Solwers

Country:
Sector:
Market cap (m):
Finland
Business Services
EUR 38.02
Bloomberg:
Reuters:
Website:
SOLWERS FH
SOLWERS.HE
Share price (close):
EUR 3.80

Latest Reports

4 JUL 2024
Commissioned Research: Flash Comment: Acquires quality architectural expertise in Finland
Solwers’ subsidiary Davidsson Tarkela Architects Oy has today signed an agreement to acquire 100% of Siren Architects, Finland’s oldest architectural firm. For the last reported 12 month period (3/2023-2/2024), Siren Architects had revenue of EUR 1.75m and an adjusted EBIT margin of 13.5% (EUR ~240,000) versus EUR 1.74m and 14.4% the previous year, respectively, and employs 18 professionals. The acquisition will be reported as part of Solwers as of 1 July. Design references include numerous residential and office buildings, educational institutions, sports facilities, renovations and urban planning including many landmark buildings in Finland. The purchase price is not disclosed, but part of the purchase price is paid in 103,632 newly issued shares (EUR ~400,000) and the rest in cash. If we assume 25-30% of the purchase price is paid with shares, the purchase price corresponds to an EV/EBIT multiple of 5.6-6.7x assuming Siren Architects has zero net debt. The acquisition adds 3% to Solwers’ 2023 sales and 5% to EBIT. We view the news as positive as Siren Architects appears to be a quality company and performing well, assuming the purchase price is close to our estimated range and not substantially above.

13 JUN 2024
Commissioned Research: A decentralised consultancy growth platform
We initiate coverage of Solwers, a company that acts as a growth platform for the built environment consultancy sector in the fields of architecture, technical consulting, project management, environmental monitoring, circular economy and digital solutions. Solwers' growth strategy, targeting over 20% annually, is based on acquisitions with virtually no integration, and instead letting the subsidiaries operate under their own brands. However, we believe that there are clear top-line synergies that can be achieved. Given Solwers' strong balance sheet, we see ample M&A-driven growth opportunities ahead, with underlying earnings recovering in 2025E. Based on DCF, peer group valuation and M&A-driven value creation, we derive a fair value range of EUR 5.2-6.1 for the Solwers share. Marketing material commissioned by Solwers.

Equity analysts

Key persons

CEO: Stefan Nyström

CFO: Teemu Kraus

Chairman: Leif Sebbas

Numbers
Export to Excel
Nordea
EURm
2020
2021
2022
2023
2024E
2025E
2026E
Total revenues
32.6
44.7
62.8
66.0
77.0
80.1
82.5
Ebitda (adj.)
4.98
5.50
8.16
7.95
8.43
9.43
10.32
Ebitda - margin
15.2%
12.3%
13.0%
12.1%
10.9%
11.8%
12.5%
EBIT (adj.)
3.5
3.4
5.1
4.8
4.8
5.6
6.4
EBIT (adj.) margin
10.8%
7.5%
8.1%
7.3%
6.2%
7.0%
7.8%
PTP (adj.)
3.4
2.1
4.6
3.9
3.6
4.5
5.4
Net profit from cont oper (adj)
2.68
1.67
3.58
3.21
2.85
3.63
4.35
Shareholders´ Equity
10.5
31.3
37.5
39.9
42.5
45.5
49.2
Net interest bearing debt
10.4
7.2
4.5
18.7
20.6
17.9
14.4
Net gearing
81.4%
22.4%
11.9%
46.2%
47.9%
38.8%
29.0%
Net debt/EBITDA
2.1
1.3
0.6
2.3
2.4
1.9
1.4
Free cash flow to equity
-0.1
-9.8
0.6
1.5
-1.7
3.4
4.1
Diluted number of shares in issue, year-end (m)
4.3
7.2
9.9
9.9
10.0
10.0
10.0
Nordea Markets estimates published on Jun 13, 2024
Source: Company data, Nordea estimates
Per share data and multiples
Export to Excel
Nordea
EUR and %
2020
2021
2022
2023
2024E
2025E
2026E
EPS (adj.)
0.40
0.20
0.38
0.32
0.28
0.36
0.43
EPS (adj.) growth
177.7%
-50.2%
93.5%
-17.0%
-10.7%
27.6%
19.6%
DPS
0.00
0.10
0.04
0.06
0.06
0.07
0.08
BVPS
2.4
4.3
3.8
4.0
4.2
4.6
4.9
P/E (adj.)
n.a.
41.8
11.0
15.1
13.3
10.5
8.7
EV/Sales
n.a.
1.52
0.75
1.02
0.77
0.70
0.64
EV/EBITDA (adj.)
n.a.
12.36
5.75
8.43
7.03
5.98
5.13
EV/EBIT (adj.)
n.a.
20.14
9.21
13.83
12.44
10.04
8.29
P/BV
n.a.
1.92
1.11
1.20
0.89
0.83
0.77
Dividend yield
n.a.
1.2%
0.9%
1.3%
1.6%
1.8%
2.1%
FCF Yield bef A&D, lease adj
n.a.
1.9%
5.7%
10.6%
8.6%
8.9%
10.9%
RoE
23.7%
6.9%
9.9%
8.2%
6.9%
8.3%
9.2%
ROIC
14.0%
8.0%
8.6%
7.0%
6.2%
7.0%
8.0%
Nordea Markets estimates published on Jun 13, 2024
Source: Company data, Nordea estimates

Source: LSEG Data & Analytics