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

Introduce me >

Social media

facebook   Follow us on Twitter

Coverage

GARO

GARO

Products and systems for the electrical installations industry

GARO develops and manufactures innovative and solution-oriented products and systems for the electrical installations industry under its own brand. The product areas consist of electrical distribution, project business, temporary power and EV charging. GARO has a broad product assortment and is a market leader within several product areas. The corporate culture strives for common sense and willingness to move ahead, which is translated to the success factors to offer truly user-friendly solutions and continuing innovation.

Continued product development and new launches have the potential to achieve organic growth exceeding market growth. Potential for geographical expansion and new business areas. Also, on the back of GARO's very solid balance sheet, there are opportunities to grow through value-added acquisitions.

Weaker construction market and lower industry growth. Unexpected competition in the EV charger segment.

SEKm 2019 2020e 2021e
Sales 1009 1032 1156
Sales growth (%) 11,8 2,3 12
EBITDA 136 161 184
EBITDA margin (%) 13,4 15,6 15,9
EBIT adj 117 134 155
EBIT adj margin (%) 11,6 13 13,4
Pretax profit 110 123 153
EPS rep 8,55 9,57 11,97
EPS growth (%) 3,4 11,9 25,1
EPS adj 8,95 9,8 11,97
DPS 0 5 5,5
EV/EBITDA (x) 22,9 37,2 32,4
EV/EBIT adj (x) 26,5 44,6 38,5
P/E (x) 35,9 62,7 50,1
P/E adj (x) 34,3 61,2 50,1
EV/sales (x) 3,1 5,8 5,2
FCF yield (%) 2,7 1 1,4
Dividend yield (%) 0 0,8 0,9
Net IB debt/EBITDA 0,3 0 -0,2
N/A N/A N/A
SEKm 2019 2020e 2021e
Sales 1009 1032 1156
COGS -518 -533 -591
Gross profit 491 500 565
Other operating items -355 -338 -381
EBITDA 136 161 184
Depreciation on tangibles -22 -29 -29
Depreciation on intangibles 0 0 0
EBITA 113 132 155
Goodwill impairment charges 0 0 0
Other impairment and amortisation 0 0 0
EBIT 113 132 155
Other financial items 0 0 0
Net financial items -4 -9 -2
Associated income 0 0 0
Other EO items 0 0 0
Pretax profit 110 123 153
Tax -24 -27 -34
Net profit 86 96 120
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders 86 96 120
EPS 8,55 9,57 11,97
EPS Adj 8,95 9,8 11,97
Total extraordinary items after tax -4 -2,3 0
Tax rate (%) -22,1 -22 -22
Gross margin (%) 48,6 48,4 48,9
EBITDA margin (%) 13,4 15,6 15,9
EBITA margin (%) 11,2 12,8 13,4
EBIT margin (%) 11,2 12,8 13,4
Pretax margin (%) 10,9 11,9 13,3
Net margin (%) 8,5 9,3 10,4
Growth rates Y/Y 2019 2020 2021
Sales growth (%) 11,8 2,3 12
EBITDA growth (%) 5,1 18,9 14,3
EBIT growth (%) -0,5 16,7 17,2
Net profit growth (%) 3,4 11,9 25,1
EPS growth (%) 3,4 11,9 25,1
Profitability 2019 2020 2021
ROE (%) 26,8 24,6 25,5
ROE Adj (%) 28 25,2 25,5
ROCE (%) 29,4 28 27,8
ROCE Adj(%) 30,4 28,5 27,8
ROIC (%) 24,2 25,3 26,8
ROIC Adj (%) 25 25,7 26,8
Adj earnings numbers 2019 2020 2021
EBITDA Adj 140 163 184
EBITDA Adj margin (%) 13,8 15,8 15,9
EBITA Adj 117 134 155
EBITA Adj margin (%) 11,6 13 13,4
EBIT Adj 117 134 155
EBIT Adj margin (%) 11,6 13 13,4
Pretax profit Adj 114 125 153
Net profit Adj 90 98 120
Net profit to shareholders Adj 90 98 120
Net Adj margin (%) 8,9 9,5 10,4
N/A N/A N/A
SEKm 2019 2020e 2021e
EBITDA 136 161 184
Net financial items -4 -9 -2
Paid tax -24 -27 -34
Non-cash items 0 0 0
Cash flow before change in WC 108 125 149
Change in WC 7 -40 -33
Operating cash flow 115 84 116
CAPEX tangible fixed assets -33 -26 -35
CAPEX intangible fixed assets 0 0 0
Acquisitions and disposals 0 0 0
Free cash flow 82 58 81
Dividend paid -40 0 -50
Share issues and buybacks 0 0 0
Other non cash items -33 -14 0
Decrease in net IB debt 8 44 31
Balance Sheet (SEKm) 2019 2020 2021
Goodwill 0 0 0
Indefinite intangible assets 0 0 0
Definite intangible assets 67 87 84
Tangible fixed assets 146 128 137
Other fixed assets 8 7 7
Fixed assets 222 221 227
Inventories 170 187 203
Receivables 225 236 265
Other current assets 0 0 0
Cash and liquid assets 41 94 126
Total assets 657 738 820
Shareholders equity 343 435 505
Minority 0 0 0
Total equity 343 435 505
Long-term debt 78 88 88
Pension debt 0 0 0
Convertible debt 0 0 0
Deferred tax 0 0 0
Other long-term liabilities 3 3 3
Short-term debt 0 0 0
Accounts payable 233 212 224
Other current liabilities 0 0 0
Total liabilities and equity 657 738 820
Net IB debt 38 -6 -38
Net IB debt excl. pension debt 38 -6 -38
Capital invested 384 432 470
Working capital 162 211 243
EV breakdown 2019 2020 2021
Market cap. diluted (m) 3070 6000 6000
Net IB debt Adj 38 -6 -38
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 3108 5994 5962
Capital efficiency (%) 2019 2020 2021
Total assets turnover (%) 164,9 147,9 148,4
Capital invested turnover (%) 276,6 253,1 256,3
Capital employed turnover (%) 261,5 218,6 207,2
Inventories / sales (%) 16,5 17,3 16,8
Customer advances / sales (%) 0 0 0
Payables / sales (%) 22 21,5 18,9
Working capital / sales (%) 17 18,1 19,6
Financial risk and debt service 2019 2020 2021
Net debt / equity (%) 10,9 -1,4 -7,5
Net debt / market cap (%) 1,4 -0,1 -0,6
Equity ratio (%) 52,2 59 61,6
Net IB debt adj. / equity (%) 10,9 -1,4 -7,5
Current ratio (%) 187,2 243,7 264,5
EBITDA / net interest (%) 3871,4 1700,1 11730,6
Net IB debt / EBITDA (%) 27,7 -3,8 -20,4
Interest cover (%) 3237,1 1395,4 9873,3
N/A N/A N/A
SEKm 2019 2020e 2021e
Shares outstanding adj. 10 10 10
Fully diluted shares Adj 10 10 10
EPS 8,55 9,57 11,97
Dividend per share Adj 0 5 5,5
EPS Adj 8,95 9,8 11,97
BVPS 34,3 43,51 50,48
BVPS Adj 27,56 34,86 42,12
Net IB debt / share 3,8 -0,6 -3,8
Share price 263,43 600 600
Market cap. (m) 2634 6000 6000
Valuation 2019 2020 2021
P/E 35,9 62,7 50,1
EV/sales 3,08 5,81 5,16
EV/EBITDA 22,9 37,2 32,4
EV/EBITA 27,4 45,3 38,5
EV/EBIT 27,4 45,3 38,5
Dividend yield (%) 0 0,8 0,9
FCF yield (%) 2,7 1 1,4
P/BVPS 8,95 13,79 11,89
P/BVPS Adj 11,14 17,21 14,25
P/E Adj 34,3 61,2 50,1
EV/EBITDA Adj 22,3 36,7 32,4
EV/EBITA Adj 26,5 44,6 38,5
EV/EBIT Adj 26,5 44,6 38,5
EV/cap. employed 7,4 11,5 10,1
Investment ratios 2019 2020 2021
Capex / sales 3,3 2,5 3
Capex / depreciation 147,7 90,9 118,9
Capex tangibles / tangible fixed assets 22,5 20,5 25,4
Capex intangibles / definite intangibles 0 0 0
Depreciation on intangibles / definite intangibles 0 0 0
Depreciation on tangibles / tangibles 15,2 22,5 21,3
N/A N/A N/A

Equity research

Read earlier research

Media

GARO - Company presentation with CEO Patrik Andersson
GARO - Interview with CEO Patrik Andersson (in Swedish)

Main shareholders - GARO

Main shareholders Share capital % Voting shares % Verified
Lars Svensson 35.7 % 35.7 % 30 Sep 2020
Svolder 13.5 % 13.5 % 30 Sep 2020
Nordea Fonder 9.9 % 9.9 % 2 Oct 2020
Stefan Jonsson 5.9 % 5.9 % 30 Sep 2020
SEB Fonder 5.3 % 5.3 % 31 Oct 2020
Swedbank Robur Fonder 5.1 % 5.1 % 20 Oct 2020
Spiltan Fonder 3.5 % 3.5 % 31 Oct 2020
Tredje AP-fonden 2.8 % 2.8 % 30 Sep 2020
Rickard Blomqvist 1.7 % 1.7 % 15 Sep 2020
Carnegie Investment Management (DK) 1.4 % 1.4 % 31 Aug 2020
Source: Holdings by Modular Finance AB

Insider list - GARO

Name Quantity Code Date
Daniel Emilsson - 1 000 SELL 23 Nov 2020
Daniel Emilsson - 1 656 SELL 20 Nov 2020
Daniel Emilsson - 344 SELL 20 Nov 2020
Jan Larsgaard - 3 000 SELL 7 Oct 2020
Daniel Emilsson - 9 193 SELL 25 Sep 2020
Daniel Emilsson - 4 962 SELL 24 Sep 2020
Daniel Emilsson - 11 488 SELL 23 Sep 2020
Rickard Blomqvist - 5 862 SELL 15 Sep 2020
Rickard Blomqvist - 4 326 SELL 14 Sep 2020
Rickard Blomqvist - 10 000 SELL 31 Aug 2020

Show More