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

Introduce me >

Social media

facebook   Follow us on Twitter

Coverage

Bredband2

Bredband2

Broadband via fiber network

Bredband2 supplies broadband, IP Telephony, data storage and safety solutions through the fiber network. In addition, the company offers co-location for webservers, e-mail and other operation-critical systems with associated network services such as Internet and VPN. The customer base is mainly private clients, but Bredband2 also offers a variety of different products to companies. Today, Bredband2 is primarily operating in the open city networks, where there is free competition between different operators.

The digitalization trend favors Bredband2. There is an increasing demand on faster and more stable network connections. This is due to more and more connected devices, higher TV resolutions, video-on-demand and online games, to mention a few examples. Hence, there is a shift from older network connections to newer ones, like ADSL to fiber. Furthermore, the Swedish government has a set goal that 95% of the Swedish population should have access to broadband by 2020. If this market starts to saturate, there is an opportunity for Bredband2 to seize a better position in the B2B market.

The main risks for Bredband2 are 1) generic product, which makes price an important factor for customers. 2) Market maturity and increased competition, mainly from bigger players, could cause decline in growth without increased margins. 3) High dependence to the net owners, and their continued investments in market expansion.

SEKm 2019 2020e 2021e
Sales 671 730 790
Sales growth (%) 11,8 8,9 8,2
EBITDA 75 83 90
EBITDA margin (%) 11,1 11,4 11,3
EBIT adj 51 61 68
EBIT adj margin (%) 7,6 8,3 8,7
Pretax profit 51 61 68
EPS rep 0,06 0,07 0,08
EPS growth (%) 26,8 17,2 12,9
EPS adj 0,06 0,07 0,08
DPS 0,05 0,06 0,07
EV/EBITDA (x) 10,2 11 9,9
EV/EBIT adj (x) 15 15,1 13
P/E (x) 22,7 23 20,4
P/E adj (x) 22,7 23 20,4
EV/sales (x) 1,1 1,3 1,1
FCF yield (%) 6,9 5,7 6
Dividend yield (%) 3,8 3,8 4,5
Net IB debt/EBITDA -2,1 -2,2 -2,3
SEKm 2019 2020e 2021e
Sales 671 730 790
COGS -445 -493 -535
Gross profit 225 237 255
Other operating items -150 -154 -165
EBITDA 75 83 90
Depreciation on tangibles -24 -22 -21
Depreciation on intangibles 0 0 0
EBITA 51 61 68
Goodwill impairment charges 0 0 0
Other impairment and amortisation 0 0 0
EBIT 51 61 68
Other financial items 0 0 0
Net financial items 0 0 0
Associated income 0 0 0
Other EO items 0 0 0
Pretax profit 51 61 68
Tax -10 -13 -15
Net profit 41 48 54
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders 41 48 54
EPS 0,06 0,07 0,08
EPS Adj 0,06 0,07 0,08
Total extraordinary items after tax 0 0 0
Tax rate (%) -20,4 -21,4 -21,4
Gross margin (%) 33,6 32,5 32,3
EBITDA margin (%) 11,1 11,4 11,3
EBITA margin (%) 7,6 8,3 8,7
EBIT margin (%) 7,6 8,3 8,7
Pretax margin (%) 7,6 8,3 8,7
Net margin (%) 6,1 6,5 6,8
Growth rates Y/Y 2019 2020 2021
Sales growth (%) 11,8 8,9 8,2
EBITDA growth (%) 14,7 11 7,9
EBIT growth (%) 23,8 19 12,9
Net profit growth (%) 26,8 17,2 12,9
EPS growth (%) 26,8 17,2 12,9
Profitability 2019 2020 2021
ROE (%) 53,4 74 96,4
ROE Adj (%) 53,4 74 96,4
ROCE (%) 66,5 94,1 122,7
ROCE Adj(%) 66,5 94,1 122,7
ROIC (%) -64,3 -46,8 -39,6
ROIC Adj (%) -64,3 -46,8 -39,6
Adj earnings numbers 2019 2020 2021
EBITDA Adj 75 83 90
EBITDA Adj margin (%) 11,1 11,4 11,3
EBITA Adj 51 61 68
EBITA Adj margin (%) 7,6 8,3 8,7
EBIT Adj 51 61 68
EBIT Adj margin (%) 7,6 8,3 8,7
Pretax profit Adj 51 61 68
Net profit Adj 41 48 54
Net profit to shareholders Adj 41 48 54
Net Adj margin (%) 6,1 6,5 6,8
SEKm 2019 2020e 2021e
EBITDA 75 83 90
Net financial items 0 0 0
Paid tax -10 -13 -15
Non-cash items 10 0 0
Cash flow before change in WC 75 70 75
Change in WC 16 53 12
Operating cash flow 83 82 87
CAPEX tangible fixed assets -10 -14 -14
CAPEX intangible fixed assets -8 -6 -6
Acquisitions and disposals 0 0 0
Free cash flow 64 62 66
Dividend paid -35 -35 -42
Share issues and buybacks 0 0 0
Other non cash items -6 0 0
Decrease in net IB debt 29 27 24
Balance Sheet (SEKm) 2019 2020 2021
Goodwill 3 0 0
Indefinite intangible assets 14 14 14
Definite intangible assets 0 0 0
Tangible fixed assets 28 28 27
Other fixed assets 4 4 4
Fixed assets 48 46 45
Inventories 0 0 0
Receivables 116 80 87
Other current assets 0 0 0
Cash and liquid assets 154 181 205
Total assets 318 307 337
Shareholders equity 79 50 62
Minority 0 0 0
Total equity 79 50 62
Long-term debt 0 0 0
Pension debt 0 0 0
Convertible debt 0 0 0
Deferred tax 5 5 5
Other long-term liabilities 0 0 0
Short-term debt 0 0 0
Accounts payable 73 79 84
Other current liabilities 161 173 186
Total liabilities and equity 318 307 337
Net IB debt -157 -184 -208
Net IB debt excl. pension debt -157 -184 -208
Capital invested -74 -130 -142
Working capital -118 -172 -184
EV breakdown 2019 2020 2021
Market cap. diluted (m) 923 1097 1097
Net IB debt Adj -157 -184 -208
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 765 913 889
Capital efficiency (%) 2019 2020 2021
Total assets turnover (%) 218,4 233,7 245,4
Capital invested turnover (%) -1064,4 -718,5 -581,2
Capital employed turnover (%) 876,6 1135 1416,8
Inventories / sales (%) 0 0 0
Customer advances / sales (%) 20,2 20,5 20,5
Payables / sales (%) 11,4 10,4 10,3
Working capital / sales (%) -16,5 -19,9 -22,5
Financial risk and debt service 2019 2020 2021
Net debt / equity (%) -199,5 -369,4 -338,5
Net debt / market cap (%) -20 -16,8 -19
Equity ratio (%) 24,8 16,3 18,3
Net IB debt adj. / equity (%) -199,5 -369,4 -338,5
Current ratio (%) 115 103,6 107,9
EBITDA / net interest (%) -62304,2 0 0
Net IB debt / EBITDA (%) -210,2 -222,1 -232,7
Interest cover (%) -42392,5 N/A N/A
SEKm 2019 2020e 2021e
Shares outstanding adj. 701 701 701
Fully diluted shares Adj 701 701 701
EPS 0,06 0,07 0,08
Dividend per share Adj 0,1 0,1 0,1
EPS Adj 0,06 0,07 0,08
BVPS 0,11 0,07 0,09
BVPS Adj 0,11 0,07 0,09
Net IB debt / share -0,2 -0,3 -0,3
Share price 1,12 1,56 1,56
Market cap. (m) 784 1097 1097
Valuation 2019 2020 2021
P/E 22,7 23 20,4
EV/sales 1,14 1,25 1,13
EV/EBITDA 10,2 11 9,9
EV/EBITA 15 15,1 13
EV/EBIT 15 15,1 13
Dividend yield (%) 3,8 3,8 4,5
FCF yield (%) 6,9 5,7 6
P/BVPS 11,71 21,99 17,81
P/BVPS Adj 12,11 22,08 17,81
P/E Adj 22,7 23 20,4
EV/EBITDA Adj 10,2 11 9,9
EV/EBITA Adj 15 15,1 13
EV/EBIT Adj 15 15,1 13
EV/cap. employed 9,7 18,3 14,4
Investment ratios 2019 2020 2021
Capex / sales 2,8 2,7 2,6
Capex / depreciation 78,7 87,8 96,8
Capex tangibles / tangible fixed assets 36,8 49,6 52,3
Capex intangibles / definite intangibles N/A N/A N/A
Depreciation on intangibles / definite intangibles N/A N/A N/A
Depreciation on tangibles / tangibles 85,2 80,7 77,2

Equity research

Read earlier research

Media

Bredband2 - Company presentation with CEO Daniel Krook (in Swedish)
Bredband2 - Interview with CEO Daniel Krook (in Swedish)

Main shareholders - Bredband2

Main shareholders Share capital % Voting shares % Verified
Anders Lövgren 18.0 % 18.0 % 7 May 2020
Dan Örjan Berglund 10.1 % 10.1 % 31 Mar 2020
ODIN Fonder 7.3 % 7.3 % 31 May 2020
Alcur Fonder 5.4 % 5.4 % 31 Mar 2020
Leif Danielsson 4.1 % 4.1 % 31 Mar 2020
BI Asset Mgmt Fondsmaeglerselskab A/S 3.6 % 3.6 % 31 Mar 2020
Berenberg Funds 3.3 % 3.3 % 30 Apr 2020
Ulf Östberg 3.1 % 3.1 % 31 Mar 2020
Avanza Pension 2.0 % 2.0 % 31 Mar 2020
Daniel Krook 2.0 % 2.0 % 31 Mar 2020
Source: Holdings by Modular Finance AB

Insider list - Bredband2

Name Quantity Code Date
Loevgren Anders +10 000 000 BUY 7 May 2020
Claes Fägersten +1 300 000 BUY 23 Aug 2019
Rolf Johansson + 250 000 BUY 31 May 2019
Rolf Johansson + 250 000 BUY 27 May 2019
Advokat Rolf Johansson AB + 200 000 BUY 26 Nov 2018
Mats Robert Burén + 64 000 BUY 29 Oct 2018
Mats Robert Burén + 2 810 BUY 29 Oct 2018
Marand Group AB +2 000 000 BUY 29 Oct 2018
Mats Robert Burén + 16 000 BUY 29 Oct 2018
Mats Robert Burén + 92 911 BUY 29 Oct 2018

Show More