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Proact

Proact

Specialist in critical data storage

Proact is a value-added reseller (VAR) of storage and the largest storage specialist in Europe. It tailor-makes storage solutions for big companies with complex and critical storage requirements. Its sales consist of hardware and software sales of third-party products, consulting, support and cloud services. Financial targets: 1) Growth >10% p.a., 2) EBITA margin >8%, 3) Net debt/EBITDA <2x, 4) roce of 20%, and 5) 25-35% payout ratio.>

For Proact’s traditional operations (system sales), the key risk comes from a potentially challenging outlook for the server/storage market given the shift towards cloud instead of local storage. For its cloud operations, there is the risk that some business will be lost to data centres and cheaper global cloud solutions.

SEKm 2023 2024e 2025e
Sales 4847 5095 5256
Sales growth (%) 1,9 5,1 3,2
EBITDA 458 511 545
EBITDA margin (%) 9,5 10 10,4
EBIT adj. 247 283 315
EBIT adj. margin (%) 5,1 5,5 6
Pretax profit 218 271 303
EPS 6,32 7,54 8,4
EPS growth (%) -9,5 19,3 11,4
EPS adj. 8,42 9,1 9,92
DPS 2 2,26 2,52
EV/EBITDA (x) 5,9 5 4,3
EV/EBIT adj. (x) 11 9 7,5
P/E (x) 16 13,4 12,1
P/E adj. (x) 12 11,1 10,2
EV/sales (x) 0,56 0,5 0,45
FCF yield (%) 17,3 10,2 13,5
Le. adj. FCF yld. (%) 13,1 5,8 9,2
Dividend yield (%) 2 2,2 2,5
Net IB debt/EBITDA (x) -0,1 -0,4 -0,8
Le. adj. ND/EBITDA (x) -0,9 -1,3 -1,6
SEKm 2023 2024e 2025e
Sales 4847 5095 5256
COGS -3758 -3945 -4026
Gross profit 1089 1149 1230
Other operating items -631 -639 -685
EBITDA 458 511 545
Depreciation and amortisation -173 -172 -175
of which leasing depreciation -104 -120 -120
EBITA 286 339 370
EO Items -17 0 0
Impairment and PPA amortisation -56 -56 -55
EBIT 230 283 315
Net financial items -12 -12 -12
Pretax profit 218 271 303
Tax -45 -65 -74
Net profit 173 206 229
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders 173 206 229
EPS 6,32 7,54 8,4
EPS adj. 8,42 9,1 9,92
Total extraordinary items after tax -13 0 0
Leasing payments -104 -120 -120
Tax rate (%) 20,6 24 24,5
Gross margin (%) 22,5 22,6 23,4
EBITDA margin (%) 9,5 10 10,4
EBITA margin (%) 5,9 6,6 7
EBIT margin (%) 4,7 5,5 6
Pre-tax margin (%) 4,5 5,3 5,8
Net margin (%) 3,6 4 4,4
Sales growth (%) 1,9 5,1 3,2
EBITDA growth (%) -3,2 11,5 6,8
EBITA growth (%) -8,8 18,6 9,4
EBIT growth (%) -11,8 23 11,6
Net profit growth (%) -9,6 18,7 11,4
EPS growth (%) -9,5 19,3 11,4
Profitability N/A N/A N/A
ROE (%) 18 19 18,4
ROE adj. (%) 25,1 24,1 22,8
ROCE (%) 14 17,4 17,7
ROCE adj. (%) 18,5 20,9 20,8
ROIC (%) 21,4 27,1 30,1
ROIC adj. (%) 22,6 27,1 30,1
Adj. earnings numbers N/A N/A N/A
EBITDA adj. 475 511 545
EBITDA adj. margin (%) 9,8 10 10,4
EBITDA lease adj. 371 391 425
EBITDA lease adj. margin (%) 7,6 7,7 8,1
EBITA adj. 302 339 370
EBITA adj. margin (%) 6,2 6,6 7
EBIT adj. 247 283 315
EBIT adj. margin (%) 5,1 5,5 6
Pretax profit Adj. 291 327 358
Net profit Adj. 242 262 284
Net profit to shareholders adj. 242 262 284
Net adj. margin (%) 5 5,1 5,4
SEKm 2023 2024e 2025e
EBITDA 458 511 545
Goodwill 984 984 984
Net financial items -12 -12 -12
Other intangible assets 177 153 130
Paid tax -55 -65 -74
Tangible fixed assets 37 45 50
Non-cash items 42 -60 0
Right-of-use asset 283 283 283
Cash flow before change in WC 434 374 459
Total other fixed assets 567 567 567
Change in working capital 98 -1 7
Fixed assets 2047 2031 2013
Operating cash flow 532 372 466
Inventories 15 41 42
Capex tangible fixed assets -43 -60 -60
Receivables 1434 1630 1682
Capex intangible fixed assets -1 -32 -32
Other current assets 0 0 0
Acquisitions and Disposals -8 0 0
Cash and liquid assets 548 713 906
Free cash flow 480 280 374
Total assets 4045 4416 4643
Dividend paid -51 -55 -62
Shareholders equity 1009 1159 1327
Share issues and buybacks -16 0 0
Minority 0 0 0
Leasing liability amortisation -118 -120 -120
Total equity 1009 1159 1327
Other non-cash items -5 60 0
Long-term debt 209 209 209
Pension debt 0 0 0
Convertible debt 0 0 0
Leasing liability 281 281 281
Total other long-term liabilities 815 815 815
Short-term debt 6 6 6
Accounts payable 825 1019 1051
Other current liabilities 900 926 954
Total liabilities and equity 4044 4416 4643
Net IB debt -52 -217 -409
Net IB debt excl. pension debt -52 -217 -409
Net IB debt excl. leasing -332 -498 -690
Capital employed 1505 1656 1823
Capital invested 957 942 917
Working capital -275 -274 -281
Market cap. diluted (m) 2774 2761 2761
Net IB debt adj. -52 -217 -409
Market value of minority 0 0 0
Reversal of shares and participations 0 0 0
Reversal of conv. debt assumed equity N/A N/A N/A
EV 2722 2544 2352
Total assets turnover (%) 117 120,4 116
Working capital/sales (%) -4,7 -5,4 -5,3
Financial risk and debt service N/A N/A N/A
Net debt/equity (%) -5,1 -18,7 -30,9
Net debt / market cap (%) -1,9 -7,9 -14,8
Equity ratio (%) 24,9 26,3 28,6
Net IB debt adj. / equity (%) -5,1 -18,7 -30,9
Current ratio 1,15 1,22 1,31
EBITDA/net interest 39,2 42,6 45,4
Net IB debt/EBITDA (x) -0,1 -0,4 -0,8
Net IB debt/EBITDA lease adj. (x) -0,9 -1,3 -1,6
Interest coverage 69,5 82,7 90,6
SEKm 2023 2024e 2025e
Shares outstanding adj. 27 27 27
Diluted shares adj. 27 27 27
EPS 6,32 7,54 8,4
Dividend per share 2 2,26 2,52
EPS adj. 8,42 9,1 9,92
BVPS 36,79 42,5 48,63
BVPS adj. -5,56 0,83 7,8
Net IB debt/share -1,89 -7,96 -15
Share price 101,2 101,2 101,2
Market cap. (m) 2774 2761 2761
P/E (x) 16 13,4 12,1
EV/sales (x) 0,56 0,5 0,45
EV/EBITDA (x) 5,9 5 4,3
EV/EBITA (x) 9,5 7,5 6,3
EV/EBIT (x) 11,8 9 7,5
Dividend yield (%) 2 2,2 2,5
FCF yield (%) 17,3 10,2 13,5
Le. adj. FCF yld. (%) 13,1 5,8 9,2
P/BVPS (x) 2,75 2,38 2,08
P/BVPS adj. (x) -18,21 122,48 12,97
P/E adj. (x) 12 11,1 10,2
EV/EBITDA adj. (x) 5,7 5 4,3
EV/EBITA adj. (x) 9 7,5 6,3
EV/EBIT adj. (x) 11 9 7,5
EV/CE (x) 1,8 1,5 1,3
Investment ratios N/A N/A N/A
Capex/sales (%) 0,9 1,8 1,8
Capex/depreciation 0,6 1,8 1,7
Capex tangibles / tangible fixed assets 117,1 134,5 120,9
Capex intangibles / definite intangibles 0,6 20,9 24,6
Depreciation on intang / def. intang 0 0 0
Depreciation on tangibles / tangibles 187,06 116,54 110,84

Equity Research

Media

Proact - Company presentation with CFO & VP Investor Relations Linda Höljö
Proact - Company presentation with President & CEO Jonas Hasselberg

Main shareholders - Proact

Main shareholders Share capital % Voting shares % Verified
Martin Gren (Grenspecialisten) 11.6 % 11.6 % 27 Dec 2023
Livförsäkringsbolaget Skandia 9.8 % 9.8 % 6 Feb 2024
Alcur Fonder 8.2 % 8.2 % 30 Nov 2023
Bolero Holdings Sarl 7.0 % 7.0 % 27 Dec 2023
Handelsbanken Fonder 6.0 % 6.0 % 31 Jan 2024
Länsförsäkringar Fonder 4.7 % 4.7 % 31 Jan 2024
Canaccord Genuity Wealth Management 3.4 % 3.4 % 31 Jan 2024
Unionen 3.1 % 3.1 % 27 Dec 2023
Avanza Pension 2.9 % 2.9 % 27 Dec 2023
Proact IT Group AB 2.8 % 2.8 % 14 Feb 2024
Source: Holdings by Modular Finance AB