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 2020 2021e 2022e
Sales 723 770 819
Sales growth (%) 7,8 6,5 6,4
EBITDA 92 97 100
EBITDA margin (%) 12,8 12,5 12,3
EBIT adj 70 76 79
EBIT adj margin (%) 9,6 9,9 9,7
Pretax profit 70 76 79
EPS rep 0,08 0,09 0,09
EPS growth (%) 34,7 9,3 4
EPS adj 0,08 0,09 0,09
DPS 0,06 0,07 0,08
EV/EBITDA (x) 14,7 13,8 13
EV/EBIT adj (x) 19,5 17,5 16,5
P/E (x) 28,3 25,9 24,9
P/E adj (x) 28,3 25,9 24,9
EV/sales (x) 1,9 1,7 1,6
FCF yield (%) 4,4 4,5 4,6
Dividend yield (%) 2,7 3,2 3,4
Net IB debt/EBITDA -2,1 -2,3 -2,4
N/A N/A N/A
SEKm 2020 2021e 2022e
Sales 723 770 819
COGS -483 -514 -551
Gross profit 240 256 268
Other operating items -147 -159 -167
EBITDA 92 97 100
Depreciation on tangibles -23 -21 -21
Depreciation on intangibles 0 0 0
EBITA 70 76 79
Goodwill impairment charges 0 0 0
Other impairment and amortisation 0 0 0
EBIT 70 76 79
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 70 76 79
Tax -15 -16 -17
Net profit 55 60 62
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders 55 60 62
EPS 0,08 0,09 0,09
EPS Adj 0,08 0,09 0,09
Total extraordinary items after tax 0 0 0
Tax rate (%) -21,4 -21,4 -21,4
Gross margin (%) 33,1 33,2 32,7
EBITDA margin (%) 12,8 12,5 12,3
EBITA margin (%) 9,6 9,9 9,7
EBIT margin (%) 9,6 9,9 9,7
Pretax margin (%) 9,6 9,9 9,7
Net margin (%) 7,6 7,8 7,6
Growth rates Y/Y 2020 2021 2022
Sales growth (%) 7,8 6,5 6,4
EBITDA growth (%) 23,5 4,6 4
EBIT growth (%) 36,7 9,4 4
Net profit growth (%) 34,7 9,3 4
EPS growth (%) 34,7 9,3 4
Profitability 2020 2021 2022
ROE (%) 80,6 90,8 76,5
ROE Adj (%) 80,6 90,8 76,5
ROCE (%) 102,5 115,5 97,3
ROCE Adj(%) 102,5 115,5 97,3
ROIC (%) -54,1 -44,7 -43,3
ROIC Adj (%) -54,1 -44,7 -43,3
Adj earnings numbers 2020 2021 2022
EBITDA Adj 92 97 100
EBITDA Adj margin (%) 12,8 12,5 12,3
EBITA Adj 70 76 79
EBITA Adj margin (%) 9,6 9,9 9,7
EBIT Adj 70 76 79
EBIT Adj margin (%) 9,6 9,9 9,7
Pretax profit Adj 70 76 79
Net profit Adj 55 60 62
Net profit to shareholders Adj 55 60 62
Net Adj margin (%) 7,6 7,8 7,6
N/A N/A N/A
SEKm 2020 2021e 2022e
EBITDA 92 97 100
Net financial items 0 0 0
Paid tax -15 -16 -17
Non-cash items 0 0 0
Cash flow before change in WC 77 80 84
Change in WC 10 10 9
Operating cash flow 88 90 92
CAPEX tangible fixed assets -14 -14 -14
CAPEX intangible fixed assets -6 -6 -6
Acquisitions and disposals 0 0 0
Free cash flow 68 70 72
Dividend paid -35 -42 -49
Share issues and buybacks 0 0 0
Other non cash items 0 0 0
Decrease in net IB debt 33 28 23
Balance Sheet (SEKm) 2020 2021 2022
Goodwill 0 0 0
Indefinite intangible assets 14 14 14
Definite intangible assets 0 0 0
Tangible fixed assets 27 27 27
Other fixed assets 4 4 4
Fixed assets 45 45 44
Inventories 0 0 0
Receivables 80 85 92
Other current assets 0 0 0
Cash and liquid assets 187 215 238
Total assets 312 344 373
Shareholders equity 57 75 88
Minority 0 0 0
Total equity 57 75 88
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 78 83 88
Other current liabilities 172 182 192
Total liabilities and equity 312 344 373
Net IB debt -190 -219 -241
Net IB debt excl. pension debt -190 -219 -241
Capital invested -129 -139 -149
Working capital -170 -180 -189
EV breakdown 2020 2021 2022
Market cap. diluted (m) 1549 1549 1549
Net IB debt Adj -190 -219 -241
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 1359 1331 1308
Capital efficiency (%) 2020 2021 2022
Total assets turnover (%) 229,6 234,8 228,2
Capital invested turnover (%) -714,8 -575,2 -569,3
Capital employed turnover (%) 1064,8 1168,5 1006,5
Inventories / sales (%) 0 0 0
Customer advances / sales (%) 20,6 20,6 20,7
Payables / sales (%) 10,5 10,5 10,5
Working capital / sales (%) -20 -22,8 -22,5
Financial risk and debt service 2020 2021 2022
Net debt / equity (%) -334 -292,4 -274,4
Net debt / market cap (%) -17,4 -14,1 -15,6
Equity ratio (%) 18,3 21,7 23,6
Net IB debt adj. / equity (%) -334 -292,4 -274,4
Current ratio (%) 106,7 113,2 117,4
EBITDA / net interest (%) -164883,1 0 0
Net IB debt / EBITDA (%) -206,2 -226,3 -240,2
Interest cover (%) -124202,8 0 0
N/A N/A N/A
SEKm 2020 2021e 2022e
Shares outstanding adj. 701 701 701
Fully diluted shares Adj 701 701 701
EPS 0,08 0,09 0,09
Dividend per share Adj 0,1 0,1 0,1
EPS Adj 0,08 0,09 0,09
BVPS 0,08 0,11 0,13
BVPS Adj 0,08 0,11 0,13
Net IB debt / share -0,3 -0,3 -0,3
Share price 1,56 2,21 2,21
Market cap. (m) 1095 1549 1549
Valuation 2020 2021 2022
P/E 28,3 25,9 24,9
EV/sales 1,88 1,73 1,6
EV/EBITDA 14,7 13,8 13
EV/EBITA 19,5 17,5 16,5
EV/EBIT 19,5 17,5 16,5
Dividend yield (%) 2,7 3,2 3,4
FCF yield (%) 4,4 4,5 4,6
P/BVPS 27,18 20,72 17,62
P/BVPS Adj 27,27 20,72 17,62
P/E Adj 28,3 25,9 24,9
EV/EBITDA Adj 14,7 13,8 13
EV/EBITA Adj 19,5 17,5 16,5
EV/EBIT Adj 19,5 17,5 16,5
EV/cap. employed 23,8 17,8 14,9
Investment ratios 2020 2021 2022
Capex / sales 2,7 2,6 2,5
Capex / depreciation 85,7 97,7 96,1
Capex tangibles / tangible fixed assets 49,8 51,5 53,8
Capex intangibles / definite intangibles 0 0 0
Depreciation on intangibles / definite intangibles 0 0 0
Depreciation on tangibles / tangibles 83,1 75,3 79,9
N/A N/A N/A

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
Mark Hauschildt 13.9 % 13.9 % 31 Dec 2020
Anders Lövgren 13.4 % 13.4 % 31 Dec 2020
ODIN Fonder 7.6 % 7.6 % 31 Dec 2020
BI Asset Mgmt Fondsmaeglerselskab A/S 3.6 % 3.6 % 30 Jun 2020
Berenberg Funds 2.8 % 2.8 % 31 Oct 2020
Ulf Östberg 2.3 % 2.3 % 31 Dec 2020
Mikael Holmlund 1.7 % 1.7 % 31 Dec 2020
Johan Åsberg 1.7 % 1.7 % 31 Dec 2020
Avanza Pension 1.7 % 1.7 % 31 Dec 2020
SEB Fonder 1.5 % 1.5 % 31 Dec 2020
Source: Holdings by Modular Finance AB

Insider list - Bredband2

Name Quantity Code Date
Mark Hauschildt +9 897 433 BUY 9 Dec 2020
Thomas Nygren + 400 000 BUY 7 Dec 2020
Thomas Nygren + 991 000 BUY 7 Dec 2020
Thomas Nygren + 609 000 BUY 7 Dec 2020
Joachim Landhager + 100 000 BUY 14 Sep 2020
Bo Anders Lövgren +1 500 000 BUY 29 Jul 2020
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

Show More