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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 2019 2020e 2021e
Sales 70 80 93
Sales growth (%) 16,4 14,1 16
EBITDA 13 15 18
EBITDA margin (%) 18,1 18,3 19,3
EBIT adj 11 13 16
EBIT adj margin (%) 16,1 16,4 17,5
Pretax profit 11 13 16
EPS rep 0,72 0,84 1,05
EPS growth (%) 30,4 16,7 25,4
EPS adj 0,72 0,84 1,05
DPS 0,8 0,8 0,9
EV/EBITDA (x) 18 35,2 28,7
EV/EBIT adj (x) 20,3 39,3 31,5
P/E (x) 27,8 51,6 41,1
P/E adj (x) 27,8 51,6 41,1
EV/sales (x) 3,3 6,4 5,5
FCF yield (%) 2,5 1,9 2,4
Dividend yield (%) 4 1,9 2,1
Net IB debt/EBITDA -1,3 -1,1 -1,1
N/A N/A N/A
SEKm 2019 2020e 2021e
Sales 70 80 93
COGS -29 -36 -42
Gross profit 41 43 51
Other operating items -28 -29 -33
EBITDA 13 15 18
Depreciation on tangibles -1 -2 -2
Depreciation on intangibles 0 0 0
EBITA 11 13 16
Goodwill impairment charges 0 0 0
Other impairment and amortisation 0 0 0
EBIT 11 13 16
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 11 13 16
Tax -2 -3 -3
Net profit 9 10 13
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders 9 10 13
EPS 0,72 0,84 1,05
EPS Adj 0,72 0,84 1,05
Total extraordinary items after tax 0 0 0
Tax rate (%) -21,9 -21,4 -20,6
Gross margin (%) 58,1 54,4 54,7
EBITDA margin (%) 18,1 18,3 19,3
EBITA margin (%) 16,1 16,4 17,5
EBIT margin (%) 16,1 16,4 17,5
Pretax margin (%) 16,1 16,4 17,5
Net margin (%) 12,6 12,9 13,9
Growth rates Y/Y 2019 2020 2021
Sales growth (%) 16,4 14,1 16
EBITDA growth (%) 28,9 14,9 22,3
EBIT growth (%) 31,1 16,3 24,1
Net profit growth (%) 30,4 16,7 25,4
EPS growth (%) 30,4 16,7 25,4
Profitability 2019 2020 2021
ROE (%) 32,2 38 44,7
ROE Adj (%) 32,2 38 44,7
ROCE (%) 37 39,5 46,6
ROCE Adj(%) 37 39,5 46,6
ROIC (%) 103,2 96,5 117,7
ROIC Adj (%) 103,2 96,5 117,7
Adj earnings numbers 2019 2020 2021
EBITDA Adj 13 15 18
EBITDA Adj margin (%) 18,1 18,3 19,3
EBITA Adj 11 13 16
EBITA Adj margin (%) 16,1 16,4 17,5
EBIT Adj 11 13 16
EBIT Adj margin (%) 16,1 16,4 17,5
Pretax profit Adj 11 13 16
Net profit Adj 9 10 13
Net profit to shareholders Adj 9 10 13
Net Adj margin (%) 12,6 12,9 13,9
N/A N/A N/A
SEKm 2019 2020e 2021e
Total assets 47 49 55
Shareholders equity 27 27 30
Minority 0 0 0
Total equity 27 27 30
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 14 16 19
Other current liabilities 0 0 0
Total liabilities and equity 47 49 55
Net IB debt -16 -17 -19
Net IB debt excl. pension debt -22 -23 -25
Capital invested 11 11 11
Working capital 5 6 7
EV breakdown 2019 2020 2021
Market cap. diluted (m) 245 530 530
Net IB debt Adj -16 -17 -19
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 228 513 511
Capital efficiency (%) 2019 2020 2021
Total assets turnover (%) 150,2 166,1 177,9
Capital invested turnover (%) 821,8 749,5 845,9
Capital employed turnover (%) 230,3 241,3 266
Inventories / sales (%) 0,4 0,5 0,5
Customer advances / sales (%) 0 0 0
Payables / sales (%) 18,8 18,8 18,6
Working capital / sales (%) 0,9 7 7
Financial risk and debt service 2019 2020 2021
Net debt / equity (%) -60,8 -60,5 -63,3
Net debt / market cap (%) -12,5 -3,1 -3,6
Equity ratio (%) 57,3 55,4 55,3
Net IB debt adj. / equity (%) -60,8 -60,5 -63,3
Current ratio (%) 297,1 278,6 273,6
EBITDA / net interest (%) -38393,9 0 0
Net IB debt / EBITDA (%) -128,7 -113,3 -107,7
Interest cover (%) -34036,4 0 0
EBITDA 13 15 18
Net financial items 0 0 0
Paid tax -2 -3 -3
Non-cash items 0 0 0
Cash flow before change in WC 10 12 14
Change in WC -3 -1 -1
Operating cash flow 7 11 14
CAPEX tangible fixed assets -1 -1 -1
CAPEX intangible fixed assets 0 0 0
Acquisitions and disposals 0 0 0
Free cash flow 6 10 13
Dividend paid -10 -10 -10
Share issues and buybacks 0 0 0
Other non cash items 5 0 0
Decrease in net IB debt -5 0 3
Balance Sheet (SEKm) 2019 2020 2021
Goodwill 0 0 0
Indefinite intangible assets 0 0 0
Definite intangible assets 0 0 0
Tangible fixed assets 4 3 3
Other fixed assets 1 1 1
Fixed assets 5 5 4
Inventories 0 0 0
Receivables 19 22 25
Other current assets 0 0 0
Cash and liquid assets 22 23 25
N/A N/A N/A
SEKm 2019 2020e 2021e
Shares outstanding adj. 12 12 12
Fully diluted shares Adj 12 12 12
EPS 0,72 0,84 1,05
Dividend per share Adj 0,8 0,8 0,9
EPS Adj 0,72 0,84 1,05
BVPS 2,18 2,22 2,47
BVPS Adj 2,15 2,18 2,43
Net IB debt / share -1,3 -1,3 -1,6
Share price 10,6 43,1 43,1
Market cap. (m) 130 530 530
Valuation 2019 2020 2021
P/E 27,8 51,6 41,1
EV/sales 3,27 6,44 5,52
EV/EBITDA 18 35,2 28,7
EV/EBITA 20,3 39,3 31,5
EV/EBIT 20,3 39,3 31,5
Dividend yield (%) 4 1,9 2,1
FCF yield (%) 2,5 1,9 2,4
P/BVPS 9,12 19,43 17,48
P/BVPS Adj 9,26 19,73 17,72
P/E Adj 27,8 51,6 41,1
EV/EBITDA Adj 18 35,2 28,7
EV/EBITA Adj 20,3 39,3 31,5
EV/EBIT Adj 20,3 39,3 31,5
EV/cap. employed 7 15,4 14,1
Investment ratios 2019 2020 2021
Capex / sales 1,4 1,3 1,1
Capex / depreciation 69,5 66,7 62,5
Capex tangibles / tangible fixed assets 25,9 29,7 36,1
Capex intangibles / definite intangibles 0 0 0
Depreciation on intangibles / definite intangibles 0 0 0
Depreciation on tangibles / tangibles 37,2 44,5 57,8
N/A N/A N/A

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Main shareholders - Generic

Main shareholders Share capital % Voting shares % Verified
Krantz & Svedberg 25.5 % 25.5 % 30 Sep 2020
Martin Gren (Grenspecialisten) 23.5 % 23.5 % 30 Sep 2020
Fredrik Svedberg 12.2 % 12.2 % 30 Sep 2020
John Löfström 3.8 % 3.8 % 30 Sep 2020
Avanza Pension 3.7 % 3.7 % 30 Sep 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
Jan Jensen 1.0 % 1.0 % 30 Sep 2020
Arne Lindberg 1.0 % 1.0 % 30 Sep 2020
Source: Holdings by Modular Finance AB

Insider list - Generic

Name Quantity Code Date
Madelene Persson + 1 000 BUY 28 Aug 2020
Bengt-Arne Molin + 6 569 BUY 24 Aug 2020
Bengt-Arne Molin + 161 BUY 21 Aug 2020
Fredrik Svedberg + 10 000 BUY 21 Aug 2020
Hans Krantz - 122 920 SELL 1 Apr 2020
Hans Krantz + 122 920 BUY 1 Apr 2020
Fredrik Svedberg +1 112 285 BUY 23 Mar 2020
Hans Krantz +1 112 285 BUY 23 Mar 2020
A. Hans Krantz B. Fredrik Svedberg -1 112 285 SELL 23 Mar 2020
Niclas Granholm + 2 000 BUY 18 Mar 2020

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