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Swedish Stirling

Swedish Stirling

Creating electricity out of flared gas

The company was founded in 2008 by the current CEO Gunnar Larsson. Its main technology is the PWR BLOK, which is based on the Stirling engine technology. The technology creates electricity using heat as a fuel source, while not depending on internal combustion. This has enabled the company to develop a product that uses the heat produced by the flaring of residual gases as a fuel source. From that, electricity is produced, which enables the customer to lower operating costs. It also means that the customer doesn’t need to purchase as much electricity from the grid, which in emerging markets often means less dependence on coal-fueled power.

Swedish Stirling, through its PWR BLOK equipment, has the opportunity to help the metal processing industry lower its electricity costs, while at the same time contributing to lower C02 emissions. Should this be successful, we think there are a wider range of industries that would be interested in the technology, given that it offers a lower cost compared with other clean-tech solutions.

The main risks are related to the product delivery, where delays could affect how customers view the technology. In addition, the metal processing industry is conservative, and sales cycles might be longer than expected. Competing technologies are also a risk.

SEKm 2019 2020e 2021e
Sales 42 70 76
Sales growth (%) -27,2 65,9 7,2
EBITDA -25 -35 -51
EBITDA margin (%) -58 -49,8 -67,5
EBIT adj -26 -37 -53
EBIT adj margin (%) -62,1 -52,1 -70,2
Pretax profit -46 -50 -71
EPS rep -0,59 -0,63 -0,9
EPS growth (%) -145,1 -6,6 -42,8
EPS adj -0,59 -0,63 -0,9
DPS 0 0 0
EV/EBITDA (x) -38 -29,9 -22
EV/EBIT adj (x) -35,5 -28,6 -21,1
P/E (x) -17,7 -16,6 -11,6
P/E adj (x) -17,7 -16,6 -11,6
EV/sales (x) 22 14,9 14,8
FCF yield (%) -12,6 -13,6 -8,5
Dividend yield (%) 0 0 0
Net IB debt/EBITDA -4,3 -6,3 -5,6
SEKm 2019 2020e 2021e
Sales 42 70 76
COGS -19 -40 -51
Gross profit 23 30 24
Other operating items -48 -66 -75
EBITDA -25 -35 -51
Depreciation on tangibles -2 -2 -2
Depreciation on intangibles 0 0 0
EBITA -26 -37 -53
Goodwill impairment charges 0 0 0
Other impairment and amortisation 0 0 0
EBIT -26 -37 -53
Other financial items 0 0 0
Net financial items -20 -13 -18
Associated income 0 0 0
Other EO items 0 0 0
Pretax profit -46 -50 -71
Tax 0 0 0
Net profit -47 -50 -71
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders -47 -50 -71
EPS -0,59 -0,63 -0,9
EPS Adj -0,59 -0,63 -0,9
Total extraordinary items after tax 0 0 0
Tax rate (%) 1,1 0 0
Gross margin (%) 55 43,2 32,3
EBITDA margin (%) -58 -49,8 -67,5
EBITA margin (%) -62,1 -52,1 -70,2
EBIT margin (%) -62,1 -52,1 -70,2
Pretax margin (%) -109,2 -70,9 -94,6
Net margin (%) -110,4 -70,9 -94,6
Growth rates Y/Y 2019 2020 2021
Sales growth (%) -27,2 65,9 7,2
EBITDA growth (%) -69,9 -42,4 -45,2
EBIT growth (%) -76,7 -39,2 -44,5
Net profit growth (%) -145,1 -6,6 -42,8
EPS growth (%) -145,1 -6,6 -42,8
Profitability 2019 2020 2021
ROE (%) -17,7 -21,9 -42,7
ROE Adj (%) -17,7 -21,9 -42,7
ROCE (%) -7,3 -8,6 -11,4
ROCE Adj(%) -7,3 -8,6 -11,4
ROIC (%) -7,8 -9,2 -12,3
ROIC Adj (%) -7,8 -9,2 -12,3
Adj earnings numbers 2019 2020 2021
EBITDA Adj -25 -35 -51
EBITDA Adj margin (%) -58 -49,8 -67,5
EBITA Adj -26 -37 -53
EBITA Adj margin (%) -62,1 -52,1 -70,2
EBIT Adj -26 -37 -53
EBIT Adj margin (%) -62,1 -52,1 -70,2
Pretax profit Adj -46 -50 -71
Net profit Adj -47 -50 -71
Net profit to shareholders Adj -47 -50 -71
Net Adj margin (%) -110,4 -70,9 -94,6
SEKm 2019 2020e 2021e
EBITDA -25 -35 -51
Net financial items -20 -13 -18
Paid tax 0 0 0
Non-cash items 0 0 0
Cash flow before change in WC -45 -48 -69
Change in WC -12 -4 4
Operating cash flow -61 -51 -68
CAPEX tangible fixed assets -43 -62 -2
CAPEX intangible fixed assets 0 0 0
Acquisitions and disposals 0 0 0
Free cash flow -104 -113 -70
Dividend paid 0 0 0
Share issues and buybacks 0 0 0
Other non cash items 28 -1 3
Decrease in net IB debt -93 -114 -68
Balance Sheet (SEKm) 2019 2020 2021
Goodwill 0 0 0
Indefinite intangible assets 0 0 0
Definite intangible assets 317 377 377
Tangible fixed assets 3 3 3
Other fixed assets 0 0 0
Fixed assets 320 380 381
Inventories 42 46 42
Receivables 6 7 8
Other current assets 0 0 0
Cash and liquid assets 43 30 60
Total assets 412 464 490
Shareholders equity 253 203 132
Minority 0 0 0
Total equity 253 203 132
Long-term debt 137 237 337
Pension debt 0 0 0
Convertible debt 0 0 0
Deferred tax 0 0 0
Other long-term liabilities 0 0 0
Short-term debt 13 14 11
Accounts payable 0 0 0
Other current liabilities 10 10 10
Total liabilities and equity 328 345 412
Net IB debt 106 220 288
Net IB debt excl. pension debt 106 220 288
Capital invested 369 433 430
Working capital 49 53 49
EV breakdown 2019 2020 2021
Market cap. diluted (m) 831 831 831
Net IB debt Adj 106 220 288
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 937 1051 1119
Capital efficiency (%) 2019 2020 2021
Total assets turnover (%) 11,2 16,1 15,8
Capital invested turnover (%) 12,4 17,6 17,5
Capital employed turnover (%) 11,8 16,5 16,2
Inventories / sales (%) 87,7 62,6 57,8
Customer advances / sales (%) 0 0 0
Payables / sales (%) 0 0 0
Working capital / sales (%) 100,5 72,2 67,5
Financial risk and debt service 2019 2020 2021
Net debt / equity (%) 41,8 108,4 218,6
Net debt / market cap (%) 11,3 26,5 34,7
Equity ratio (%) 61,4 43,8 26,9
Net IB debt adj. / equity (%) 41,8 108,4 218,6
Current ratio (%) 406,8 345,9 510,8
EBITDA / net interest (%) -122,9 -264 -277
Net IB debt / EBITDA (%) -429,3 -627 -565
Interest cover (%) -131,5 -276 -288,2
SEKm 2019 2020e 2021e
Shares outstanding adj. 80 80 80
Fully diluted shares Adj 80 80 80
EPS -0,59 -0,63 -0,9
Dividend per share Adj 0 0 0
EPS Adj -0,59 -0,63 -0,9
BVPS 3,18 2,56 1,66
BVPS Adj -0,81 -2,19 -3,09
Net IB debt / share 1,3 2,8 3,6
Share price 11,79 10,45 10,45
Market cap. (m) 937 831 831
Valuation 2019 2020 2021
P/E -17,7 -16,6 -11,6
EV/sales 22,04 14,91 14,81
EV/EBITDA -38 -29,9 -22
EV/EBITA -35,5 -28,6 -21,1
EV/EBIT -35,5 -28,6 -21,1
Dividend yield (%) 0 0 0
FCF yield (%) -12,6 -13,6 -8,5
P/BVPS 3,28 4,09 6,31
P/BVPS Adj -12,98 -4,77 -3,38
P/E Adj -17,7 -16,6 -11,6
EV/EBITDA Adj -38 -29,9 -22
EV/EBITA Adj -35,5 -28,6 -21,1
EV/EBIT Adj -35,5 -28,6 -21,1
EV/cap. employed 2,3 2,3 2,3
Investment ratios 2019 2020 2021
Capex / sales 101,2 88,1 3
Capex / depreciation 2505,8 3882,2 110
Capex tangibles / tangible fixed assets 1592,2 1931,8 66,2
Capex intangibles / definite intangibles 0 0 0
Depreciation on intangibles / definite intangibles 0 0 0
Depreciation on tangibles / tangibles 63,5 49,8 60,2

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Main shareholders - Swedish Stirling

Main shareholders Share capital % Voting shares % Verified
Sven Sahle 35.8 % 35.8 % 26 Nov 2019
AC Cleantech Growth Fund I Holding AB 13.0 % 13.0 % 31 Dec 2019
East Guardian Asset Management AG 12.8 % 12.8 % 31 Dec 2018
Miura Holding LTD 8.4 % 8.4 % 31 Dec 2018
Gunnar Inge Larsson 2.4 % 2.4 % 31 Dec 2019
Oy H. Kuningas & Co Ab 2.1 % 2.1 % 27 Nov 2016
Avanza Pension 1.8 % 1.8 % 31 Dec 2019
Graphite Energy Pty LTD 1.8 % 1.8 % 27 Nov 2016
Nordnet Pensionsförsäkring 1.5 % 1.5 % 31 Dec 2019
Ulf Gundemark 0.6 % 0.6 % 31 Dec 2019
Source: Holdings by Modular Finance AB

Insider list - Swedish Stirling

Name Quantity Code Date
Heléne Öqvist + 1 000 BUY 17 Dec 2019
Ulf Gundemark via GUMACO AB SELL 2 Dec 2019
Ulf Gundemark via GUMACO AB - 1 SELL 2 Dec 2019
Ulf Gundemark via GUMACO AB 159 900 KONV 26 Nov 2019
Ulf Gundemark via GUMACO AB 36 341 KONV 26 Nov 2019
Sven Sahle 158 675 KONV 26 Nov 2019
Sven Sahle + 100 000 BUY 10 Oct 2019
Fredrik Abrahamsson + 874 Redemp 10 Oct 2019
Erik Wigertz + 100 000 BUY 10 Oct 2019
Sven Ljungberg + 2 000 BUY 20 Sep 2019

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