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Lagercrantz

Lagercrantz

Supplier of technology in expansive niches

Lagercrantz is a technology trading company group in expansive niches offering value creating technology to corporate customers. The operations are conducted according to a decentralized model with 50+ independent companies divided into 4 divisions, Electronics, Mechatronics, Communications and Niche Products. Acquiring new companies is a central part of the business model. Lagercrantz has an increasing proportion of proprietary products, which enables enhanced control of the value chain and supports higher margins. The share is listed on Nasdaq Stockholm, Mid Cap, since 2001.

The recent years’ export initiatives could improve organic growth more than we currently assume. Increased proportion of proprietary products and acquisitions of product-companies have the potential for further margin expansion.

Poor development in individual subsidiaries, overall weaker market conditions, abrupt competition in a specific niche-area. Inflated acquisitions multiple.

SEKm 2020 2021e 2022e
Sales 4139 4600 4836
Sales growth (%) -1 11,1 5,2
EBITDA 758 823 860
EBITDA margin (%) 18,3 17,9 17,8
EBIT adj 519 581 623
EBIT adj margin (%) 12,5 12,6 12,9
Pretax profit 488 566 609
EPS rep 1,88 2,22 2,38
EPS growth (%) 134,8 18,1 7,5
EPS adj 2,29 2,67 2,86
DPS 2,5 2,5 2,5
EV/EBITDA (x) 19,8 18,1 17,1
EV/EBIT adj (x) 28,9 25,6 23,7
P/E (x) 36,2 30,7 28,5
P/E adj (x) 29,7 25,5 23,8
EV/sales (x) 3,6 3,2 3
FCF yield (%) 4,3 4,4 4,7
Dividend yield (%) 3,7 3,7 3,7
Net IB debt/EBITDA 1,4 1,2 1
Lease adj. FCF yield (%) 4,3 4,4 4,7
Lease adj. ND/EBITDA 1,4 1,2 0,9
SEKm 2020 2021e 2022e
Sales 4139 4600 4836
COGS -2545 -2833 -2979
Gross profit 1593 1766 1857
Other operating items -835 -943 -997
EBITDA 758 823 860
Depreciation on tangibles -71 -66 -56
Depreciation on intangibles 0 0 0
EBITA 603 673 720
Goodwill impairment charges 0 0 0
Other impairment and amortisation -84 -92 -97
EBIT 519 581 623
Other financial items 0 0 0
Net financial items -31 -15 -15
Associated income 0 0 0
Other EO items 0 0 0
Pretax profit 488 566 609
Tax -104 -113 -122
Net profit 384 453 487
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders 384 453 487
EPS 1,88 2,22 2,38
EPS Adj 2,29 2,67 2,86
Total extraordinary items after tax 0 0 0
Tax rate (%) -21,4 -20 -20
Gross margin (%) 38,5 38,4 38,4
EBITDA margin (%) 18,3 17,9 17,8
EBITA margin (%) 14,6 14,6 14,9
EBIT margin (%) 12,5 12,6 12,9
Pretax margin (%) 11,8 12,3 12,6
Net margin (%) 9,3 9,9 10,1
Growth rates Y/Y 2020 2021 2022
Sales growth (%) -1 11,1 5,2
EBITDA growth (%) 5,7 8,6 4,5
EBIT growth (%) 7,5 11,9 7,3
Net profit growth (%) 4,8 18,1 7,5
EPS growth (%) 134,8 18,1 7,5
Profitability 2020 2021 2022
ROE (%) 21,9 25,2 27,7
ROE Adj (%) 26,6 30,3 33,2
ROCE (%) 15,8 17,4 18,9
ROCE Adj(%) 18,4 20,1 21,8
ROIC (%) 13,6 16,3 18,6
ROIC Adj (%) 13,6 16,3 18,6
Adj earnings numbers 2020 2021 2022
EBITDA Adj 758 823 860
EBITDA Adj margin (%) 18,3 17,9 17,8
EBITA Adj 603 673 720
EBITA Adj margin (%) 14,6 14,6 14,9
EBIT Adj 519 581 623
EBIT Adj margin (%) 12,5 12,6 12,9
Pretax profit Adj 572 658 706
Net profit Adj 468 545 584
Net profit to shareholders Adj 468 545 584
Net Adj margin (%) 11,3 11,9 12,1
Depreciation and amortisation -155 -150 -140
Of which leasing depreciation -84 -84 -84
EO items 0 0 0
Impairment and PPA amortisation -84 -92 -97
EBITDA lease Adj 670 735 772
EBITDA lease Adj margin (%) 16,2 16 16
Leasing payments -88 -88 -88
SEKm 2020 2021e 2022e
EBITDA 758 823 860
Net financial items -31 -15 -15
Paid tax -104 -113 -122
Non-cash items 0 0 0
Cash flow before change in WC 623 695 724
Change in WC 263 -16 -9
Operating cash flow 886 680 715
CAPEX tangible fixed assets -93 -64 -68
CAPEX intangible fixed assets 0 0 0
Acquisitions and disposals -201 0 0
Free cash flow 591 615 647
Dividend paid -508 -508 -508
Share issues and buybacks 0 0 0
Other non cash items 209 0 0
Decrease in net IB debt 292 107 139
Balance Sheet (SEKm) 2020 2021 2022
Goodwill 1661 1827 2010
Indefinite intangible assets 0 0 0
Definite intangible assets 428 149 -142
Tangible fixed assets 518 538 561
Other fixed assets 18 18 18
Fixed assets 2683 2506 2336
Inventories 583 639 672
Receivables 933 1012 1064
Other current assets 0 0 0
Cash and liquid assets 445 552 691
Total assets 4644 4708 4763
Shareholders equity 1827 1771 1750
Minority 0 0 0
Total equity 1827 1771 1750
Long-term debt 1334 1334 1334
Pension debt 67 67 67
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 1274 1394 1470
Other current liabilities 0 0 0
Total liabilities and equity 4644 4708 4763
Net IB debt 1098 991 852
Net IB debt excl. pension debt 1031 924 785
Capital invested 2925 2762 2602
Working capital 241 257 266
EV breakdown 2020 2021 2022
Market cap. diluted (m) 13894 13894 13894
Net IB debt Adj 1098 991 852
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 14992 14885 14746
Capital efficiency (%) 2020 2021 2022
Total assets turnover (%) 92 98,4 102,1
Capital invested turnover (%) 138 161,8 180,3
Capital employed turnover (%) 126,2 137,6 146,4
Inventories / sales (%) 13,8 13,3 13,5
Customer advances / sales (%) 0 0 0
Payables / sales (%) 29,4 29 29,6
Working capital / sales (%) 6,5 5,4 5,4
Financial risk and debt service 2020 2021 2022
Net debt / equity (%) 60,1 55,9 48,7
Net debt / market cap (%) 9,9 7,1 6,1
Equity ratio (%) 39,3 37,6 36,7
Net IB debt adj. / equity (%) 60,1 55,9 48,7
Current ratio (%) 145 149,7 156,8
EBITDA / net interest (%) 2445,2 5619,9 5873,1
Net IB debt / EBITDA (%) 144,8 120,4 99,1
Interest cover (%) 1945,3 4593,8 4916,2
Lease liability amortisation 0 0 0
Other intangible assets 428 149 -142
Right-of-use asset 58 -26 -110
Total other fixed assets 18 18 18
Leasing liability 142 142 142
Total other long-term liabilities 0 0 0
Net IB debt excl. leasing 956 849 710
Net IB debt / EBITDA lease Adj (%) 142,6 115,5 92
SEKm 2020 2021e 2022e
Shares outstanding adj. 204 204 204
Fully diluted shares Adj 204 204 204
EPS 1,88 2,22 2,38
Dividend per share Adj 2,5 2,5 2,5
EPS Adj 2,29 2,67 2,86
BVPS 8,96 8,69 8,59
BVPS Adj -1,29 -1 -0,58
Net IB debt / share 5,4 4,9 4,2
Share price 54,36 68 68
Market cap. (m) 11081 13861 13861
Valuation 2020 2021 2022
P/E 36,2 30,7 28,5
EV/sales 3,62 3,24 3,05
EV/EBITDA 19,8 18,1 17,1
EV/EBITA 24,9 22,1 20,5
EV/EBIT 28,9 25,6 23,7
Dividend yield (%) 3,7 3,7 3,7
FCF yield (%) 4,3 4,4 4,7
P/BVPS 7,59 7,83 7,92
P/BVPS Adj -52,83 -67,77 -117,88
P/E Adj 29,7 25,5 23,8
EV/EBITDA Adj 19,8 18,1 17,1
EV/EBITA Adj 24,9 22,1 20,5
EV/EBIT Adj 28,9 25,6 23,7
EV/cap. employed 4,4 4,5 4,5
Investment ratios 2020 2021 2022
Capex / sales 2,3 1,4 1,4
Capex / depreciation 131,7 97,1 120,5
Capex tangibles / tangible fixed assets 18 12 12,1
Capex intangibles / definite intangibles 0 0 0
Depreciation on intangibles / definite intangibles 0 0 0
Depreciation on tangibles / tangibles 13,7 12,3 10
Lease adj. FCF yield (%) 4,3 4,4 4,7

Equity research

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Media

Lagercrantz - Company presentation with CEO Jörgen Wigh
Lagercrantz - Interview with CEO Jörgen Wigh (in Swedish)

Main shareholders - Lagercrantz

Main shareholders Share capital % Voting shares % Verified
Anders Börjesson & Tisenhult-Gruppen 5.6 % 28.8 % 28 Feb 2021
SEB Fonder 14.7 % 10.3 % 28 Feb 2021
Swedbank Robur Fonder 12.4 % 8.7 % 28 Feb 2021
Fidelity Investments (FMR) 5.9 % 4.2 % 31 Jan 2021
Lannebo Fonder 4.7 % 3.3 % 28 Feb 2021
Didner & Gerge Fonder 4.6 % 3.2 % 28 Feb 2021
ODIN Fonder 4.5 % 3.2 % 31 Jan 2021
Handelsbanken Fonder 3.8 % 2.7 % 28 Feb 2021
Per Säve 2.0 % 1.9 % 28 Feb 2021
Lagercrantz Group AB 2.5 % 1.7 % 28 Feb 2021
Source: Holdings by Modular Finance AB