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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 82 97 112
Sales growth (%) 17 18,8 15
EBITDA 15 18 22
EBITDA margin (%) 18,6 18,9 19,7
EBIT adj 14 17 20
EBIT adj margin (%) 16,9 17,3 18
Pretax profit 14 17 20
EPS rep 0,88 1,09 1,3
EPS growth (%) 23,2 23,3 19,7
EPS adj 0,88 1,09 1,3
DPS 0,8 0,9 1
EV/EBITDA (x) 32,1 26,5 21,9
EV/EBIT adj (x) 35,3 28,9 23,9
P/E (x) 47,1 38,2 31,9
P/E adj (x) 47,1 38,2 31,9
EV/sales (x) 6 5 4,3
FCF yield (%) 2,4 2,4 3,2
Dividend yield (%) 1,9 2,2 2,4
Net IB debt/EBITDA -1,5 -1,4 -1,4
N/A N/A N/A
Lease adj. FCF yield (%) 2,4 2,4 3,2
Lease adj. ND/EBITDA -1,5 -1,4 -1,4
SEKm 2020 2021e 2022e
Sales 82 97 112
COGS -38 -47 -54
Gross profit 43 50 57
Other operating items -28 -32 -35
EBITDA 15 18 22
Depreciation on tangibles -1 -2 -2
Depreciation on intangibles 0 0 0
EBITA 14 17 20
Goodwill impairment charges 0 0 0
Other impairment and amortisation 0 0 0
EBIT 14 17 20
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 14 17 20
Tax -3 -3 -4
Net profit 11 13 16
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders 11 13 16
EPS 0,88 1,09 1,3
EPS Adj 0,88 1,09 1,3
Total extraordinary items after tax 0 0 0
Tax rate (%) -21,5 -20,6 -20,6
Gross margin (%) 52,9 51,7 51,3
EBITDA margin (%) 18,6 18,9 19,7
EBITA margin (%) 16,9 17,3 18
EBIT margin (%) 16,9 17,3 18
Pretax margin (%) 16,9 17,3 18
Net margin (%) 13,3 13,8 14,3
Growth rates Y/Y 2020 2021 2022
Sales growth (%) 17 18,8 15
EBITDA growth (%) 19,8 20,9 19,7
EBIT growth (%) 23 21,9 19,7
Net profit growth (%) 23,2 23,3 19,7
EPS growth (%) 23,2 23,3 19,7
Profitability 2020 2021 2022
ROE (%) 50,4 56,2 57,1
ROE Adj (%) 50,4 56,2 57,1
ROCE (%) 64,2 70,8 71,9
ROCE Adj(%) 64,2 70,8 71,9
ROIC (%) 8000,3 12354,8 3071,4
ROIC Adj (%) 8000,3 12354,8 3071,4
Adj earnings numbers 2020 2021 2022
EBITDA Adj 15 18 22
EBITDA Adj margin (%) 18,6 18,9 19,7
EBITA Adj 14 17 20
EBITA Adj margin (%) 16,9 17,3 18
EBIT Adj 14 17 20
EBIT Adj margin (%) 16,9 17,3 18
Pretax profit Adj 14 17 20
Net profit Adj 11 13 16
Net profit to shareholders Adj 11 13 16
Net Adj margin (%) 13,3 13,8 14,3
N/A N/A N/A
Depreciation and amortisation -1 -2 -2
Of which leasing depreciation 0 0 0
EO items 0 0 0
Impairment and PPA amortisation 0 0 0
EBITDA lease Adj 15 18 22
EBITDA lease Adj margin (%) 18,6 18,9 19,7
SEKm 2020 2021e 2022e
Total assets 44 48 56
Shareholders equity 22 26 30
Minority 0 0 0
Total equity 22 26 30
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 16 17 19
Other current liabilities 6 6 6
Total liabilities and equity 44 48 56
Net IB debt -22 -25 -30
Net IB debt excl. pension debt -22 -25 -30
Capital invested 0 1 0
Working capital -4 -3 -2
EV breakdown 2020 2021 2022
Market cap. diluted (m) 510 511 511
Net IB debt Adj -22 -25 -30
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 488 486 481
Capital efficiency (%) 2020 2021 2022
Total assets turnover (%) 196,6 209,8 215,3
Capital invested turnover (%) 60352 89775,1 21436,1
Capital employed turnover (%) 380,1 408,4 398,6
Inventories / sales (%) 0,4 0,5 0,5
Customer advances / sales (%) 0 0 0
Payables / sales (%) 17,1 16,9 15,9
Working capital / sales (%) -4,7 -3,6 -2,2
Financial risk and debt service 2020 2021 2022
Net debt / equity (%) -102 -97,4 -98,8
Net debt / market cap (%) -6,2 -4,9 -5,9
Equity ratio (%) 49,6 53 54,9
Net IB debt adj. / equity (%) -102 -97,4 -98,8
Current ratio (%) 181 198,1 211,3
EBITDA / net interest (%) -758650 0 0
Net IB debt / EBITDA (%) -148,1 -135,7 -137,2
Interest cover (%) -690650 0 0
EBITDA 15 18 22
Net financial items 0 0 0
Paid tax -3 -3 -4
Non-cash items 0 0 0
Cash flow before change in WC 12 15 18
Change in WC 1 -2 -1
Operating cash flow 13 13 17
CAPEX tangible fixed assets -1 -1 -1
CAPEX intangible fixed assets 0 0 0
Acquisitions and disposals 0 0 0
Free cash flow 12 12 16
Dividend paid -10 -10 -11
Share issues and buybacks 0 0 0
Other non cash items 0 0 0
Decrease in net IB debt 2 2 5
Balance Sheet (SEKm) 2020 2021 2022
Goodwill 0 0 0
Indefinite intangible assets 0 0 0
Definite intangible assets 2 2 2
Tangible fixed assets 2 2 1
Other fixed assets 0 0 0
Fixed assets 4 3 3
Inventories 0 0 1
Receivables 18 19 22
Other current assets 0 0 0
Cash and liquid assets 22 25 30
N/A N/A N/A
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 -22 -25 -30
Net IB debt / EBITDA lease Adj (%) -148,1 -135,7 -137,2
SEKm 2020 2021e 2022e
Shares outstanding adj. 12 12 12
Fully diluted shares Adj 12 12 12
EPS 0,88 1,09 1,3
Dividend per share Adj 0,8 0,9 1
EPS Adj 0,88 1,09 1,3
BVPS 1,79 2,08 2,48
BVPS Adj 1,66 1,95 2,35
Net IB debt / share -1,8 -2 -2,5
Share price 29,47 41,6 41,6
Market cap. (m) 362 511 511
Valuation 2020 2021 2022
P/E 47,1 38,2 31,9
EV/sales 5,96 5,01 4,31
EV/EBITDA 32,1 26,5 21,9
EV/EBITA 35,3 28,9 23,9
EV/EBIT 35,3 28,9 23,9
Dividend yield (%) 1,9 2,2 2,4
FCF yield (%) 2,4 2,4 3,2
P/BVPS 23,17 20,01 16,77
P/BVPS Adj 24,98 21,35 17,69
P/E Adj 47,1 38,2 31,9
EV/EBITDA Adj 32,1 26,5 21,9
EV/EBITA Adj 35,3 28,9 23,9
EV/EBIT Adj 35,3 28,9 23,9
EV/cap. employed 22,1 19 15,8
Investment ratios 2020 2021 2022
Capex / sales 1,2 1 0,9
Capex / depreciation 73,5 66,7 55,6
Capex tangibles / tangible fixed assets 44 56,4 102,8
Capex intangibles / definite intangibles 0 0 0
Depreciation on intangibles / definite intangibles 0 0 0
Depreciation on tangibles / tangibles 59,8 84,6 185
N/A N/A N/A
Lease adj. FCF yield (%) 2,4 2,4 3,2

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Main shareholders - Generic

Main shareholders Share capital % Voting shares % Verified
Krantz & Svedberg 24.3 % 24.3 % 31 Dec 2020
Martin Gren (Grenspecialisten) 23.4 % 23.4 % 31 Dec 2020
Fredrik Svedberg 9.3 % 9.3 % 31 Dec 2020
Avanza Pension 3.7 % 3.7 % 31 Dec 2020
John Löfström 3.6 % 3.6 % 31 Dec 2020
Jonas Jegerborn 3.4 % 3.4 % 31 Dec 2020
JCE Group 2.1 % 2.1 % 31 Dec 2020
Kjell Arvidsson 2.0 % 2.0 % 31 Dec 2020
Jonas Jonsson 1.7 % 1.7 % 31 Dec 2020
Tobias Järvström 1.3 % 1.3 % 31 Dec 2020
Source: Holdings by Modular Finance AB

Insider list - Generic

Name Quantity Code Date
Madelene Persson + 348 BUY 18 Feb 2021
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

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