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 671 735 782
Sales growth (%) 11,8 9,5 6,4
EBITDA 74 86 95
EBITDA margin (%) 11 11,7 12,2
EBIT adj 50 61 72
EBIT adj margin (%) 7,4 8,4 9,3
Pretax profit 50 61 72
EPS rep 0,06 0,07 0,08
EPS growth (%) 22 23,5 18,1
EPS adj 0,06 0,07 0,08
DPS 0,06 0,06 0,07
EV/EBITDA (x) 10,2 8,5 7,4
EV/EBIT adj (x) 15,2 11,8 9,6
P/E (x) 23,2 18,8 15,9
P/E adj (x) 23,2 18,8 15,9
EV/sales (x) 1,1 1 0,9
FCF yield (%) 6,4 7,3 7,7
Dividend yield (%) 4,3 4,7 5,5
Net IB debt/EBITDA -2 -2 -2,1
SEKm 2019 2020e 2021e
Sales 671 735 782
COGS -445 -487 -517
Gross profit 226 248 264
Other operating items -152 -162 -169
EBITDA 74 86 95
Depreciation on tangibles -24 -24 -23
Depreciation on intangibles 0 0 0
EBITA 50 61 72
Goodwill impairment charges 0 0 0
Other impairment and amortisation 0 0 0
EBIT 50 61 72
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 50 61 72
Tax -11 -13 -16
Net profit 39 48 56
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders 39 48 56
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 (%) -22 -22 -22
Gross margin (%) 33,7 33,7 33,8
EBITDA margin (%) 11 11,7 12,2
EBITA margin (%) 7,4 8,4 9,3
EBIT margin (%) 7,4 8,4 9,3
Pretax margin (%) 7,4 8,3 9,3
Net margin (%) 5,8 6,5 7,2
Growth rates Y/Y 2019 2020 2021
Sales growth (%) 11,8 9,5 6,4
EBITDA growth (%) 13,1 16,4 10,8
EBIT growth (%) 20,7 23,8 18,1
Net profit growth (%) 22 23,5 18,1
EPS growth (%) 22 23,5 18,1
Profitability 2019 2020 2021
ROE (%) 51,6 58,7 60,5
ROE Adj (%) 51,6 58,7 60,5
ROCE (%) 63,3 72,8 75,4
ROCE Adj(%) 63,3 72,8 75,4
ROIC (%) -66,7 -62,8 -61,7
ROIC Adj (%) -66,7 -62,8 -61,7
Adj earnings numbers 2019 2020 2021
EBITDA Adj 74 86 95
EBITDA Adj margin (%) 11 11,7 12,2
EBITA Adj 50 61 72
EBITA Adj margin (%) 7,4 8,4 9,3
EBIT Adj 50 61 72
EBIT Adj margin (%) 7,4 8,4 9,3
Pretax profit Adj 50 61 72
Net profit Adj 39 48 56
Net profit to shareholders Adj 39 48 56
Net Adj margin (%) 5,8 6,5 7,2
SEKm 2019 2020e 2021e
EBITDA 74 86 95
Net financial items 0 0 0
Paid tax -11 -13 -16
Non-cash items 8 0 0
Cash flow before change in WC 71 72 79
Change in WC 14 13 11
Operating cash flow 77 85 90
CAPEX tangible fixed assets -15 -15 -15
CAPEX intangible fixed assets -5 -5 -5
Acquisitions and disposals 0 0 0
Free cash flow 57 66 69
Dividend paid -35 -39 -42
Share issues and buybacks 0 0 0
Other non cash items 0 0 0
Decrease in net IB debt 22 27 27
Balance Sheet (SEKm) 2019 2020 2021
Goodwill 3 0 0
Indefinite intangible assets 13 12 12
Definite intangible assets 0 0 0
Tangible fixed assets 34 32 31
Other fixed assets 0 0 0
Fixed assets 49 45 42
Inventories 0 0 0
Receivables 134 150 162
Other current assets 0 0 0
Cash and liquid assets 147 174 201
Total assets 330 368 406
Shareholders equity 77 86 100
Minority 0 0 0
Total equity 77 86 100
Long-term debt 3 3 3
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 0 0 0
Accounts payable 251 280 303
Other current liabilities 0 0 0
Total liabilities and equity 321 296 330
Net IB debt -144 -171 -199
Net IB debt excl. pension debt -144 -171 -199
Capital invested -67 -85 -98
Working capital -117 -130 -141
EV breakdown 2019 2020 2021
Market cap. diluted (m) 897 897 897
Net IB debt Adj -144 -171 -199
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 753 726 699
Capital efficiency (%) 2019 2020 2021
Total assets turnover (%) 214,3 210,2 201,8
Capital invested turnover (%) -1156,8 -963,1 -853
Capital employed turnover (%) 856,5 871,8 813,9
Inventories / sales (%) 0 0 0
Customer advances / sales (%) 0 0 0
Payables / sales (%) 35 36,1 37,3
Working capital / sales (%) -16,3 -16,8 -17,3
Financial risk and debt service 2019 2020 2021
Net debt / equity (%) -187,7 -199 -197,7
Net debt / market cap (%) -18,4 -19,1 -22,1
Equity ratio (%) 23,3 23,4 24,7
Net IB debt adj. / equity (%) -187,7 -199 -197,7
Current ratio (%) 112,1 115,8 120,1
EBITDA / net interest (%) -824425,1 76407,7 84685
Net IB debt / EBITDA (%) -195,6 -199,6 -208,9
Interest cover (%) -554514,5 54668,6 64549,6
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 0,12 0,14
BVPS Adj 0,11 0,12 0,14
Net IB debt / share -0,2 -0,2 -0,3
Share price 1,12 1,28 1,28
Market cap. (m) 784 897 897
Valuation 2019 2020 2021
P/E 23,2 18,8 15,9
EV/sales 1,12 0,99 0,89
EV/EBITDA 10,2 8,5 7,4
EV/EBITA 15,2 11,8 9,6
EV/EBIT 15,2 11,8 9,6
Dividend yield (%) 4,3 4,7 5,5
FCF yield (%) 6,4 7,3 7,7
P/BVPS 11,68 10,43 8,94
P/BVPS Adj 12,12 10,48 8,94
P/E Adj 23,2 18,8 15,9
EV/EBITDA Adj 10,2 8,5 7,4
EV/EBITA Adj 15,2 11,8 9,6
EV/EBIT Adj 15,2 11,8 9,6
EV/cap. employed 9,5 8,2 6,8
Investment ratios 2019 2020 2021
Capex / sales 3 2,7 2,6
Capex / depreciation 82,3 81,3 89,9
Capex tangibles / tangible fixed assets 43,9 46,1 49,4
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 71,2 75,6 73,2

Equity research

Read earlier research

Media

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

Main shareholders - Bredband2

Main shareholders Share capital % Voting shares % Verified
Anders Lövgren 16.6 % 16.6 % 31 Dec 2019
Dan Örjan Berglund 12.9 % 12.9 % 31 Dec 2019
Leif Danielsson 4.6 % 4.6 % 31 Dec 2019
BI Asset Mgmt Fondsmaeglerselskab A/S 3.9 % 3.9 % 30 Sep 2019
Ulf Östberg 3.8 % 3.8 % 31 Dec 2019
Berenberg Funds 3.6 % 3.6 % 31 Oct 2019
Veralda Investment Ltd 2.4 % 2.4 % 30 Jun 2019
Avanza Pension 2.3 % 2.3 % 31 Dec 2019
Alcur Fonder 2.3 % 2.3 % 31 Dec 2019
Daniel Krook 2.0 % 2.0 % 31 Dec 2019
Source: Holdings by Modular Finance AB

Insider list - Bredband2

Name Quantity Code Date
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
Marand Group AB +2 000 000 BUY 29 Oct 2018
Mats Robert Burén + 92 911 BUY 29 Oct 2018
Mats Robert Burén + 64 000 BUY 29 Oct 2018
Mats Robert Burén + 16 000 BUY 29 Oct 2018
Mats Robert Burén + 24 279 BUY 29 Oct 2018
Mats Robert Burén + 2 810 BUY 29 Oct 2018

Show More