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

Introduce me >

Social media

facebook   Follow us on Twitter

Coverage

Swedencare

Swedencare

Premium animal health products

Swedencare is a high-growth animal health company that develops, promotes and sells OTC premium products within animal dental care. The company's main product, ProDen PlaqueOff, is proprietary, patented until 2021-2028 and sold in more than 50 countries. It reduces the amount of plaque, tartar as well as problems with bleeding gums and the target group is cats and dogs. Following acquisitions of its three largest distribution/sales partners in 2016, Swedencare has around 85% of its sales via direct sales and the remaining from external distributors.

Margin expansion from selling high margin ”PlaqueOff Powder ingredient” to food producers. Growth potential from continued launch of new products and/or products on new markets. We view China, Russia and Brazil as interesting growth markets. The net cash position and solid cash generation also leave room for more M&A and/or future dividends.

Strong dependency on the PlaqueOff formula, for which the patent runs out in 2021 in most markets. Increased competition from larger animal health care companies entering Swedencare’s niche in the animal dental care market. With a poor M&A track record, there are risks for acquisition integration issues and inflated acquisition multiples if Swedencare decides to embark on the M&A path. New product and market launches involve risk and Swedencare has a high release tempo.

SEKm 2020 2021e 2022e
Lease adj. FCF yield (%) -10,4 -2 1,1
Lease adj. ND/EBITDA 0,2 -0,5 0
Sales 240 626 760
Sales growth (%) 89,4 160,4 21,5
EBITDA 65 178 224
EBITDA margin (%) 27,1 28,5 29,5
EBIT adj 66 173 216
EBIT adj margin (%) 27,3 27,7 28,5
Pretax profit 59 167 212
EPS rep 2,8 6,3 8,02
EPS growth (%) 47,4 125,5 27,2
EPS adj 3,1 6,38 8,02
DPS 0,8 2,52 3,21
EV/EBITDA (x) 84,5 61,4 48,6
EV/EBIT adj (x) 84 63,3 50,4
P/E (x) 116,2 81,7 64,2
P/E adj (x) 104,9 80,7 64,2
EV/sales (x) 22,9 17,5 14,3
FCF yield (%) -10,4 -2 1,2
Dividend yield (%) 0,2 0,5 0,6
Net IB debt/EBITDA -2 0,4 0
SEKm 2020 2021e 2022e
Depreciation and amortisation -5 -7 -8
Of which leasing depreciation -2 -4 -3
EO items -5 -2 0
Impairment and PPA amortisation 0 0 0
EBITDA lease Adj -548 -143 224
EBITDA lease Adj margin (%) -228,1 -22,8 29,5
Sales 240 626 760
COGS -83 -253 -308
Gross profit 158 373 453
Other operating items -92 -195 -228
EBITDA 65 178 224
Depreciation on tangibles -3 -4 -5
Depreciation on intangibles 0 0 0
EBITA 60 171 216
Goodwill impairment charges 0 0 0
Other impairment and amortisation 0 0 0
EBIT 60 171 216
Other financial items 0 0 0
Net financial items -2 -4 -4
Associated income 0 0 0
Other EO items 0 0 0
Pretax profit 59 167 212
Tax -10 -34 -42
Net profit 49 133 170
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders 49 133 170
EPS 2,8 6,3 8,02
EPS Adj 3,1 6,38 8,02
Total extraordinary items after tax -5,3 -1,7 0
Tax rate (%) -17,3 -20,2 -20
Gross margin (%) 65,6 59,6 59,5
EBITDA margin (%) 27,1 28,5 29,5
EBITA margin (%) 25,1 27,4 28,5
EBIT margin (%) 25,1 27,4 28,5
Pretax margin (%) 24,4 26,7 27,9
Net margin (%) 20,2 21,3 22,3
Growth rates Y/Y 2020 2021 2022
Sales growth (%) 89,4 160,4 21,5
EBITDA growth (%) 62,7 173,7 25,7
EBIT growth (%) 63,5 184,1 26,2
Net profit growth (%) 62,2 174,9 27,4
EPS growth (%) 47,4 125,5 27,2
Profitability 2020 2021 2022
ROE (%) 9,1 12,5 13,4
ROE Adj (%) 10,1 12,6 13,4
ROCE (%) 9,9 14 15,3
ROCE Adj(%) 10,7 14,2 15,3
ROIC (%) 10,9 12,9 13,1
ROIC Adj (%) 11,9 13 13,1
Adj earnings numbers 2020 2021 2022
EBITDA Adj 70 180 224
EBITDA Adj margin (%) 29,3 28,8 29,5
EBITA Adj 66 173 216
EBITA Adj margin (%) 27,3 27,7 28,5
EBIT Adj 66 173 216
EBIT Adj margin (%) 27,3 27,7 28,5
Pretax profit Adj 64 169 212
Net profit Adj 54 135 170
Net profit to shareholders Adj 54 135 170
Net Adj margin (%) 22,4 21,6 22,3
Leasing payments -619 -323 0
SEKm 2020 2021e 2022e
Lease liability amortisation 1 -4 -3
Other intangible assets 141 150 150
Right-of-use asset 26 24 24
Total other fixed assets 0 0 0
Leasing liability 3 3 3
Total other long-term liabilities 20 19 19
Net IB debt excl. leasing -131 64 -5
Net IB debt / EBITDA lease Adj (%) 23,9 -45,1 -2,4
EBITDA 65 178 224
Net financial items -2 -4 -4
Paid tax -10 -34 -42
Non-cash items 0 0 0
Cash flow before change in WC 53 140 178
Change in WC -21 -25 -38
Operating cash flow 32 115 140
CAPEX tangible fixed assets -1 -10 -14
CAPEX intangible fixed assets 0 0 0
Acquisitions and disposals -619 -323 0
Free cash flow -587 -218 126
Dividend paid -11 -14 -53
Share issues and buybacks 683 40 0
Other non cash items -34 -37 -13
Decrease in net IB debt 85 -38 65
Balance Sheet (SEKm) 2020 2021 2022
Goodwill 568 878 878
Indefinite intangible assets 141 141 141
Definite intangible assets 0 0 0
Tangible fixed assets 15 123 132
Other fixed assets 0 0 0
Fixed assets 750 1175 1184
Inventories 62 50 72
Receivables 49 136 166
Other current assets 5 11 13
Cash and liquid assets 284 80 149
Total assets 1150 1451 1584
Shareholders equity 933 1210 1326
Minority 0 0 0
Total equity 933 1210 1326
Long-term debt 118 109 109
Pension debt 0 0 0
Convertible debt 0 0 0
Deferred tax 0 0 0
Other long-term liabilities 20 20 20
Short-term debt 36 36 36
Accounts payable 19 16 19
Other current liabilities 23 60 73
Total liabilities and equity 1150 1451 1584
Net IB debt -128 67 -2
Net IB debt excl. pension debt -128 67 -2
Capital invested 825 1296 1343
Working capital 74 121 159
EV breakdown 2020 2021 2022
Market cap. diluted (m) 5641 10897 10908
Net IB debt Adj -128 67 -2
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 5513 10964 10905
Capital efficiency (%) 2020 2021 2022
Total assets turnover (%) 37 48,1 50,1
Capital invested turnover (%) 52,6 64 68,7
Capital employed turnover (%) 39,3 50,3 54,4
Inventories / sales (%) 16 9,4 8,1
Customer advances / sales (%) 0 0 0
Payables / sales (%) 5,1 2,9 2,3
Working capital / sales (%) 19,7 15,6 18,4
Financial risk and debt service 2020 2021 2022
Net debt / equity (%) -13,7 5,6 -0,2
Net debt / market cap (%) -5,1 0,6 0
Equity ratio (%) 81,1 83,3 83,7
Net IB debt adj. / equity (%) -13,7 5,6 -0,2
Current ratio (%) 508,9 245,6 310,2
EBITDA / net interest (%) 3847,1 4150,9 5608,7
Net IB debt / EBITDA (%) -196,4 37,7 -1
Interest cover (%) 3561,3 3987,9 5408,7
SEKm 2020 2021e 2022e
Lease adj. FCF yield (%) -10,4 -2 1,1
Shares outstanding adj. 17 21 21
Fully diluted shares Adj 17 21 21
EPS 2,8 6,3 8,02
Dividend per share Adj 0,8 2,5 3,2
EPS Adj 3,1 6,38 8,02
BVPS 53,75 57,17 62,61
BVPS Adj 21,03 15,7 21,18
Net IB debt / share -7,4 3,2 -0,1
Share price 143,86 515 515
Market cap. (m) 2497 10897 10908
Valuation 2020 2021 2022
P/E 116,2 81,7 64,2
EV/sales 22,94 17,52 14,34
EV/EBITDA 84,5 61,4 48,6
EV/EBITA 91,3 63,9 50,4
EV/EBIT 91,3 63,9 50,4
Dividend yield (%) 0,2 0,5 0,6
FCF yield (%) -10,4 -2 1,2
P/BVPS 6,05 9,01 8,23
P/BVPS Adj 15,45 32,81 24,32
P/E Adj 104,9 80,7 64,2
EV/EBITDA Adj 78,2 60,9 48,6
EV/EBITA Adj 84 63,3 50,4
EV/EBIT Adj 84 63,3 50,4
EV/cap. employed 5,1 8,1 7,4
Investment ratios 2020 2021 2022
Capex / sales 0,4 1,7 1,9
Capex / depreciation 31,6 304,1 286,4
Capex tangibles / tangible fixed assets 6,4 8,4 10,8
Capex intangibles / definite intangibles 0 0 0
Depreciation on intangibles / definite intangibles 0 0 0
Depreciation on tangibles / tangibles 20,1 2,8 3,8

Equity research

Read earlier research

Media

Swedencare - Company presentation with CEO Håkan Lagerberg
Swedencare - Company presentation with CEO Håkan Lagerberg

Main shareholders - Swedencare

Main shareholders Share capital % Voting shares % Verified
Håkan Svanberg 21.8 % 21.8 % 3 May 2021
JCC Group Invest Sweden AB (Johan Bergdahl) 7.1 % 7.1 % 2 May 2021
DNCA Finance S.A 5.6 % 5.6 % 31 Mar 2021
Mastan AB (Håkan Lagerberg) 5.3 % 5.3 % 31 Jan 2021
Handelsbanken Fonder 4.6 % 4.6 % 30 Apr 2021
AMF Pension & Fonder 4.5 % 4.5 % 30 Apr 2021
SEB Fonder 3.2 % 3.2 % 30 Apr 2021
Aktia Asset Management 2.9 % 2.9 % 30 Apr 2021
Matthew Shaw 2.8 % 2.8 % 30 Apr 2021
Consensus Asset Management 2.2 % 2.2 % 30 Apr 2021
Source: Holdings by Modular Finance AB

Insider list - Swedencare

Name Quantity Code Date
Håkan Svanberg - 30 000 SELL 3 May 2021
JCC Group Invest Sweden AB - 15 000 SELL 2 May 2021
JCC Group Invest Sweden AB - 15 000 SELL 2 Apr 2021
Håkan Svanberg + 750 000 Received loan 11 Jan 2021
Håkan Svanberg - 750 000 Received loan 16 Dec 2020
Håkan Svanberg +1 500 000 Received loan 24 Jul 2020
Håkan Svanberg -1 500 000 Received loan 23 Jun 2020
Håkan Svanberg + 5 000 BUY 25 Mar 2020
Håkan Svanberg + 1 945 BUY 18 Mar 2020
Håkan Svanberg + 2 054 BUY 18 Mar 2020

Show More