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Svedbergs

Svedbergs

Premium bathroom manufacturer

Svedberg is a premium bathroom manufacturer with a Nordic market share of 7%. The company supplies complete bathrooms through its four brands: Svedbergs, Macro Design, Cassoe and Roper Rhodes. The group’s strategy is to gain market share through both organic and acquisition-driven growth. Svedbergs aims to achieve annual revenue growth of 10% (including M&A) and an EBITA margin of at least 15%.

Svedbergs has an active M&A agenda, which the company aims to drive an average annual growth of the financial targets of 10%. Exercised correctly with conservative multiples, M&A can aid the company through 1) growth 2) purchasing synergies and 3) margin and EPS accretion.

Given the ambitious financial targets, M&A activities can be a risk to the company. With the ambitious EBITA margin target of 15%, we expect the criterion for acquisitions to be rather strict. With the M&A focus in place, this can lead to 1) high acquisition multiples 2) a price focus leading to a lower quality acquisition or 3) resources spent on M&A processes that ends up leading nowhere. Further, the company is exposed to FX and raw material prices, which have short-term effects on margins.

SEKm 2021 2022e 2023e
Lease adj. FCF yield (%) 6,6 -3,5 10,3
Lease adj. ND/EBITDA 5,7 1,9 1,5
Sales 869 1646 1708
Sales growth (%) 33,8 89,5 3,8
EBITDA 143 276 294
EBITDA margin (%) 16,4 16,8 17,2
EBIT adj 114 221 243
EBIT adj margin (%) 13,1 13,4 14,2
Pretax profit 80 212 234
EPS rep 2,78 4,77 5,27
EPS growth (%) 22 71,3 10,5
EPS adj 3,93 5,12 5,52
DPS 0 2,38 2,64
EV/EBITDA (x) 16,9 7 6,4
EV/EBIT adj (x) 21,2 8,8 7,8
P/E (x) 25,2 8,4 7,6
P/E adj (x) 17,9 7,8 7,2
EV/sales (x) 2,8 1,2 1,1
FCF yield (%) 6,7 -3,3 10,5
Dividend yield (%) 0 6 6,6
Net IB debt/EBITDA 6,5 1,9 1,6
SEKm 2021 2022e 2023e
Depreciation and amortisation -24 -42 -42
Of which leasing depreciation -2 -2 -2
EO items -19 1 0
Impairment and PPA amortisation -6 -13 -9
EBITDA lease Adj 162 276 294
EBITDA lease Adj margin (%) 18,6 16,8 17,2
Sales 869 1646 1708
COGS -496 -958 -989
Gross profit 373 688 719
Other operating items -230 -412 -425
EBITDA 143 276 294
Depreciation on tangibles -22 -22 -22
Depreciation on intangibles -2 -3 -3
EBITA 119 234 252
Goodwill impairment charges 0 0 0
Other impairment and amortisation -2 -3 -3
EBIT 95 222 243
Other financial items 0 0 0
Net financial items -15 -10 -9
Associated income 0 0 0
Other EO items 0 0 0
Pretax profit 80 212 234
Tax -21 -43 -48
Net profit 59 168 186
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders 59 168 186
EPS 2,78 4,77 5,27
EPS Adj 3,93 5,12 5,52
Total extraordinary items after tax -18,7 0,6 0
Tax rate (%) -26 -20,3 -20,6
Gross margin (%) 42,9 41,8 42,1
EBITDA margin (%) 16,4 16,8 17,2
EBITA margin (%) 13,7 14,2 14,7
EBIT margin (%) 10,9 13,5 14,2
Pretax margin (%) 9,2 12,9 13,7
Net margin (%) 6,8 10,2 10,9
Growth rates Y/Y 2021 2022 2023
Sales growth (%) 33,8 89,5 3,8
EBITDA growth (%) 54,7 93,6 6,3
EBIT growth (%) 43,7 132,9 9,7
Net profit growth (%) 22,4 185,6 10,5
EPS growth (%) 22 71,3 10,5
Profitability 2021 2022 2023
ROE (%) 23,9 28,4 19,2
ROE Adj (%) 33,7 30,5 20,1
ROCE (%) 9,6 13,4 13,2
ROCE Adj(%) 12 14,2 13,7
ROIC (%) 7,4 11,1 10,8
ROIC Adj (%) 8,9 11,1 10,8
Adj earnings numbers 2021 2022 2023
EBITDA Adj 162 276 294
EBITDA Adj margin (%) 18,6 16,8 17,2
EBITA Adj 138 234 252
EBITA Adj margin (%) 15,9 14,2 14,7
EBIT Adj 114 221 243
EBIT Adj margin (%) 13,1 13,4 14,2
Pretax profit Adj 104 224 243
Net profit Adj 83 181 195
Net profit to shareholders Adj 83 181 195
Net Adj margin (%) 9,6 11 11,4
Leasing payments 0 0 0
SEKm 2021 2022e 2023e
Lease liability amortisation -2 -2 -2
Other intangible assets 503 505 512
Right-of-use asset 9 0 0
Total other fixed assets 0 0 0
Leasing liability 10 12 21
Total other long-term liabilities 227 318 318
Net IB debt excl. leasing 914 514 453
Net IB debt / EBITDA lease Adj (%) 565,8 186,3 154
EBITDA 143 276 294
Net financial items -15 -10 -9
Paid tax 0 -37 -48
Non-cash items -32 -9 0
Cash flow before change in WC 95 221 237
Change in WC 5 -57 -13
Operating cash flow 100 164 224
CAPEX tangible fixed assets 0 -36 -54
CAPEX intangible fixed assets 0 -166 -13
Acquisitions and disposals 0 -8 -8
Free cash flow 100 -47 148
Dividend paid -26 0 -84
Share issues and buybacks 0 480 0
Other non cash items -1228 -255 -31
Decrease in net IB debt -14 18 22
Balance Sheet (SEKm) 2021 2022 2023
Goodwill 485 492 498
Indefinite intangible assets 0 0 0
Definite intangible assets 99 109 121
Tangible fixed assets 313 323 337
Other fixed assets 0 0 0
Fixed assets 1311 1319 1347
Inventories 342 648 672
Receivables 388 734 762
Other current assets 2 2 2
Cash and liquid assets 320 338 399
Total assets 2362 3041 3181
Shareholders equity 267 920 1022
Minority 0 0 0
Total equity 267 920 1022
Long-term debt 493 538 538
Pension debt 0 0 0
Convertible debt 0 0 0
Deferred tax 36 36 36
Other long-term liabilities 0 0 0
Short-term debt 740 314 314
Accounts payable 102 194 201
Other current liabilities 522 745 767
Total liabilities and equity 2362 3041 3181
Net IB debt 923 526 473
Net IB debt excl. pension debt 923 526 473
Capital invested 1417 1765 1814
Working capital 107 445 467
EV breakdown 2021 2022 2023
Market cap. diluted (m) 1486 1413 1413
Net IB debt Adj 923 526 473
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 2409 1939 1886
Capital efficiency (%) 2021 2022 2023
Total assets turnover (%) 57,2 60,9 54,9
Capital invested turnover (%) 148,7 152,1 148,4
Capital employed turnover (%) 142,5 142,9 134,9
Inventories / sales (%) 20,3 18,7 19,7
Customer advances / sales (%) 0 0 0
Payables / sales (%) 5,8 5,5 5,7
Working capital / sales (%) 13,9 16,8 26,7
Financial risk and debt service 2021 2022 2023
Net debt / equity (%) 346,1 57,1 46,3
Net debt / market cap (%) 104,8 37,2 33,5
Equity ratio (%) 11,3 30,3 32,1
Net IB debt adj. / equity (%) 346,1 57,1 46,3
Current ratio (%) 76,6 136,5 141,1
EBITDA / net interest (%) 927,3 2768,2 3451,2
Net IB debt / EBITDA (%) 646,6 190,2 161,1
Interest cover (%) 774,7 2347,4 2956,9
SEKm 2021 2022e 2023e
Lease adj. FCF yield (%) 6,6 -3,5 10,3
Shares outstanding adj. 21 35 35
Fully diluted shares Adj 21 35 35
EPS 2,78 4,77 5,27
Dividend per share Adj 0 2,4 2,6
EPS Adj 3,93 5,12 5,52
BVPS 12,59 26,06 28,94
BVPS Adj -34,06 -2,16 0,36
Net IB debt / share 43,6 14,9 13,4
Share price 41,6 40 40
Market cap. (m) 881 1413 1413
Valuation 2021 2022 2023
P/E 25,2 8,4 7,6
EV/sales 2,77 1,18 1,1
EV/EBITDA 16,9 7 6,4
EV/EBITA 20,2 8,3 7,5
EV/EBIT 25,3 8,8 7,8
Dividend yield (%) 0 6 6,6
FCF yield (%) 6,7 -3,3 10,5
P/BVPS 5,57 1,54 1,38
P/BVPS Adj -2,06 -18,55 112,32
P/E Adj 17,9 7,8 7,2
EV/EBITDA Adj 14,9 7 6,4
EV/EBITA Adj 17,5 8,3 7,5
EV/EBIT Adj 21,2 8,8 7,8
EV/cap. employed 1,6 1,1 1
Investment ratios 2021 2022 2023
Capex / sales 0 12,3 4
Capex / depreciation 0 510,8 169,7
Capex tangibles / tangible fixed assets 0 11,3 16
Capex intangibles / definite intangibles 0 32,9 2,6
Depreciation on intangibles / definite intangibles 0 0 0
Depreciation on tangibles / tangibles 6,8 12,3 11,8

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Main shareholders - Svedbergs

Main shareholders Share capital % Voting shares % Verified
Stena 41.3 % 41.3 % 4 May 2022
Nordea Fonder 13.8 % 13.8 % 31 Mar 2022
If Skadeförsäkring AB 11.5 % 11.5 % 31 Mar 2022
Avanza Pension 3.8 % 3.8 % 31 Mar 2022
Sune Svedberg 2.5 % 2.5 % 31 Mar 2022
Nordnet Pensionsförsäkring 2.0 % 2.0 % 31 Mar 2022
Ida Svedberg Sandström 1.5 % 1.5 % 31 Mar 2022
John Löfström 1.4 % 1.4 % 31 Mar 2022
Handelsbanken Fonder 1.3 % 1.3 % 31 May 2022
Nordea Funds (Lux) 1.1 % 1.1 % 31 May 2022
Source: Holdings by Modular Finance AB

Insider list - Svedbergs

Name Quantity Code Date
Michael Cassoe - 8 368 SELL 26 Aug 2021
Michael Cassoe - 1 511 SELL 26 Aug 2021
Michael Cassoe - 54 SELL 26 Aug 2021
Michael Cassoe - 67 SELL 25 Aug 2021
Michael Cassoe + 10 000 BUY 6 Aug 2021
Erik Thörn - 3 070 SELL 27 Jul 2021
Michael Cassoe + 10 000 BUY 15 Jun 2021
Michael Cassoe + 8 286 BUY 10 Jun 2021
Michael Cassoe + 3 545 BUY 3 Jun 2021
Thomas Elvlin + 885 BUY 1 Jun 2021

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