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

Introduce me >

Social media

facebook   Follow us on Twitter

Coverage

Napatech

Napatech

Smart network adapter solutions

Napatech is a tech company that develops and markets smart network adaptors and related solutions (both software and hardware). It sells primarily to large global OEMs (+140 customers), which then sell to end-users. The end-users of Napatech solutions are typically large firms within sectors such as telecommunications, financial services, and governments.

Napatech is positioned in a global market where we expect to see double-digit demand growth for the foreseeable future. If the company can grow with the market over time, we assess that it could potentially scale its operating margin significantly, towards 20%.

Napatech is a small company (<100 employees), which faces major global competition. it is uncertain whether napatech will be able to grow with the market. also, napatech needs to ramp-up and establish new market verticals in order to achieve double-digit growth over time, and its ability to achieve this is uncertain.></100>

DKKm 2019 2020e 2021e
Sales 165 187 220
Sales growth (%) 55,6 12,9 18
EBITDA 7 22 37
EBITDA margin (%) 4 12 17
EBIT adj -18 4 15
EBIT adj margin (%) -11 2 7
Pretax profit -19 2 14
EPS rep -0,24 0,02 0,13
EPS growth (%) 0 108,2 569
EPS adj -0,24 0,02 0,13
DPS 0 0 0
EV/EBITDA (x) 46,4 13,7 8,1
EV/EBIT adj (x) -16,7 82,4 19,6
P/E (x) -15,1 184,9 27,6
P/E adj (x) -15,1 184,9 27,6
EV/sales (x) 1,8 1,6 1,4
FCF yield (%) -5,6 -1,1 1,9
Dividend yield (%) 0 0 0
Net IB debt/EBITDA 1 0,5 0,1
DKKm 2019 2020e 2021e
Sales 165 187 220
COGS -47 -57 -65
Gross profit 118 130 155
Other operating items -112 -107 -118
EBITDA 7 22 37
Depreciation on tangibles 0 0 0
Depreciation on intangibles -23 -17 -21
EBITA -18 4 15
Goodwill impairment charges 0 0 0
Other impairment and amortisation 0 0 0
EBIT -18 4 15
Other financial items 0 0 0
Net financial items -1 -2 -2
Associated income 0 0 0
Other EO items 0 0 0
Pretax profit -19 2 14
Tax -1 0 -3
Net profit -20 2 11
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders -20 2 11
EPS -0,24 0,02 0,13
EPS Adj -0,24 0,02 0,13
Total extraordinary items after tax 0 0 0
Tax rate (%) 4,7 -22 -22
Gross margin (%) 71,5 69,5 70,5
EBITDA margin (%) 4 12 17
EBITA margin (%) -11 2 7
EBIT margin (%) -11 2 7
Pretax margin (%) -11,3 1,1 6,3
Net margin (%) -11,9 0,9 4,9
Growth rates Y/Y 2019 2020 2021
Sales growth (%) 55,6 12,9 18
EBITDA growth (%) 108,7 242,1 67,2
EBIT growth (%) 90 120,5 313
Net profit growth (%) 89 108,2 569
EPS growth (%) 0 108,2 569
Profitability 2019 2020 2021
ROE (%) -37,2 2,2 13,5
ROE Adj (%) -37,2 2,2 13,5
ROCE (%) -18,5 3,6 13
ROCE Adj(%) -18,5 3,6 13
ROIC (%) -20,9 2,8 10,9
ROIC Adj (%) -20,9 2,8 10,9
Adj earnings numbers 2019 2020 2021
EBITDA Adj 7 22 37
EBITDA Adj margin (%) 4 12 17
EBITA Adj -18 4 15
EBITA Adj margin (%) -11 2 7
EBIT Adj -18 4 15
EBIT Adj margin (%) -11 2 7
Pretax profit Adj -19 2 14
Net profit Adj -20 2 11
Net profit to shareholders Adj -20 2 11
Net Adj margin (%) -11,9 0,9 4,9
DKKm 2019 2020e 2021e
EBITDA 7 22 37
Net financial items -1 -2 -2
Paid tax -2 0 0
Non-cash items 0 0 0
Cash flow before change in WC 4 21 36
Change in WC -9 -6 -9
Operating cash flow -2 15 28
CAPEX tangible fixed assets 0 0 0
CAPEX intangible fixed assets -14 -19 -22
Acquisitions and disposals 0 0 0
Free cash flow -17 -3 6
Dividend paid 0 0 0
Share issues and buybacks 0 0 0
Other non cash items 45 1 0
Decrease in net IB debt 18 -4 5
Balance Sheet (DKKm) 2019 2020 2021
Goodwill 0 0 0
Indefinite intangible assets 0 0 0
Definite intangible assets 39 41 42
Tangible fixed assets 1 1 1
Other fixed assets 2 2 2
Fixed assets 55 55 55
Inventories 17 19 23
Receivables 44 50 59
Other current assets 0 0 0
Cash and liquid assets 35 29 33
Total assets 151 154 170
Shareholders equity 71 73 87
Minority 0 0 0
Total equity 71 73 87
Long-term debt 0 0 0
Pension debt 0 0 0
Convertible debt 0 0 0
Deferred tax 0 0 0
Other long-term liabilities 14 14 14
Short-term debt 31 31 31
Accounts payable 15 17 20
Other current liabilities 7 8 9
Total liabilities and equity 267 131 151
Net IB debt 7 10 5
Net IB debt excl. pension debt 7 10 5
Capital invested 99 106 115
Working capital 46 53 62
EV breakdown 2019 2020 2021
Market cap. diluted (m) 297 297 297
Net IB debt Adj 7 10 5
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 304 308 302
Capital efficiency (%) 2019 2020 2021
Total assets turnover (%) 118,7 122,2 135,6
Capital invested turnover (%) 181,6 182,2 199,5
Capital employed turnover (%) 170 162 181,2
Inventories / sales (%) 10,4 9,8 9,6
Customer advances / sales (%) 0 0 0
Payables / sales (%) 11,9 8,4 8,2
Working capital / sales (%) 25,3 26,5 26,1
Financial risk and debt service 2019 2020 2021
Net debt / equity (%) 9,4 14,3 5,9
Net debt / market cap (%) 3,7 3,5 1,7
Equity ratio (%) 46,9 47,3 50,9
Net IB debt adj. / equity (%) 9,4 14,3 5,9
Current ratio (%) 162,3 160,1 175,2
EBITDA / net interest (%) 1163,6 1340 2302,9
Net IB debt / EBITDA (%) 102,4 46,5 13,7
Interest cover (%) -2450,7 200,5 794
DKKm 2019 2020e 2021e
Shares outstanding adj. 83 83 83
Fully diluted shares Adj 83 83 83
EPS -0,24 0,02 0,13
Dividend per share Adj 0 0 0
EPS Adj -0,24 0,02 0,13
BVPS 0,85 0,88 1,04
BVPS Adj 0,38 0,39 0,53
Net IB debt / share 0,1 0,1 0,1
Share price 2,15 3,58 3,58
Market cap. (m) 179 297 297
Valuation 2019 2020 2021
P/E -15,1 184,9 27,6
EV/sales 1,84 1,65 1,37
EV/EBITDA 46,4 13,7 8,1
EV/EBITA -16,7 82,4 19,6
EV/EBIT -16,7 82,4 19,6
Dividend yield (%) 0 0 0
FCF yield (%) -5,6 -1,1 1,9
P/BVPS 4,19 4,07 3,43
P/BVPS Adj 9,39 9,29 6,71
P/E Adj -15,1 184,9 27,6
EV/EBITDA Adj 46,4 13,7 8,1
EV/EBITA Adj -16,7 82,4 19,6
EV/EBIT Adj -16,7 82,4 19,6
EV/cap. employed 2,6 2,7 2,4
Investment ratios 2019 2020 2021
Capex / sales 8,7 10 10
Capex / depreciation 63,6 110,1 107,2
Capex tangibles / tangible fixed assets 9 0 0
Capex intangibles / definite intangibles 36,2 45,5 51,9
Depreciation on intangibles / definite intangibles 57,4 41,4 48,4
Depreciation on tangibles / tangibles 0 0 0

Equity research

Read earlier research

Media

Napatech - Interview with CFO Heine Thorsgaard
Napatech - Company presentation with CFO Heine Thorsgaard

Main shareholders - Napatech

Main shareholders Share capital % Voting shares % Verified
Verdane Capital 27.2 % 27.2 % 13 Jan 2020
Sundt AS 14.6 % 14.6 % 13 Jan 2020
Ludvig Lorentzen AS 7.1 % 7.1 % 13 Jan 2020
Tigerstaden AS 4.6 % 4.6 % 13 May 2019
Haakon Sæter 4.3 % 4.3 % 13 Jan 2020
MP Pensjon PK 3.4 % 3.4 % 13 Jan 2020
Storebrand Asset Management 3.1 % 3.1 % 31 Dec 2019
Brownske Bevegelser AS 2.9 % 2.9 % 13 Jan 2020
Salina Holding AS 2.0 % 2.0 % 13 Jan 2020
Nordnet Pensionsförsäkring 1.6 % 1.6 % 13 Jan 2020
Source: Holdings by Modular Finance AB