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CTT Systems

CTT Systems

Systems for climate control in airplanes

CTT Systems develops climate control products for aircraft, including dehumidification systems to prevent condensation and humidifiers for crew and passenger wellbeing. CTT’s products are offered on the Boeing 787 and 777X as well as the Airbus A380 and A350. The company holds a majority market share within both dehumidification and humidification products and is a tier-1 supplier to the Boeing 787 and 777X.

The high profitability in CTT’s systems could attract new competitors, or result in the OEM suppliers providing their own solutions. While CTT’s relationships with Airbus and Boeing are highly valuable, they have little influence over pricing and therefore are sensitive to contract renegotiations. Almost all revenues are dollar-based, implying a strong currency sensitivity. The main risks entail a lack of market penetration due to low willingness among airliners to have dehumidifiers and humidifiers installed.

SEKm 2021 2022e 2023e
Sales 151 244 330
Sales growth (%) -24,7 61,2 35,4
EBITDA 38 107 141
EBITDA margin (%) 25,1 44 42,8
EBIT adj 22 99 129
EBIT adj margin (%) 14,5 40,7 39,1
Pretax profit 18 86 121
EPS rep 1,13 5,49 7,69
EPS growth (%) -54,7 386,9 40,1
EPS adj 0,74 5,49 7,69
DPS 0,79 3,84 5,38
EV/EBITDA (x) 72 25,8 19,2
EV/EBIT adj (x) 124,8 27,9 21
P/E (x) 192,1 40,4 28,8
P/E adj (x) 291 40,4 28,8
EV/sales (x) 18,1 11,4 8,2
FCF yield (%) 0,8 1,7 4
Dividend yield (%) 0,4 1,7 2,4
Net IB debt/EBITDA 0,6 0 -0,5
Lease adj. FCF yield (%) 0,8 1,7 4
Lease adj. ND/EBITDA 0,7 0 -0,5
SEKm 2021 2022e 2023e
Sales 151 244 330
COGS 0 0 0
Gross profit 151 244 330
Other operating items -113 -137 -189
EBITDA 38 107 141
Depreciation on tangibles -4 -5 -4
Depreciation on intangibles -2 -2 -4
EBITA 27 99 129
Goodwill impairment charges 0 0 0
Other impairment and amortisation 0 0 0
EBIT 27 99 129
Other financial items 0 0 0
Net financial items -9 -13 -8
Associated income 0 0 0
Other EO items 0 0 0
Pretax profit 18 86 121
Tax -4 -18 -25
Net profit 14 69 96
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders 14 69 96
EPS 1,13 5,49 7,69
EPS Adj 0,74 5,49 7,69
Total extraordinary items after tax 4,8 0 0
Tax rate (%) -20,8 -20,5 -20,5
Gross margin (%) 100 100 100
EBITDA margin (%) 25,1 44 42,8
EBITA margin (%) 17,7 40,7 39,1
EBIT margin (%) 17,7 40,7 39,1
Pretax margin (%) 11,8 35,5 36,7
Net margin (%) 9,3 28,2 29,2
Growth rates Y/Y 2021 2022 2023
Sales growth (%) -24,7 61,2 35,4
EBITDA growth (%) -16 182,5 31,6
EBIT growth (%) -30,4 271,5 30,1
Net profit growth (%) -54,7 386,9 40,1
EPS growth (%) -54,7 386,9 40,1
Profitability 2021 2022 2023
ROE (%) 6,5 28,4 32,6
ROE Adj (%) 4,3 28,4 32,6
ROCE (%) 9,9 32,9 40,3
ROCE Adj(%) 8,1 32,9 40,3
ROIC (%) 9 31,3 39,3
ROIC Adj (%) 7,4 31,3 39,3
Adj earnings numbers 2021 2022 2023
EBITDA Adj 33 107 141
EBITDA Adj margin (%) 21,9 44 42,8
EBITA Adj 22 99 129
EBITA Adj margin (%) 14,5 40,7 39,1
EBIT Adj 22 99 129
EBIT Adj margin (%) 14,5 40,7 39,1
Pretax profit Adj 13 86 121
Net profit Adj 9 69 96
Net profit to shareholders Adj 9 69 96
Net Adj margin (%) 6,2 28,2 29,2
Depreciation and amortisation -11 -8 -12
Of which leasing depreciation 0 0 0
EO items 5 0 0
Impairment and PPA amortisation 0 0 0
EBITDA lease Adj 33 107 141
EBITDA lease Adj margin (%) 21,9 44 42,8
Leasing payments 0 0 0
SEKm 2021 2022e 2023e
EBITDA 38 107 141
Net financial items -9 -13 -8
Paid tax -7 -18 -25
Non-cash items 8 10 0
Cash flow before change in WC 31 87 108
Change in WC 0 -30 18
Operating cash flow 30 57 127
CAPEX tangible fixed assets 0 -1 -4
CAPEX intangible fixed assets -8 -9 -13
Acquisitions and disposals 0 0 0
Free cash flow 22 46 110
Dividend paid -22 -10 -48
Share issues and buybacks 0 0 0
Other non cash items -5 -10 0
Decrease in net IB debt -93 65 32
Balance Sheet (SEKm) 2021 2022 2023
Goodwill 0 0 0
Indefinite intangible assets 0 0 0
Definite intangible assets 73 86 91
Tangible fixed assets 48 45 44
Other fixed assets 2 2 2
Fixed assets 126 128 133
Inventories 77 122 116
Receivables 77 85 92
Other current assets 0 0 0
Cash and liquid assets 49 51 68
Total assets 329 386 408
Shareholders equity 213 272 320
Minority 0 0 0
Total equity 213 272 320
Long-term debt 71 46 1
Pension debt 0 0 0
Convertible debt 0 0 0
Deferred tax 0 0 0
Other long-term liabilities 6 6 6
Short-term debt 1 1 1
Accounts payable 40 63 83
Other current liabilities 0 0 0
Total liabilities and equity 329 386 408
Net IB debt 23 -4 -65
Net IB debt excl. pension debt 23 -4 -65
Capital invested 236 268 255
Working capital 114 144 125
EV breakdown 2021 2022 2023
Market cap. diluted (m) 2713 2775 2775
Net IB debt Adj 23 -4 -65
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 2735 2772 2710
Capital efficiency (%) 2021 2022 2023
Total assets turnover (%) 47,5 68,2 83,1
Capital invested turnover (%) 97,2 88,1 151,3
Capital employed turnover (%) 75,8 72,2 104,1
Inventories / sales (%) 37,9 34,9 21,7
Customer advances / sales (%) 0 0 0
Payables / sales (%) 31,3 22,9 18,6
Working capital / sales (%) 75,1 52,8 40,8
Financial risk and debt service 2021 2022 2023
Net debt / equity (%) 10,8 -1,3 -20,4
Net debt / market cap (%) 0,9 -0,1 -2,4
Equity ratio (%) 64,8 70,4 78,3
Net IB debt adj. / equity (%) 10,8 -1,3 -20,4
Current ratio (%) 493,7 398,3 328,2
EBITDA / net interest (%) 426,6 838 1764,6
Net IB debt / EBITDA (%) 60,3 -3,3 -46,3
Interest cover (%) 300,2 775,5 1614,6
Lease liability amortisation 0 0 0
Other intangible assets 76 81 87
Right-of-use asset 0 0 0
Total other fixed assets 2 2 2
Leasing liability 0 0 0
Total other long-term liabilities 4 4 4
Net IB debt excl. leasing 23 -4 -65
Net IB debt / EBITDA lease Adj (%) 69 -3,3 -46,3
SEKm 2021 2022e 2023e
Shares outstanding adj. 13 13 13
Fully diluted shares Adj 13 13 13
EPS 1,13 5,49 7,69
Dividend per share Adj 0,8 3,8 5,4
EPS Adj 0,74 5,49 7,69
BVPS 16,99 21,69 25,54
BVPS Adj 10,93 15,24 18,57
Net IB debt / share 1,8 -0,3 -5,2
Share price 195,79 221,5 221,5
Market cap. (m) 2453 2775 2775
Valuation 2021 2022 2023
P/E 192,1 40,4 28,8
EV/sales 18,09 11,37 8,21
EV/EBITDA 72 25,8 19,2
EV/EBITA 102,4 27,9 21
EV/EBIT 102,4 27,9 21
Dividend yield (%) 0,4 1,7 2,4
FCF yield (%) 0,8 1,7 4
P/BVPS 12,74 10,21 8,67
P/BVPS Adj 19,8 14,53 11,93
P/E Adj 291 40,4 28,8
EV/EBITDA Adj 82,5 25,8 19,2
EV/EBITA Adj 124,8 27,9 21
EV/EBIT Adj 124,8 27,9 21
EV/cap. employed 9,6 8,7 8,4
Investment ratios 2021 2022 2023
Capex / sales 5,7 4,2 5,1
Capex / depreciation 76,4 128 140,3
Capex tangibles / tangible fixed assets 0,3 2,1 9,8
Capex intangibles / definite intangibles 11,1 11,5 14,4
Depreciation on intangibles / definite intangibles 7,2 5,4 6,9
Depreciation on tangibles / tangibles 12,1 7,9 13,7
Lease adj. FCF yield (%) 0,8 1,7 4

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Media

CTT Systems - Company presentation with CEO Henrik Höjer
CTT Systems - Company presentation with CEO Torbjörn Johansson

Main shareholders - CTT Systems

Main shareholders Share capital % Voting shares % Verified
Tomas Torlöf 13.4 % 13.4 % 27 Oct 2022
SEB Fonder 9.4 % 9.4 % 31 Oct 2022
ODIN Fonder 9.2 % 9.2 % 31 Oct 2022
Rockwell Collins / Collins Aerospace 9.0 % 9.0 % 30 Sep 2022
Nya Jorame Holding AB 4.3 % 4.3 % 27 Oct 2022
If Skadeförsäkring AB 4.1 % 4.1 % 27 Oct 2022
Tredje AP-fonden 3.9 % 3.9 % 27 Oct 2022
Andra AP-fonden 3.7 % 3.7 % 27 Oct 2022
Danske Invest 3.0 % 3.0 % 31 Oct 2022
Lannebo Fonder 2.1 % 2.1 % 31 Oct 2022
Source: Holdings by Modular Finance AB

Insider list - CTT Systems

Name Quantity Code Date
Henrik Höjer + 2 400 BUY 3 Nov 2022
Henrik Höjer + 140 BUY 2 Nov 2022
Henrik Höjer + 60 BUY 2 Nov 2022
Henrik Höjer + 300 BUY 31 Oct 2022
Henrik Höjer + 200 BUY 31 Oct 2022
Tony Rosendal + 450 BUY 28 Jul 2022
Henrik Höjer + 3 000 BUY 28 Jul 2022
Tony Rosendal + 225 BUY 27 Jul 2022
Henrik Höjer + 500 BUY 25 Jul 2022
Henrik Höjer + 500 BUY 22 Jul 2022

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