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

Introduce me >

Social media

facebook   Follow us on Twitter

Coverage

CTT Systems

CTT Systems

Systems for climate control in airplanes

CTT Systems develops climate control products for aircraft, including dehumidification systems to prevent condensation and humidifiers for crew and passenger wellbeing. CTT’s products are offered on the Boeing 787 and 777X as well as the Airbus A380 and A350. The company holds a majority market share within both dehumidification and humidification products and is a tier-1 supplier to the Boeing 787 and 777X.

CTT holds virtually a 100% market share in airplane dehumidification systems and a big majority share of the market for humidification systems. Its dehumidification products offer large fuel and cost savings while its humidification products increase humidity levels and comfort for passengers. Should the company be able to penetrate the market for narrow-body aircraft (Boeing 737 MAX/Airbus A320Neo), it would have a strong pipeline of sales and high profitability from aftermarket sales for 20-40 years ahead. The market also offers considerable barriers to entry due to customer relationships, certifications and proven reliability among OEM suppliers.

The high profitability in CTT’s systems could attract new competitors, or result in the OEM suppliers providing their own solutions. While CTT’s relationships with Airbus and Boeing are highly valuable, they have little influence over pricing and therefore are sensitive to contract renegotiations. Almost all revenues are dollar-based, implying a strong currency sensitivity. The main risks entail a lack of market penetration due to low willingness among airliners to have dehumidifiers and humidifiers installed.

SEKm 2019 2020e 2021e
Sales 355 222 316
Sales growth (%) 12,5 -37,4 42,2
EBITDA 126 53 98
EBITDA margin (%) 35,6 24 31
EBIT adj 113 46 91
EBIT adj margin (%) 31,7 20,8 28,7
Pretax profit 118 42 90
EPS rep 7,39 2,62 5,58
EPS growth (%) 32,9 -64,5 112,9
EPS adj 6,84 2,62 5,58
DPS 4,05 1,83 3,91
EV/EBITDA (x) 16,9 35,8 19,1
EV/EBIT adj (x) 19 41,4 20,7
P/E (x) 23,9 60,3 28,3
P/E adj (x) 25,8 60,3 28,3
EV/sales (x) 6 8,6 5,9
FCF yield (%) 4,1 2 3
Dividend yield (%) 2,3 1,2 2,5
Net IB debt/EBITDA -0,6 -1,3 -1,1
SEKm 2019 2020e 2021e
Sales 355 222 316
COGS 0 0 0
Gross profit 355 222 316
Other operating items -229 -169 -218
EBITDA 126 53 98
Depreciation on tangibles -4 -5 -3
Depreciation on intangibles -2 -2 -4
EBITA 120 46 91
Goodwill impairment charges 0 0 0
Other impairment and amortisation 0 0 0
EBIT 120 46 91
Other financial items 0 0 0
Net financial items -2 -4 -1
Associated income 0 0 0
Other EO items 0 0 0
Pretax profit 118 42 90
Tax -25 -9 -20
Net profit 93 33 70
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders 93 33 70
EPS 7,39 2,62 5,58
EPS Adj 6,84 2,62 5,58
Total extraordinary items after tax 6,9 0 0
Tax rate (%) -21,5 -21,7 -22
Gross margin (%) 100 100 100
EBITDA margin (%) 35,6 24 31
EBITA margin (%) 33,7 20,8 28,7
EBIT margin (%) 33,7 20,8 28,7
Pretax margin (%) 33,2 18,9 28,4
Net margin (%) 26,1 14,8 22,1
Growth rates Y/Y 2019 2020 2021
Sales growth (%) 12,5 -37,4 42,2
EBITDA growth (%) 31,2 -57,7 83,9
EBIT growth (%) 32,6 -61,4 96,3
Net profit growth (%) 32,9 -64,5 112,9
EPS growth (%) 32,9 -64,5 112,9
Profitability 2019 2020 2021
ROE (%) 42,2 14,2 28,4
ROE Adj (%) 39,1 14,2 28,4
ROCE (%) 47,6 17,5 32,6
ROCE Adj(%) 44,8 17,5 32,6
ROIC (%) 55,4 21,6 41,8
ROIC Adj (%) 52,2 21,6 41,8
Adj earnings numbers 2019 2020 2021
EBITDA Adj 119 53 98
EBITDA Adj margin (%) 33,6 24 31
EBITA Adj 113 46 91
EBITA Adj margin (%) 31,7 20,8 28,7
EBIT Adj 113 46 91
EBIT Adj margin (%) 31,7 20,8 28,7
Pretax profit Adj 111 42 90
Net profit Adj 86 33 70
Net profit to shareholders Adj 86 33 70
Net Adj margin (%) 24,2 14,8 22,1
SEKm 2019 2020e 2021e
EBITDA 126 53 98
Net financial items -2 -4 -1
Paid tax -14 -9 -20
Non-cash items -15 0 0
Cash flow before change in WC 96 40 77
Change in WC 13 13 -5
Operating cash flow 109 53 72
CAPEX tangible fixed assets -9 -4 -5
CAPEX intangible fixed assets -14 -9 -9
Acquisitions and disposals 5 0 0
Free cash flow 91 40 59
Dividend paid -51 -51 -23
Share issues and buybacks 0 0 0
Other non cash items -2 0 0
Decrease in net IB debt 40 -10 36
Balance Sheet (SEKm) 2019 2020 2021
Goodwill 0 0 0
Indefinite intangible assets 0 0 0
Definite intangible assets 55 61 66
Tangible fixed assets 45 44 45
Other fixed assets 2 2 2
Fixed assets 102 107 113
Inventories 76 56 66
Receivables 76 50 65
Other current assets 0 0 0
Cash and liquid assets 110 100 136
Total assets 363 312 380
Shareholders equity 240 222 269
Minority 0 0 0
Total equity 240 222 269
Long-term debt 33 33 33
Pension debt 0 0 0
Convertible debt 0 0 0
Deferred tax 0 0 0
Other long-term liabilities 8 8 8
Short-term debt 0 0 0
Accounts payable 82 49 70
Other current liabilities 0 0 0
Total liabilities and equity 363 312 380
Net IB debt -78 -67 -103
Net IB debt excl. pension debt -78 -67 -103
Capital invested 171 164 175
Working capital 70 57 62
EV breakdown 2019 2020 2021
Market cap. diluted (m) 2215 1980 1980
Net IB debt Adj -78 -67 -103
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 2138 1912 1877
Capital efficiency (%) 2019 2020 2021
Total assets turnover (%) 104,1 65,9 91,4
Capital invested turnover (%) 209,3 132,8 187
Capital employed turnover (%) 141,3 84,3 113,6
Inventories / sales (%) 22 29,5 19,3
Customer advances / sales (%) 0 0 0
Payables / sales (%) 23,1 29,4 18,7
Working capital / sales (%) 21,4 28,4 18,7
Financial risk and debt service 2019 2020 2021
Net debt / equity (%) -32,3 -30,2 -38,3
Net debt / market cap (%) -3,9 -3,4 -5,2
Equity ratio (%) 66,2 71,2 70,9
Net IB debt adj. / equity (%) -32,3 -30,2 -38,3
Current ratio (%) 319,4 419,8 383,5
EBITDA / net interest (%) 7890,6 1270,6 9812,8
Net IB debt / EBITDA (%) -61,4 -125,9 -105
Interest cover (%) 7468,8 1099,1 9062,8
SEKm 2019 2020e 2021e
Shares outstanding adj. 13 13 13
Fully diluted shares Adj 13 13 13
EPS 7,39 2,62 5,58
Dividend per share Adj 4 1,8 3,9
EPS Adj 6,84 2,62 5,58
BVPS 19,17 17,74 21,49
BVPS Adj 14,82 12,88 16,24
Net IB debt / share -6,2 -5,4 -8,2
Share price 158,02 158 158
Market cap. (m) 1980 1980 1980
Valuation 2019 2020 2021
P/E 23,9 60,3 28,3
EV/sales 6,02 8,6 5,94
EV/EBITDA 16,9 35,8 19,1
EV/EBITA 17,9 41,4 20,7
EV/EBIT 17,9 41,4 20,7
Dividend yield (%) 2,3 1,2 2,5
FCF yield (%) 4,1 2 3
P/BVPS 9,22 8,91 7,35
P/BVPS Adj 11,93 12,27 9,73
P/E Adj 25,8 60,3 28,3
EV/EBITDA Adj 17,9 35,8 19,1
EV/EBITA Adj 19 41,4 20,7
EV/EBIT Adj 19 41,4 20,7
EV/cap. employed 7,8 7,5 6,2
Investment ratios 2019 2020 2021
Capex / sales 6,3 5,6 4,3
Capex / depreciation 330,4 172,9 181,2
Capex tangibles / tangible fixed assets 18,8 8,1 10,5
Capex intangibles / definite intangibles 25,3 14,6 13,5
Depreciation on intangibles / definite intangibles 4,2 4 6,2
Depreciation on tangibles / tangibles 9,8 10,8 7,6

Equity research

Read earlier research

Media

CTT Systems - Company presentation with CEO Torbjörn Johansson (in English)
CTT Systems - Interview with CEO Torbjörn Johansson

Main shareholders - CTT Systems

Main shareholders Share capital % Voting shares % Verified
Tomas Torlöf 13.0 % 13.0 % 30 Jun 2020
Rockwell Collins / Collins Aerospace 9.0 % 9.0 % 30 Jun 2020
Swedbank Robur Fonder 8.0 % 8.0 % 30 Jun 2020
Catron Design AB 4.3 % 4.3 % 30 Jun 2020
Nya Jorame Holding AB 4.3 % 4.3 % 30 Jun 2020
If Skadeförsäkring AB 4.1 % 4.1 % 30 Jun 2020
ODIN Fonder 3.2 % 3.2 % 30 Jun 2020
SEB Fonder 3.1 % 3.1 % 30 Jun 2020
Allianz Global Investors 2.6 % 2.6 % 31 May 2020
Lannebo Fonder 2.5 % 2.5 % 30 Jun 2020
Source: Holdings by Modular Finance AB

Insider list - CTT Systems

Name Quantity Code Date
Tony Rosendal + 300 BUY 11 Jun 2020
Peter Landquist + 616 BUY 7 May 2020
Maria Vester + 336 BUY 7 May 2020
Stefan Hammar + 390 BUY 7 May 2020
Hans Torbjörn Erland Johansson + 1 900 BUY 7 May 2020
Tony Rosendal + 498 BUY 7 May 2020
Peter Landquist + 215 BUY 17 Mar 2020
Peter Landquist + 310 BUY 13 Mar 2020
Peter Landquist + 75 BUY 11 Mar 2020
Liselotte Landquist + 75 BUY 10 Mar 2020

Show More