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Svedbergs

Svedbergs

Premium bathroom manufacturer

Svedbergs is a premium bathroom manufacturer with a market share of 7% of the Nordic market. The company supplies the complete bathroom through two brands, Svedbergs and Macro Design. The group’s strategy is to gain market share through both organic and inorganic growth. Svedbergs aims to achieve annual revenue growth of 10% (including M&A) and an adj. EBITA margin of 15%.

Svedbergs has an active M&A agenda, which the company aims to drive an average annual growth of the financial targets of 10%. Exercised correctly with conservative multiples, M&A can aid the company through 1) growth 2) purchasing synergies and 3) margin and EPS accretion.

Given the ambitious financial targets, M&A activities can be a risk to the company. With the ambitious EBITA margin target of 15%, we expect the criterion for acquisitions to be rather strict. With the M&A focus in place, this can lead to 1) high acquisition multiples 2) a price focus leading to a lower quality acquisition or 3) resources spent on M&A processes that ends up leading nowhere. Further, the company is exposed to FX and raw material prices, which have short-term effects on margins.

SEKm 2020 2021e 2022e
Lease adj. FCF yield (%) 2,1 4,3 5,2
Lease adj. ND/EBITDA 1,9 1,5 1,2
Sales 649 747 773
Sales growth (%) 6,6 15,1 3,4
EBITDA 94 125 134
EBITDA margin (%) 14,5 16,7 17,4
EBIT adj 77 95 104
EBIT adj margin (%) 11,8 12,8 13,4
Pretax profit 62 92 100
EPS rep 2,26 3,45 3,76
EPS growth (%) 15,2 52,3 9,1
EPS adj 2,83 3,58 3,89
DPS 1,25 1,5 1,6
EV/EBITDA (x) 10 9,7 8,9
EV/EBIT adj (x) 12,3 12,7 11,5
P/E (x) 15,2 13,9 12,8
P/E adj (x) 12,1 13,4 12,3
EV/sales (x) 1,5 1,6 1,5
FCF yield (%) 2,4 4,5 5,4
Dividend yield (%) 3,6 3,1 3,3
Net IB debt/EBITDA 2,3 1,6 1,3
SEKm 2020 2021e 2022e
Depreciation and amortisation -26 -27 -28
Of which leasing depreciation -2 -2 -2
EO items -10 0 0
Impairment and PPA amortisation -2 -3 -3
EBITDA lease Adj 104 125 134
EBITDA lease Adj margin (%) 16,1 16,7 17,4
Sales 649 747 773
COGS -376 -435 -446
Gross profit 274 312 327
Other operating items -180 -187 -193
EBITDA 94 125 134
Depreciation on tangibles -22 -22 -22
Depreciation on intangibles -2 -3 -3
EBITA 68 98 107
Goodwill impairment charges 0 0 0
Other impairment and amortisation -2 -3 -3
EBIT 66 95 104
Other financial items 0 0 0
Net financial items -4 -4 -4
Associated income 0 0 0
Other EO items 0 0 0
Pretax profit 62 92 100
Tax -14 -19 -21
Net profit 48 73 80
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders 48 73 80
EPS 2,26 3,45 3,76
EPS Adj 2,83 3,58 3,89
Total extraordinary items after tax -10,3 0 0
Tax rate (%) -22,4 -20,6 -20,6
Gross margin (%) 42,2 41,8 42,3
EBITDA margin (%) 14,5 16,7 17,4
EBITA margin (%) 10,5 13,1 13,8
EBIT margin (%) 10,2 12,8 13,4
Pretax margin (%) 9,6 12,3 13
Net margin (%) 7,4 9,8 10,3
Growth rates Y/Y 2020 2021 2022
Sales growth (%) 6,6 15,1 3,4
EBITDA growth (%) 14,8 33 7,3
EBIT growth (%) 17,8 44,1 8,7
Net profit growth (%) 16,1 51,4 9,1
EPS growth (%) 15,2 52,3 9,1
Profitability 2020 2021 2022
ROE (%) 23,7 29,1 26,7
ROE Adj (%) 29,6 30,2 27,7
ROCE (%) 14,5 18,3 18,2
ROCE Adj(%) 17,2 18,8 18,7
ROIC (%) 11,8 15,4 15,9
ROIC Adj (%) 13,6 15,4 15,9
Adj earnings numbers 2020 2021 2022
EBITDA Adj 104 125 134
EBITDA Adj margin (%) 16,1 16,7 17,4
EBITA Adj 78 98 107
EBITA Adj margin (%) 12 13,1 13,8
EBIT Adj 77 95 104
EBIT Adj margin (%) 11,8 12,8 13,4
Pretax profit Adj 74 95 103
Net profit Adj 60 76 82
Net profit to shareholders Adj 60 76 82
Net Adj margin (%) 9,3 10,1 10,7
Leasing payments 0 0 0
SEKm 2020 2021e 2022e
Lease liability amortisation -2 -2 -2
Other intangible assets 99 109 121
Right-of-use asset 9 9 9
Total other fixed assets 0 0 0
Leasing liability 10 10 10
Total other long-term liabilities 36 36 36
Net IB debt excl. leasing 203 186 165
Net IB debt / EBITDA lease Adj (%) 194,5 148,7 123,2
EBITDA 94 125 134
Net financial items -4 -4 -4
Paid tax -12 -19 -21
Non-cash items 11 0 0
Cash flow before change in WC 90 103 110
Change in WC 4 -14 -10
Operating cash flow 94 89 100
CAPEX tangible fixed assets -15 -23 -24
CAPEX intangible fixed assets -4 -11 -12
Acquisitions and disposals -57 -8 -8
Free cash flow 18 46 55
Dividend paid 1 -27 -32
Share issues and buybacks 1 0 0
Other non cash items -64 -4 -1
Decrease in net IB debt -14 18 22
Balance Sheet (SEKm) 2020 2021 2022
Goodwill 162 168 173
Indefinite intangible assets 0 0 0
Definite intangible assets 99 109 121
Tangible fixed assets 71 72 74
Other fixed assets 0 0 0
Fixed assets 341 359 378
Inventories 130 149 155
Receivables 145 146 151
Other current assets 0 0 0
Cash and liquid assets 58 75 96
Total assets 674 729 780
Shareholders equity 228 274 322
Minority 0 0 0
Total equity 228 274 322
Long-term debt 157 157 157
Pension debt 0 0 0
Convertible debt 0 0 0
Deferred tax 36 36 36
Other long-term liabilities 0 0 0
Short-term debt 104 104 104
Accounts payable 39 43 45
Other current liabilities 102 106 107
Total liabilities and equity 674 729 780
Net IB debt 212 195 175
Net IB debt excl. pension debt 212 195 175
Capital invested 476 505 532
Working capital 135 146 154
EV breakdown 2020 2021 2022
Market cap. diluted (m) 730 1016 1016
Net IB debt Adj 212 195 175
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 943 1211 1191
Capital efficiency (%) 2020 2021 2022
Total assets turnover (%) 106,9 106,5 102,4
Capital invested turnover (%) 148,7 152,1 148,4
Capital employed turnover (%) 142,5 142,9 134,9
Inventories / sales (%) 20,3 18,7 19,7
Customer advances / sales (%) 0 0 0
Payables / sales (%) 5,8 5,5 5,7
Working capital / sales (%) 22,2 18,8 19,4
Financial risk and debt service 2020 2021 2022
Net debt / equity (%) 93,4 71,4 54,3
Net debt / market cap (%) 41,4 19,2 17,2
Equity ratio (%) 33,7 37,5 41,2
Net IB debt adj. / equity (%) 93,4 71,4 54,3
Current ratio (%) 133,1 142,8 153,1
EBITDA / net interest (%) 2292,7 3570,9 3832
Net IB debt / EBITDA (%) 226 156,4 130,3
Interest cover (%) 1656,1 2805,2 3043,5
SEKm 2020 2021e 2022e
Lease adj. FCF yield (%) 2,1 4,3 5,2
Shares outstanding adj. 21 21 21
Fully diluted shares Adj 21 21 21
EPS 2,26 3,45 3,76
Dividend per share Adj 1,3 1,5 1,6
EPS Adj 2,83 3,58 3,89
BVPS 10,68 12,94 15,2
BVPS Adj -1,53 -0,15 1,28
Net IB debt / share 10 9,2 8,3
Share price 24,09 48 48
Market cap. (m) 513 1016 1016
Valuation 2020 2021 2022
P/E 15,2 13,9 12,8
EV/sales 1,45 1,62 1,54
EV/EBITDA 10 9,7 8,9
EV/EBITA 13,9 12,3 11,2
EV/EBIT 14,2 12,7 11,5
Dividend yield (%) 3,6 3,1 3,3
FCF yield (%) 2,4 4,5 5,4
P/BVPS 3,21 3,71 3,16
P/BVPS Adj -22,41 -321,1 37,61
P/E Adj 12,1 13,4 12,3
EV/EBITDA Adj 9 9,7 8,9
EV/EBITA Adj 12,1 12,3 11,2
EV/EBIT Adj 12,3 12,7 11,5
EV/cap. employed 1,9 2,2 2
Investment ratios 2020 2021 2022
Capex / sales 2,9 4,6 4,7
Capex / depreciation 79,9 140,5 145,1
Capex tangibles / tangible fixed assets 21,4 31,7 32,9
Capex intangibles / definite intangibles 3,9 10,5 10,1
Depreciation on intangibles / definite intangibles 1,7 2,6 2,3
Depreciation on tangibles / tangibles 31 29,9 30,2

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Main shareholders - Svedbergs

Main shareholders Share capital % Voting shares % Verified
Stena 29.0 % 29.0 % 31 Dec 2020
Nordea Fonder 13.8 % 13.8 % 28 Feb 2021
If Skadeförsäkring AB 11.5 % 11.5 % 31 Dec 2020
Avanza Pension 3.9 % 3.9 % 31 Dec 2020
Sune Svedberg 2.6 % 2.6 % 31 Dec 2020
Nordnet Pensionsförsäkring 2.1 % 2.1 % 31 Dec 2020
Ida Svedberg Sandström 2.1 % 2.1 % 31 Dec 2020
Anna Svedberg 1.2 % 1.2 % 31 Dec 2020
Nordea Funds (Lux) 1.1 % 1.1 % 28 Feb 2021
Taaleritehtaan Rahastoyhtiö Oy 0.8 % 0.8 % 31 Mar 2021
Source: Holdings by Modular Finance AB

Insider list - Svedbergs

Name Quantity Code Date
Per-Arne Andersson + 3 000 BUY 22 Mar 2021
Mats Lundmark + 500 BUY 18 Mar 2021
Michael Cassoe - 17 857 SELL 9 Mar 2021
Stefan Augustsson - 5 000 SELL 3 Mar 2021
Michael Cassoe + 10 000 BUY 23 Feb 2021
Michael Cassoe + 3 874 BUY 23 Feb 2021
Michael Cassoe + 52 BUY 19 Feb 2021
Dan Petersson + 1 059 ALTM 17 Feb 2021
Tony Arvidsson + 1 276 BUY 17 Feb 2021
Thomas Elvlin + 2 000 SUBS 16 Feb 2021

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