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Bergs Timber

Bergs Timber

Timber pure-play

Bergs Timber is a Swedish company, which owns and develops companies that produce and sell processed timber products. Bergs Timber operates through its main segments Wood Protection, Sawn Wood and Joinery. It produces products such as sawn wood, treated wood, custom-made windows/ doors, houses, and outdoor furniture/gardening products. The company has operations in Sweden, Estonia, Latvia, and the UK, and its products are sold to ~20 countries.

Historically, Bergs Timber has been a typical sawmill group with a high degree of commoditised wood products. In 2020, the company divested its Swedish sawmills and is now a more downstream-focused company with less cyclicality in its earnings. Bergs Timber’s strategy is to focus on growth within its Joinery and Wood Protection segments (organically & through M&As). The end-markets for its products are growing structurally (building with wood is more environmentally friendly), and there could be potential for growth, both organically and inorganically.

Risks include higher raw material costs, lower product prices and changes in the general economic cycle.

SEKm 2021 2022e 2023e
Sales 3139 3480 2990
Sales growth (%) 47,2 10,8 -14,1
EBITDA 508 362 326
EBITDA margin (%) 16,2 10,4 10,9
EBIT adj 431 274 237
EBIT adj margin (%) 13,7 7,9 7,9
Pretax profit 423 271 229
EPS rep 12,03 7,54 5,46
EPS growth (%) 141 -37,3 -27,6
EPS adj 12,17 7,54 5,46
DPS 3 1,88 1,36
EV/EBITDA (x) 4,1 5,2 5,7
EV/EBIT adj (x) 4,9 6,9 7,8
P/E (x) 4,5 6,1 8,5
P/E adj (x) 4,5 6,1 8,5
EV/sales (x) 0,7 0,5 0,6
FCF yield (%) -8,1 2,5 5,7
Dividend yield (%) 5,5 4,1 3
Net IB debt/EBITDA 0,4 0,8 0,8
Lease adj. FCF yield (%) -8,1 2,5 5,7
Lease adj. ND/EBITDA 0,4 0,8 0,8
SEKm 2021 2022e 2023e
Sales 3139 3480 2990
COGS -1868 -2080 -1721
Gross profit 1271 1400 1269
Other operating items -763 -1038 -944
EBITDA 508 362 326
Depreciation on tangibles -75 -70 -70
Depreciation on intangibles 0 0 0
EBITA 431 274 237
Goodwill impairment charges 0 0 0
Other impairment and amortisation 0 0 0
EBIT 431 274 237
Other financial items 0 0 0
Net financial items -3 -3 -8
Associated income 0 0 0
Other EO items 0 0 0
Pretax profit 423 271 229
Tax -6 -10 -40
Net profit 417 261 189
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders 417 261 189
EPS 12,03 7,54 5,46
EPS Adj 12,17 7,54 5,46
Total extraordinary items after tax -5 0 0
Tax rate (%) -1,4 -3,6 -17,3
Gross margin (%) 40,5 40,2 42,5
EBITDA margin (%) 16,2 10,4 10,9
EBITA margin (%) 13,7 7,9 7,9
EBIT margin (%) 13,7 7,9 7,9
Pretax margin (%) 13,5 7,8 7,7
Net margin (%) 13,3 7,5 6,3
Growth rates Y/Y 2021 2022 2023
Sales growth (%) 47,2 10,8 -14,1
EBITDA growth (%) 140,1 -28,8 -10,1
EBIT growth (%) 214,6 -36,4 -13,5
Net profit growth (%) 282,6 -37,3 -27,6
EPS growth (%) 141 -37,3 -27,6
Profitability 2021 2022 2023
ROE (%) 29,1 15,2 10,1
ROE Adj (%) 29,4 15,2 10,1
ROCE (%) 25,9 13,6 10,4
ROCE Adj(%) 26,2 13,6 10,4
ROIC (%) 27,8 13,4 9,1
ROIC Adj (%) 27,8 13,4 9,1
Adj earnings numbers 2021 2022 2023
EBITDA Adj 508 362 326
EBITDA Adj margin (%) 16,2 10,4 10,9
EBITA Adj 431 274 237
EBITA Adj margin (%) 13,7 7,9 7,9
EBIT Adj 431 274 237
EBIT Adj margin (%) 13,7 7,9 7,9
Pretax profit Adj 428 271 229
Net profit Adj 422 261 189
Net profit to shareholders Adj 422 261 189
Net Adj margin (%) 13,4 7,5 6,3
Depreciation and amortisation -77 -88 -89
Of which leasing depreciation 0 0 0
EO items 0 0 0
Impairment and PPA amortisation 0 0 0
EBITDA lease Adj 508 362 326
EBITDA lease Adj margin (%) 16,2 10,4 10,9
Leasing payments 0 0 0
SEKm 2021 2022e 2023e
EBITDA 508 362 326
Net financial items -3 -3 -8
Paid tax -6 -10 -40
Non-cash items 0 0 0
Cash flow before change in WC 499 349 278
Change in WC -435 -114 14
Operating cash flow 64 235 292
CAPEX tangible fixed assets -216 -195 -200
CAPEX intangible fixed assets 0 0 0
Acquisitions and disposals 0 0 0
Free cash flow -152 40 92
Dividend paid -69 -104 -65
Share issues and buybacks 0 0 0
Other non cash items -45 2 0
Decrease in net IB debt 696 76 93
Balance Sheet (SEKm) 2021 2022 2023
Goodwill 0 0 0
Indefinite intangible assets 187 187 187
Definite intangible assets 0 0 0
Tangible fixed assets 800 934 1046
Other fixed assets 7 7 7
Fixed assets 1158 1305 1417
Inventories 733 818 816
Receivables 330 305 274
Other current assets 0 0 0
Cash and liquid assets 94 166 192
Total assets 2315 2594 2699
Shareholders equity 1616 1816 1940
Minority 0 0 0
Total equity 1616 1816 1940
Long-term debt 12 223 223
Pension debt 0 0 0
Convertible debt 0 0 0
Deferred tax 0 0 0
Other long-term liabilities 24 24 24
Short-term debt 303 227 227
Accounts payable 347 291 272
Other current liabilities 0 0 0
Total liabilities and equity 2315 2593 2698
Net IB debt 221 284 258
Net IB debt excl. pension debt 221 284 258
Capital invested 1837 2101 2199
Working capital 716 832 818
EV breakdown 2021 2022 2023
Market cap. diluted (m) 1879 1602 1602
Net IB debt Adj 221 284 258
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 2100 1886 1860
Capital efficiency (%) 2021 2022 2023
Total assets turnover (%) 156,7 141,8 113
Capital invested turnover (%) 140,3 168,9 177,7
Capital employed turnover (%) 128,7 139,6 138
Inventories / sales (%) 23,8 16,7 15,7
Customer advances / sales (%) 0 0 0
Payables / sales (%) 13 9,5 8,8
Working capital / sales (%) 17,5 22,2 27,6
Financial risk and debt service 2021 2022 2023
Net debt / equity (%) 13,7 15,6 13,3
Net debt / market cap (%) 12,7 17,7 16,1
Equity ratio (%) 69,8 70 71,9
Net IB debt adj. / equity (%) 13,7 15,6 13,3
Current ratio (%) 178 249 257,2
EBITDA / net interest (%) 16933,3 12064,3 4069,1
Net IB debt / EBITDA (%) 43,5 78,5 79,2
Interest cover (%) 2617,6 1906,2 2008,6
Lease liability amortisation 0 0 0
Other intangible assets 329 340 340
Right-of-use asset 0 0 0
Total other fixed assets 29 31 31
Leasing liability 0 0 0
Total other long-term liabilities 37 36 36
Net IB debt excl. leasing 221 284 258
Net IB debt / EBITDA lease Adj (%) 43,5 78,5 79,2
SEKm 2021 2022e 2023e
Shares outstanding adj. 35 35 35
Fully diluted shares Adj 35 35 35
EPS 12,03 7,54 5,46
Dividend per share Adj 3 1,9 1,4
EPS Adj 12,17 7,54 5,46
BVPS 46,61 52,38 55,96
BVPS Adj 46,61 52,38 55,96
Net IB debt / share 6,4 8,2 7,4
Share price 50,27 46,2 46,2
Market cap. (m) 1743 1602 1602
Valuation 2021 2022 2023
P/E 4,5 6,1 8,5
EV/sales 0,67 0,54 0,62
EV/EBITDA 4,1 5,2 5,7
EV/EBITA 4,9 6,9 7,8
EV/EBIT 4,9 6,9 7,8
Dividend yield (%) 5,5 4,1 3
FCF yield (%) -8,1 2,5 5,7
P/BVPS 1,16 0,88 0,83
P/BVPS Adj 1,16 0,88 0,83
P/E Adj 4,5 6,1 8,5
EV/EBITDA Adj 4,1 5,2 5,7
EV/EBITA Adj 4,9 6,9 7,8
EV/EBIT Adj 4,9 6,9 7,8
EV/cap. employed 1,1 0,8 0,8
Investment ratios 2021 2022 2023
Capex / sales 6,9 5,6 6,7
Capex / depreciation 280,5 221,6 226
Capex tangibles / tangible fixed assets 27 20,9 19,1
Capex intangibles / definite intangibles 0 0 0
Depreciation on intangibles / definite intangibles 0 0 0
Depreciation on tangibles / tangibles 9,6 9,4 8,5
Lease adj. FCF yield (%) -8,1 2,5 5,7

Equity Research

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Media

Bergs Timber - Company presentation with CFO Anders Marklund
Bergs Timber - Company presentation with CFO Anders Marklund

Main shareholders - Bergs Timber

Main shareholders Share capital % Voting shares % Verified
Norvik Hf 58.7 % 58.7 % 27 Jul 2022
Åke och Christina Bergh 3.4 % 3.4 % 27 Jul 2022
Nordnet Pensionsförsäkring 3.2 % 3.2 % 27 Jul 2022
Futur Pension 2.7 % 2.7 % 27 Jul 2022
Cervantes Capital 2.3 % 2.3 % 30 Jun 2022
Lupus alpha 1.9 % 1.9 % 31 Dec 2021
Avanza Pension 1.5 % 1.5 % 27 Jul 2022
Per Anders Bendt 1.3 % 1.3 % 27 Jul 2022
Therese Sundbye 0.8 % 0.8 % 27 Jul 2022
Mandarine Gestion 0.8 % 0.8 % 30 May 2022
Source: Holdings by Modular Finance AB