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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 2021 2022e 2023e
Sales 114 133 153
Sales growth (%) 39,7 16,6 15
EBITDA 24 27 32
EBITDA margin (%) 21,1 20,5 21
EBIT adj 23 25 30
EBIT adj margin (%) 19,8 19,1 19,6
Pretax profit 23 25 30
EPS rep 1,46 1,64 1,94
EPS growth (%) 65,3 12,8 17,8
EPS adj 1,46 1,64 1,94
DPS 1,2 1,4 1,6
EV/EBITDA (x) 28 24,5 20,6
EV/EBIT adj (x) 29,9 26,3 22,1
P/E (x) 39,2 34,8 29,5
P/E adj (x) 39,2 34,8 29,5
EV/sales (x) 5,9 5 4,3
FCF yield (%) 2,3 2,9 3,4
Dividend yield (%) 2,1 2,4 2,8
Net IB debt/EBITDA -1,2 -1,3 -1,3
Lease adj. FCF yield (%) 2,3 2,9 3,4
Lease adj. ND/EBITDA -1,2 -1,3 -1,3
SEKm 2021 2022e 2023e
Sales 114 133 153
COGS -60 -73 -84
Gross profit 54 61 69
Other operating items -30 -33 -37
EBITDA 24 27 32
Depreciation on tangibles -2 -2 -2
Depreciation on intangibles 0 0 0
EBITA 23 25 30
Goodwill impairment charges 0 0 0
Other impairment and amortisation 0 0 0
EBIT 23 25 30
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 23 25 30
Tax -5 -5 -6
Net profit 18 20 24
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders 18 20 24
EPS 1,46 1,64 1,94
EPS Adj 1,46 1,64 1,94
Total extraordinary items after tax 0 0 0
Tax rate (%) -20,6 -20,6 -20,6
Gross margin (%) 47,1 45,5 45
EBITDA margin (%) 21,1 20,5 21
EBITA margin (%) 19,8 19,1 19,6
EBIT margin (%) 19,8 19,1 19,6
Pretax margin (%) 19,8 19,1 19,6
Net margin (%) 15,7 15,2 15,6
Growth rates Y/Y 2021 2022 2023
Sales growth (%) 39,7 16,6 15
EBITDA growth (%) 58,6 13,3 17,7
EBIT growth (%) 63,4 12,8 17,8
Net profit growth (%) 65,3 12,8 17,8
EPS growth (%) 65,3 12,8 17,8
Profitability 2021 2022 2023
ROE (%) 68,8 61,6 61,3
ROE Adj (%) 68,8 61,6 61,3
ROCE (%) 86,6 77,5 77,2
ROCE Adj(%) 86,6 77,5 77,2
ROIC (%) 4401,1 1691 2573,4
ROIC Adj (%) 4401,1 1691 2573,4
Adj earnings numbers 2021 2022 2023
EBITDA Adj 24 27 32
EBITDA Adj margin (%) 21,1 20,5 21
EBITA Adj 23 25 30
EBITA Adj margin (%) 19,8 19,1 19,6
EBIT Adj 23 25 30
EBIT Adj margin (%) 19,8 19,1 19,6
Pretax profit Adj 23 25 30
Net profit Adj 18 20 24
Net profit to shareholders Adj 18 20 24
Net Adj margin (%) 15,7 15,2 15,6
Depreciation and amortisation -2 -2 -2
Of which leasing depreciation 0 0 0
EO items 0 0 0
Impairment and PPA amortisation 0 0 0
EBITDA lease Adj 24 27 32
EBITDA lease Adj margin (%) 21,1 20,5 21
Leasing payments 0 0 0
SEKm 2021 2022e 2023e
Total assets 56 64 74
Shareholders equity 30 36 42
Minority 0 0 0
Total equity 30 36 42
Long-term debt 0 0 0
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 19 23 26
Other current liabilities 6 6 6
Total liabilities and equity 56 64 74
Net IB debt -29 -34 -41
Net IB debt excl. pension debt -29 -34 -41
Capital invested 1 1 1
Working capital -2 -1 -1
EV breakdown 2021 2022 2023
Market cap. diluted (m) 703 703 703
Net IB debt Adj -29 -34 -41
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 674 669 662
Capital efficiency (%) 2021 2022 2023
Total assets turnover (%) 228,3 222 220,9
Capital invested turnover (%) 89775,1 21436,1 158462,7
Capital employed turnover (%) 408,4 398,6 373,8
Inventories / sales (%) 0,5 0,5 0,5
Customer advances / sales (%) 0 0 0
Payables / sales (%) 16,9 15,9 16
Working capital / sales (%) -2,8 -1,3 -0,7
Financial risk and debt service 2021 2022 2023
Net debt / equity (%) -95,8 -96,8 -98,3
Net debt / market cap (%) -3,5 -4,9 -5,9
Equity ratio (%) 54,1 55,3 56,8
Net IB debt adj. / equity (%) -95,8 -96,8 -98,3
Current ratio (%) 204,7 214,8 226,6
EBITDA / net interest (%) 0 0 0
Net IB debt / EBITDA (%) -119,8 -126,4 -129,2
Interest cover (%) 0 0 0
EBITDA 24 27 32
Net financial items 0 0 0
Paid tax -5 -5 -6
Non-cash items 0 0 0
Cash flow before change in WC 19 22 26
Change in WC -2 -1 -1
Operating cash flow 17 21 25
CAPEX tangible fixed assets -1 -1 -1
CAPEX intangible fixed assets 0 0 0
Acquisitions and disposals 0 0 0
Free cash flow 16 20 24
Dividend paid -10 -15 -17
Share issues and buybacks 0 0 0
Other non cash items 0 0 0
Decrease in net IB debt 2 5 7
Balance Sheet (SEKm) 2021 2022 2023
Goodwill 0 0 0
Indefinite intangible assets 0 0 0
Definite intangible assets 2 2 2
Tangible fixed assets 2 1 0
Other fixed assets 0 0 0
Fixed assets 3 3 1
Inventories 1 1 1
Receivables 23 27 31
Other current assets 0 0 0
Cash and liquid assets 29 34 41
Lease liability amortisation 0 0 0
Other intangible assets 2 2 2
Right-of-use asset 0 0 0
Total other fixed assets 0 0 0
Leasing liability 0 0 0
Total other long-term liabilities 0 0 0
Net IB debt excl. leasing -29 -34 -41
Net IB debt / EBITDA lease Adj (%) -119,8 -126,4 -129,2
SEKm 2021 2022e 2023e
Shares outstanding adj. 12 12 12
Fully diluted shares Adj 12 12 12
EPS 1,46 1,64 1,94
Dividend per share Adj 1,2 1,4 1,6
EPS Adj 1,46 1,64 1,94
BVPS 2,45 2,89 3,43
BVPS Adj 2,32 2,76 3,3
Net IB debt / share -2,3 -2,8 -3,4
Share price 67,63 57,2 57,2
Market cap. (m) 831 703 703
Valuation 2021 2022 2023
P/E 39,2 34,8 29,5
EV/sales 5,9 5,02 4,32
EV/EBITDA 28 24,5 20,6
EV/EBITA 29,9 26,3 22,1
EV/EBIT 29,9 26,3 22,1
Dividend yield (%) 2,1 2,4 2,8
FCF yield (%) 2,3 2,9 3,4
P/BVPS 23,36 19,77 16,68
P/BVPS Adj 24,67 20,7 17,33
P/E Adj 39,2 34,8 29,5
EV/EBITDA Adj 28 24,5 20,6
EV/EBITA Adj 29,9 26,3 22,1
EV/EBIT Adj 29,9 26,3 22,1
EV/cap. employed 22,4 18,8 15,7
Investment ratios 2021 2022 2023
Capex / sales 0,9 0,8 0,7
Capex / depreciation 66,7 55,6 47,6
Capex tangibles / tangible fixed assets 56,4 102,8 -787,4
Capex intangibles / definite intangibles 0 0 0
Depreciation on intangibles / definite intangibles 0 0 0
Depreciation on tangibles / tangibles 84,6 185 -1653,5
Lease adj. FCF yield (%) 2,3 2,9 3,4

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Main shareholders - Generic

Main shareholders Share capital % Voting shares % Verified
Martin Gren (Grenspecialisten) 23.7 % 23.7 % 31 Dec 2021
Hans Krantz 21.8 % 21.8 % 31 Dec 2021
John Löfström 6.0 % 6.0 % 31 Dec 2021
Berenberg Funds 5.7 % 5.7 % 31 Dec 2021
JCE Group 4.8 % 4.8 % 31 Dec 2021
Fredrik Svedberg 4.3 % 4.3 % 4 Jan 2022
Avanza Pension 3.5 % 3.5 % 31 Dec 2021
Jonas Jegerborn 2.4 % 2.4 % 31 Dec 2021
Kjell Arvidsson (P&CS Invest AB) 2.0 % 2.0 % 31 Dec 2021
Jonas Jonsson 1.8 % 1.8 % 31 Dec 2021
Source: Holdings by Modular Finance AB

Insider list - Generic

Name Quantity Code Date
Hans Krantz - 300 000 SELL 3 Sep 2021
Fredrik Svedberg - 200 000 SELL 27 Aug 2021
Jonas Jegerborn - 121 000 SELL 27 Aug 2021
Fredrik Svedberg - 25 263 SELL 2 Jul 2021
Fredrik Svedberg - 2 000 SELL 15 Jun 2021
Fredrik Svedberg - 2 675 SELL 15 Jun 2021
Fredrik Svedberg - 347 SELL 14 Jun 2021
Fredrik Svedberg - 1 000 SELL 14 Jun 2021
Fredrik Svedberg - 3 000 SELL 14 Jun 2021
Fredrik Svedberg - 1 343 SELL 14 Jun 2021

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