not expect to make any material changes to our forecasts nor to our SEK 152 fair value estimate. We believe the shares are currently up with events. North Ameri...

1 director sold

A director at Securitas Ab sold 9,000 shares at 163.860SEK and the significance rating of the trade was 52/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The names of board m...

Eivind Sars Veddeng ...
  • Håkon Astrup
  • Jon Masdal
  • Karl-Johan Bonnevier
  • Martin Arnell
  • Martin Hoang Nguyen
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Stefan Gauffin

Northern Lights

Jon Masdal ...
  • Karl-Johan Bonnevier
  • Martin Arnell
  • Martin Hoang Nguyen
  • Martin Huseby Karlsen
  • Mattias Holmberg
  • Ole-Andreas Krohn
  • Paul Harper

Northern Lights

Christoffer Wang Bjørnsen ...
  • Eivind Sars Veddeng
  • Håkon Astrup
  • Jesper Ingildsen
  • Jon Masdal
  • Karl-Johan Bonnevier
  • Marius Knudssøn
  • Martin Hoang Nguyen
  • Niclas Gehin
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Simen Mortensen

Northern Lights

Christer Magnergård ...
  • Eivind Sars Veddeng
  • Jesper Ingildsen
  • Jon Masdal
  • Karl-Johan Bonnevier
  • Martin Hoang Nguyen
  • Ole-Andreas Krohn
  • Rune Majlund Dahl
  • Simen Mortensen

Northern Lights

Christer Magnergård ...
  • Frank Maaø
  • Håkon Astrup
  • Jon Berggren
  • Jørgen Lian
  • Karl-Johan Bonnevier
  • Martin Arnell
  • Mattias Holmberg
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Patrik Ling
  • Rune Majlund Dahl
  • Simen Mortensen

Northern Lights

SECURITAS AB sees an upgrade to Positive due to a better fundamental star rating

The general evaluation of SECURITAS AB (SE), a company active in the Business Support Services industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 4 out of 4 possible stars while its market behaviour can be considered as defensive. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Positive. As of the analysis date April 2, 2019, the closing price was SEK 154.25 and its potential was estimated at SEK 161.96.

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the week...

Expert Corporate Governance Service (ECGS)

Securitas - AGM 06 May 2019

In general, Securitas is in compliance with the Swedish regulations relating to the organisation and procedures of the Annual General Meeting. Under ITEM 11, the nomination committee proposes to increase the remuneration of the board of directors by almost 10%. In ECGS' view, the current fees are already at the upper level of Swedish market practice for a company with the size and complexity of Securitas and it therofore does not approve of any increases without adequate justification. Since the proposal is not adequately justified, ECGS recommends to vote OPPOSE. Under ITEM 12, approval is ...

Securitas – Proxinvest Corporate Governance Rating ® : D

Proxinvest Corporate Governance Rating ® helps investors integrate governance into their investment decision and identify governance risks and opportunities within their portfolio. Proxinvest Corporate Governance Rating ® Service rates European issuers through the analysis of four main themes : Ownership & Shareholder rights, Board & Committees, Audit & Process, Remuneration. Each theme is rated taking into account several comprehensive sub-categories. Our unique two-step process to achieve each rating includes a first step quantitative valuation and a second step qualitative filter...

Dave Nicoski ...
  • Ross LaDuke

Vermilion Int'l Compass: Global Equity Strategy

YTD sideways congestion for the MSCI ACWI ex-US and an intact downtrend for the MSCI EM index continue to point to a risk-off environment for international equity markets, and supports our neutral outlook (at best)... see page 2. We continue to recommend avoiding broad indexed exposure in favor of selectivity. In today's report we highlight actionable country- and Sector-specific themes: • Norway and India are leadership. Norway's Oslo OBX and India's SENSEX remain global leaders. Overweight these markets... see below and page 3 for overviews and actionable country-specific stocks. • Austral...

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