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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 76 81
Sales growth (%) 16,2 8,7 7
EBITDA 13 15 16
EBITDA margin (%) 18,9 19,6 19,8
EBIT adj 12 13 15
EBIT adj margin (%) 16,9 17,7 17,9
Pretax profit 12 13 15
EPS rep 0,75 0,85 0,92
EPS growth (%) 36,3 13,9 8,3
EPS adj 0,75 0,85 0,92
DPS 0,4 0,45 0,5
EV/EBITDA (x) 22,3 19,4 17,6
EV/EBIT adj (x) 25 21,5 19,4
P/E (x) 33,8 29,7 27,4
P/E adj (x) 33,8 29,7 27,4
EV/sales (x) 4,2 3,8 3,5
FCF yield (%) 2 3,4 3,7
Dividend yield (%) 1,6 1,8 2
Net IB debt/EBITDA -1,3 -1,5 -1,8
SEKm 2019 2020e 2021e
Sales 70 76 81
COGS -29 -30 -32
Gross profit 41 45 49
Other operating items -28 -31 -33
EBITDA 13 15 16
Depreciation on tangibles -1 -1 -2
Depreciation on intangibles 0 0 0
EBITA 12 13 15
Goodwill impairment charges 0 0 0
Other impairment and amortisation 0 0 0
EBIT 12 13 15
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 12 13 15
Tax -3 -3 -3
Net profit 9 10 11
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders 9 10 11
EPS 0,75 0,85 0,92
EPS Adj 0,75 0,85 0,92
Total extraordinary items after tax 0 0 0
Tax rate (%) -22 -22 -22
Gross margin (%) 58,3 60 60,5
EBITDA margin (%) 18,9 19,6 19,8
EBITA margin (%) 16,9 17,7 17,9
EBIT margin (%) 16,9 17,7 17,9
Pretax margin (%) 16,9 17,7 17,9
Net margin (%) 13,2 13,8 14
Growth rates Y/Y 2019 2020 2021
Sales growth (%) 16,2 8,7 7
EBITDA growth (%) 34,2 12,9 7,9
EBIT growth (%) 37,7 13,9 8,3
Net profit growth (%) 36,3 13,9 8,3
EPS growth (%) 36,3 13,9 8,3
Profitability 2019 2020 2021
ROE (%) 33,4 34,9 31,8
ROE Adj (%) 33,4 34,9 31,8
ROCE (%) 38,6 37,3 34,9
ROCE Adj(%) 38,6 37,3 34,9
ROIC (%) 79,7 99,3 108
ROIC Adj (%) 79,7 99,3 108
Adj earnings numbers 2019 2020 2021
EBITDA Adj 13 15 16
EBITDA Adj margin (%) 18,9 19,6 19,8
EBITA Adj 12 13 15
EBITA Adj margin (%) 16,9 17,7 17,9
EBIT Adj 12 13 15
EBIT Adj margin (%) 16,9 17,7 17,9
Pretax profit Adj 12 13 15
Net profit Adj 9 10 11
Net profit to shareholders Adj 9 10 11
Net Adj margin (%) 13,2 13,8 14
SEKm 2019 2020e 2021e
Total assets 47 54 61
Shareholders equity 27 33 39
Minority 0 0 0
Total equity 27 33 39
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 15 16
Other current liabilities 0 0 0
Total liabilities and equity 51 46 47
Net IB debt -17 -22 -28
Net IB debt excl. pension debt -23 -28 -34
Capital invested 11 11 10
Working capital 5 6 6
EV breakdown 2019 2020 2021
Market cap. diluted (m) 311 311 311
Net IB debt Adj -17 -22 -28
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 294 289 283
Capital efficiency (%) 2019 2020 2021
Total assets turnover (%) 149,4 149,9 141,3
Capital invested turnover (%) 604,1 718 771,7
Capital employed turnover (%) 228,4 210,5 194,5
Inventories / sales (%) 0,4 0,5 0,5
Customer advances / sales (%) 0 0 0
Payables / sales (%) 18,8 19,2 19,3
Working capital / sales (%) 5,2 7,2 7,3
Financial risk and debt service 2019 2020 2021
Net debt / equity (%) -61,2 -67,8 -72,9
Net debt / market cap (%) -12,8 -7,1 -9,1
Equity ratio (%) 57,7 60,8 63,5
Net IB debt adj. / equity (%) -61,2 -67,8 -72,9
Current ratio (%) 300 323,7 348,1
EBITDA / net interest (%) 0 0 0
Net IB debt / EBITDA (%) -126,4 -149,3 -175,4
Interest cover (%) N/A N/A N/A
EBITDA 13 15 16
Net financial items 0 0 0
Paid tax -3 -3 -3
Non-cash items 0 0 0
Cash flow before change in WC 11 12 13
Change in WC -3 0 0
Operating cash flow 7 11 12
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 11
Dividend paid -10 -5 -6
Share issues and buybacks 0 0 0
Other non cash items 5 0 0
Decrease in net IB debt -5 6 6
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 20 22
Other current assets 0 0 0
Cash and liquid assets 23 28 34
SEKm 2019 2020e 2021e
Shares outstanding adj. 12 12 12
Fully diluted shares Adj 12 12 12
EPS 0,75 0,85 0,92
Dividend per share Adj 0,4 0,5 0,5
EPS Adj 0,75 0,85 0,92
BVPS 2,22 2,67 3,14
BVPS Adj 2,18 2,63 3,11
Net IB debt / share -1,4 -1,8 -2,3
Share price 10,6 25,3 25,3
Market cap. (m) 130 311 311
Valuation 2019 2020 2021
P/E 33,8 29,7 27,4
EV/sales 4,22 3,81 3,49
EV/EBITDA 22,3 19,4 17,6
EV/EBITA 25 21,5 19,4
EV/EBIT 25 21,5 19,4
Dividend yield (%) 1,6 1,8 2
FCF yield (%) 2 3,4 3,7
P/BVPS 11,42 9,48 8,05
P/BVPS Adj 11,6 9,6 8,14
P/E Adj 33,8 29,7 27,4
EV/EBITDA Adj 22,3 19,4 17,6
EV/EBITA Adj 25 21,5 19,4
EV/EBIT Adj 25 21,5 19,4
EV/cap. employed 8,9 7,4 6,3
Investment ratios 2019 2020 2021
Capex / sales 1,4 1,3 1,2
Capex / depreciation 71,9 69 66,7
Capex tangibles / tangible fixed assets 25,5 28,9 33,7
Capex intangibles / definite intangibles 0 0 0
Depreciation on intangibles / definite intangibles 0 0 0
Depreciation on tangibles / tangibles 35,5 41,8 50,6

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Main shareholders - Generic

Main shareholders Share capital % Voting shares % Verified
Krantz & Svedberg 34.6 % 34.6 % 31 Dec 2019
Martin Gren (Grenspecialisten) 23.5 % 23.5 % 31 Dec 2019
John Löfström 3.6 % 3.6 % 31 Dec 2019
Avanza Pension 3.1 % 3.1 % 31 Dec 2019
Fredrik Svedberg 3.0 % 3.0 % 31 Dec 2019
Tobias Järvström 2.3 % 2.3 % 31 Dec 2019
Kjell Arvidsson 2.0 % 2.0 % 31 Dec 2019
Arne Lindberg 1.9 % 1.9 % 31 Dec 2019
Nordnet Pensionsförsäkring 1.7 % 1.7 % 31 Dec 2019
Jan Jensen 1.4 % 1.4 % 31 Dec 2019
Source: Holdings by Modular Finance AB

Insider list - Generic

Name Quantity Code Date
Gustav Rehnman Molander + 3 057 BUY 16 Sep 2019
Fredrik Svedberg - 300 000 SELL 12 Sep 2019
Gustav Rehnman Molander + 400 BUY 12 Sep 2019
Fredrik Svedberg - 123 753 SELL 11 Sep 2019
Fredrik Svedberg - 123 753 SELL 11 Sep 2019
Fredrik Svedberg - 10 000 SELL 10 Sep 2019
Fredrik Svedberg - 10 000 SELL 10 Sep 2019
Fredrik Svedberg - 4 219 SELL 9 Sep 2019
Fredrik Svedberg - 4 219 SELL 9 Sep 2019
Fredrik Svedberg - 99 910 SELL 19 Jul 2019

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