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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 (%) -47,7 -23,1 12,9
Lease adj. ND/EBITDA 5,7 2,2 1,9
Sales 869 1762 1711
Sales growth (%) 33,8 102,9 -2,9
EBITDA 143 281 283
EBITDA margin (%) 16,4 15,9 16,5
EBIT adj 114 217 218
EBIT adj margin (%) 13,1 12,3 12,7
Pretax profit 80 195 211
EPS rep 2,78 4,45 4,74
EPS growth (%) 22 60 6,4
EPS adj 3,93 5,06 5,32
DPS 0 2,23 2,37
EV/EBITDA (x) 16,9 7 6,7
EV/EBIT adj (x) 21,2 9,1 8,7
P/E (x) 25,2 8,6 8
P/E adj (x) 17,9 7,5 7,2
EV/sales (x) 2,8 1,1 1,1
FCF yield (%) -47,6 -22,9 13
Dividend yield (%) 0 5,8 6,2
Net IB debt/EBITDA 6,5 2,3 1,9
SEKm 2021 2022e 2023e
Depreciation and amortisation -24 -46 -45
Of which leasing depreciation -2 -2 -2
EO items -19 -1 0
Impairment and PPA amortisation -6 -20 -20
EBITDA lease Adj 162 282 283
EBITDA lease Adj margin (%) 18,6 16 16,5
Sales 869 1762 1711
COGS -496 -1041 -1009
Gross profit 373 721 702
Other operating items -230 -440 -419
EBITDA 143 281 283
Depreciation on tangibles -22 -22 -22
Depreciation on intangibles -2 -3 -3
EBITA 119 235 238
Goodwill impairment charges 0 0 0
Other impairment and amortisation -2 -3 -3
EBIT 95 215 218
Other financial items 0 0 0
Net financial items -15 -20 -7
Associated income 0 0 0
Other EO items 0 0 0
Pretax profit 80 195 211
Tax -21 -38 -43
Net profit 59 157 167
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders 59 157 167
EPS 2,78 4,45 4,74
EPS Adj 3,93 5,06 5,32
Total extraordinary items after tax -18,7 -1,3 0
Tax rate (%) -26 -19,3 -20,6
Gross margin (%) 42,9 40,9 41
EBITDA margin (%) 16,4 15,9 16,5
EBITA margin (%) 13,7 13,4 13,9
EBIT margin (%) 10,9 12,2 12,7
Pretax margin (%) 9,2 11,1 12,3
Net margin (%) 6,8 8,9 9,8
Growth rates Y/Y 2021 2022 2023
Sales growth (%) 33,8 102,9 -2,9
EBITDA growth (%) 54,7 96,8 0,7
EBIT growth (%) 43,7 126,4 1,1
Net profit growth (%) 22,4 166,6 6,4
EPS growth (%) 22 60 6,4
Profitability 2021 2022 2023
ROE (%) 23,9 26,7 17,5
ROE Adj (%) 33,7 30,3 19,6
ROCE (%) 9,6 13,8 13,1
ROCE Adj(%) 12 15,2 14,4
ROIC (%) 7,4 10,6 9,2
ROIC Adj (%) 8,9 10,6 9,2
Adj earnings numbers 2021 2022 2023
EBITDA Adj 162 282 283
EBITDA Adj margin (%) 18,6 16 16,5
EBITA Adj 138 237 238
EBITA Adj margin (%) 15,9 13,4 13,9
EBIT Adj 114 217 218
EBIT Adj margin (%) 13,1 12,3 12,7
Pretax profit Adj 104 217 231
Net profit Adj 83 179 188
Net profit to shareholders Adj 83 179 188
Net Adj margin (%) 9,6 10,1 11
Leasing payments 0 0 0
SEKm 2021 2022e 2023e
Lease liability amortisation -2 -2 -2
Other intangible assets 503 502 497
Right-of-use asset 9 0 0
Total other fixed assets 0 0 0
Leasing liability 10 12 12
Total other long-term liabilities 227 325 325
Net IB debt excl. leasing 914 623 529
Net IB debt / EBITDA lease Adj (%) 565,8 220,8 187
EBITDA 143 281 283
Net financial items -15 -20 -7
Paid tax 0 -40 -43
Non-cash items -32 10 0
Cash flow before change in WC 95 231 233
Change in WC 5 -166 20
Operating cash flow 100 65 252
CAPEX tangible fixed assets -15 -44 -55
CAPEX intangible fixed assets -4 -11 -14
Acquisitions and disposals -788 -319 -8
Free cash flow -707 -309 175
Dividend paid -26 0 -79
Share issues and buybacks 0 480 0
Other non cash items -421 434 2
Decrease in net IB debt -14 18 22
Balance Sheet (SEKm) 2021 2022 2023
Goodwill 485 499 505
Indefinite intangible assets 0 0 0
Definite intangible assets 99 109 121
Tangible fixed assets 313 328 341
Other fixed assets 0 0 0
Fixed assets 1311 1329 1343
Inventories 342 441 428
Receivables 388 513 498
Other current assets 2 7 7
Cash and liquid assets 320 65 159
Total assets 2362 2355 2435
Shareholders equity 267 912 1001
Minority 0 0 0
Total equity 267 912 1001
Long-term debt 493 587 587
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 740 102 102
Accounts payable 102 210 204
Other current liabilities 522 208 206
Total liabilities and equity 2362 2355 2435
Net IB debt 923 635 541
Net IB debt excl. pension debt 923 635 541
Capital invested 1417 1872 1866
Working capital 107 543 524
EV breakdown 2021 2022 2023
Market cap. diluted (m) 1486 1345 1345
Net IB debt Adj 923 635 541
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 1980 1886
Capital efficiency (%) 2021 2022 2023
Total assets turnover (%) 57,2 74,7 71,4
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 18,4 31,2
Financial risk and debt service 2021 2022 2023
Net debt / equity (%) 346,1 69,6 54
Net debt / market cap (%) 104,8 47,2 40,2
Equity ratio (%) 11,3 38,7 41,1
Net IB debt adj. / equity (%) 346,1 69,6 54
Current ratio (%) 76,6 194,3 210,1
EBITDA / net interest (%) 927,3 1388,2 4109,6
Net IB debt / EBITDA (%) 646,6 226 191,2
Interest cover (%) 774,7 1163,3 3457,5
SEKm 2021 2022e 2023e
Lease adj. FCF yield (%) -47,7 -23,1 12,9
Shares outstanding adj. 21 35 35
Fully diluted shares Adj 21 35 35
EPS 2,78 4,45 4,74
Dividend per share Adj 0 2,2 2,4
EPS Adj 3,93 5,06 5,32
BVPS 12,59 25,84 28,35
BVPS Adj -34,06 -2,5 -0,04
Net IB debt / share 43,6 18 15,3
Share price 41,6 38,1 38,1
Market cap. (m) 881 1345 1345
Valuation 2021 2022 2023
P/E 25,2 8,6 8
EV/sales 2,77 1,12 1,1
EV/EBITDA 16,9 7 6,7
EV/EBITA 20,2 8,4 7,9
EV/EBIT 25,3 9,2 8,7
Dividend yield (%) 0 5,8 6,2
FCF yield (%) -47,6 -22,9 13
P/BVPS 5,57 1,47 1,34
P/BVPS Adj -2,06 -15,23 -950,27
P/E Adj 17,9 7,5 7,2
EV/EBITDA Adj 14,9 7 6,7
EV/EBITA Adj 17,5 8,4 7,9
EV/EBIT Adj 21,2 9,1 8,7
EV/cap. employed 1,6 1,2 1,1
Investment ratios 2021 2022 2023
Capex / sales 2,1 3,1 4
Capex / depreciation 87,4 127,3 161,2
Capex tangibles / tangible fixed assets 4,7 13,4 16,1
Capex intangibles / definite intangibles 0,7 2,2 2,8
Depreciation on intangibles / definite intangibles 0 0 0
Depreciation on tangibles / tangibles 6,8 13,2 12,5

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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 % 28 Jun 2022
If Skadeförsäkring AB 11.5 % 11.5 % 28 Jun 2022
Avanza Pension 2.3 % 2.3 % 28 Jun 2022
Nordnet Pensionsförsäkring 2.1 % 2.1 % 28 Jun 2022
Sune Svedberg 2.1 % 2.1 % 28 Jun 2022
Ida Svedberg Sandström 1.4 % 1.4 % 28 Jun 2022
John Löfström 1.3 % 1.3 % 28 Jun 2022
Handelsbanken Fonder 1.2 % 1.2 % 31 Jul 2022
Nordea Funds (Lux) 1.1 % 1.1 % 30 Jun 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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