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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.

Sustainability information

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 309 395 551
Sales growth (%) 28,3 27,9 39,4
EBITDA 128 154 203
EBITDA margin (%) 41,3 38,8 36,8
EBIT adj. 121 145 190
EBIT adj. margin (%) 39,3 36,7 34,5
Pretax profit 120 146 193
EPS 7,62 9,27 12,23
EPS growth (%) 43,9 21,6 31,9
EPS adj. 7,81 9,27 12,23
DPS 8,7 7,88 10,39
EV/EBITDA (x) 32,2 26,8 20,2
EV/EBIT adj. (x) 33,9 28,4 21,6
P/E (x) 43,8 36 27,3
P/E adj. (x) 42,8 36 27,3
EV/sales (x) 13,3 10,41 7,46
FCF yield (%) 2,6 2,5 2,5
Le. adj. FCF yld. (%) 2,6 2,5 2,5
Dividend yield (%) 2,6 2,4 3,1
Net IB debt/EBITDA (x) -0,6 -0,5 -0,4
Le. adj. ND/EBITDA (x) -0,6 -0,5 -0,4
SEKm 2023 2024e 2025e
Sales 309 395 551
COGS 0 0 0
Gross profit 309 395 551
Other operating items -181 -242 -348
EBITDA 128 154 203
Depreciation and amortisation -9 -9 -13
of which leasing depreciation 0 0 0
EBITA 118 145 190
EO Items -3 0 0
Impairment and PPA amortisation 0 0 0
EBIT 118 145 190
Net financial items 2 1 3
Pretax profit 120 146 193
Tax -25 -30 -40
Net profit 96 116 153
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders 96 116 153
EPS 7,62 9,27 12,23
EPS adj. 7,81 9,27 12,23
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 38,8 36,8
EBITA margin (%) 38,3 36,7 34,5
EBIT margin (%) 38,3 36,7 34,5
Pre-tax margin (%) 39 37 35
Net margin (%) 30,9 29,4 27,8
Sales growth (%) 28,3 27,9 39,4
EBITDA growth (%) 28,1 20,3 32,2
EBITA growth (%) 29,1 22,4 31,1
EBIT growth (%) 29,1 22,4 31,1
Net profit growth (%) 43,9 21,6 31,9
EPS growth (%) 43,9 21,6 31,9
Profitability N/A N/A N/A
ROE (%) 32,7 36,6 44
ROE adj. (%) 33,5 36,6 44
ROCE (%) 36,5 41,9 53,3
ROCE adj. (%) 36,2 41,2 51,7
ROIC (%) 38,1 47,2 55
ROIC adj. (%) 39,1 47,2 55
Adj. earnings numbers N/A N/A N/A
EBITDA adj. 131 154 203
EBITDA adj. margin (%) 42,2 38,8 36,8
EBITDA lease adj. 131 154 203
EBITDA lease adj. margin (%) 42,2 38,8 36,8
EBITA adj. 121 145 190
EBITA adj. margin (%) 39,3 36,7 34,5
EBIT adj. 121 145 190
EBIT adj. margin (%) 39,3 36,7 34,5
Pretax profit Adj. 123 146 193
Net profit Adj. 98 116 153
Net profit to shareholders adj. 98 116 153
Net adj. margin (%) 31,7 29,4 27,8
SEKm 2023 2024e 2025e
EBITDA 128 154 203
Goodwill 0 0 0
Net financial items 2 1 3
Other intangible assets 81 83 88
Paid tax -33 -30 -40
Tangible fixed assets 41 41 41
Non-cash items -4 0 0
Right-of-use asset 0 0 0
Cash flow before change in WC 93 125 166
Total other fixed assets 2 2 2
Change in working capital 24 -10 -44
Fixed assets 124 126 131
Operating cash flow 117 115 122
Inventories 109 123 160
Capex tangible fixed assets -3 -5 -7
Receivables 67 83 121
Capex intangible fixed assets -4 -6 -11
Other current assets 0 0 0
Acquisitions and Disposals 0 0 0
Cash and liquid assets 118 98 89
Free cash flow 109 104 104
Total assets 417 430 500
Dividend paid -51 -109 -99
Shareholders equity 314 321 376
Minority 0 0 0
Share issues and buybacks 0 0 0
Total equity 314 321 376
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 79 110
Other current liabilities 0 0 0
Total liabilities and equity 417 430 500
Net IB debt -76 -71 -77
Net IB debt excl. pension debt -76 -71 -77
Net IB debt excl. leasing -76 -71 -77
Capital employed 356 348 387
Capital invested 238 250 299
Working capital 117 126 171
Market cap. diluted (m) 4185 4185 4185
Net IB debt adj. -76 -71 -77
Market value of minority 0 0 0
EV 4109 4113 4108
Reversal of shares and participations 0 0 0
Total assets turnover (%) 77,8 93,3 118,4
Reversal of conv. debt assumed equity N/A N/A N/A
Working capital/sales (%) 40,4 30,8 27
Financial risk and debt service N/A N/A N/A
Net debt/equity (%) -24,2 -22,2 -20,5
Net debt / market cap (%) -1,8 -1,7 -1,8
Equity ratio (%) 75,2 74,7 75
Net IB debt adj. / equity (%) -24,2 -22,2 -20,5
Current ratio 4,88 3,77 3,31
EBITDA/net interest 62,2 118,1 67,6
Net IB debt/EBITDA (x) -0,6 -0,5 -0,4
Net IB debt/EBITDA lease adj. (x) -0,6 -0,5 -0,4
Interest coverage 57,8 111,5 63,3
SEKm 2023 2024e 2025e
Shares outstanding adj. 13 13 13
Diluted shares adj. 13 13 13
EPS 7,62 9,27 12,23
Dividend per share 8,7 7,88 10,39
EPS adj. 7,81 9,27 12,23
BVPS 25,06 25,63 29,98
BVPS adj. 18,62 18,99 22,97
Net IB debt/share -6,07 -5,7 -6,14
Share price 334 334 334
Market cap. (m) 4185 4185 4185
P/E (x) 43,8 36 27,3
EV/sales (x) 13,3 10,41 7,46
EV/EBITDA (x) 32,2 26,8 20,2
EV/EBITA (x) 34,7 28,4 21,6
EV/EBIT (x) 34,7 28,4 21,6
Dividend yield (%) 2,6 2,4 3,1
FCF yield (%) 2,6 2,5 2,5
Le. adj. FCF yld. (%) 2,6 2,5 2,5
P/BVPS (x) 13,33 13,03 11,14
P/BVPS adj. (x) 17,94 17,59 14,54
P/E adj. (x) 42,8 36 27,3
EV/EBITDA adj. (x) 31,5 26,8 20,2
EV/EBITA adj. (x) 33,9 28,4 21,6
EV/EBIT adj. (x) 33,9 28,4 21,6
EV/CE (x) 11,5 11,8 10,6
Investment ratios N/A N/A N/A
Capex/sales (%) 2,4 2,7 3,2
Capex/depreciation 0,8 1,2 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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Media

CTT Systems - Company presentation with CEO Henrik Höjer & CFO Markus Berg
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 Apr 2024
SEB Fonder 9.6 % 9.6 % 30 Apr 2024
ODIN Fonder 6.8 % 6.8 % 30 Apr 2024
Första AP-fonden 4.8 % 4.8 % 26 Apr 2024
Nya Jorame Holding AB 4.4 % 4.4 % 26 Apr 2024
If Skadeförsäkring AB 4.1 % 4.1 % 26 Apr 2024
Andra AP-fonden 3.7 % 3.7 % 26 Apr 2024
Tredje AP-fonden 3.2 % 3.2 % 26 Apr 2024
Lannebo Fonder 2.7 % 2.7 % 26 Apr 2024
Danske Invest 2.5 % 2.5 % 31 Mar 2024
Source: Holdings by Modular Finance AB