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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 5,4 6
Lease adj. ND/EBITDA 1,7 1,1 0,7
Sales 649 803 829
Sales growth (%) 6,6 23,6 3,2
EBITDA 94 139 152
EBITDA margin (%) 14,5 17,3 18,3
EBIT adj 77 107 117
EBIT adj margin (%) 11,8 13,3 14,1
Pretax profit 62 102 113
EPS rep 2,28 3,86 4,23
EPS growth (%) 16,2 69 9,6
EPS adj 2,85 4,18 4,44
DPS 1,25 1,5 1,6
EV/EBITDA (x) 9,7 9,4 8,4
EV/EBIT adj (x) 11,9 12,2 11
P/E (x) 15 14,2 13
P/E adj (x) 12 13,1 12,4
EV/sales (x) 1,4 1,6 1,5
FCF yield (%) 2,5 5,6 6,2
Dividend yield (%) 3,6 2,7 2,9
Net IB debt/EBITDA 2 1,2 0,8
SEKm 2020 2021e 2022e
Depreciation and amortisation -26 -30 -31
Of which leasing depreciation -2 -2 -2
EO items -10 -2 0
Impairment and PPA amortisation -2 -4 -4
EBITDA lease Adj 104 141 152
EBITDA lease Adj margin (%) 16,1 17,6 18,3
Sales 649 803 829
COGS -376 -458 -468
Gross profit 274 345 361
Other operating items -180 -206 -209
EBITDA 94 139 152
Depreciation on tangibles -22 -22 -22
Depreciation on intangibles -2 -3 -3
EBITA 68 109 121
Goodwill impairment charges 0 0 0
Other impairment and amortisation -2 -3 -3
EBIT 66 104 117
Other financial items 0 0 0
Net financial items -4 -2 -4
Associated income 0 0 0
Other EO items 0 0 0
Pretax profit 62 102 113
Tax -14 -22 -23
Net profit 48 80 90
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders 48 80 90
EPS 2,28 3,86 4,23
EPS Adj 2,85 4,18 4,44
Total extraordinary items after tax -10,3 -2,4 0
Tax rate (%) -22,4 -21,3 -20,6
Gross margin (%) 42,2 43 43,6
EBITDA margin (%) 14,5 17,3 18,3
EBITA margin (%) 10,5 13,5 14,6
EBIT margin (%) 10,2 13 14,1
Pretax margin (%) 9,6 12,7 13,6
Net margin (%) 7,4 10 10,8
Growth rates Y/Y 2020 2021 2022
Sales growth (%) 6,6 23,6 3,2
EBITDA growth (%) 14,8 47,5 9,7
EBIT growth (%) 17,8 57,6 12
Net profit growth (%) 16,1 66,7 11,5
EPS growth (%) 16,2 69 9,6
Profitability 2020 2021 2022
ROE (%) 23,7 31,5 28,7
ROE Adj (%) 29,6 34,1 30,1
ROCE (%) 14,9 20,9 21,1
ROCE Adj(%) 17,6 22,3 21,9
ROIC (%) 11,8 16,7 18
ROIC Adj (%) 13,6 17,1 18
Adj earnings numbers 2020 2021 2022
EBITDA Adj 104 141 152
EBITDA Adj margin (%) 16,1 17,6 18,3
EBITA Adj 78 111 121
EBITA Adj margin (%) 12 13,8 14,6
EBIT Adj 77 107 117
EBIT Adj margin (%) 11,8 13,3 14,1
Pretax profit Adj 74 109 117
Net profit Adj 60 87 94
Net profit to shareholders Adj 60 87 94
Net Adj margin (%) 9,3 10,9 11,3
Leasing payments 0 0 0
SEKm 2020 2021e 2022e
Lease liability amortisation -2 -2 -2
Other intangible assets 99 100 104
Right-of-use asset 9 9 9
Total other fixed assets 0 0 0
Leasing liability 10 10 10
Total other long-term liabilities 60 61 61
Net IB debt excl. leasing 178 151 113
Net IB debt / EBITDA lease Adj (%) 170,9 107,1 74,3
EBITDA 94 139 152
Net financial items -4 -2 -4
Paid tax -12 -15 -23
Non-cash items 11 0 0
Cash flow before change in WC 90 121 125
Change in WC 4 -30 -12
Operating cash flow 94 91 113
CAPEX tangible fixed assets -15 -16 -26
CAPEX intangible fixed assets -4 -3 -7
Acquisitions and disposals -57 -8 -8
Free cash flow 18 64 72
Dividend paid 1 -26 -31
Share issues and buybacks 1 0 0
Other non cash items -39 -25 -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 74 76
Other fixed assets 0 0 0
Fixed assets 341 350 363
Inventories 130 161 166
Receivables 145 157 162
Other current assets 0 2 2
Cash and liquid assets 58 81 119
Total assets 674 750 811
Shareholders equity 228 283 341
Minority 0 0 0
Total equity 228 283 341
Long-term debt 133 133 133
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 99 99
Accounts payable 39 47 48
Other current liabilities 102 118 119
Total liabilities and equity 674 750 811
Net IB debt 188 161 122
Net IB debt excl. pension debt 188 161 122
Capital invested 476 505 525
Working capital 135 155 162
EV breakdown 2020 2021 2022
Market cap. diluted (m) 724 1142 1161
Net IB debt Adj 188 161 122
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 912 1303 1283
Capital efficiency (%) 2020 2021 2022
Total assets turnover (%) 106,9 112,7 106,1
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 19,1
Financial risk and debt service 2020 2021 2022
Net debt / equity (%) 82,5 56,7 35,9
Net debt / market cap (%) 36,9 14,1 10,5
Equity ratio (%) 33,7 37,7 42,1
Net IB debt adj. / equity (%) 82,5 56,7 35,9
Current ratio (%) 133,1 148,1 164,4
EBITDA / net interest (%) 2292,7 6301,4 3800,3
Net IB debt / EBITDA (%) 199,8 115,8 80,5
Interest cover (%) 1656,1 4942,3 3030,3
SEKm 2020 2021e 2022e
Lease adj. FCF yield (%) 2,1 5,4 6
Shares outstanding adj. 21 21 21
Fully diluted shares Adj 21 21 21
EPS 2,28 3,86 4,23
Dividend per share Adj 1,3 1,5 1,6
EPS Adj 2,85 4,18 4,44
BVPS 10,77 13,59 16,12
BVPS Adj -1,54 0,77 3,02
Net IB debt / share 8,9 7,7 5,8
Share price 24,09 54,8 54,8
Market cap. (m) 509 1142 1161
Valuation 2020 2021 2022
P/E 15 14,2 13
EV/sales 1,4 1,62 1,55
EV/EBITDA 9,7 9,4 8,4
EV/EBITA 13,4 12 10,6
EV/EBIT 13,8 12,5 11
Dividend yield (%) 3,6 2,7 2,9
FCF yield (%) 2,5 5,6 6,2
P/BVPS 3,18 4,03 3,4
P/BVPS Adj -22,22 70,94 18,13
P/E Adj 12 13,1 12,4
EV/EBITDA Adj 8,7 9,2 8,4
EV/EBITA Adj 11,7 11,7 10,6
EV/EBIT Adj 11,9 12,2 11
EV/cap. employed 1,9 2,5 2,2
Investment ratios 2020 2021 2022
Capex / sales 2,9 2,4 4
Capex / depreciation 79,9 68,5 115,4
Capex tangibles / tangible fixed assets 21,4 21,3 34,6
Capex intangibles / definite intangibles 3,9 3,2 6,3
Depreciation on intangibles / definite intangibles 1,7 4,4 4,2
Depreciation on tangibles / tangibles 31 31,4 31,7

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Main shareholders - Svedbergs

Main shareholders Share capital % Voting shares % Verified
Stena 29.0 % 29.0 % 30 Jun 2021
Nordea Fonder 13.8 % 13.8 % 31 Jul 2021
If Skadeförsäkring AB 11.5 % 11.5 % 30 Jun 2021
Avanza Pension 3.0 % 3.0 % 30 Jun 2021
Sune Svedberg 2.6 % 2.6 % 30 Jun 2021
Ida Svedberg Sandström 2.1 % 2.1 % 30 Jun 2021
Nordnet Pensionsförsäkring 2.0 % 2.0 % 30 Jun 2021
Anna Svedberg 1.2 % 1.2 % 30 Jun 2021
Taaleri Rahastoyhtiö Oy 1.2 % 1.2 % 31 Aug 2021
Nordea Funds (Lux) 1.1 % 1.1 % 31 Jul 2021
Source: Holdings by Modular Finance AB

Insider list - Svedbergs

Name Quantity Code Date
Michael Cassoe - 8 368 SELL 26 Aug 2021
Michael Cassoe - 1 511 SELL 26 Aug 2021
Michael Cassoe - 54 SELL 26 Aug 2021
Michael Cassoe - 67 SELL 25 Aug 2021
Michael Cassoe + 10 000 BUY 6 Aug 2021
Erik Thörn - 3 070 SELL 27 Jul 2021
Michael Cassoe + 10 000 BUY 15 Jun 2021
Michael Cassoe + 8 286 BUY 10 Jun 2021
Michael Cassoe + 3 545 BUY 3 Jun 2021
Thomas Elvlin + 885 BUY 1 Jun 2021

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