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B3 Consulting Group

B3 Consulting Group

B3 Consulting Group is an IT consulting business with approx. 800 employees in Sweden and Poland. It operates within: Digital innovation, Digital management and Cloud & Technology. The largest segment is Banking & finance, followed by Public sector, Industry and TMT. The financial targets are sales of SEK 1.5bn and an average EBIT margin of 10% by 2025e, a Net debt/EBITDA ratio below 2.0x and a payout ratio of 50%.

Sustainability information

Key risks include a slowdown of the IT market, high employee turnover and wage inflation, increasing competition from IT services brokers and integration risks with respect to acquisitions.

SEKm 2023 2024e 2025e
Sales 1142 1072 1239
Sales growth (%) -0,8 -6,2 15,6
EBITDA 107 81 141
EBITDA margin (%) 9,4 7,5 11,4
EBIT adj. 96 56 105
EBIT adj. margin (%) 8,4 5,2 8,5
Pretax profit 88 58 112
EPS 6,82 4,4 8,56
EPS growth (%) -42,1 -35,4 94,4
EPS adj. 7,66 5,09 9,46
DPS 3,5 3 5,5
EV/EBITDA (x) 7,7 10,9 5,8
EV/EBIT adj. (x) 8,7 15,6 7,9
P/E (x) 11,6 17,9 9,2
P/E adj. (x) 10,3 15,5 8,3
EV/sales (x) 0,72 0,82 0,66
FCF yield (%) 9,1 0,8 15,1
Le. adj. FCF yld. (%) 6,5 -1,6 12,8
Dividend yield (%) 4,4 3,8 7
Net IB debt/EBITDA (x) 1,1 2,1 0,8
Le. adj. ND/EBITDA (x) 0,2 0,9 0
SEKm 2023 2024e 2025e
Sales 1142 1072 1239
COGS -124 -121 -149
Gross profit 1019 951 1089
Other operating items -912 -870 -948
EBITDA 107 81 141
Depreciation and amortisation -21 -22 -27
of which leasing depreciation -7 -8 -9
EBITA 86 58 115
EO Items -10 -3 0
Impairment and PPA amortisation 0 -5 -10
EBIT 86 53 105
Net financial items -3 -4 -2
Pretax profit 88 58 112
Tax -20 -12 -23
Net profit 68 46 89
Minority interest -8 -7 -13
Net profit discontinued 0 0 0
Net profit to shareholders 61 39 76
EPS 6,82 4,4 8,56
EPS adj. 7,66 5,09 9,46
Total extraordinary items after tax -7 -2 0
Leasing payments -7 -8 -9
Tax rate (%) 22,4 20,6 20,6
Gross margin (%) 89,2 88,7 87,9
EBITDA margin (%) 9,4 7,5 11,4
EBITA margin (%) 7,5 5,4 9,3
EBIT margin (%) 7,5 5 8,5
Pre-tax margin (%) 7,7 5,4 9
Net margin (%) 6 4,3 7,2
Growth Rates y-o-y N/A N/A N/A
Sales growth (%) -0,8 -6,2 15,6
EBITDA growth (%) -35,2 -24,9 75,7
EBITA growth (%) -37,7 -32,3 97,1
EBIT growth (%) -37,5 -38,1 96,9
Net profit growth (%) -40,4 -33,2 94,4
EPS growth (%) -42,1 -35,4 94,4
Profitability N/A N/A N/A
ROE (%) 34,4 24,8 41,4
ROE adj. (%) 38,6 29,3 46,9
ROCE (%) 27,1 17,2 29,7
ROCE adj. (%) 29,9 19,3 32,2
ROIC (%) 24,4 14,1 25,9
ROIC adj. (%) 27,1 14,8 25,9
Adj. earnings numbers N/A N/A N/A
EBITDA adj. 117 83 141
EBITDA adj. margin (%) 10,2 7,8 11,4
EBITDA lease adj. 110 75 133
EBITDA lease adj. margin (%) 9,6 7 10,7
EBITA adj. 96 61 115
EBITA adj. margin (%) 8,4 5,7 9,3
EBIT adj. 96 56 105
EBIT adj. margin (%) 8,4 5,2 8,5
Pretax profit Adj. 98 65 122
Net profit Adj. 76 53 99
Net profit to shareholders adj. 68 46 86
Net adj. margin (%) 6,6 4,9 8
SEKm 2023 2024e 2025e
EBITDA 107 81 141
Goodwill 211 235 235
Net financial items -3 -4 -2
Other intangible assets 3 31 26
Paid tax -20 -12 -23
Tangible fixed assets 6 10 11
Non-cash items -4 3 -1
Right-of-use asset 106 104 111
Cash flow before change in WC 81 67 115
Total other fixed assets 25 28 28
Change in working capital -13 4 5
Fixed assets 351 406 410
Operating cash flow 68 71 121
Inventories 0 0 0
Capex tangible fixed assets -5 -7 -6
Receivables 186 198 220
Capex intangible fixed assets 0 -21 -9
Other current assets 47 50 56
Acquisitions and Disposals 1 -38 0
Cash and liquid assets 49 24 51
Free cash flow 64 6 106
Total assets 633 679 737
Dividend paid -74 -33 -30
Shareholders equity 157 159 208
Share issues and buybacks -18 -7 0
Minority 24 24 33
Leasing liability amortisation -18 -17 -16
Total equity 180 183 241
Other non-cash items -62 2 0
Long-term debt 33 63 30
Pension debt 0 0 0
Convertible debt 0 0 0
Leasing liability 105 105 105
Total other long-term liabilities 4 4 4
Short-term debt 33 26 26
Accounts payable 42 45 50
Other current liabilities 236 253 280
Total liabilities and equity 633 679 737
Net IB debt 122 170 111
Net IB debt excl. pension debt 122 170 111
Net IB debt excl. leasing 17 65 6
Capital employed 351 377 403
Capital invested 302 353 352
Working capital -45 -49 -55
EV breakdown N/A N/A N/A
Market cap. diluted (m) 700 700 700
Net IB debt adj. 122 170 111
Market value of minority 24 24 33
Reversal of shares and participations -18 -20 -20
Reversal of conv. debt assumed equity N/A N/A N/A
EV 827 874 823
Total assets turnover (%) 182 163,5 175
Working capital/sales (%) -4,5 -4,4 -4,2
Financial risk and debt service N/A N/A N/A
Net debt/equity (%) 67,8 93,2 46
Net debt / market cap (%) 17,4 24,3 15,8
Equity ratio (%) 28,5 26,9 32,7
Net IB debt adj. / equity (%) 67,8 93,2 46
Current ratio 0,91 0,84 0,92
EBITDA/net interest 42,9 18,7 71,8
Net IB debt/EBITDA (x) 1,1 2,1 0,8
Net IB debt/EBITDA lease adj. (x) 0,2 0,9 0
Interest coverage 22,4 11,7 30,6
SEKm 2023 2024e 2025e
Shares outstanding adj. 9 9 9
Diluted shares adj. 9 9 9
EPS 6,82 4,4 8,56
Dividend per share 3,5 3 5,5
EPS adj. 7,66 5,09 9,46
BVPS 17,67 17,89 23,46
BVPS adj. -6,46 -12 -5,9
Net IB debt/share 13,77 19,18 12,49
Share price 78,9 78,9 78,9
Market cap. (m) 700 700 700
Valuation N/A N/A N/A
P/E (x) 11,6 17,9 9,2
EV/sales (x) 0,72 0,82 0,66
EV/EBITDA (x) 7,7 10,9 5,8
EV/EBITA (x) 9,6 15 7,2
EV/EBIT (x) 9,6 16,4 7,9
Dividend yield (%) 4,4 3,8 7
FCF yield (%) 9,1 0,8 15,1
Le. adj. FCF yld. (%) 6,5 -1,6 12,8
P/BVPS (x) 4,47 4,41 3,36
P/BVPS adj. (x) -12,99 -9,24 -26,47
P/E adj. (x) 10,3 15,5 8,3
EV/EBITDA adj. (x) 7,1 10,5 5,8
EV/EBITA adj. (x) 8,7 14,3 7,2
EV/EBIT adj. (x) 8,7 15,6 7,9
EV/CE (x) 2,4 2,3 2
Investment ratios N/A N/A N/A
Capex/sales (%) 0,4 2,6 1,2
Capex/depreciation 0,4 1,9 0,8
Capex tangibles / tangible fixed assets 82 72,7 54,2
Capex intangibles / definite intangibles N/A N/A N/A
Depreciation on intang / def. intang N/A N/A N/A
Depreciation on tangibles / tangibles 229,51 126,47 128,11

Equity research

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Media

B3 Consulting Group - Company presentation with CEO Martin Stenström
B3 Consulting Group - Fireside chat with Acting CEO Sverre Bjerkeli

Main shareholders -

Main shareholders Share capital % Voting shares % Verified
Sverre Bjerkeli and companies 25.0 % 25.0 % 10 May 2024
Protector Forsikring ASA 14.7 % 14.7 % 26 Apr 2024
Claes Wiberg 4.9 % 4.9 % 26 Apr 2024
Sven Uthorn 4.4 % 4.4 % 26 Apr 2024
Herald Investment Management 3.6 % 3.6 % 31 Dec 2023
B3 Consulting Group AB 2.8 % 2.8 % 10 May 2024
Avanza Pension 2.0 % 2.0 % 26 Apr 2024
Handelsbanken Fonder 1.9 % 1.9 % 31 May 2024
Defa Endeavour AS 1.4 % 1.4 % 26 Mar 2024
Tommy Sarenbrant 1.3 % 1.3 % 26 Mar 2024
Source: Holdings by Modular Finance AB