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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 2023 2024e 2025e
Sales 309 414 564
Sales growth (%) 28,3 33,9 36,3
EBITDA 128 150 199
EBITDA margin (%) 41,3 36,3 35,3
EBIT adj. 121 140 186
EBIT adj. margin (%) 39,3 33,9 33
Pretax profit 120 145 189
EPS 7,62 9,2 11,97
EPS growth (%) 43,9 20,7 30,2
EPS adj. 7,81 9,2 11,97
DPS 8,7 7,82 10,18
EV/EBITDA (x) 26,2 22,3 16,8
EV/EBIT adj. (x) 27,6 23,9 18
P/E (x) 35,8 29,7 22,8
P/E adj. (x) 35 29,7 22,8
EV/sales (x) 10,83 8,11 5,94
FCF yield (%) 3,2 2,9 3
Le. adj. FCF yld. (%) 3,2 2,9 3
Dividend yield (%) 3,2 2,9 3,7
Net IB debt/EBITDA (x) -0,6 -0,4 -0,4
Le. adj. ND/EBITDA (x) -0,6 -0,4 -0,4
SEKm 2023 2024e 2025e
Sales 309 414 564
COGS 0 0 0
Gross profit 309 414 564
Other operating items -181 -264 -365
EBITDA 128 150 199
Depreciation and amortisation -9 -10 -13
of which leasing depreciation 0 0 0
EBITA 118 140 186
EO Items -3 0 0
Impairment and PPA amortisation 0 0 0
EBIT 118 140 186
Net financial items 2 5 3
Pretax profit 120 145 189
Tax -25 -30 -39
Net profit 96 115 150
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders 96 115 150
EPS 7,62 9,2 11,97
EPS adj. 7,81 9,2 11,97
Total extraordinary items after tax -2 0 0
Leasing payments 0 0 0
Tax rate (%) 20,7 20,5 20,6
Gross margin (%) 100 100 100
EBITDA margin (%) 41,3 36,3 35,3
EBITA margin (%) 38,3 33,9 33
EBIT margin (%) 38,3 33,9 33
Pre-tax margin (%) 39 35 33,5
Net margin (%) 30,9 27,9 26,6
Sales growth (%) 28,3 33,9 36,3
EBITDA growth (%) 28,1 17,8 32,4
EBITA growth (%) 29,1 18,5 32,6
EBIT growth (%) 29,1 18,5 32,6
Net profit growth (%) 43,9 20,7 30,2
EPS growth (%) 43,9 20,7 30,2
Profitability N/A N/A N/A
ROE (%) 32,7 36,3 43,3
ROE adj. (%) 33,5 36,3 43,3
ROCE (%) 36,5 42,6 52,5
ROCE adj. (%) 36,2 39,9 50,9
ROIC (%) 38,1 45,3 53
ROIC adj. (%) 39,1 45,3 53
Adj. earnings numbers N/A N/A N/A
EBITDA adj. 131 150 199
EBITDA adj. margin (%) 42,2 36,3 35,3
EBITDA lease adj. 131 150 199
EBITDA lease adj. margin (%) 42,2 36,3 35,3
EBITA adj. 121 140 186
EBITA adj. margin (%) 39,3 33,9 33
EBIT adj. 121 140 186
EBIT adj. margin (%) 39,3 33,9 33
Pretax profit Adj. 123 145 189
Net profit Adj. 98 115 150
Net profit to shareholders adj. 98 115 150
Net adj. margin (%) 31,7 27,9 26,6
SEKm 2023 2024e 2025e
EBITDA 128 150 199
Goodwill 0 0 0
Net financial items 2 5 3
Other intangible assets 81 83 88
Paid tax -33 -30 -39
Tangible fixed assets 41 40 40
Non-cash items -4 0 0
Right-of-use asset 0 0 0
Cash flow before change in WC 93 125 163
Total other fixed assets 2 2 2
Change in working capital 24 -16 -42
Fixed assets 124 125 130
Operating cash flow 117 110 121
Inventories 109 128 164
Capex tangible fixed assets -3 -5 -7
Receivables 67 87 124
Capex intangible fixed assets -4 -6 -11
Other current assets 0 0 0
Acquisitions and Disposals 0 0 0
Cash and liquid assets 118 92 82
Free cash flow 109 98 103
Total assets 417 433 500
Dividend paid -51 -109 -98
Shareholders equity 314 320 372
Minority 0 0 0
Share issues and buybacks 0 0 0
Total equity 314 320 372
Leasing liability amortisation 0 0 0
Long-term debt 40 25 10
Other non-cash items 3 0 0
Pension debt 0 0 0
Convertible debt 0 0 0
Leasing liability 0 0 0
Total other long-term liabilities 3 3 3
Short-term debt 2 2 2
Accounts payable 59 83 113
Other current liabilities 0 0 0
Total liabilities and equity 417 433 500
Net IB debt -76 -65 -70
Net IB debt excl. pension debt -76 -65 -70
Net IB debt excl. leasing -76 -65 -70
Capital employed 356 347 384
Capital invested 238 255 302
Working capital 117 132 175
Market cap. diluted (m) 3420 3420 3420
Net IB debt adj. -76 -65 -70
Market value of minority 0 0 0
EV 3344 3355 3350
Reversal of shares and participations 0 0 0
Total assets turnover (%) 77,8 97,4 121
Reversal of conv. debt assumed equity N/A N/A N/A
Working capital/sales (%) 40,4 30,1 27,2
Financial risk and debt service N/A N/A N/A
Net debt/equity (%) -24,2 -20,4 -18,8
Net debt / market cap (%) -2,2 -1,9 -2
Equity ratio (%) 75,2 74 74,5
Net IB debt adj. / equity (%) -24,2 -20,4 -18,8
Current ratio 4,88 3,65 3,23
EBITDA/net interest 62,2 32 66,3
Net IB debt/EBITDA (x) -0,6 -0,4 -0,4
Net IB debt/EBITDA lease adj. (x) -0,6 -0,4 -0,4
Interest coverage 57,8 29,8 62
SEKm 2023 2024e 2025e
Shares outstanding adj. 13 13 13
Diluted shares adj. 13 13 13
EPS 7,62 9,2 11,97
Dividend per share 8,7 7,82 10,18
EPS adj. 7,81 9,2 11,97
BVPS 25,06 25,56 29,71
BVPS adj. 18,62 18,94 22,72
Net IB debt/share -6,07 -5,23 -5,59
Share price 273 273 273
Market cap. (m) 3420 3420 3420
P/E (x) 35,8 29,7 22,8
EV/sales (x) 10,83 8,11 5,94
EV/EBITDA (x) 26,2 22,3 16,8
EV/EBITA (x) 28,2 23,9 18
EV/EBIT (x) 28,2 23,9 18
Dividend yield (%) 3,2 2,9 3,7
FCF yield (%) 3,2 2,9 3
Le. adj. FCF yld. (%) 3,2 2,9 3
P/BVPS (x) 10,89 10,68 9,19
P/BVPS adj. (x) 14,66 14,41 12,02
P/E adj. (x) 35 29,7 22,8
EV/EBITDA adj. (x) 25,6 22,3 16,8
EV/EBITA adj. (x) 27,6 23,9 18
EV/EBIT adj. (x) 27,6 23,9 18
EV/CE (x) 9,4 9,7 8,7
Investment ratios N/A N/A N/A
Capex/sales (%) 2,4 2,7 3,2
Capex/depreciation 0,8 1,1 1,4
Capex tangibles / tangible fixed assets 11,1 16,2 20,3
Capex intangibles / definite intangibles 5,7 13,3 15,7
Depreciation on intang / def. intang 5 8 9
Depreciation on tangibles / tangibles 13,85 16,03 18,7

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

Main shareholders - CTT Systems

Main shareholders Share capital % Voting shares % Verified
Tomas Torlöf 13.8 % 13.8 % 26 Mar 2024
SEB Fonder 9.6 % 9.6 % 26 Mar 2024
ODIN Fonder 7.7 % 7.7 % 26 Mar 2024
Första AP-fonden 4.5 % 4.5 % 26 Mar 2024
Nya Jorame Holding AB 4.4 % 4.4 % 26 Mar 2024
If Skadeförsäkring AB 4.1 % 4.1 % 26 Mar 2024
Andra AP-fonden 3.7 % 3.7 % 26 Mar 2024
Tredje AP-fonden 3.2 % 3.2 % 26 Mar 2024
Lannebo Fonder 2.8 % 2.8 % 26 Mar 2024
Danske Invest 2.5 % 2.5 % 30 Nov 2023
Source: Holdings by Modular Finance AB