With excellent conditions, the ski resort company Skistar concludes a record-breaking winter quarter. At the peak, however, it is harder to continue climbing, and the stock risks becoming a cold story in the near future, EFN's analysts wrote in a commentary on Wednesday.
With records in both guest numbers and skier days sold, the results for the company's most important quarter, December to February, were also strong. Revenue increased by 8 percent, as did the operating profit when adjusted for real estate sales.
Measured over the last 12-month period, earnings per share are currently tracking just under 8 kronor, resulting in a P/E ratio of 21. This is not unjustified for a company with rock-solid market shares and physical assets that are difficult to undermine, EFN assesses.
"Much of the growth has, however, come from price increases and optimizations of the existing offering, which means one should have limited hope for major profit boosts. As a stable dividend stock, especially if one is a customer and utilizes the shareholder discount, Skistar can be an interesting investment. But we do not foresee any major share price gains in the foreseeable future," EFN writes in its conclusion.
SkiStar AB is a Sweden-based company active in the leisure and recreation industry. It is primarily engaged in the management of mountain ski resorts in Hemsedal and Trysil, in Norway, as well as in Salen, Are and Vemdalen, in Sweden. The Company’s activities are divided into two business areas: Destinations and Property Development. The Destinations area is responsible for the skiing services, mediation of accommodation, ski school and ski rentals. The Property Development area operates through wholly owned subsidiaries, named Fjallinvest AB and Fjellinvest Norge AS, which manage accommodation properties for hire, own land for development and have a stake in a jointly-owned real estate entities operating at SkiStar’s destinations. Furthermore, the Company is a parent of Salens Hogfjallshotell AB, Tandadalens Fjallhotell Service AB, and Are Invest AB, among others.
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