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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 2018 2019e 2020e
Sales 58 42 70
Sales growth (%) 71,4 -27,2 65,9
EBITDA -15 -25 -35
EBITDA margin (%) -24,9 -58 -49,8
EBIT adj -15 -26 -37
EBIT adj margin (%) -25,6 -62,1 -52,1
Pretax profit -19 -46 -50
EPS rep -0,24 -0,59 -0,63
EPS growth (%) -245,6 -145,1 -6,6
EPS adj -0,24 -0,59 -0,63
DPS 0 0 0
EV/EBITDA (x) -55,7 -39,8 -31,2
EV/EBIT adj (x) -54,1 -37,2 -29,8
P/E (x) -41,5 -18,6 -17,5
P/E adj (x) -41,5 -18,6 -17,5
EV/sales (x) 13,8 23,1 15,5
FCF yield (%) -12,3 -11,9 -12,9
Dividend yield (%) 0 0 0
Net IB debt/EBITDA -0,9 -4,3 -6,3
SEKm 2018 2019e 2020e
Sales 58 42 70
COGS -43 -19 -40
Gross profit 15 23 30
Other operating items -29 -48 -66
EBITDA -15 -25 -35
Depreciation on tangibles 0 -2 -2
Depreciation on intangibles 0 0 0
EBITA -15 -26 -37
Goodwill impairment charges 0 0 0
Other impairment and amortisation 0 0 0
EBIT -15 -26 -37
Other financial items 0 0 0
Net financial items -4 -20 -13
Associated income 0 0 0
Other EO items 0 0 0
Pretax profit -19 -46 -50
Tax 0 0 0
Net profit -19 -47 -50
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders -19 -47 -50
EPS -0,24 -0,59 -0,63
EPS Adj -0,24 -0,59 -0,63
Total extraordinary items after tax 0 0 0
Tax rate (%) 0 1,1 0
Gross margin (%) 25,6 55 43,2
EBITDA margin (%) -24,9 -58 -49,8
EBITA margin (%) -25,6 -62,1 -52,1
EBIT margin (%) -25,6 -62,1 -52,1
Pretax margin (%) -32,8 -109,2 -70,9
Net margin (%) -32,8 -110,4 -70,9
Growth rates Y/Y 2018 2019 2020
Sales growth (%) 71,4 -27,2 65,9
EBITDA growth (%) -185,6 -69,9 -42,4
EBIT growth (%) -190,5 -76,7 -39,2
Net profit growth (%) -245,6 -145,1 -6,6
EPS growth (%) -245,6 -145,1 -6,6
Profitability 2018 2019 2020
ROE (%) -6,7 -17,7 -21,9
ROE Adj (%) -6,7 -17,7 -21,9
ROCE (%) -4,6 -7,3 -8,6
ROCE Adj(%) -4,6 -7,3 -8,6
ROIC (%) -5,5 -7,8 -9,2
ROIC Adj (%) -5,5 -7,8 -9,2
Adj earnings numbers 2018 2019 2020
EBITDA Adj -15 -25 -35
EBITDA Adj margin (%) -24,9 -58 -49,8
EBITA Adj -15 -26 -37
EBITA Adj margin (%) -25,6 -62,1 -52,1
EBIT Adj -15 -26 -37
EBIT Adj margin (%) -25,6 -62,1 -52,1
Pretax profit Adj -19 -46 -50
Net profit Adj -19 -47 -50
Net profit to shareholders Adj -19 -47 -50
Net Adj margin (%) -32,8 -110,4 -70,9
SEKm 2018 2019e 2020e
EBITDA -15 -25 -35
Net financial items -4 -20 -13
Paid tax 0 0 0
Non-cash items 0 0 0
Cash flow before change in WC -19 -45 -48
Change in WC -28 -12 -4
Operating cash flow -37 -61 -51
CAPEX tangible fixed assets -61 -43 -62
CAPEX intangible fixed assets 0 0 0
Acquisitions and disposals 0 0 0
Free cash flow -98 -104 -113
Dividend paid 0 0 0
Share issues and buybacks 0 0 0
Other non cash items -10 28 -1
Decrease in net IB debt -81 -93 -114
Balance Sheet (SEKm) 2018 2019 2020
Goodwill 0 0 0
Indefinite intangible assets 0 0 0
Definite intangible assets 275 317 377
Tangible fixed assets 3 3 3
Other fixed assets 0 0 0
Fixed assets 279 320 380
Inventories 32 42 46
Receivables 4 6 7
Other current assets 0 0 0
Cash and liquid assets 30 43 30
Total assets 345 412 464
Shareholders equity 276 253 203
Minority 0 0 0
Total equity 276 253 203
Long-term debt 25 137 237
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 17 13 14
Accounts payable 0 0 0
Other current liabilities 27 10 10
Total liabilities and equity 216 328 345
Net IB debt 13 106 220
Net IB debt excl. pension debt 13 106 220
Capital invested 315 369 433
Working capital 37 49 53
EV breakdown 2018 2019 2020
Market cap. diluted (m) 795 875 875
Net IB debt Adj 13 106 220
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 808 980 1095
Capital efficiency (%) 2018 2019 2020
Total assets turnover (%) 17,3 11,2 16,1
Capital invested turnover (%) 21,5 12,4 17,6
Capital employed turnover (%) 18,1 11,8 16,5
Inventories / sales (%) 30 87,7 62,6
Customer advances / sales (%) 0 0 0
Payables / sales (%) 0 0 0
Working capital / sales (%) 38,5 100,5 72,2
Financial risk and debt service 2018 2019 2020
Net debt / equity (%) 4,5 41,8 108,4
Net debt / market cap (%) 1,8 12,1 25,2
Equity ratio (%) 80 61,4 43,8
Net IB debt adj. / equity (%) 4,5 41,8 108,4
Current ratio (%) 152,3 406,8 345,9
EBITDA / net interest (%) -343,9 -122,9 -264
Net IB debt / EBITDA (%) -86,5 -429,3 -627
Interest cover (%) -353,8 -131,5 -276
SEKm 2018 2019e 2020e
Shares outstanding adj. 80 80 80
Fully diluted shares Adj 80 80 80
EPS -0,24 -0,59 -0,63
Dividend per share Adj 0 0 0
EPS Adj -0,24 -0,59 -0,63
BVPS 3,47 3,18 2,56
BVPS Adj 0,01 -0,81 -2,19
Net IB debt / share 0,2 1,3 2,8
Share price 8,63 11 11
Market cap. (m) 686 875 875
Valuation 2018 2019 2020
P/E -41,5 -18,6 -17,5
EV/sales 13,84 23,07 15,53
EV/EBITDA -55,7 -39,8 -31,2
EV/EBITA -54,1 -37,2 -29,8
EV/EBIT -54,1 -37,2 -29,8
Dividend yield (%) 0 0 0
FCF yield (%) -12,3 -11,9 -12,9
P/BVPS 2,88 3,45 4,31
P/BVPS Adj 1402,13 -13,66 -5,03
P/E Adj -41,5 -18,6 -17,5
EV/EBITDA Adj -55,7 -39,8 -31,2
EV/EBITA Adj -54,1 -37,2 -29,8
EV/EBIT Adj -54,1 -37,2 -29,8
EV/cap. employed 2,5 2,4 2,4
Investment ratios 2018 2019 2020
Capex / sales 104,3 101,2 88,1
Capex / depreciation 14552,9 2505,8 3882,2
Capex tangibles / tangible fixed assets 1936,1 1592,2 1931,8
Capex intangibles / definite intangibles 0 0 0
Depreciation on intangibles / definite intangibles 0 0 0
Depreciation on tangibles / tangibles 13,3 63,5 49,8

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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 13.9 % 13.9 % 30 Sep 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 2.5 % 2.5 % 30 Sep 2019
Oy H. Kuningas & Co Ab 2.1 % 2.1 % 27 Nov 2016
Graphite Energy Pty LTD 1.8 % 1.8 % 27 Nov 2016
Avanza Pension 1.7 % 1.7 % 30 Sep 2019
Nordnet Pensionsförsäkring 1.7 % 1.7 % 30 Sep 2019
Ulf Gundemark 0.7 % 0.7 % 26 Nov 2019
Source: Holdings by Modular Finance AB

Insider list - Swedish Stirling

Name Quantity Code Date
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
Fredrik Abrahamsson + 874 Redemp 10 Oct 2019
Erik Wigertz + 100 000 BUY 10 Oct 2019
Sven Sahle + 100 000 BUY 10 Oct 2019
Sven Ljungberg + 2 000 BUY 20 Sep 2019
Sven Ljungberg + 2 000 BUY 19 Sep 2019

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