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Precise Biometrics

Precise Biometrics

Leading developer of biometric software algorithms

Precise Biometrics is a developer of biometric software algorithms used for verifying identities using new digital technologies. The company offers software for fingerprint scanners in mobile devices, smart payment cards as well as biometric identity systems. The company has a long history of research and development in segments that are just starting to disrupt our digital world, and we believe that the company’s business model can achieve scalability as volumes increase.

Precise Biometrics is at the forefront of biometric algorithm solutions. It has a proven record in the mobile devices segment, which looks set to offer greater profitability in the future as optical and ultrasound fingerprint sensors replace capacitive sensors. Also, Precise has an opportunity for growth as biometrics start penetrating the smart card market, and it has the chance to establish itself as a leader in digital identity, where verification is based on iris, face, geographical and a behavioural profile, replacing the need for cards, keys and passwords.

R&D is crucial for Precise if it is to keep up with the ever-changing landscape of biometrics. As such, a failure to innovate could hurt the competitiveness of the company’s products. Currently, the Precise’s revenues mainly stem from the mobile device segment. Meanwhile, the market for the company’s two growth segments – biometric smart cards and digital identity – remain immature and predictions about growth and penetration remain uncertain. Lastly, apart from in 2016, the company has not been able to generate positive net cash flow without share issues.

SEKm 2020 2021e 2022e
Lease adj. FCF yield (%) 0,6 -1,5 -1
Lease adj. ND/EBITDA -7,9 -3,3 -2,2
Sales 92 96 109
Sales growth (%) 0,5 4,3 13
EBITDA 7 13 21
EBITDA margin (%) 7,4 13,9 18,9
EBIT adj -6 -2 5
EBIT adj margin (%) -6,3 -1,9 5
Pretax profit -6 -2 4
EPS rep -0,03 -0,01 0,01
EPS growth (%) -1955 76,5 221,9
EPS adj -0,03 -0,01 0,01
DPS 0 0 0
EV/EBITDA (x) 59,5 29 18,8
EV/EBIT adj (x) -70,2 -208,2 70,6
P/E (x) -36,4 -148 121,4
P/E adj (x) -36,4 -148 121,4
EV/sales (x) 4,4 4 3,5
FCF yield (%) 0,9 -1,2 -0,8
Dividend yield (%) 0 0 0
Net IB debt/EBITDA -5,5 -2,6 -1,8
SEKm 2020 2021e 2022e
Depreciation and amortisation -13 -15 -15
Of which leasing depreciation -1 -1 -1
EO items 0 0 0
Impairment and PPA amortisation 0 0 0
EBITDA lease Adj 5 12 20
EBITDA lease Adj margin (%) 5,9 12,8 18
EBITA -6 -2 5
Goodwill impairment charges 0 0 0
Other impairment and amortisation 0 0 0
EBIT -6 -2 5
Other financial items 0 0 0
Net financial items -1 0 -1
Associated income 0 0 0
Other EO items 0 0 0
Pretax profit -6 -2 4
Tax -6 -1 -1
Net profit -12 -3 3
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders -12 -3 3
EPS -0,03 -0,01 0,01
EPS Adj -0,03 -0,01 0,01
Total extraordinary items after tax 0 0 0
Tax rate (%) 89,6 89,6 -22
Gross margin (%) 84,2 81,9 82,2
EBITDA margin (%) 7,4 13,9 18,9
EBITA margin (%) -6,3 -1,9 5
EBIT margin (%) -6,3 -1,9 5
Pretax margin (%) -7 -1,6 4,1
Net margin (%) -13,2 -3 3,2
Growth rates Y/Y 2020 2021 2022
Sales growth (%) 0,5 4,3 13
EBITDA growth (%) -50,3 95,6 53,8
EBIT growth (%) -989,7 67,8 393,5
Net profit growth (%) -1947,3 76,5 221,9
EPS growth (%) -1955 76,5 221,9
Profitability 2020 2021 2022
ROE (%) -10,1 -2,5 3,1
ROE Adj (%) -10,1 -2,5 3,1
ROCE (%) -3,7 -1,2 3,6
ROCE Adj(%) -3,7 -1,2 3,6
ROIC (%) -13,6 -4,6 5,5
ROIC Adj (%) -13,6 -4,6 5,5
Adj earnings numbers 2020 2021 2022
EBITDA Adj 7 13 21
EBITDA Adj margin (%) 7,4 13,9 18,9
EBITA Adj -6 -2 5
EBITA Adj margin (%) -6,3 -1,9 5
EBIT Adj -6 -2 5
EBIT Adj margin (%) -6,3 -1,9 5
Pretax profit Adj -6 -2 4
Net profit Adj -12 -3 3
Net profit to shareholders Adj -12 -3 3
Net Adj margin (%) -13,2 -3 3,2
Sales 92 96 109
COGS -15 -17 -19
Gross profit 78 79 90
Other operating items -71 -66 -69
EBITDA 7 13 21
Depreciation on tangibles 0 0 0
Depreciation on intangibles -12 -12 -9
Leasing payments -1 -1 -1
SEKm 2020 2021e 2022e
Lease liability amortisation -1 -1 -1
Other intangible assets 48 52 57
Right-of-use asset 0 0 0
Total other fixed assets 0 0 0
Leasing liability 6 6 6
Total other long-term liabilities 0 0 0
Net IB debt excl. leasing -43 -41 -42
Net IB debt / EBITDA lease Adj (%) -788,1 -330,1 -217,1
EBITDA 7 13 21
Net financial items -1 0 -1
Paid tax -6 -1 -1
Non-cash items 0 0 0
Cash flow before change in WC 0 12 19
Change in WC 21 1 -2
Operating cash flow 22 13 17
CAPEX tangible fixed assets 0 0 0
CAPEX intangible fixed assets -18 -18 -20
Acquisitions and disposals 0 0 0
Free cash flow 4 -5 -3
Dividend paid 0 0 0
Share issues and buybacks 0 0 0
Other non cash items -7 0 0
Decrease in net IB debt -4 -3 -3
Balance Sheet (SEKm) 2020 2021 2022
Goodwill 0 0 0
Indefinite intangible assets 0 0 0
Definite intangible assets 48 54 64
Tangible fixed assets 9 9 9
Other fixed assets 0 0 0
Fixed assets 57 61 67
Inventories 1 0 0
Receivables 15 16 19
Other current assets 4 4 4
Cash and liquid assets 76 74 76
Total assets 153 155 165
Shareholders equity 114 111 115
Minority 0 0 0
Total equity 114 111 115
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 0 0 0
Short-term debt 33 33 33
Accounts payable 0 1 1
Other current liabilities 0 4 10
Total liabilities and equity 153 155 165
Net IB debt -37 -35 -37
Net IB debt excl. pension debt -37 -35 -37
Capital invested 77 76 78
Working capital 20 15 11
EV breakdown 2020 2021 2022
Market cap. diluted (m) 444 423 423
Net IB debt Adj -37 -35 -37
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 406 388 386
Capital efficiency (%) 2020 2021 2022
Total assets turnover (%) 59,3 62,6 68,2
Capital invested turnover (%) 114,4 124,1 131,2
Capital employed turnover (%) 59,4 63,5 69,8
Inventories / sales (%) 0,6 0,5 0
Customer advances / sales (%) 0 0 0
Payables / sales (%) 0 0,5 1
Working capital / sales (%) 29,7 18,3 12
Financial risk and debt service 2020 2021 2022
Net debt / equity (%) -32,7 -31,6 -32,1
Net debt / market cap (%) -7,7 -8,3 -8,7
Equity ratio (%) 74,6 71,7 69,7
Net IB debt adj. / equity (%) -32,7 -31,6 -32,1
Current ratio (%) 289,9 246,4 220,9
EBITDA / net interest (%) 1081 -3766,6 2056,6
Net IB debt / EBITDA (%) -546,4 -263 -179
Interest cover (%) -915,9 524,6 546,6
SEKm 2020 2021e 2022e
Lease adj. FCF yield (%) 0,6 -1,5 -1
Shares outstanding adj. 360 360 360
Fully diluted shares Adj 360 360 360
EPS -0,03 -0,01 0,01
Dividend per share Adj 0 0 0
EPS Adj -0,03 -0,01 0,01
BVPS 0,32 0,31 0,32
BVPS Adj 0,18 0,16 0,16
Net IB debt / share -0,1 -0,1 -0,1
Share price 1,34 1,17 1,17
Market cap. (m) 482 423 423
Valuation 2020 2021 2022
P/E -36,4 -148 121,4
EV/sales 4,4 4,02 3,54
EV/EBITDA 59,5 29 18,8
EV/EBITA -70,2 -208,2 70,6
EV/EBIT -70,2 -208,2 70,6
Dividend yield (%) 0 0 0
FCF yield (%) 0,9 -1,2 -0,8
P/BVPS 3,89 3,8 3,69
P/BVPS Adj 6,69 7,12 7,37
P/E Adj -36,4 -148 121,4
EV/EBITDA Adj 59,5 29 18,8
EV/EBITA Adj -70,2 -208,2 70,6
EV/EBIT Adj -70,2 -208,2 70,6
EV/cap. employed 2,7 2,6 2,5
Investment ratios 2020 2021 2022
Capex / sales 19,4 19,2 18,2
Capex / depreciation 153,9 130,1 140,6
Capex tangibles / tangible fixed assets 0 2,1 2,3
Capex intangibles / definite intangibles 37,5 35,4 34,3
Depreciation on intangibles / definite intangibles 24,4 27,5 24,6
Depreciation on tangibles / tangibles 0 0 0

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Media

Precise Biometrics - Company presentation with CEO Stefan Persson

Main shareholders - Precise Biometrics

Main shareholders Share capital % Voting shares % Verified
Avanza Pension 6.0 % 6.0 % 30 Apr 2021
Nordnet Pensionsförsäkring 2.6 % 2.6 % 30 Apr 2021
Swedbank Försäkring 1.3 % 1.3 % 30 Apr 2021
Curt Blixt 0.9 % 0.9 % 30 Apr 2021
Lars Odqvist 0.9 % 0.9 % 30 Apr 2021
Douglas Storckenfeldt 0.8 % 0.8 % 30 Apr 2021
Roger Eriksson 0.7 % 0.7 % 30 Apr 2021
SEB Trygg Liv 0.7 % 0.7 % 30 Apr 2021
Henrik Svensson Fastigheter AB 0.7 % 0.7 % 30 Apr 2021
Nils Arvidsson 0.7 % 0.7 % 30 Apr 2021
Source: Holdings by Modular Finance AB

Insider list - Precise Biometrics

Name Quantity Code Date
Ulrik Nilsson - 300 000 SELL 6 Apr 2021
Stefan Persson + 49 959 BUY 18 Dec 2020
Ulrik Nilsson + 50 000 BUY 14 Dec 2020
Ulrik Nilsson + 50 000 BUY 10 Dec 2020
Ulrik Nilsson + 50 000 BUY 1 Dec 2020
Stefan Persson + 50 000 BUY 1 Dec 2020
Stefan Persson + 60 000 BUY 17 Nov 2020
Ulrik Nilsson + 50 000 BUY 17 Nov 2020
Åsa Helena Elisabeth Schwarz Ahlin + 9 538 BUY 17 Dec 2019
Åsa Helena Elisabeth Schwarz Ahlin + 65 000 BUY 16 Dec 2019

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