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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 850 817 842
Sales growth (%) 3,2 -3,9 3,1
EBITDA 25 31 62
EBITDA margin (%) 2,9 3,7 7,4
EBIT adj. 2 20 27
EBIT adj. margin (%) 0,2 2,4 3,2
Pretax profit -18 -20 9
EPS -0,05 -0,13 0,05
EPS growth (%) -47,3 154,8 -136
EPS adj. -0,03 0,03 0,05
DPS 0 0 0
EV/EBITDA (x) 8,2 7,3 3,5
EV/EBIT adj. (x) 120,2 11,1 7,9
P/E (x) -11,5 -4,5 12,6
P/E adj. (x) -20,9 22,3 11,5
EV/sales (x) 0,24 0,27 0,26
FCF yield (%) 32,8 27,5 33,5
Le. adj. FCF yld. (%) 8,5 2,9 9
Dividend yield (%) 0 0 0
Net IB debt/EBITDA (x) 4,3 4 1,9
Le. adj. ND/EBITDA (x) 20 2,5 1,7
EURm 2023 2024e 2025e
Sales 850 817 842
COGS -775 -717 -739
Gross profit 76 100 104
Other operating items -51 -69 -42
EBITDA 25 31 62
Depreciation and amortisation -30 -33 -34
of which leasing depreciation -29 -27 -26
EBITA -5 -3 28
EO Items -7 -23 0
Impairment and PPA amortisation 0 -1 -1
EBIT -5 -3 27
Net financial items -13 -17 -18
Pretax profit -18 -20 9
Tax 10 0 -2
Net profit -8 -20 7
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders -7 -20 7
EPS -0,05 -0,13 0,05
EPS adj. -0,03 0,03 0,05
Total extraordinary items after tax -3 -24 0
Leasing payments -29 -27 -26
Tax rate (%) 57,4 -1,5 20
Gross margin (%) 8,9 12,2 12,3
EBITDA margin (%) 2,9 3,7 7,4
EBITA margin (%) -0,6 -0,3 3,3
EBIT margin (%) -0,6 -0,4 3,2
Pre-tax margin (%) -2,1 -2,4 1,1
Net margin (%) -0,9 -2,5 0,9
Sales growth (%) 3,2 -3,9 3,1
EBITDA growth (%) -10,5 23,1 102,7
EBITA growth (%) 194,4 -49,3 -1137,5
EBIT growth (%) N/A -37,2 -912,3
Net profit growth (%) -48,6 163,5 -136
EPS growth (%) -47,3 154,8 -136
Profitability N/A N/A N/A
ROE (%) -3,5 -9,8 3,6
ROE adj. (%) -2,1 2 4,1
ROCE (%) -1,1 -0,9 7,5
ROCE adj. (%) 0,8 5,8 7,7
ROIC (%) -0,7 -0,8 6,8
ROIC adj. (%) 0,2 6,3 6,8
Adj. earnings numbers N/A N/A N/A
EBITDA adj. 32 54 62
EBITDA adj. margin (%) 3,7 6,6 7,4
EBITDA lease adj. 3 27 36
EBITDA lease adj. margin (%) 0,3 3,3 4,3
EBITA adj. 2 21 28
EBITA adj. margin (%) 0,2 2,5 3,3
EBIT adj. 2 20 27
EBIT adj. margin (%) 0,2 2,4 3,2
Pretax profit Adj. -11 4 10
Net profit Adj. -5 4 8
Net profit to shareholders adj. -4 4 8
Net adj. margin (%) -0,5 0,5 1
EURm 2023 2024e 2025e
EBITDA 25 31 62
Goodwill 254 249 249
Net financial items -13 -17 -18
Other intangible assets 33 32 31
Paid tax -3 0 -2
Tangible fixed assets 11 8 5
Non-cash items -5 22 0
Right-of-use asset 52 48 44
Cash flow before change in WC 4 36 42
Total other fixed assets 38 39 39
Change in working capital 30 -7 -7
Fixed assets 387 376 369
Operating cash flow 34 29 35
Inventories 17 16 17
Capex tangible fixed assets -4 -4 -4
Receivables 196 188 202
Capex intangible fixed assets 0 0 0
Other current assets 0 0 0
Acquisitions and Disposals 0 0 0
Cash and liquid assets 25 31 39
Free cash flow 30 25 30
Total assets 624 611 628
Dividend paid 0 0 0
Shareholders equity 216 196 203
Share issues and buybacks 23 0 0
Minority 8 8 8
Leasing liability amortisation -22 -22 -22
Total equity 224 203 211
Other non-cash items -8 -19 -2
Long-term debt 21 38 40
Pension debt 6 5 5
Convertible debt 0 0 0
Leasing liability 54 56 56
Total other long-term liabilities 15 14 14
Short-term debt 50 56 56
Accounts payable 192 180 185
Other current liabilities 63 60 62
Total liabilities and equity 624 611 628
Net IB debt 106 123 116
Net IB debt excl. pension debt 100 118 112
Net IB debt excl. leasing 52 67 61
Capital employed 354 358 366
Capital invested 329 326 327
Working capital -42 -35 -28
Market cap. diluted (m) 91 91 91
Net IB debt adj. 106 123 116
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 204 221 215
Total assets turnover (%) 136,5 132,2 135,9
Working capital/sales (%) -3,4 -4,7 -3,8
Financial risk and debt service N/A N/A N/A
Net debt/equity (%) 47,3 60,4 55,2
Net debt / market cap (%) 116,4 135,2 127,9
Equity ratio (%) 35,8 33,3 33,6
Net IB debt adj. / equity (%) 47,3 60,4 55,2
Current ratio 0,78 0,8 0,85
EBITDA/net interest 2 1,9 3,4
Net IB debt/EBITDA (x) 4,3 4 1,9
Net IB debt/EBITDA lease adj. (x) 20 2,5 1,7
Interest coverage 0,3 0,2 1,5
EURm 2023 2024e 2025e
Shares outstanding adj. 157 157 157
Diluted shares adj. 157 157 157
EPS -0,05 -0,13 0,05
Dividend per share 0 0 0
EPS adj. -0,03 0,03 0,05
BVPS 1,38 1,25 1,3
BVPS adj. -0,45 -0,55 -0,49
Net IB debt/share 0,68 0,78 0,74
Share price 6,78 6,78 6,78
Market cap. (m) 91 91 91
P/E (x) -11,5 -4,5 12,6
EV/sales (x) 0,24 0,27 0,26
EV/EBITDA (x) 8,2 7,3 3,5
EV/EBITA (x) -38,6 -82,3 7,7
EV/EBIT (x) -38,6 -66,5 7,9
Dividend yield (%) 0 0 0
FCF yield (%) 32,8 27,5 33,5
Le. adj. FCF yld. (%) 8,5 2,9 9
P/BVPS (x) 0,42 0,46 0,45
P/BVPS adj. (x) -2,42 -1,71 -1,98
P/E adj. (x) -20,9 22,3 11,5
EV/EBITDA adj. (x) 6,4 4,1 3,5
EV/EBITA adj. (x) 120,2 10,8 7,7
EV/EBIT adj. (x) 120,2 11,1 7,9
EV/CE (x) 0,6 0,6 0,6
Investment ratios N/A N/A N/A
Capex/sales (%) 0,5 0,5 0,5
Capex/depreciation 4,8 0,6 0,5
Capex tangibles / tangible fixed assets 41 52 82,5
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 84,93 166,48

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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 Apr 2024
Wipunen varainhallinta Oy 14.0 % 14.3 % 3 May 2024
Fjärde AP-fonden 9.4 % 9.6 % 26 Apr 2024
Heikintorppa Oy 7.8 % 8.0 % 3 May 2024
Mariatorp Oy 6.2 % 6.4 % 3 May 2024
Mandatum Life Insurance Company 5.1 % 5.3 % 26 Apr 2024
Fidelity International (FIL) 4.4 % 4.5 % 31 Mar 2024
Erkki Etola 3.7 % 3.8 % 26 Apr 2024
Mandatum Fund Management 1.8 % 1.8 % 1 Oct 2023
Eltel AB 2.4 % 0.2 % 26 Apr 2024
Source: Holdings by Modular Finance AB