Press the button and be introduced to a new random company!

Introduce me >

UPCOMING EVENTS

We arrange several open investor events with our covered companies each year. Please subscribe to get information about our upcoming Introduce events. 

Sign up >

Social media

facebook   Meet us at Facebook

facebook   Follow us on Twitter

   Follow us on LinkedIn

Vitec

Vertical market software

Vitec's business idea is to acquire and develop market leading, vertical software companies in niche markets. These are normally restricted to certain geographies as the software can be hard to sell in some areas. The business strategy is a combination of making use of the M&A arbitrage from buying unlisted companies, rationalization and maximisation of current business, as well as geographical and market diversification. The company rather than the niche in which it operates is in focus when Vitec makes an acquisition.

Engaging in vertical market software, the opportunity for Vitec to find further possible targets is still good and the fast acquisition pace is likely to continue. Previous targets have been acquired at lower and attractive multiples, something we believe could still drive further growth. Furthermore, changing internal software is difficult for Vitec’s customers to do in their niche markets, making Vitec’s offering sticky and enabling it to generate stable revenue streams ahead.

There is a risk of larger customers developing their own software due to weak maintenance and development from Vitec’s side. As software becomes easier to develop, a future risk is found in start-ups developing similar software that could be easier for customers to implement. Additionally, some of the markets in which Vitec operates are experiencing lower growth, potentially dampening the organic growth for the group.

SEKm 2018 2019e 2020e
Sales 1017 1085 1112
Sales growth (%) 18,9 6,7 2,5
EBITDA 281 317 327
EBITDA margin (%) 27,7 29,2 29,4
EBIT adj 134 162 172
EBIT adj margin (%) 13,2 14,9 15,5
Pretax profit 118 148 160
EPS rep 3,16 3,73 4,02
EPS growth (%) 18,8 18,2 7,8
EPS adj 3,32 3,73 4,02
DPS 1,2 1,3 1,4
EV/EBITDA (x) 9,5 9,1 8,5
EV/EBIT adj (x) 19,9 17,8 16,2
P/E (x) 24,6 23,8 22
P/E adj (x) 23,4 23,8 22
EV/sales (x) 2,6 2,7 2,5
FCF yield (%) 0,3 6,1 5
Dividend yield (%) 1,5 1,5 1,6
Net IB debt/EBITDA 0,9 0,4 0,1
SEKm 2018 2019e 2020e
Sales 1017 1085 1112
COGS -858 -901 -920
Gross profit 159 185 192
Other operating items 122 132 135
EBITDA 281 317 327
Depreciation on tangibles 0 0 0
Depreciation on intangibles -152 -155 -155
EBITA 129 162 172
Goodwill impairment charges 0 0 0
Other impairment and amortisation 0 0 0
EBIT 129 162 172
Other financial items 0 0 0
Net financial items -12 -14 -13
Associated income 0 0 0
Other EO items 0 0 0
Pretax profit 118 148 160
Tax -20 -33 -35
Net profit 98 116 125
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders 98 116 125
EPS 3,16 3,73 4,02
EPS Adj 3,32 3,73 4,02
Total extraordinary items after tax -5,1 0 0
Tax rate (%) -16,9 -22 -22
Gross margin (%) 15,6 17 17,3
EBITDA margin (%) 27,7 29,2 29,4
EBITA margin (%) 12,7 14,9 15,5
EBIT margin (%) 12,7 14,9 15,5
Pretax margin (%) 11,6 13,6 14,4
Net margin (%) 9,6 10,6 11,2
Growth rates Y/Y 2018 2019 2020
Sales growth (%) 18,9 6,7 2,5
EBITDA growth (%) 20,4 12,6 3,4
EBIT growth (%) 21,1 25,1 6,6
Net profit growth (%) 23,3 18,2 7,8
EPS growth (%) 18,8 18,2 7,8
Profitability 2018 2019 2020
ROE (%) 18,3 16,3 15,8
ROE Adj (%) 19,3 16,3 15,8
ROCE (%) 15,5 17,8 19,6
ROCE Adj(%) 16,1 17,8 19,6
ROIC (%) 12,8 13,9 15,3
ROIC Adj (%) 13,4 13,9 15,3
Adj earnings numbers 2018 2019 2020
EBITDA Adj 286 317 327
EBITDA Adj margin (%) 28,2 29,2 29,4
EBITA Adj 134 162 172
EBITA Adj margin (%) 13,2 14,9 15,5
EBIT Adj 134 162 172
EBIT Adj margin (%) 13,2 14,9 15,5
Pretax profit Adj 123 148 160
Net profit Adj 103 116 125
Net profit to shareholders Adj 103 116 125
Net Adj margin (%) 10,1 10,6 11,2
SEKm 2018 2019e 2020e
EBITDA 281 317 327
Net financial items -12 -14 -13
Paid tax -20 -33 -35
Non-cash items 0 0 0
Cash flow before change in WC 250 271 280
Change in WC -8 39 4
Operating cash flow 284 310 283
CAPEX tangible fixed assets 0 0 0
CAPEX intangible fixed assets -277 -143 -146
Acquisitions and disposals 0 0 0
Free cash flow 7 167 137
Dividend paid -32 -37 -40
Share issues and buybacks 0 0 0
Other non cash items 100 0 0
Decrease in net IB debt 75 130 97
Balance Sheet (SEKm) 2018 2019 2020
Goodwill 283 283 283
Indefinite intangible assets 0 0 0
Definite intangible assets 848 842 838
Tangible fixed assets 40 34 29
Other fixed assets 9 9 9
Fixed assets 1180 1168 1159
Inventories 0 0 0
Receivables 260 270 278
Other current assets 0 0 0
Cash and liquid assets 235 295 322
Total assets 1676 1733 1759
Shareholders equity 670 748 832
Minority 0 0 0
Total equity 670 748 832
Long-term debt 509 439 369
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 0 0 0
Accounts payable 497 545 557
Other current liabilities 0 0 0
Total liabilities and equity 1097 1262 1676
Net IB debt 265 135 38
Net IB debt excl. pension debt 265 135 38
Capital invested 934 883 871
Working capital -236 -275 -279
EV breakdown 2018 2019 2020
Market cap. diluted (m) 2404 2745 2745
Net IB debt Adj 265 135 38
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 2669 2880 2783
Capital efficiency (%) 2018 2019 2020
Total assets turnover (%) 69,2 63,7 63,7
Capital invested turnover (%) 121,6 119,4 126,9
Capital employed turnover (%) 121,6 119,4 126,9
Inventories / sales (%) 0 0 0
Customer advances / sales (%) 0 0 0
Payables / sales (%) 46,9 48 49,6
Working capital / sales (%) -23,6 -23,6 -24,9
Financial risk and debt service 2018 2019 2020
Net debt / equity (%) 39,5 18,1 4,6
Net debt / market cap (%) 10,6 5 1,4
Equity ratio (%) 40 43,2 47,3
Net IB debt adj. / equity (%) 39,5 18,1 4,6
Current ratio (%) 99,8 103,6 107,6
EBITDA / net interest (%) 2425,5 2343,6 2599,7
Net IB debt / EBITDA (%) 94,1 42,7 11,7
Interest cover (%) 1114,3 1196,4 1368,3
SEKm 2018 2019e 2020e
Shares outstanding adj. 31 31 31
Fully diluted shares Adj 31 31 31
EPS 3,16 3,73 4,02
Dividend per share Adj 1,2 1,3 1,4
EPS Adj 3,32 3,73 4,02
BVPS 21,92 24,49 27,25
BVPS Adj -15,1 -12,34 -9,44
Net IB debt / share 8,7 4,4 1,3
Share price 81,97 88,6 88,6
Market cap. (m) 2504 2706 2706
Valuation 2018 2019 2020
P/E 24,6 23,8 22
EV/sales 2,62 2,65 2,5
EV/EBITDA 9,5 9,1 8,5
EV/EBITA 20,7 17,8 16,2
EV/EBIT 20,7 17,8 16,2
Dividend yield (%) 1,5 1,5 1,6
FCF yield (%) 0,3 6,1 5
P/BVPS 3,54 3,62 3,25
P/BVPS Adj -5,14 -7,18 -9,39
P/E Adj 23,4 23,8 22
EV/EBITDA Adj 9,3 9,1 8,5
EV/EBITA Adj 19,9 17,8 16,2
EV/EBIT Adj 19,9 17,8 16,2
EV/cap. employed 2,9 3,3 3,2
Investment ratios 2018 2019 2020
Capex / sales 27,2 13,2 13,1
Capex / depreciation 182,1 92,2 94,3
Capex tangibles / tangible fixed assets 0 0 0
Capex intangibles / definite intangibles 32,6 17 17,4
Depreciation on intangibles / definite intangibles 17,9 18,4 18,5
Depreciation on tangibles / tangibles 0 0 0

Equity research

Read earlier research

Media

View more media

Main shareholders

Vitec

Main shareholders Share capital % Voting shares % Verified
Lars Stenlund 5.2 % 25.3 % 28 Feb 2019
Olov Sandberg 4.5 % 22.8 % 28 Feb 2019
Didner & Gerge Fonder 6.5 % 3.4 % 28 Feb 2019
Thomas Eklund 5.4 % 2.8 % 28 Feb 2019
SEB Fonder 5.4 % 2.8 % 28 Feb 2019
Mawer Investment Management 4.7 % 2.4 % 31 Jan 2019
Martin Gren (Grenspecialisten) 4.0 % 2.1 % 28 Feb 2019
Utah Retirement Systems 3.4 % 1.8 % 28 Feb 2019
Avanza Pension 2.8 % 1.4 % 28 Feb 2019
Nils-Eric Öquist 2.7 % 1.4 % 28 Feb 2019
Source: Holdings by Modular Finance AB

Insider list

Vitec

Name Quantity Code Date
Maria Sofia Katarina Kröger - 5 000 SELL 11 Jun 2018
Maria Sofia Katarina Kröger + 50 000 Redemp 4 Jan 2018
Maria Sofia Katarina Kröger + 50 000 BUY 4 Jan 2018
Lars Stenlund + 25 000 Redemp 4 Jan 2018
Bernt Olof Sandberg + 250 000 Redemp 4 Jan 2018
Maria Sofia Katarina Kröger - 9 500 SELL 2 Jan 2018
Lars Eriksson 10 KONV 30 Nov 2017
Lars Eriksson 3 144 KONV 30 Nov 2017
Lars Eriksson + 25 TILLD 30 Nov 2017
Oscar Kröger + 1 572 GIFT 30 Nov 2017

Show More