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Eltel

Eltel

Eltel is a leading Nordic field service provider for critical power and communication networks – infranets. The company builds, maintains and upgrades these essential lifelines for national network operators and owners. For example, Eltel provides infrastructure that allows renewable energy generation, electric vehicle charging and high-capacity communication networks. Eltel has divided its business operations into two business areas: Power and Communication. Meanwhile, the company has divided its business segments into four different geographical areas: Finland, Sweden, Norway and Denmark.

Sustainability information

There are many competitors but few customers in Eltel’s markets. Thus the company is exposed to fierce price competition and substantial customer dependency. In 2020, the two largest customers accounted for 37% of sales. If one or several customers were to reduce their investment levels, the impact on Eltel would be notable. Furthermore, the business model is highly seasonal and weather-sensitive, meaning that abnormal weather conditions may affect the company’s results.

EURm 2023 2024e 2025e
Sales 850 848 871
Sales growth (%) 3,2 -0,3 2,8
EBITDA 25 34 64
EBITDA margin (%) 2,9 4,1 7,3
EBIT adj. 2 23 29
EBIT adj. margin (%) 0,2 2,7 3,3
Pretax profit -18 -18 11
EPS -0,05 -0,11 0,06
EPS growth (%) -47,3 117,3 -152,1
EPS adj. -0,03 0,04 0,06
DPS 0 0 0
EV/EBITDA (x) 8,4 6,8 3,5
EV/EBIT adj. (x) 122,3 10,1 7,7
P/E (x) -12 -5,5 10,6
P/E adj. (x) -21,7 16,8 9,8
EV/sales (x) 0,24 0,28 0,26
FCF yield (%) 31,5 43,3 55,3
Le. adj. FCF yld. (%) 8,1 20 32,1
Dividend yield (%) 0 0 0
Net IB debt/EBITDA (x) 4,3 3,8 1,9
Le. adj. ND/EBITDA (x) 20 2,4 1,8
EURm 2023 2024e 2025e
Sales 850 848 871
COGS -775 -772 -766
Gross profit 76 76 106
Other operating items -51 -42 -42
EBITDA 25 34 64
Depreciation and amortisation -30 -34 -34
of which leasing depreciation -29 -25 -26
EBITA -5 1 30
EO Items -7 -24 0
Impairment and PPA amortisation 0 -1 -1
EBIT -5 0 29
Net financial items -13 -18 -18
Pretax profit -18 -18 11
Tax 10 1 -2
Net profit -8 -17 9
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders -7 -17 9
EPS -0,05 -0,11 0,06
EPS adj. -0,03 0,04 0,06
Total extraordinary items after tax -3 -22 0
Leasing payments -29 -25 -26
Tax rate (%) 57,4 6,4 20
Gross margin (%) 8,9 9 12,1
EBITDA margin (%) 2,9 4,1 7,3
EBITA margin (%) -0,6 0,1 3,4
EBIT margin (%) -0,6 0 3,3
Pre-tax margin (%) -2,1 -2,2 1,3
Net margin (%) -0,9 -2 1
Sales growth (%) 3,2 -0,3 2,8
EBITDA growth (%) -10,5 38,7 86,1
EBITA growth (%) 194,4 -109,6 5826,1
EBIT growth (%) N/A -93,6 -8658,2
Net profit growth (%) -48,6 124,7 -152,1
EPS growth (%) -47,3 117,3 -152,1
Profitability N/A N/A N/A
ROE (%) -3,5 -8,8 5
ROE adj. (%) -2,1 2,9 5,5
ROCE (%) -1,1 -0,1 7,8
ROCE adj. (%) 0,8 6,8 8,1
ROIC (%) -0,7 0,1 7,7
ROIC adj. (%) 0,2 7 7,7
Adj. earnings numbers N/A N/A N/A
EBITDA adj. 32 58 64
EBITDA adj. margin (%) 3,7 6,8 7,3
EBITDA lease adj. 3 32 39
EBITDA lease adj. margin (%) 0,3 3,8 4,4
EBITA adj. 2 24 30
EBITA adj. margin (%) 0,2 2,8 3,4
EBIT adj. 2 23 29
EBIT adj. margin (%) 0,2 2,7 3,3
Pretax profit Adj. -11 6 12
Net profit Adj. -5 6 10
Net profit to shareholders adj. -4 6 10
Net adj. margin (%) -0,5 0,7 1,1
EURm 2023 2024e 2025e
EBITDA 25 34 64
Goodwill 254 254 254
Net financial items -13 -18 -18
Other intangible assets 33 32 31
Paid tax -3 1 -2
Tangible fixed assets 11 6 4
Non-cash items -5 20 20
Right-of-use asset 52 48 45
Cash flow before change in WC 4 37 64
Total other fixed assets 38 38 38
Change in working capital 30 8 -7
Fixed assets 387 378 371
Operating cash flow 34 45 57
Inventories 17 17 17
Capex tangible fixed assets -4 -4 -4
Receivables 196 191 200
Capex intangible fixed assets 0 0 0
Other current assets 0 0 0
Acquisitions and Disposals 0 0 0
Cash and liquid assets 25 44 74
Free cash flow 30 41 52
Total assets 624 629 663
Dividend paid 0 0 0
Shareholders equity 216 174 183
Share issues and buybacks 23 0 0
Minority 8 8 8
Leasing liability amortisation -22 -22 -22
Total equity 224 181 190
Other non-cash items -8 -45 -21
Long-term debt 21 65 87
Pension debt 6 6 6
Convertible debt 0 0 0
Leasing liability 54 54 54
Total other long-term liabilities 15 15 15
Short-term debt 50 50 50
Accounts payable 192 194 196
Other current liabilities 63 64 65
Total liabilities and equity 624 629 663
Net IB debt 106 132 123
Net IB debt excl. pension debt 100 126 117
Net IB debt excl. leasing 52 78 69
Capital employed 354 357 387
Capital invested 329 313 313
Working capital -42 -50 -43
Market cap. diluted (m) 95 95 95
Net IB debt adj. 106 132 123
Market value of minority 8 8 8
Reversal of shares and participations 0 0 0
Reversal of conv. debt assumed equity N/A N/A N/A
EV 208 234 225
Total assets turnover (%) 136,5 135,2 134,8
Working capital/sales (%) -3,4 -5,4 -5,3
Financial risk and debt service N/A N/A N/A
Net debt/equity (%) 47,3 72,6 64,4
Net debt / market cap (%) 111,9 139,2 129,6
Equity ratio (%) 35,8 28,8 28,7
Net IB debt adj. / equity (%) 47,3 72,6 64,4
Current ratio 0,78 0,82 0,94
EBITDA/net interest 2 1,9 3,6
Net IB debt/EBITDA (x) 4,3 3,8 1,9
Net IB debt/EBITDA lease adj. (x) 20 2,4 1,8
Interest coverage 0,3 0 1,7
EURm 2023 2024e 2025e
Shares outstanding adj. 157 157 157
Diluted shares adj. 157 157 157
EPS -0,05 -0,11 0,06
Dividend per share 0 0 0
EPS adj. -0,03 0,04 0,06
BVPS 1,38 1,11 1,17
BVPS adj. -0,45 -0,71 -0,65
Net IB debt/share 0,68 0,84 0,78
Share price 7,02 7,02 7,02
Market cap. (m) 95 95 95
P/E (x) -12 -5,5 10,6
EV/sales (x) 0,24 0,28 0,26
EV/EBITDA (x) 8,4 6,8 3,5
EV/EBITA (x) -39,2 461,4 7,5
EV/EBIT (x) -39,2 -685,8 7,7
Dividend yield (%) 0 0 0
FCF yield (%) 31,5 43,3 55,3
Le. adj. FCF yld. (%) 8,1 20 32,1
P/BVPS (x) 0,44 0,54 0,52
P/BVPS adj. (x) -2,51 -1,19 -1,33
P/E adj. (x) -21,7 16,8 9,8
EV/EBITDA adj. (x) 6,5 4 3,5
EV/EBITA adj. (x) 122,3 9,7 7,5
EV/EBIT adj. (x) 122,3 10,1 7,7
EV/CE (x) 0,6 0,7 0,6
Investment ratios N/A N/A N/A
Capex/sales (%) 0,5 0,5 0,5
Capex/depreciation 4,8 0,5 0,5
Capex tangibles / tangible fixed assets 41 67,7 120,4
Capex intangibles / definite intangibles N/A N/A N/A
Depreciation on intang / def. intang N/A N/A N/A
Depreciation on tangibles / tangibles 8,57 135,35 234,99

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Media

Eltel - Company presentation with President & CEO Håkan Dahlström
Eltel - Company presentation with President & CEO Håkan Dahlström

Main shareholders -

Main shareholders Share capital % Voting shares % Verified
Triton 16.0 % 16.3 % 26 Mar 2024
Wipunen varainhallinta Oy 14.2 % 14.3 % 28 Apr 2023
Fjärde AP-fonden 9.4 % 9.6 % 26 Mar 2024
Heikintorppa Oy 7.8 % 7.9 % 28 Apr 2023
Mariatorp Oy 6.3 % 6.4 % 28 Apr 2023
Mandatum Life Insurance Company 5.1 % 5.3 % 26 Mar 2024
Fidelity International (FIL) 4.4 % 4.5 % 29 Feb 2024
Erkki Etola 3.7 % 3.8 % 26 Mar 2024
Mandatum Fund Management 1.8 % 1.8 % 1 Oct 2023
Eltel AB 2.4 % 0.2 % 26 Mar 2024
Source: Holdings by Modular Finance AB