Inission

Country:
Sector:
Market cap (m):
Sweden
Capital Goods
SEK 577.22
Bloomberg:
Reuters:
Website:
INISSB SS
INISSb.ST
Share price (close):
SEK 117.00

Latest Reports

11 NOV 2019
Commissioned Research: Delivering according to plan
Inission reported strong Q3 numbers overall. Adjusted for non-recurring items, EBIT was 32% above our expectations. In fact, the numbers confirmed our belief that Inission is on track to restoring its EBIT margin to historical levels and beyond – up to ~8%. We forecast a 2018-21 EBIT CAGR of 30%. We expect the company to keep its focus on bolt-on acquisitions and being a consolidator in the highly fragmented market. Due to our estimate cuts, however, we lower our DCF-based fair equity value range to SEK 130-154 (136-162) per share, based on a WACC of 8.3-9.7%.

12 SEP 2019
Commissioned Research: Ready for ignition
We initiate coverage of industrial electronics supplier Inission with a DCF-based fair equity value range of SEK 136-162 per share, based on a WACC of 8.3-9.7%. We believe recent quarters have indicated that Inission is on track to restoring its EBIT margin to historical levels and beyond, up to ~8%, and we forecast a 2018-21 EBIT CAGR of 30%. We also expect the company to keep its focus on bolt-on acquisitions and being a consolidator in the highly fragmented market.

Equity analysts

Key persons

CEO: Björn Lifvergren

CFO: Stefan Westberg

Chairman: Fredrik Berghel

Numbers
Nordea
SEKm
2015
2016
2017
2018
2019E
2020E
2021E
Total revenues
280.2
526.0
713.4
739.8
1,001.4
1,034.0
1,065.1
Ebitda (adj.)
23.05
31.21
37.01
48.80
83.77
86.99
95.46
Ebitda - margin
8.2%
5.9%
5.2%
6.6%
8.4%
8.4%
9.0%
EBIT (adj.)
18.0
24.4
29.8
41.0
69.6
73.6
81.6
EBIT (adj.) margin
6.4%
4.6%
4.2%
5.5%
7.0%
7.1%
7.7%
PTP (adj.)
17.4
22.8
26.4
37.0
62.8
67.0
75.0
Net profit from cont oper (adj)
12.66
18.51
23.03
30.03
48.70
50.88
57.01
Shareholders´ Equity
88.8
58.8
78.9
111.1
148.5
192.1
239.3
Net interest bearing debt
23.1
134.2
187.0
176.3
117.1
62.6
8.2
Net gearing
26.0%
228.1%
237.0%
158.8%
78.8%
32.6%
3.4%
Net debt/EBITDA
1.0
4.3
5.1
3.6
1.5
0.7
0.1
Free cash flow to equity
-15.5
-35.9
12.1
-28.1
66.6
61.8
64.2
Diluted number of shares in issue, year-end (m)
1.2
1.2
3.9
4.8
4.9
4.9
4.9
Nordea Markets estimates published on Nov 11, 2019
Source: Company data, Nordea estimates
Per share data and multiples
Nordea
SEK and %
2015
2016
2017
2018
2019E
2020E
2021E
EPS (adj.)
11.01
15.34
5.78
6.09
9.87
10.31
11.56
EPS (adj.) growth
n.a.
39.3%
-62.3%
5.5%
62.0%
4.5%
12.0%
DPS
0.00
3.00
0.00
1.51
1.50
2.00
2.50
BVPS
77.2
49.0
20.2
22.9
30.3
39.2
48.9
P/E (adj.)
1.5
2.8
7.5
8.1
11.9
11.3
10.1
EV/Sales
0.15
0.35
0.50
0.56
0.69
0.61
0.55
EV/EBITDA (adj.)
1.85
5.93
9.65
8.50
8.24
7.30
6.09
EV/EBIT (adj.)
2.38
7.59
11.98
10.12
9.91
8.64
7.12
P/BV
0.22
0.86
2.16
2.15
3.86
2.98
2.39
Dividend yield
0.0%
7.1%
0.0%
3.1%
1.3%
1.7%
2.1%
FCF Yield bef A&D, lease adj
-79.3%
-40.9%
20.9%
-11.8%
11.6%
10.8%
11.2%
RoE
17.0%
25.1%
33.4%
31.6%
34.5%
29.9%
26.4%
ROIC
13.1%
11.5%
9.4%
10.7%
17.9%
20.0%
22.9%
Nordea Markets estimates published on Nov 11, 2019
Source: Company data, Nordea estimates

Source: Thomson Reuters