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Generic

Generic

Specialist in critical communication services

Generic Sweden AB, founded in 1993, engages in the provision of telecommunication services. The company specializes in critical communications through its own radio network and telecom operator. Simply explained, the company’s customers require a reliable network in the event of emergencies and other overloads, something that cannot be offered by regular telecommunication operators. The customers are found in social-critical functions like the police, emergency services, hospitals and municipalities.

A key opportunity for Generic lies within its ability to generate higher volumes on newly developed solutions for its customers. More demand from sectors that are in need of making their businesses more efficient and digital is an opportunity. Furthermore, the firm has a scalable business model.

After selling the consultancy business, Generic now operates only with its telecom system. The risk of not delivering an innovative product that customers are satisfied with is now larger, and can potentially lead to losing segments of its customers. Additionally, weaker future cash flows could lead to financial distress and/or lower or no dividend payout.

SEKm 2020 2021e 2022e
Sales 80 93 103
Sales growth (%) 14,1 16 11
EBITDA 15 18 21
EBITDA margin (%) 18,3 19,3 20
EBIT adj 13 16 19
EBIT adj margin (%) 16,4 17,5 18,2
Pretax profit 13 16 19
EPS rep 0,84 1,05 1,21
EPS growth (%) 16,7 25,4 15,5
EPS adj 0,84 1,05 1,21
DPS 0,8 0,9 1
EV/EBITDA (x) 35,7 29,1 25
EV/EBIT adj (x) 39,9 31,9 27,4
P/E (x) 52,3 41,7 36,1
P/E adj (x) 52,3 41,7 36,1
EV/sales (x) 6,5 5,6 5
FCF yield (%) 1,9 2,3 2,8
Dividend yield (%) 1,8 2,1 2,3
Net IB debt/EBITDA -1,1 -1,1 -1,1
N/A N/A N/A
SEKm 2020 2021e 2022e
Sales 80 93 103
COGS -36 -42 -46
Gross profit 43 51 56
Other operating items -29 -33 -36
EBITDA 15 18 21
Depreciation on tangibles -2 -2 -2
Depreciation on intangibles 0 0 0
EBITA 13 16 19
Goodwill impairment charges 0 0 0
Other impairment and amortisation 0 0 0
EBIT 13 16 19
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 13 16 19
Tax -3 -3 -4
Net profit 10 13 15
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders 10 13 15
EPS 0,84 1,05 1,21
EPS Adj 0,84 1,05 1,21
Total extraordinary items after tax 0 0 0
Tax rate (%) -21,4 -20,6 -20,6
Gross margin (%) 54,4 54,7 55
EBITDA margin (%) 18,3 19,3 20
EBITA margin (%) 16,4 17,5 18,2
EBIT margin (%) 16,4 17,5 18,2
Pretax margin (%) 16,4 17,5 18,2
Net margin (%) 12,9 13,9 14,5
Growth rates Y/Y 2020 2021 2022
Sales growth (%) 14,1 16 11
EBITDA growth (%) 14,9 22,3 15,2
EBIT growth (%) 16,3 24,1 15,5
Net profit growth (%) 16,7 25,4 15,5
EPS growth (%) 16,7 25,4 15,5
Profitability 2020 2021 2022
ROE (%) 38 44,7 46,2
ROE Adj (%) 38 44,7 46,2
ROCE (%) 39,5 46,6 49
ROCE Adj(%) 39,5 46,6 49
ROIC (%) 96,5 117,7 134
ROIC Adj (%) 96,5 117,7 134
Adj earnings numbers 2020 2021 2022
EBITDA Adj 15 18 21
EBITDA Adj margin (%) 18,3 19,3 20
EBITA Adj 13 16 19
EBITA Adj margin (%) 16,4 17,5 18,2
EBIT Adj 13 16 19
EBIT Adj margin (%) 16,4 17,5 18,2
Pretax profit Adj 13 16 19
Net profit Adj 10 13 15
Net profit to shareholders Adj 10 13 15
Net Adj margin (%) 12,9 13,9 14,5
N/A N/A N/A
SEKm 2020 2021e 2022e
Total assets 49 55 61
Shareholders equity 27 30 34
Minority 0 0 0
Total equity 27 30 34
Long-term debt 0 0 0
Pension debt 6 6 6
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 16 19 21
Other current liabilities 0 0 0
Total liabilities and equity 49 55 61
Net IB debt -17 -19 -23
Net IB debt excl. pension debt -23 -25 -29
Capital invested 11 11 11
Working capital 6 7 8
EV breakdown 2020 2021 2022
Market cap. diluted (m) 537 537 537
Net IB debt Adj -17 -19 -23
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 521 518 514
Capital efficiency (%) 2020 2021 2022
Total assets turnover (%) 166,1 177,9 177,8
Capital invested turnover (%) 749,5 845,9 925,2
Capital employed turnover (%) 241,3 266 268,7
Inventories / sales (%) 0,5 0,5 0,5
Customer advances / sales (%) 0 0 0
Payables / sales (%) 18,8 18,6 19
Working capital / sales (%) 7 7 7,1
Financial risk and debt service 2020 2021 2022
Net debt / equity (%) -60,5 -63,3 -67,5
Net debt / market cap (%) -4,6 -3,6 -4,3
Equity ratio (%) 55,4 55,3 56,3
Net IB debt adj. / equity (%) -60,5 -63,3 -67,5
Current ratio (%) 278,6 273,6 278,9
EBITDA / net interest (%) 0 0 0
Net IB debt / EBITDA (%) -113,3 -107,7 -112,2
Interest cover (%) 0 0 0
EBITDA 15 18 21
Net financial items 0 0 0
Paid tax -3 -3 -4
Non-cash items 0 0 0
Cash flow before change in WC 12 14 17
Change in WC -1 -1 -1
Operating cash flow 11 14 16
CAPEX tangible fixed assets -1 -1 -1
CAPEX intangible fixed assets 0 0 0
Acquisitions and disposals 0 0 0
Free cash flow 10 13 15
Dividend paid -10 -10 -11
Share issues and buybacks 0 0 0
Other non cash items 0 0 0
Decrease in net IB debt 0 3 4
Balance Sheet (SEKm) 2020 2021 2022
Goodwill 0 0 0
Indefinite intangible assets 0 0 0
Definite intangible assets 0 0 0
Tangible fixed assets 3 3 2
Other fixed assets 1 1 1
Fixed assets 5 4 3
Inventories 0 0 1
Receivables 22 25 28
Other current assets 0 0 0
Cash and liquid assets 23 25 29
N/A N/A N/A
SEKm 2020 2021e 2022e
Shares outstanding adj. 12 12 12
Fully diluted shares Adj 12 12 12
EPS 0,84 1,05 1,21
Dividend per share Adj 0,8 0,9 1
EPS Adj 0,84 1,05 1,21
BVPS 2,22 2,47 2,78
BVPS Adj 2,18 2,43 2,74
Net IB debt / share -1,3 -1,6 -1,9
Share price 29,47 43,7 43,7
Market cap. (m) 362 537 537
Valuation 2020 2021 2022
P/E 52,3 41,7 36,1
EV/sales 6,53 5,6 5,01
EV/EBITDA 35,7 29,1 25
EV/EBITA 39,9 31,9 27,4
EV/EBIT 39,9 31,9 27,4
Dividend yield (%) 1,8 2,1 2,3
FCF yield (%) 1,9 2,3 2,8
P/BVPS 19,7 17,72 15,74
P/BVPS Adj 20 17,97 15,93
P/E Adj 52,3 41,7 36,1
EV/EBITDA Adj 35,7 29,1 25
EV/EBITA Adj 39,9 31,9 27,4
EV/EBIT Adj 39,9 31,9 27,4
EV/cap. employed 15,7 14,3 12,8
Investment ratios 2020 2021 2022
Capex / sales 1,3 1,1 1
Capex / depreciation 66,7 62,5 55,6
Capex tangibles / tangible fixed assets 29,7 36,1 50,8
Capex intangibles / definite intangibles 0 0 0
Depreciation on intangibles / definite intangibles 0 0 0
Depreciation on tangibles / tangibles 44,5 57,8 91,5
N/A N/A N/A

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Main shareholders - Generic

Main shareholders Share capital % Voting shares % Verified
Krantz & Svedberg 24.3 % 24.3 % 26 Nov 2020
Martin Gren (Grenspecialisten) 23.5 % 23.5 % 30 Sep 2020
Fredrik Svedberg 9.3 % 9.3 % 26 Nov 2020
John Löfström 3.8 % 3.8 % 30 Sep 2020
Avanza Pension 3.7 % 3.7 % 30 Sep 2020
Jonas Jegerborn 3.4 % 3.4 % 26 Nov 2020
JCE Group 2.1 % 2.1 % 26 Nov 2020
Kjell Arvidsson 2.0 % 2.0 % 30 Sep 2020
Tobias Järvström 1.5 % 1.5 % 30 Sep 2020
Jonas Jonsson 1.3 % 1.3 % 30 Sep 2020
Source: Holdings by Modular Finance AB

Insider list - Generic

Name Quantity Code Date
Hans Krantz + 350 000 BUY 17 Dec 2020
Hans Krantz - 350 000 SELL 17 Dec 2020
Hans Krantz - 76 825 SELL 26 Nov 2020
Jonas Jegerborn + 153 650 BUY 26 Nov 2020
Fredrik Svedberg - 76 825 SELL 26 Nov 2020
Nonac Förvaltning AB - 76 825 SELL 26 Nov 2020
Jonas Jegerborn - 292 614 SELL 23 Nov 2020
Jonas Jegerborn + 153 650 BUY 23 Nov 2020
Nonac Förvaltning AB - 200 000 SELL 23 Nov 2020
Fredrik Svedberg - 200 000 SELL 23 Nov 2020

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