Press the button and be introduced to a new random company!

Introduce me >

Social media

facebook   Follow us on Twitter

Coverage

Allgon

Allgon

Manufacturer of industrial radio remote control solutions

Allgon is a world-leading manufacturer of radio remote control solutions for industrial production with customers in the material handling, construction and transport sectors. It develops, manufactures and supplies solutions for industrial radio control to customers around the world. The company also has a long history of working with wireless communication. In recent years Allgon has focused its business on industrial radio control, in which it is one of the five largest manufacturers globally after the acquisition of Tele Radio in 2018, adding 220 employees and SEK 250m in sales to the group.

Allgon has decided to focus its efforts on the segment for industrial radio control solutions, leading to the acquisition of Tele Radio. As a result, Allgon is looking for new homes for its subsidiaries in the Connectivity segment. By streamlining its operations, Allgon wants to gain more exposure to the underlying market for radio remote control solutions, potentially boosting its organic growth and earnings. Also, M&A is possible, as the market for radio remote controllers is highly fragmented with a diverse range of manufacturers around the world.

Allgon acquired Tele Radio in Q3 2018 and management will focus on integrating it into the Allgon group in 2019. However, implementing a relatively large acquisition carries risks in terms of delays, realising synergies and managing foreign subsidiaries. Also, Allgon is sensitive to macroeconomic developments so a downturn in the macro economy could hurt its financial performance. Finally, Allgon operates in a highly technical niche market with highly qualified staff. Potential employees can therefore be hard to find and quite costly to hire.

SEKm 2019 2020e 2021e
Sales 574 598 690
Sales growth (%) 78,2 4,2 15,2
EBITDA 96 89 122
EBITDA margin (%) 16,8 14,8 17,7
EBIT adj 65 61 91
EBIT adj margin (%) 11,3 10,2 13,2
Pretax profit 41 37 67
EPS rep 0,76 0,42 0,82
EPS growth (%) 600,4 -44,8 95,9
EPS adj 0,76 0,42 0,82
DPS 0 0 0
EV/EBITDA (x) 8,8 6,1 3,9
EV/EBIT adj (x) 13,1 8,9 5,3
P/E (x) 14,7 14,6 7,5
P/E adj (x) 14,7 14,6 7,5
EV/sales (x) 1,5 0,9 0,7
FCF yield (%) 4,2 6,6 18,3
Dividend yield (%) 0 0 0
Net IB debt/EBITDA 2,3 2,2 1,1
SEKm 2019 2020e 2021e
Sales 574 598 690
COGS -157 -159 -180
Gross profit 417 439 510
Other operating items -321 -351 -388
EBITDA 96 89 122
Depreciation on tangibles -11 -10 -8
Depreciation on intangibles -11 -10 -17
EBITA 65 61 91
Goodwill impairment charges 0 0 0
Other impairment and amortisation 0 0 0
EBIT 65 61 91
Other financial items 0 0 0
Net financial items -24 -24 -24
Associated income 0 0 0
Other EO items 0 0 0
Pretax profit 41 37 67
Tax 6 -9 -17
Net profit 47 28 50
Minority interest -4 -4 -4
Net profit discontinued 0 0 0
Net profit to shareholders 43 24 46
EPS 0,76 0,42 0,82
EPS Adj 0,76 0,42 0,82
Total extraordinary items after tax 0 0 0
Tax rate (%) 15 -25 -25
Gross margin (%) 72,6 73,4 73,9
EBITDA margin (%) 16,8 14,8 17,7
EBITA margin (%) 11,3 10,2 13,2
EBIT margin (%) 11,3 10,2 13,2
Pretax margin (%) 7,1 6,1 9,7
Net margin (%) 8,2 4,6 7,3
Growth rates Y/Y 2019 2020 2021
Sales growth (%) 78,2 4,2 15,2
EBITDA growth (%) 373,8 -7,8 37,2
EBIT growth (%) 700,7 -6 49,6
Net profit growth (%) 725,1 -41,2 82
EPS growth (%) 600,4 -44,8 95,9
Profitability 2019 2020 2021
ROE (%) 14 7 12,4
ROE Adj (%) 14 7 12,4
ROCE (%) 10,5 9,2 12,9
ROCE Adj(%) 10,5 9,2 12,9
ROIC (%) 13,1 7,6 11,5
ROIC Adj (%) 13,1 7,6 11,5
Adj earnings numbers 2019 2020 2021
EBITDA Adj 96 89 122
EBITDA Adj margin (%) 16,8 14,8 17,7
EBITA Adj 65 61 91
EBITA Adj margin (%) 11,3 10,2 13,2
EBIT Adj 65 61 91
EBIT Adj margin (%) 11,3 10,2 13,2
Pretax profit Adj 41 37 67
Net profit Adj 47 28 50
Net profit to shareholders Adj 43 24 46
Net Adj margin (%) 8,2 4,6 7,3
SEKm 2019 2020e 2021e
EBITDA 96 89 122
Net financial items -24 -24 -24
Paid tax 6 -9 -17
Non-cash items 0 0 0
Cash flow before change in WC 79 56 81
Change in WC -18 -4 -13
Operating cash flow 61 52 68
CAPEX tangible fixed assets -6 -3 -3
CAPEX intangible fixed assets -3 -1 -1
Acquisitions and disposals -25 -25 0
Free cash flow 26 23 63
Dividend paid 0 0 0
Share issues and buybacks 0 0 0
Other non cash items -40 0 0
Decrease in net IB debt -13 24 64
Balance Sheet (SEKm) 2019 2020 2021
Goodwill 396 421 421
Indefinite intangible assets 0 0 0
Definite intangible assets 62 53 37
Tangible fixed assets 20 13 8
Other fixed assets 14 14 14
Fixed assets 511 511 484
Inventories 109 114 131
Receivables 108 113 130
Other current assets 0 0 0
Cash and liquid assets 91 114 179
Total assets 819 852 923
Shareholders equity 325 349 395
Minority 12 16 20
Total equity 337 365 415
Long-term debt 281 281 281
Pension debt 0 0 0
Convertible debt 0 0 0
Deferred tax 9 9 9
Other long-term liabilities 27 27 27
Financial risk and debt service 2019 2020 2021
Net debt / equity (%) 65,9 54,3 32,3
Net debt / market cap (%) 49,6 57,4 38,8
Equity ratio (%) 41,2 42,8 45
Net IB debt adj. / equity (%) 65,9 54,3 32,3
Current ratio (%) 212,8 226,9 256,8
EBITDA / net interest (%) 403,7 370,1 508
Net IB debt / EBITDA (%) 230,6 223,2 109,9
Interest cover (%) 270,9 253,2 378,8
Short-term debt 13 13 13
Accounts payable 132 138 159
Other current liabilities 0 0 0
Total liabilities and equity 819 852 923
Net IB debt 222 198 134
Net IB debt excl. pension debt 222 198 134
Capital invested 596 600 586
Working capital 85 89 102
EV breakdown 2019 2020 2021
Market cap. diluted (m) 627 345 345
Net IB debt Adj 222 198 134
Market value of minority 0 0 0
Reversal of shares and participations 0 0 0
Reversal of conv. debt assumed equity 0 0 0
EV 849 543 479
Capital efficiency (%) 2019 2020 2021
Total assets turnover (%) 73,8 71,6 77,7
Capital invested turnover (%) 101,4 100,1 116,4
Capital employed turnover (%) 93,1 90,2 98,1
Inventories / sales (%) 17,9 18,6 17,7
Customer advances / sales (%) 0 0 0
Payables / sales (%) 21,6 22,5 21,5
Working capital / sales (%) 13,3 14,5 13,8
SEKm 2019 2020e 2021e
Shares outstanding adj. 56 56 56
Fully diluted shares Adj 56 56 56
EPS 0,76 0,42 0,82
Dividend per share Adj 0 0 0
EPS Adj 0,76 0,42 0,82
BVPS 5,78 6,2 7,02
BVPS Adj -2,36 -2,23 -1,13
Net IB debt / share 4 3,5 2,4
Share price 7,97 6,14 6,14
Market cap. (m) 448 345 345
Valuation 2019 2020 2021
P/E 14,7 14,6 7,5
EV/sales 1,48 0,91 0,69
EV/EBITDA 8,8 6,1 3,9
EV/EBITA 13,1 8,9 5,3
EV/EBIT 13,1 8,9 5,3
Dividend yield (%) 0 0 0
FCF yield (%) 4,2 6,6 18,3
P/BVPS 1,93 0,99 0,87
P/BVPS Adj -4,72 -2,76 -5,44
P/E Adj 14,7 14,6 7,5
EV/EBITDA Adj 8,8 6,1 3,9
EV/EBITA Adj 13,1 8,9 5,3
EV/EBIT Adj 13,1 8,9 5,3
EV/cap. employed 1,3 0,8 0,7
Investment ratios 2019 2020 2021
Capex / sales 1,6 0,7 0,6
Capex / depreciation 43,3 20,9 17,5
Capex tangibles / tangible fixed assets 30 22,7 36,7
Capex intangibles / definite intangibles 5,5 2,3 3,7
Depreciation on intangibles / definite intangibles 17,1 19,4 45,7
Depreciation on tangibles / tangibles 55,5 74,6 97,9

Equity research

Read earlier research

Media

Allgon - Company presentation with CEO Johan Hårdén & CFO Sten Hildemar
Allgon - Interview with CEO Johan Hårdén (in Swedish)

Main shareholders - Allgon

Main shareholders Share capital % Voting shares % Verified
Verdane Capital 32.7 % 32.7 % 30 Jun 2019
Tibia Konsult AB 10.2 % 10.2 % 31 Dec 2019
Avanza Pension 4.3 % 4.3 % 31 Dec 2019
Bertil Görling 4.2 % 4.2 % 31 Dec 2019
Futur Pension 4.1 % 4.1 % 31 Dec 2019
Jan Robert Pärsson 3.3 % 3.3 % 31 Dec 2019
Ola Samelius 2.5 % 2.5 % 31 Dec 2019
Nordnet Pensionsförsäkring 2.1 % 2.1 % 31 Dec 2019
AB Jier 1.7 % 1.7 % 31 Dec 2019
Elvind LCE AB 1.5 % 1.5 % 31 Dec 2019
Source: Holdings by Modular Finance AB

Insider list - Allgon

Name Quantity Code Date
Anna Stiwne + 339 BUY 27 Mar 2020
Anna Stiwne + 5 000 BUY 27 Mar 2020
Anna Stiwne + 1 661 BUY 25 Mar 2020
Anna Stiwne + 3 000 BUY 25 Mar 2020
Anna Stiwne + 3 000 BUY 19 Mar 2020
Anna Stiwne + 2 000 BUY 10 Mar 2020
Anna Stiwne + 1 000 BUY 9 Mar 2020
Björn Lindblom + 43 194 SUBS 12 Jul 2018
Per Johan Hårdén + 61 326 SUBS 11 Jul 2018

Show More