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

Introduce me >

Social media

facebook   Follow us on Twitter

Coverage

Ferronordic

Ferronordic

Authorised dealer of construction equipment in Russia

Ferronordic is an authorised dealer of construction equipment in Russia, selling equipment from Volvo CE (80%), Terex Trucks, Dressta, Mecalac and Rottne. The company’s goal is to become the leading service and sales company in the CIS markets. It is currently the only dealer in Russia, and one of the few in Europe, that is allowed to offer the ‘Certified Rebuild’ warranty extension on Volvo equipment following repairs and service. The company was founded in 2010 and currently has over 70 outlets and 800 employees throughout Russia.

The underlying market for western, high-quality CE equipment in Russia could offer high double-digit growth for several years ahead due to both a general Russian economic recovery, pent-up demand of 60,000 machines and a change in purchasing behaviour from a focus on initial price to total cost of ownership. As a certified Volvo CE distributor, Ferronordic’s ability to also gain market share would imply high sales growth potential.

Russia has historically been notorious for low transparency, poor corporate governance and corruption. Sanctions have also proven to have a significant impact on the Russian economy, which in turn could hamper the recovering market for construction equipment. Approximately 80% of Ferronordic’s sold units are Volvo, which implies a high reliance on that relationship.

SEKm 2019 2020e 2021e
Sales 3836 6067 6785
Sales growth (%) 18,4 58,1 11,8
EBITDA 504 532 651
EBITDA margin (%) 13,1 8,8 9,6
EBIT adj 369 392 506
EBIT adj margin (%) 9,6 6,5 7,5
Pretax profit 334 347 466
EPS rep 18,25 18,85 25,32
EPS growth (%) 38,1 3,2 34,4
EPS adj 18,25 18,85 25,32
DPS 6 7 9
EV/EBITDA (x) 5,4 5,4 4,2
EV/EBIT adj (x) 7,4 7,4 5,3
P/E (x) 8,9 8,6 6,4
P/E adj (x) 8,9 8,6 6,4
EV/sales (x) 0,7 0,5 0,4
FCF yield (%) -11,9 -1,4 14,3
Dividend yield (%) 3,7 4,3 5,6
Net IB debt/EBITDA 0,7 1 0,5
SEKm 2019 2020e 2021e
EBITA 369 392 506
Goodwill impairment charges 0 0 0
Other impairment and amortisation 0 0 0
EBIT 369 392 506
Other financial items 14 0 0
Net financial items -35 -45 -40
Associated income 0 0 0
Other EO items 0 0 0
Pretax profit 334 347 466
Tax -69 -73 -98
Net profit 265 274 368
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders 265 274 368
EPS 18,25 18,85 25,32
EPS Adj 18,25 18,85 25,32
Total extraordinary items after tax 0 0 0
Tax rate (%) -20,7 -21 -21
Gross margin (%) 20,3 18,7 18,6
EBITDA margin (%) 13,1 8,8 9,6
EBITA margin (%) 9,6 6,5 7,5
EBIT margin (%) 9,6 6,5 7,5
Pretax margin (%) 8,7 5,7 6,9
Net margin (%) 6,9 4,5 5,4
Growth rates Y/Y 2019 2020 2021
Sales growth (%) 18,4 58,1 11,8
EBITDA growth (%) 56,8 5,4 22,4
EBIT growth (%) 34,8 6,1 29,1
Net profit growth (%) 26,9 3,2 34,4
EPS growth (%) 38,1 3,2 34,4
Profitability 2019 2020 2021
ROE (%) 36,1 30,2 32,5
ROE Adj (%) 36,1 30,2 32,5
ROCE (%) 36,4 23,3 24,5
ROCE Adj(%) 36,4 23,3 24,5
ROIC (%) 37,7 22,6 25,2
ROIC Adj (%) 37,7 22,6 25,2
Adj earnings numbers 2019 2020 2021
EBITDA Adj 504 532 651
EBITDA Adj margin (%) 13,1 8,8 9,6
EBITA Adj 369 392 506
EBITA Adj margin (%) 9,6 6,5 7,5
EBIT Adj 369 392 506
EBIT Adj margin (%) 9,6 6,5 7,5
Pretax profit Adj 334 347 466
Net profit Adj 265 274 368
Net profit to shareholders Adj 265 274 368
Net Adj margin (%) 6,9 4,5 5,4
Sales 3836 6067 6785
COGS -3059 -4936 -5523
Gross profit 778 1132 1262
Other operating items -274 -600 -611
EBITDA 504 532 651
Depreciation on tangibles -108 -100 -100
Depreciation on intangibles 0 0 0
SEKm 2019 2020e 2021e
EBITDA 504 532 651
Net financial items -35 -45 -40
Paid tax -69 -73 -98
Non-cash items 0 0 0
Cash flow before change in WC 401 414 513
Change in WC -552 -193 -48
Operating cash flow -151 221 465
CAPEX tangible fixed assets -100 -140 -122
CAPEX intangible fixed assets -6 -5 -5
Acquisitions and disposals -23 -108 0
Free cash flow -279 -32 337
Dividend paid -109 -87 -102
Share issues and buybacks 0 0 0
Other non cash items -265 0 0
Decrease in net IB debt -675 -164 186
Balance Sheet (SEKm) 2019 2020 2021
Goodwill 0 11 11
Indefinite intangible assets 0 0 0
Definite intangible assets 5 4 2
Tangible fixed assets 461 556 585
Other fixed assets 56 56 56
Fixed assets 596 754 787
Inventories 1113 1747 1941
Receivables 376 546 607
Other current assets 0 0 0
Cash and liquid assets 210 438 543
Total assets 2295 3485 3878
Shareholders equity 812 999 1265
Minority 0 0 0
Total equity 812 999 1265
Long-term debt 0 240 160
Pension debt 0 0 0
Convertible debt 0 0 0
Deferred tax 1 1 1
Other long-term liabilities 9 9 9
Short-term debt 358 438 438
Accounts payable 890 1502 1708
Other current liabilities 0 0 0
Total liabilities and equity 1414 1727 2295
Net IB debt 372 536 351
Net IB debt excl. pension debt 372 536 351
Capital invested 1195 1546 1627
Working capital 599 792 840
EV breakdown 2019 2020 2021
Market cap. diluted (m) 2354 2354 2354
Net IB debt Adj 372 536 351
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 2726 2891 2705
Capital efficiency (%) 2019 2020 2021
Total assets turnover (%) 190,8 209,9 184,3
Capital invested turnover (%) 494,6 442,7 427,7
Capital employed turnover (%) 364,7 360,4 328,4
Inventories / sales (%) 24,2 23,6 27,2
Customer advances / sales (%) 0 0 0
Payables / sales (%) 24,8 19,7 23,7
Working capital / sales (%) 8,4 11,5 12
Financial risk and debt service 2019 2020 2021
Net debt / equity (%) 45,8 53,7 27,7
Net debt / market cap (%) 17,6 22,8 14,9
Equity ratio (%) 35,4 28,7 32,6
Net IB debt adj. / equity (%) 45,8 53,7 27,7
Current ratio (%) 127,8 135,1 138,8
EBITDA / net interest (%) 1047,7 1181,5 1627,1
Net IB debt / EBITDA (%) 73,7 100,9 53,9
Interest cover (%) 766,6 870,4 1264,6
SEKm 2019 2020e 2021e
Shares outstanding adj. 15 15 15
Fully diluted shares Adj 15 15 15
EPS 18,25 18,85 25,32
Dividend per share Adj 6 7 9
EPS Adj 18,25 18,85 25,32
BVPS 55,89 68,74 87,06
BVPS Adj 55,54 67,73 86,18
Net IB debt / share 25,6 36,9 24,1
Share price 145,09 162 162
Market cap. (m) 2109 2354 2354
Valuation 2019 2020 2021
P/E 8,9 8,6 6,4
EV/sales 0,71 0,48 0,4
EV/EBITDA 5,4 5,4 4,2
EV/EBITA 7,4 7,4 5,3
EV/EBIT 7,4 7,4 5,3
Dividend yield (%) 3,7 4,3 5,6
FCF yield (%) -11,9 -1,4 14,3
P/BVPS 2,9 2,36 1,86
P/BVPS Adj 2,92 2,39 1,88
P/E Adj 8,9 8,6 6,4
EV/EBITDA Adj 5,4 5,4 4,2
EV/EBITA Adj 7,4 7,4 5,3
EV/EBIT Adj 7,4 7,4 5,3
EV/cap. employed 2 1,5 1,3
Investment ratios 2019 2020 2021
Capex / sales 2,8 2,4 1,9
Capex / depreciation 97,4 145 127,6
Capex tangibles / tangible fixed assets 21,6 25,1 20,9
Capex intangibles / definite intangibles 112,3 152,3 308
Depreciation on intangibles / definite intangibles 0 0 0
Depreciation on tangibles / tangibles 23,5 18 17,1

Equity research

Read earlier research

Media

Ferronordic - Interview with CFO Erik Danemar
Ferronordic - Company presentation with CFO Erik Danemar

Main shareholders - Ferronordic

Main shareholders Share capital % Voting shares % Verified
Håkan Eriksson (Skandinavkonsult) 15.6 % 15.6 % 30 Sep 2019
Erik Eberhardson 8.3 % 8.3 % 30 Sep 2019
Lars Corneliusson 7.1 % 7.1 % 31 Dec 2019
Swedbank Robur Fonder 5.0 % 5.0 % 31 Dec 2019
Avanza Pension 4.4 % 4.4 % 31 Dec 2019
Per Arwidsson med närstående 4.4 % 4.4 % 31 Dec 2019
Catella Fonder 4.2 % 4.2 % 31 Dec 2019
Unionen 4.0 % 4.0 % 31 Dec 2019
Svenska Handelsbanken AB for PB 3.5 % 3.5 % 31 Dec 2019
Investor Asset Management BVBA 2.4 % 2.4 % 31 Dec 2019
Source: Holdings by Modular Finance AB

Insider list - Ferronordic

Name Quantity Code Date
Carl Erik Mikael Danemar + 4 770 BUY 27 Dec 2019
JONATHAN TUBB + 1 496 BUY 15 Aug 2019
Erik Eberhardson - 310 905 SELL 10 Jul 2019
Aleksandr Shmakov + 1 345 BUY 8 Jul 2019
Erik Eberhardson - 300 000 SELL 3 Jul 2019
Andrey Korneev + 1 343 BUY 2 Jul 2019
Aleksandr Shmakov + 41 BUY 1 Jul 2019
Nadezhda Arzumanova + 1 003 BUY 5 Jun 2019
Nadezhda Arzumanova + 141 BUY 5 Jun 2019
Nadezhda Arzumanova + 186 BUY 5 Jun 2019

Show More