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Doro

Doro

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Mobile phones for the elderly

DORO is one of the world's leading brands of mobile phones and other telecom products that are easy to use. The company develops and commercializes products that are especially adapted for the growing number of seniors in the world. Its business is divided into the segments Consumer (products) and Care (services). DORO is established in over 40 countries on five continents, with the Nordics, Great Britain and North America being its primary markets.

If DORO’s new goals, announced in late 2017, were to be met, the company would have significantly higher margins going forward. In addition, the “silver economy” (aging population) is still an opportunity for players such as DORO to seize. There is an increasing demand for products suited for seniors, which needs to be supplied.

DORO has a strong position within its niche, but there is a risk that bigger players could exploit this market, which eventually could hurt DORO’s market share. Another risk is associated with the increasing technological knowledge of seniors. This has resulted in advanced phones becoming more common.

Financials

SEKm 2019 2020e 2021e
Sales 2033 2147 2176
Sales growth (%) 6,6 5,6 1,3
EBITDA 215 245 251
EBITDA margin (%) 10,6 11,4 11,5
EBIT adj 135 148 154
EBIT adj margin (%) 6,7 6,9 7,1
Pretax profit 118 143 149
EPS rep 3,73 4,57 4,82
EPS growth (%) -3,1 22,7 5,5
EPS adj 4,21 4,57 4,82
DPS 1 1,25 1,3
EV/EBITDA (x) 6,7 5,5 5,2
EV/EBIT adj (x) 10,6 9,2 8,4
P/E (x) 13,5 11 10,4
P/E adj (x) 11,9 11 10,4
EV/sales (x) 0,7 0,6 0,6
FCF yield (%) 2,6 9,5 8,8
Dividend yield (%) 2 2,5 2,6
Net IB debt/EBITDA 1,1 0,7 0,4
SEKm 2019 2020e 2021e
Sales 2033 2147 2176
COGS -1374 -1425 -1430
Gross profit 659 722 746
Other operating items -444 -476 -495
EBITDA 215 245 251
Depreciation on tangibles -14 -15 -15
Depreciation on intangibles -65 -70 -70
EBITA 124 148 154
Goodwill impairment charges 0 0 0
Other impairment and amortisation 0 0 0
EBIT 124 148 154
Other financial items 0 0 0
Net financial items -6 -5 -5
Associated income 0 0 0
Other EO items 0 0 0
Pretax profit 118 143 149
Tax -30 -34 -34
Net profit 89 109 115
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders 89 109 115
EPS 3,73 4,57 4,82
EPS Adj 4,21 4,57 4,82
Total extraordinary items after tax -11,4 0 0
Tax rate (%) -25,1 -24 -23
Gross margin (%) 32,4 33,6 34,3
EBITDA margin (%) 10,6 11,4 11,5
EBITA margin (%) 6,1 6,9 7,1
EBIT margin (%) 6,1 6,9 7,1
Pretax margin (%) 5,8 6,7 6,8
Net margin (%) 4,4 5,1 5,3
Growth rates Y/Y 2019 2020 2021
Sales growth (%) 6,6 5,6 1,3
EBITDA growth (%) 10,7 14,1 2,2
EBIT growth (%) 1,3 19,7 3,6
Net profit growth (%) -3,2 22,7 5,5
EPS growth (%) -3,1 22,7 5,5
Profitability 2019 2020 2021
ROE (%) 12 13 12,5
ROE Adj (%) 13,5 13 12,5
ROCE (%) 11,5 12 11,7
ROCE Adj(%) 12,6 12 11,7
ROIC (%) 9,9 10,8 11,2
ROIC Adj (%) 10,8 10,8 11,2
Adj earnings numbers 2019 2020 2021
EBITDA Adj 226 245 251
EBITDA Adj margin (%) 11,1 11,4 11,5
EBITA Adj 135 148 154
EBITA Adj margin (%) 6,7 6,9 7,1
EBIT Adj 135 148 154
EBIT Adj margin (%) 6,7 6,9 7,1
Pretax profit Adj 130 143 149
Net profit Adj 100 109 115
Net profit to shareholders Adj 100 109 115
Net Adj margin (%) 4,9 5,1 5,3
SEKm 2019 2020e 2021e
EBITDA 215 245 251
Net financial items -6 -5 -5
Paid tax -30 -34 -34
Non-cash items 0 0 0
Cash flow before change in WC 179 206 212
Change in WC -30 15 0
Operating cash flow 159 221 212
CAPEX tangible fixed assets -34 -32 -32
CAPEX intangible fixed assets -78 -75 -75
Acquisitions and disposals -17 0 0
Free cash flow 31 114 105
Dividend paid 0 -24 -30
Share issues and buybacks 0 0 0
Other non cash items -115 0 0
Decrease in net IB debt -94 78 64
Balance Sheet (SEKm) 2019 2020 2021
Goodwill 500 500 500
Indefinite intangible assets 0 0 0
Definite intangible assets 188 193 197
Tangible fixed assets 59 76 94
Other fixed assets 22 22 22
Fixed assets 840 863 884
Inventories 308 283 290
Receivables 410 428 439
Other current assets 0 0 0
Cash and liquid assets 152 230 293
Total assets 1711 1804 1907
Shareholders equity 792 877 962
Minority 0 0 0
Total equity 792 877 962
Long-term debt 326 326 326
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 522 530 549
Other current liabilities 0 0 0
Total liabilities and equity 1177 1464 1711
Net IB debt 244 166 103
Net IB debt excl. pension debt 244 166 103
Capital invested 1036 1044 1065
Working capital 196 181 181
EV breakdown 2019 2020 2021
Market cap. diluted (m) 1193 1193 1193
Net IB debt Adj 244 166 103
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 1437 1359 1296
Capital efficiency (%) 2019 2020 2021
Total assets turnover (%) 128,1 122,2 117,3
Capital invested turnover (%) 217,4 206,4 206,4
Capital employed turnover (%) 188,6 174,4 165,4
Inventories / sales (%) 14,1 13,8 13,2
Customer advances / sales (%) 0 0 0
Payables / sales (%) 25,1 24,5 24,8
Working capital / sales (%) 8,9 8,8 8,3
Financial risk and debt service 2019 2020 2021
Net debt / equity (%) 30,8 19 10,7
Net debt / market cap (%) 27 13,9 8,6
Equity ratio (%) 46,3 48,6 50,4
Net IB debt adj. / equity (%) 30,8 19 10,7
Current ratio (%) 161,5 172 180,8
EBITDA / net interest (%) 3818,8 4617,7 5283,1
Net IB debt / EBITDA (%) 113,6 67,8 41
Interest cover (%) 2201,8 2791,6 3237,8
SEKm 2019 2020e 2021e
Shares outstanding adj. 24 24 24
Fully diluted shares Adj 24 24 24
EPS 3,73 4,57 4,82
Dividend per share Adj 1 1,3 1,3
EPS Adj 4,21 4,57 4,82
BVPS 33,34 36,91 40,48
BVPS Adj 4,36 7,73 11,13
Net IB debt / share 10,3 7 4,3
Share price 38,06 50,2 50,2
Market cap. (m) 905 1193 1193
Valuation 2019 2020 2021
P/E 13,5 11 10,4
EV/sales 0,71 0,63 0,6
EV/EBITDA 6,7 5,5 5,2
EV/EBITA 11,6 9,2 8,4
EV/EBIT 11,6 9,2 8,4
Dividend yield (%) 2 2,5 2,6
FCF yield (%) 2,6 9,5 8,8
P/BVPS 1,51 1,36 1,24
P/BVPS Adj 11,52 6,49 4,51
P/E Adj 11,9 11 10,4
EV/EBITDA Adj 6,3 5,5 5,2
EV/EBITA Adj 10,6 9,2 8,4
EV/EBIT Adj 10,6 9,2 8,4
EV/cap. employed 1,2 1,1 1
Investment ratios 2019 2020 2021
Capex / sales 5,5 5 4,9
Capex / depreciation 141,9 126,3 125,4
Capex tangibles / tangible fixed assets 57,2 42,1 34,1
Capex intangibles / definite intangibles 41,6 38,9 37,8
Depreciation on intangibles / definite intangibles 34,7 36,5 35,7
Depreciation on tangibles / tangibles 23,2 19 15,5

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Media

Doro - Interview with CEO Carl-Johan Zetterberg (in Swedish)
Doro - Company presentation with CEO Carl-Johan Zetterberg

Main shareholders - Doro

Main shareholders Share capital % Voting shares % Verified
Accendo Capital 15.5 % 15.5 % 31 Dec 2019
Rite Ventures 10.3 % 10.3 % 31 Dec 2019
Nordea Fonder 9.3 % 9.3 % 31 Dec 2019
Lazard Frères Gestion 5.7 % 5.7 % 31 Dec 2019
Dimensional Fund Advisors 2.9 % 2.9 % 30 Nov 2019
Avanza Pension 2.8 % 2.8 % 31 Dec 2019
Nordea Liv & Pension 2.6 % 2.6 % 31 Dec 2019
Bengt Julander 2.5 % 2.5 % 31 Jul 2019
Theodor Jeansson 2.2 % 2.2 % 31 Dec 2019
Argenta Asset Management SA 1.9 % 1.9 % 31 Dec 2019
Source: Holdings by Modular Finance AB

Insider list - Doro

Name Quantity Code Date
Lennart Jacobsen + 10 000 BUY 3 Sep 2019
Erik Thomas Bergdahl - 70 000 SELL 20 Dec 2018
Erik Thomas Bergdahl - 9 425 SELL 20 Dec 2018
Erik Thomas Bergdahl - 3 075 SELL 30 Nov 2018
Johan Frogner + 40 000 BUY 15 Nov 2018
Erik Thomas Bergdahl - 11 210 SELL 19 Oct 2018
Jörgen Nilsson + 70 000 BUY 10 Aug 2018
Robert Puskaric + 210 000 BUY 10 Aug 2018
Erik Thomas Bergdahl + 70 000 BUY 10 Aug 2018
Mathias Carlsson + 10 000 BUY 10 Aug 2018

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