One-glance verdict
Within fair range
$25.79 our estimate vs market $44.97
Wall Street consensus: $45.67 (77.1% higher than our fair-value estimate)
74% above our estimate
Fundamentals snapshot
GN Store Nord A/S
GNNDY · PNK · Healthcare · Medical Devices
Current price
$44.97
52-week range
$39.45 - $56.11
Market cap
$2.18B
Balance sheet
Watch
4.04x Stretched
Net debt $1.51B. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
3 Risks
1 rewards · 3 risks
- Reward Free cash flow was positive in 3/10 years.
- Risk Stock trades 1117.8% above its 5-year average P/E.
- Risk Operating margin compressed from 6.0% to 2.7% over 3 years.
- Risk Insider ownership is only 0.0% (peer median: 1.0%).
What this company does
GN Store Nord A/S
GN Store Nord makes products to help people hear and communicate, from medical hearing aids to Jabra office headsets and SteelSeries gaming equipment. The company's money comes from selling these devices to both the healthcare industry and to everyday consumers and businesses. This is important because it operates in two different worlds: the steady, needs-based medical market and the faster-changing consumer technology market.
How the company got here
Founded in 1869 as a telegraph company, GN Store Nord has a long history of adapting to new technologies. A key turning point was the shift to focus on hearing aids in 1977, followed by an expansion into audio headsets in 2000. The company has grown by developing innovative products, like the first Bluetooth headset and the first hearing aid that could connect directly to an iPhone. More recently, GN expanded into the gaming market with the acquisition of SteelSeries, a maker of popular gaming accessories.
What it actually does
GN Store Nord makes electronic devices that help people hear and communicate better. You might recognize their products as hearing aids from brands like ReSound and Beltone, or as office headsets and earbuds from the brand Jabra. They also create high-performance headsets, keyboards, and mice for video gamers under the SteelSeries brand. Essentially, they build technology for your ears and for communicating, whether it's for medical reasons, work, or entertainment.
Hearing
This is the company's original medical technology business, making up about 40% of its sales. This segment creates and sells hearing aids and accessories for people with hearing loss under brands like ReSound and Beltone. These devices are sold through audiologists and large retailers. The company is known for innovations like creating the first hearing aid that could stream sound directly from an iPhone.
Enterprise
This part of the company, which accounts for roughly 40% of sales, focuses on audio and video equipment for businesses. Think of the headsets used in call centers or the speakerphones and video conferencing equipment you might see in an office meeting room; that's what this segment provides under the Jabra brand. Their customers are businesses of all sizes that need reliable communication tools for their employees.
Gaming
This is a newer and growing part of the business, representing about 20% of the company's sales. Through its brand SteelSeries, this segment makes high-quality accessories for video game players, such as headsets, keyboards, and mice. These products are designed for the specific needs of gamers who want precise and immersive sound and control. This segment was formed after GN acquired the popular gaming gear company SteelSeries.
What management is betting on now
The company is focused on leveraging its expertise in sound technology across all its businesses. A key strategy is to find synergies (ways different parts of the company can help each other) between their hearing, enterprise, and gaming divisions. They are also betting on innovation in software and hardware to create new products that meet the needs of a changing world, such as the rise of remote work and the growing popularity of gaming. Another focus is on expanding their reach in the market for 'hearables,' which are ear-worn devices that can both enhance hearing and function as wireless earbuds.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $25.79 vs current price $44.97
Wall Street consensus is the average analyst price target: $45.67 (77.1% higher than our fair-value estimate).
Our most-likely fair value is $25.79 a share — about 42.7% away from today's price of $44.97, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $1.5B. Interest coverage 4.0x.
Net debt
$1.51B
Interest coverage
4.04x
GN Store Nord A/S's profit covers its interest bill about 4.0 times over. and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
GNNDY
BASELINE
GN Store Nord A/S
Total debt $1.64B Interest coverage 4.04x This is the baseline the peer rows are being compared against.
Total debt $150.20M Interest coverage 5.64x +40% vs GNNDY Carries about 1.4x more debt cushion than GNNDY.
Total debt $184.87M Interest coverage 0.22x -94% vs GNNDY Carries about 18.2x less debt cushion than GNNDY.
Total debt $2.10B Interest coverage 23.55x +484% vs GNNDY Carries about 5.8x more debt cushion than GNNDY.
Total debt $84.39M Interest coverage 16.27x +303% vs GNNDY Carries about 4.0x more debt cushion than GNNDY.
What you should know
The case for and against GNNDY
1 Reward
3 Risks
Rewards
-
Free cash flow was positive in 3/10 years.
Risks
-
Stock trades 1117.8% above its 5-year average P/E.
-
Operating margin compressed from 6.0% to 2.7% over 3 years.
-
Insider ownership is only 0.0% (peer median: 1.0%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
84.85x
Forward P/E
23.27x
P/B
1.37x
P/S
0.13x
EV/EBITDA
9.15x
PEG ratio
2.24x
Profitability
How much profit each dollar creates
Gross margin
54.7%
Operating margin
2.7%
Net margin
-3.4%
ROE
2.2%
ROA
2.4%
Health
Liquidity and balance-sheet strength
Debt / equity
1.03x
Current ratio
1.93x
Quick ratio
0.38x
Total debt
$1.64B
Total cash
$125.07M
Growth
How the business has been compounding
Revenue TTM
$2.55B
Revenue 5Y CAGR
-3.5%
EPS TTM
0.53
EPS 5Y CAGR
3.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$415.26M
Free CF TTM
$176.44M
FCF margin
6.9%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2022-03-10