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Opus Group

Opus Group

Environmental and safety control of vehicles

Headquartered in Gothenburg, Sweden, Opus Group offers vehicle inspection programs for safety testing and emission controls, equipment sales and servicing, and support of advanced vehicles globally. Opus operates in both centralised and decentralised vehicle inspection programs, with the decentralised programs concentrated to the US. Opus also offers Equipment-as-a-Service contracts to decentralised workshops in parts of the US. While Sweden is an important division for Opus, the company is the market leader in the US and is present in Latin America, Pakistan, Spain, the UK and Australia.

Demand for Opus’s offering is mainly driven by the world’s current and future fleet of vehicles, with the company positioned to meet the inspection requirements of advanced vehicles. Authorities focusing on how to prevent and reduce traffic accidents and on reducing pollution of cities is leading to tightening requirements for safety and emissions, which also increases the demand for Opus’s services. A further roll-out of EaaS contracts in open markets will strengthen the firm’s operating margins.

A key risk for Opus is increased competition both in the Swedish market as well as internationally. Furthermore, losing procurements for new or ongoing contracts in the open US market would weaken Opus’s position as a market leader. As a part of Opus’s growth strategy, expansions to low- and middle-income countries and markets are expected. Thus, Opus faces the inherent political, financial and operational risks that come with the expansion into these areas.

SEKm 2019 2020e 2021e
Sales 2743 2923 3038
Sales growth (%) 9,9 6,5 4
EBITDA 709 801 862
EBITDA margin (%) 25,8 27,4 28,4
EBIT adj 222 346 397
EBIT adj margin (%) 8,1 11,8 13,1
Pretax profit 28 217 268
EPS rep 0,05 0,56 0,66
EPS growth (%) -46,6 1104,1 17
EPS adj 0,55 1,01 1,08
DPS 0,15 0,2 0,22
EV/EBITDA (x) 6,7 5,9 5,4
EV/EBIT adj (x) 21,3 13,7 11,8
P/E (x) 186,2 15,5 13,2
P/E adj (x) 15,6 8,6 8
EV/sales (x) 1,7 1,6 1,5
FCF yield (%) 6 3,5 6,8
Dividend yield (%) 1,7 2,3 2,5
Net IB debt/EBITDA 3,1 2,8 2,6
SEKm 2019 2020e 2021e
Sales 2743 2923 3038
COGS 0 0 0
Gross profit 2743 2923 3038
Other operating items -2035 -2121 -2176
EBITDA 709 801 862
Depreciation on tangibles -260 -237 -255
Depreciation on intangibles 0 0 0
EBITA 365 480 523
Goodwill impairment charges 0 0 0
Other impairment and amortisation -146 -134 -125
EBIT 218 346 397
Other financial items 0 0 0
Net financial items -190 -130 -130
Associated income 0 0 0
Other EO items 0 0 0
Pretax profit 28 217 268
Tax -59 -76 -94
Net profit -30 141 174
Minority interest 44 25 20
Net profit discontinued 0 0 0
Net profit to shareholders 14 166 194
EPS 0,05 0,56 0,66
EPS Adj 0,55 1,01 1,08
Total extraordinary items after tax -4 0 0
Tax rate (%) -206,6 -35 -35
Gross margin (%) 100 100 100
EBITDA margin (%) 25,8 27,4 28,4
EBITA margin (%) 13,3 16,4 17,2
EBIT margin (%) 8 11,8 13,1
Pretax margin (%) 1 7,4 8,8
Net margin (%) -1,1 4,8 5,7
Growth rates Y/Y 2019 2020 2021
Sales growth (%) 9,9 6,5 4
EBITDA growth (%) 40,7 13,1 7,6
EBIT growth (%) 6,1 58,6 14,7
Net profit growth (%) -387,7 564,9 23,5
EPS growth (%) -46,6 1104,1 17
Profitability 2019 2020 2021
ROE (%) 1,3 14,8 15,6
ROE Adj (%) 16 26,8 25,6
ROCE (%) 6,5 9,2 10,2
ROCE Adj(%) 11 12,7 13,5
ROIC (%) -7,2 6,3 7,1
ROIC Adj (%) -7,3 6,3 7,1
Adj earnings numbers 2019 2020 2021
EBITDA Adj 713 801 862
EBITDA Adj margin (%) 26 27,4 28,4
EBITA Adj 369 480 523
EBITA Adj margin (%) 13,4 16,4 17,2
EBIT Adj 222 346 397
EBIT Adj margin (%) 8,1 11,8 13,1
Pretax profit Adj 179 351 393
Net profit Adj 120 275 299
Net profit to shareholders Adj 164 300 319
Net Adj margin (%) 4,4 9,4 9,9
SEKm 2019 2020e 2021e
Net debt / market cap (%) 133,7 89,6 88,1
Equity ratio (%) 21,7 23,2 25,3
Net IB debt adj. / equity (%) 219,4 203,3 181,1
Current ratio (%) 120,8 115,9 120,8
EBITDA / net interest (%) 373,1 618 664,8
Net IB debt / EBITDA (%) 313,4 281,4 257,3
Interest cover (%) 192 370,5 403,1
EBITDA 709 801 862
Net financial items -190 -130 -130
Paid tax -59 -76 -94
Non-cash items -42 -84 -84
Cash flow before change in WC 418 512 555
Change in WC 14 -9 -11
Operating cash flow 432 503 544
CAPEX tangible fixed assets -278 -414 -369
CAPEX intangible fixed assets 0 0 0
Acquisitions and disposals 0 0 0
Free cash flow 154 89 175
Dividend paid -35 -44 -58
Share issues and buybacks 0 0 0
Other non cash items -648 38 78
Decrease in net IB debt -624 -35 37
Balance Sheet (SEKm) 2019 2020 2021
Goodwill 1345 1435 1435
Indefinite intangible assets 0 0 0
Definite intangible assets 670 564 469
Tangible fixed assets 1350 1456 1545
Other fixed assets 97 97 97
Fixed assets 3743 3829 3819
Inventories 0 0 0
Receivables 429 491 529
Other current assets 0 0 0
Cash and liquid assets 497 459 491
Total assets 4670 4778 4839
Shareholders equity 1056 1179 1315
Minority -45 -70 -90
Total equity 1012 1109 1225
Long-term debt 2359 2359 2359
Pension debt 0 0 0
Convertible debt 0 0 0
Deferred tax 0 0 0
Other long-term liabilities 321 284 206
Short-term debt 78 78 78
Accounts payable 619 672 699
Other current liabilities 0 0 0
Total liabilities and equity 3331 3868 4670
Net IB debt 2220 2255 2218
Net IB debt excl. pension debt 2220 2255 2218
Capital invested 3553 3648 3649
Working capital -190 -181 -170
EV breakdown 2019 2020 2021
Market cap. diluted (m) 2565 2565 2565
Net IB debt Adj 2220 2255 2218
Market value of minority -45 -70 -90
Reversal of shares and participations 0 0 0
Reversal of conv. debt assumed equity 0 0 0
EV 4740 4750 4693
Capital efficiency (%) 2019 2020 2021
Total assets turnover (%) 64,3 61,9 63,2
Capital invested turnover (%) 84,8 81,2 83,3
Capital employed turnover (%) 81,9 77,4 78,3
Inventories / sales (%) 0 0 0
Customer advances / sales (%) 0 0 0
Payables / sales (%) 21,5 22,1 22,6
Working capital / sales (%) -6,7 -6,3 -5,8
Financial risk and debt service 2019 2020 2021
Net debt / equity (%) 219,4 203,3 181,1
SEKm 2019 2020e 2021e
Shares outstanding adj. 290 290 290
Fully diluted shares Adj 296 296 296
EPS 0,05 0,56 0,66
Dividend per share Adj 0,1 0,2 0,2
EPS Adj 0,55 1,01 1,08
BVPS 3,64 4,06 4,53
BVPS Adj -3,3 -2,83 -2,03
Net IB debt / share 7,6 7,8 7,6
Share price 5,72 8,67 8,67
Market cap. (m) 1660 2517 2517
Valuation 2019 2020 2021
P/E 186,2 15,5 13,2
EV/sales 1,73 1,63 1,54
EV/EBITDA 6,7 5,9 5,4
EV/EBITA 13 9,9 9
EV/EBIT 21,7 13,7 11,8
Dividend yield (%) 1,7 2,3 2,5
FCF yield (%) 6 3,5 6,8
P/BVPS 2,38 2,14 1,91
P/BVPS Adj -2,62 -3,07 -4,27
P/E Adj 15,6 8,6 8
EV/EBITDA Adj 6,7 5,9 5,4
EV/EBITA Adj 12,9 9,9 9
EV/EBIT Adj 21,3 13,7 11,8
EV/cap. employed 1,3 1,2 1,2
Investment ratios 2019 2020 2021
Capex / sales 10,1 14,2 12,1
Capex / depreciation 106,9 174,8 144,4
Capex tangibles / tangible fixed assets 20,6 28,4 23,9
Capex intangibles / definite intangibles 0 0 0
Depreciation on intangibles / definite intangibles 0 0 0
Depreciation on tangibles / tangibles 19,2 16,3 16,5

Equity research

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Media

Opus Group: Interview with CEO Lothar Geilen (Q4 2017)
Opus Group - Interview with CEO Lothar Geilen (Q2 2017)

Main shareholders - Opus Group

Main shareholders Share capital % Voting shares % Verified
Searchlight Capital Partners 83.3 % 83.3 % 13 Feb 2020
Andra AP-fonden 6.9 % 6.9 % 31 Dec 2019
Henrik Wagner Jørgensen 3.4 % 3.4 % 30 Sep 2019
Rickard Andersson 3.2 % 3.2 % 30 Sep 2019
Dimensional Fund Advisors 3.2 % 3.2 % 31 Dec 2019
Swedbank Försäkring 1.4 % 1.4 % 31 Dec 2019
Avanza Pension 1.3 % 1.3 % 31 Dec 2019
AXA 1.2 % 1.2 % 31 Dec 2019
Magnus Greko och Jörgen Hentschel 1.1 % 1.1 % 16 Jan 2020
Per Hamberg dödsbo 1.0 % 1.0 % 31 Dec 2019
Source: Holdings by Modular Finance AB

Insider list - Opus Group

Name Quantity Code Date
Thomas Fournier + 32 805 Redemp 14 Feb 2020
Alfredo Granai + 68 776 ALTM 14 Feb 2020
Per Rosén - 279 950 SELL 14 Feb 2020
Alfredo Granai - 68 776 SELL 14 Feb 2020
Per Rosén + 99 680 ALTM 14 Feb 2020
Lothar Geilen +11 193 788 BUY 13 Feb 2020
Anne-Lie Lind - 65 000 SELL 20 Jan 2020
Magnus Greko -39 004 684 SELL 16 Jan 2020
Per Rosén - 592 181 SELL 16 Jan 2020
Lothar Geilen -19 628 132 SELL 16 Jan 2020

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