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StrongPoint

StrongPoint

Retail technology solutions

StrongPoint is a retail technology company that sells a wide variety of technology solutions that save costs, increase productivity, reduce theft or facilitate e-commerce sales for retailers. Its product portfolio includes electronic shelf labels, cash management systems, self-checkout terminals, click & collect lockers and digital e-commerce solutions. In addition, it holds strong positions in security cases for cash-in-transit and in adhesive labels. The company has strong positions in Norway, Sweden and the Baltics and is targeting to grow significantly in Spain.

StrongPoint’s earnings are to some degree dependent on large product orders. If StrongPoint is unable to win large contracts from new or existing customers, it could pose a risk to its future sales and earnings growth. The Nordic grocery retail market is highly concentrated and several of these large chains are StrongPoint customers. Losing one of these customers could result in a significant loss of repeat business for StrongPoint. As there are some competing products, StrongPoint could be exposed to price pressure from new or existing competitors. Other risk factors include FX, macroeconomy, warranty issues and regulatory risks.

NOKm 2023 2024e 2025e
Sales 1318 1549 1860
Sales growth (%) -4 17,5 20,1
EBITDA 17 155 234
EBITDA margin (%) 1,3 10 12,6
EBIT adj. -26 111 190
EBIT adj. margin (%) -2 7,2 10,2
Pretax profit -28 100 181
EPS -0,4 1,76 3,15
EPS growth (%) -162,2 -535,3 79,5
EPS adj. -0,21 1,95 3,34
DPS 0,95 1 1,05
EV/EBITDA (x) 50,6 5,4 3,7
EV/EBIT adj. (x) -32,2 7,6 4,6
P/E (x) -37,2 8,5 4,8
P/E adj. (x) -70,1 7,7 4,5
EV/sales (x) 0,65 0,54 0,47
FCF yield (%) -13,8 8,1 17
Le. adj. FCF yld. (%) -13,8 8,1 17
Dividend yield (%) 6,3 6,7 7
Net IB debt/EBITDA (x) 10,8 1,1 0,9
Le. adj. ND/EBITDA (x) -26,4 0,6 0,5
NOKm 2023 2024e 2025e
Sales 1318 1549 1860
COGS -789 -895 -1035
Gross profit 529 654 825
Other operating items -512 -500 -591
EBITDA 17 155 234
Depreciation and amortisation -32 -33 -33
of which leasing depreciation -20 -20 -20
EBITA -16 122 201
EO Items 0 0 0
Impairment and PPA amortisation -11 -11 -11
EBIT -26 111 190
Net financial items -1 -11 -9
Pretax profit -28 100 181
Tax 10 -21 -40
Net profit -18 79 141
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders -18 79 141
EPS -0,4 1,76 3,15
EPS adj. -0,21 1,95 3,34
Total extraordinary items after tax 0 0 0
Leasing payments -20 -20 -20
Tax rate (%) 35,1 21,2 22
Gross margin (%) 40,1 42,2 44,4
EBITDA margin (%) 1,3 10 12,6
EBITA margin (%) -1,2 7,9 10,8
EBIT margin (%) -2 7,2 10,2
Pre-tax margin (%) -2,1 6,5 9,7
Net margin (%) -1,4 5,1 7,6
Sales growth (%) -4 17,5 20,1
EBITDA growth (%) -77,8 818,7 51,7
EBITA growth (%) -135,7 -880,6 65,3
EBIT growth (%) -170,8 -519,1 71,6
Net profit growth (%) -162,2 -535,3 79,5
EPS growth (%) -162,2 -535,3 79,5
Profitability N/A N/A N/A
ROE (%) -3,7 15,9 25,1
ROE adj. (%) -1,5 18,1 27,1
ROCE (%) -4 15,6 24,5
ROCE adj. (%) -2,4 17,1 25,9
ROIC (%) -1,6 14,2 20,9
ROIC adj. (%) -1,6 14,2 20,9
Adj. earnings numbers N/A N/A N/A
EBITDA adj. 17 155 234
EBITDA adj. margin (%) 1,3 10 12,6
EBITDA lease adj. -3 134 214
EBITDA lease adj. margin (%) -0,2 8,7 11,5
EBITA adj. -16 122 201
EBITA adj. margin (%) -1,2 7,9 10,8
EBIT adj. -26 111 190
EBIT adj. margin (%) -2 7,2 10,2
Pretax profit Adj. -17 111 192
Net profit Adj. -7 90 153
Net profit to shareholders adj. -7 90 153
Net adj. margin (%) -0,6 5,8 8,2
NOKm 2023 2024e 2025e
EBITDA 17 155 234
Goodwill 167 167 167
Net financial items -1 -11 -9
Other intangible assets 108 91 74
Paid tax 10 -21 -40
Tangible fixed assets 28 28 28
Non-cash items -70 -9 82
Right-of-use asset 98 98 98
Cash flow before change in WC -45 114 268
Total other fixed assets 34 27 27
Change in working capital -36 -52 -146
Fixed assets 435 411 394
Operating cash flow -81 61 122
Inventories 281 322 363
Capex tangible fixed assets -5 -7 -7
Receivables 280 346 401
Capex intangible fixed assets -7 0 0
Other current assets 38 38 38
Acquisitions and Disposals 0 0 0
Cash and liquid assets 33 41 9
Free cash flow -93 55 115
Total assets 1067 1157 1204
Dividend paid -40 -43 -45
Shareholders equity 478 515 611
Share issues and buybacks 0 0 0
Minority 0 0 0
Leasing liability amortisation 0 0 0
Total equity 478 515 611
Other non-cash items 23 -4 -102
Long-term debt 9 9 9
Pension debt 0 0 0
Convertible debt 0 0 0
Leasing liability 98 98 98
Total other long-term liabilities 21 21 21
Short-term debt 108 108 108
Accounts payable 146 185 217
Other current liabilities 206 222 140
Total liabilities and equity 1067 1157 1204
Net IB debt 182 174 206
Net IB debt excl. pension debt 182 174 206
Net IB debt excl. leasing 84 76 108
Capital employed 693 729 826
Capital invested 660 688 817
Working capital 246 299 444
Market cap. diluted (m) 673 673 673
Net IB debt adj. 182 174 206
Market value of minority 0 0 0
Reversal of shares and participations -5 -5 -5
Reversal of conv. debt assumed equity N/A N/A N/A
EV 850 842 874
Total assets turnover (%) 128,5 139,3 157,6
Working capital/sales (%) 17,3 17,6 20
Financial risk and debt service N/A N/A N/A
Net debt/equity (%) 38 33,7 33,7
Net debt / market cap (%) 27 25,8 30,6
Equity ratio (%) 44,9 44,5 50,8
Net IB debt adj. / equity (%) 38 33,7 33,7
Current ratio 1,37 1,45 1,74
EBITDA/net interest 11,4 14,3 26,7
Net IB debt/EBITDA (x) 10,8 1,1 0,9
Net IB debt/EBITDA lease adj. (x) -26,4 0,6 0,5
Interest coverage 10,6 11,3 22,9
NOKm 2023 2024e 2025e
Shares outstanding adj. 45 45 45
Diluted shares adj. 45 45 45
EPS -0,4 1,76 3,15
Dividend per share 0,95 1 1,05
EPS adj. -0,21 1,95 3,34
BVPS 10,66 11,46 13,62
BVPS adj. 4,53 5,71 8,23
Net IB debt/share 4,05 3,87 4,59
Share price 15 15 15
Market cap. (m) 673 673 673
P/E (x) -37,2 8,5 4,8
EV/sales (x) 0,65 0,54 0,47
EV/EBITDA (x) 50,6 5,4 3,7
EV/EBITA (x) -54,5 6,9 4,3
EV/EBIT (x) -32,2 7,6 4,6
Dividend yield (%) 6,3 6,7 7
FCF yield (%) -13,8 8,1 17
Le. adj. FCF yld. (%) -13,8 8,1 17
P/BVPS (x) 1,41 1,31 1,1
P/BVPS adj. (x) 3,31 2,63 1,82
P/E adj. (x) -70,1 7,7 4,5
EV/EBITDA adj. (x) 50,6 5,4 3,7
EV/EBITA adj. (x) -54,5 6,9 4,3
EV/EBIT adj. (x) -32,2 7,6 4,6
EV/CE (x) 1,2 1,2 1,1
Investment ratios N/A N/A N/A
Capex/sales (%) 0,9 0,4 0,4
Capex/depreciation 1 0,5 0,5
Capex tangibles / tangible fixed assets 19,7 24,7 25
Capex intangibles / definite intangibles 6,4 0 0
Depreciation on intang / def. intang 5 6 8
Depreciation on tangibles / tangibles 24,42 24,66 24,99

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Media

StrongPoint - Company presentation with CEO Jacob Tveraabak
StrongPoint - Company presentation with CEO Jacob Tveraabak

Main Shareholders - Strongpoint

Main shareholders Share capital % Voting shares % Verified
Strømstangen AS 8.8 % 8.8 % 20 Feb 2024
Nordnet Bank AB 6.5 % 6.5 % 20 Feb 2024
Sole Active AS 4.9 % 4.9 % 20 Feb 2024
V. Eiendom Holding AS 4.2 % 4.2 % 20 Feb 2024
Quaero Capital S.A. 4.0 % 4.0 % 29 Sep 2023
Canaccord Genuity Wealth Management 3.4 % 3.4 % 31 Oct 2023
Georg Zetterberg 3.1 % 3.1 % 31 Dec 2022
Avanza Bank AB 2.8 % 2.8 % 20 Feb 2024
Verdadero AS 2.7 % 2.7 % 20 Feb 2024
Jan Ring 2.7 % 2.7 % 20 Feb 2024
Source: Holdings by Modular Finance AB