Fundamentanalyse: Hummel

Morten Alexander Jagd Sørensen & Nikolaj Rosenbeck Hansen

Student thesis: Diploma thesis


Christian Stadil has made the biggest personal investment in history of the TV-program, Lions Den. This got us curious about how he has achieved this kind of fortune. We can see that Christian Stadil has paid DKK 265 million over the last 5 years, from his company Hummel. This has been possible due to the fact the brand Hummel has generated growth over the past 20 years. Therefore we would like to see how much Hummel was worth if the company ever got on the TV show itself, or if Christian Stadil decides that his fortune at Hummel could be invested elsewhere, in other new business ideas like the ones from the program. This led us to the following problem definition: What is Hummel worth? We have split this problem into three study questions: Which strategic position does Hummel have? How has the economic situation evolved for Hummel? What is the price of Hummel? We have based the analysis of the strategic position on the following models: PESTEL, Porters Five Forces, Porters Generic Competitive Strategies, Core Competencies, Ansoff’s Growth Matrices and SWOT. The first two models are we using to analyze the market of which Hummel is operating on, and the following four models are we using to analyze Hummel itself. We found out that Hummel are using a differentiation strategy to create their own niche in an attractive market with perfect competition that is currently characterized by especially CSR related factors. Furthermore, we discovered that Hummel has a wide variety of products that they offer to a wide variety of target groups that they use when entering a new market, which they are currently doing in Turkey. They hereby take ad-vantage of the economies of scale that the internal setup provides for them. The economies of scale is exactly what we can see when looking at the financials where we can see that Hummel has experienced a huge growth in revenue and in total assets, without a similar growth in costs. This provides Hummel with acceptable figures compared to the market and the industry in general. The figures that we analyzed in this paper were: Return on Equity, Return on Assets, Financial Gear-ing, Profit Margin, Asset Turnover Ratio, EBIDA, EBIT, NOPAT, Fixed Assets Turnover Ratio and Working Capital Assets Turnover Ratio. These figures were calculated on reformulated balances and income statement. The strategic and economic analysis of Hummel gave birth to a budget and terminal period, along with a rate for return requirements when estimating the question of what Hummel is worth. The result of DKK 1,4 billion where tested through a sensitivity analysis where the interval was between 1,2 and 1,6 billion.

EducationsGraduate Diploma in Accounting and Financial Management, (Diploma Programme) Final Thesis
Publication date2016
Number of pages118