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Doro

Doro

Mobile phones for the elderly

Doro is a market-leading supplier of phones for seniors. The company was founded in 1974 and has since its inception made several transitions with its operations. It started by offering answering machines to business clients, but this changed into mainly offering mobile phones for the senior segment in 2007, and since 2014 it has largely been focusing on telecare services. Doro spun off the telecare services in December 2021, when the company turned the focus towards senior phones again. To prepare for the spin-off, Doro decided in 2020 to leave its lower-profitability markets and improve its presence in countries where margins are higher.

If Doro’s new goals, announced in late 2017, were to be met, the company would have significantly higher margins going forward. In addition, the “silver economy” (aging population) is still an opportunity for players such as Doro to seize. There is an increasing demand for products suited for seniors, which needs to be supplied.

Doro has a strong position within its niche, but there is a risk that bigger players could exploit this market, which eventually could hurt Doro’s market share. Another risk is associated with the increasing technological knowledge of seniors, which results in decreasing demand for specially made phones for seniors.

SEKm 2021 2022e 2023e
Sales 1040 1008 967
Sales growth (%) -38,5 -3,1 -4
EBITDA 184 106 141
EBITDA margin (%) 17,7 10,5 14,6
EBIT adj 119 59 94
EBIT adj margin (%) 11,4 5,8 9,7
Pretax profit 114 55 89
EPS rep 3,47 1,72 2,9
EPS growth (%) 69,8 -50,4 68,4
EPS adj 3,47 1,77 2,9
DPS 0 0 0
EV/EBITDA (x) 3 4,6 3
EV/EBIT adj (x) 4,7 8,4 4,4
P/E (x) 8,9 11,4 6,7
P/E adj (x) 8,9 11 6,7
EV/sales (x) 0,5 0,5 0,4
FCF yield (%) 1,4 10,1 17,4
Dividend yield (%) 0 0 0
Net IB debt/EBITDA -1,2 -0,4 -0,8
Lease adj. FCF yield (%) 1,4 7,8 15,1
Lease adj. ND/EBITDA -1 0 -0,6
SEKm 2021 2022e 2023e
Sales 1040 1008 967
COGS -660 -681 -643
Gross profit 379 327 324
Other operating items -195 -221 -183
EBITDA 184 106 141
Depreciation on tangibles -12 -21 -20
Depreciation on intangibles -79 -81 -80
EBITA 119 57 94
Goodwill impairment charges 0 0 0
Other impairment and amortisation -9 -9 -9
EBIT 119 57 94
Other financial items 0 0 0
Net financial items -4 -3 -5
Associated income 0 0 0
Other EO items 0 0 0
Pretax profit 114 55 89
Tax -31 -13 -18
Net profit 83 42 71
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders 83 42 71
EPS 3,47 1,72 2,9
EPS Adj 3,47 1,77 2,9
Total extraordinary items after tax 0 -1,2 0
Tax rate (%) -27,4 -23,4 -20,6
Gross margin (%) 36,5 32,4 33,5
EBITDA margin (%) 17,7 10,5 14,6
EBITA margin (%) 11,4 5,7 9,7
EBIT margin (%) 11,4 5,7 9,7
Pretax margin (%) 11 5,4 9,2
Net margin (%) 8 4,2 7,3
Growth rates Y/Y 2021 2022 2023
Sales growth (%) -38,5 -3,1 -4
EBITDA growth (%) -9,7 -42,3 32,5
EBIT growth (%) 38,5 -51,7 63,6
Net profit growth (%) 69 -49,5 68,4
EPS growth (%) 69,8 -50,4 68,4
Profitability 2021 2022 2023
ROE (%) 13,5 9,4 14,1
ROE Adj (%) 13,5 9,7 14,1
ROCE (%) 15,7 10,3 12,9
ROCE Adj(%) 15,7 10,5 12,9
ROIC (%) 12,3 9,7 17,5
ROIC Adj (%) 12,3 9,9 17,5
Adj earnings numbers 2021 2022 2023
EBITDA Adj 184 107 141
EBITDA Adj margin (%) 17,7 10,7 14,6
EBITA Adj 119 59 94
EBITA Adj margin (%) 11,4 5,8 9,7
EBIT Adj 119 59 94
EBIT Adj margin (%) 11,4 5,8 9,7
Pretax profit Adj 114 56 89
Net profit Adj 83 43 71
Net profit to shareholders Adj 83 43 71
Net Adj margin (%) 8 4,3 7,3
Leasing payments 0 -11 -11
Depreciation and amortisation -66 -50 -50
Of which leasing depreciation 0 -6 -8
EO items 0 -1 0
Impairment and PPA amortisation 0 0 0
EBITDA lease Adj 184 96 130
EBITDA lease Adj margin (%) 17,7 9,6 13,4
SEKm 2021 2022e 2023e
EBITDA 184 106 141
Net financial items -4 -3 -5
Paid tax -28 -13 -18
Non-cash items -97 4 1
Cash flow before change in WC 55 95 118
Change in WC -25 -7 3
Operating cash flow 31 88 121
CAPEX tangible fixed assets 0 -15 -19
CAPEX intangible fixed assets 0 -25 -19
Acquisitions and disposals -20 0 0
Free cash flow 10 48 83
Dividend paid 0 0 0
Share issues and buybacks 21 0 0
Other non cash items 309 -431 8
Decrease in net IB debt 57 52 64
Balance Sheet (SEKm) 2021 2022 2023
Goodwill 0 0 0
Indefinite intangible assets 0 0 0
Definite intangible assets 239 221 222
Tangible fixed assets 21 26 20
Other fixed assets 18 18 18
Fixed assets 85 377 380
Inventories 225 202 193
Receivables 224 202 193
Other current assets 0 0 0
Cash and liquid assets 179 216 288
Total assets 713 996 1055
Shareholders equity 423 465 535
Minority 0 0 0
Total equity 423 465 535
Long-term debt 0 215 215
Pension debt 0 0 0
Convertible debt 0 0 0
Deferred tax 0 0 0
Other long-term liabilities 0 0 0
Short-term debt 0 0 0
Accounts payable 0 101 97
Other current liabilities 0 202 193
Total liabilities and equity 423 996 1055
Net IB debt -230 -37 -109
Net IB debt excl. pension debt -230 -37 -109
Capital invested 483 427 426
Working capital 449 101 97
EV breakdown 2021 2022 2023
Market cap. diluted (m) 738 476 476
Net IB debt Adj -179 13 -59
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 559 489 417
Capital efficiency (%) 2021 2022 2023
Total assets turnover (%) 90,6 117,9 94,3
Capital invested turnover (%) 181,2 178,7 174,2
Capital employed turnover (%) 151,3 147,7 138
Inventories / sales (%) 13,9 11,4 10,2
Customer advances / sales (%) 0 0 0
Payables / sales (%) 30,4 26,8 24,8
Working capital / sales (%) 22,6 27,3 10,2
Financial risk and debt service 2021 2022 2023
Net debt / equity (%) -54,3 -8,1 -20,4
Net debt / market cap (%) -29,9 -7,9 -23
Equity ratio (%) 59,3 46,6 50,7
Net IB debt adj. / equity (%) -42,4 2,8 -11
Current ratio (%) 0 202,2 229,4
EBITDA / net interest (%) 4283,7 3934,4 2815,1
Net IB debt / EBITDA (%) -124,7 -35,3 -77,6
Interest cover (%) 2760,5 2124,1 1876,7
Lease liability amortisation 0 -11 -11
Other intangible assets 0 0 0
Right-of-use asset 0 287 295
Total other fixed assets 65 65 65
Leasing liability 0 14 14
Total other long-term liabilities 0 0 0
Net IB debt excl. leasing -179 -1 -73
Net IB debt / EBITDA lease Adj (%) -97,2 -0,9 -56
SEKm 2021 2022e 2023e
Shares outstanding adj. 24 24 24
Fully diluted shares Adj 24 24 24
EPS 3,47 1,72 2,9
Dividend per share Adj 0 0 0
EPS Adj 3,47 1,77 2,9
BVPS 17,7 19,11 22,01
BVPS Adj 17,7 19,11 22,01
Net IB debt / share -9,6 -1,5 -4,5
Share price 32,15 19,56 19,56
Market cap. (m) 768 476 476
Valuation 2021 2022 2023
P/E 8,9 11,4 6,7
EV/sales 0,54 0,49 0,43
EV/EBITDA 3 4,6 3
EV/EBITA 4,7 8,5 4,4
EV/EBIT 4,7 8,5 4,4
Dividend yield (%) 0 0 0
FCF yield (%) 1,4 10,1 17,4
P/BVPS 1,75 1,02 0,89
P/BVPS Adj 1,75 1,02 0,89
P/E Adj 8,9 11 6,7
EV/EBITDA Adj 3 4,6 3
EV/EBITA Adj 4,7 8,4 4,4
EV/EBIT Adj 4,7 8,4 4,4
EV/cap. employed 1,3 0,7 0,5
Investment ratios 2021 2022 2023
Capex / sales 0 4 4
Capex / depreciation 0 90,7 91,2
Capex tangibles / tangible fixed assets 0 58,7 95,6
Capex intangibles / definite intangibles 0 0 0
Depreciation on intangibles / definite intangibles 0 0 0
Depreciation on tangibles / tangibles 7,6 6,1 17,4
Lease adj. FCF yield (%) 1,4 7,8 15,1

Equity research

Read earlier research

Media

Interview with Doro's incoming CEO Jörgen Nilsson
Interview with Carl-Johan Zetterberg Boudrie - Prior to the spin-off

Main shareholders - Doro

Main shareholders Share capital % Voting shares % Verified
Accendo Capital 15.5 % 15.5 % 30 Sep 2021
Nordea Fonder 11.6 % 11.6 % 31 Mar 2022
Peter Lindell 11.2 % 11.2 % 31 Mar 2022
Lazard Frères Gestion 6.9 % 6.9 % 31 Mar 2022
Avanza Pension 5.3 % 5.3 % 31 Mar 2022
Rite Ventures 4.7 % 4.7 % 31 Mar 2022
Nordea Liv & Pension 3.7 % 3.7 % 31 Mar 2022
Dimensional Fund Advisors 3.3 % 3.3 % 31 Mar 2022
Originat AB 2.2 % 2.2 % 31 Mar 2022
Thomas Eklund 1.8 % 1.8 % 31 Mar 2022
Source: Holdings by Modular Finance AB

Insider list - Doro

Name Quantity Code Date
Josephine Salenstedt +2 486 572 * 26 Feb 2021
Jörgen Nilsson - 6 000 SELL 30 Dec 2020
Lennart Jacobsen + 10 000 BUY 3 Sep 2019
Erik Thomas Bergdahl - 70 000 SELL 20 Dec 2018
Erik Thomas Bergdahl - 9 425 SELL 20 Dec 2018
Erik Thomas Bergdahl - 3 075 SELL 30 Nov 2018
Johan Frogner + 40 000 BUY 15 Nov 2018
Erik Thomas Bergdahl - 11 210 SELL 19 Oct 2018
Erik Thomas Bergdahl + 70 000 BUY 10 Aug 2018
ANNIKA BJÖRK + 42 000 BUY 10 Aug 2018

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