Inission

Country:
Sector:
Market cap (m):
Sweden
Capital Goods
SEK 371.99
Bloomberg:
Reuters:
Website:
INISSB SS
INISSb.ST
Share price (close):
SEK 75.40

Latest Reports

4 MAR 2020
Commissioned Research: More acquisitions are likely
Inission reported overall soft Q4 numbers, with both sales and adjusted EBIT well below our expectations and creating a bump in the road for the margin recovery story. Guidance for end-market softness and potential sourcing problems relating to COVID-19 will most likely delay the company's progress in reaching its 8% adjusted EBIT margin target. Nevertheless, we still forecast a 2019-22 EBIT CAGR of 11%. We expect the company to keep its focus on bolt-on acquisitions, similar to the one we saw in the quarter. The market is still highly fragmented with plenty of targets, according to management. Due to our estimate cuts, we lower our DCF-based fair equity value range to SEK 124-144 (130-154) per share.

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:

Chairman: Fredrik Berghel

Numbers
Nordea
SEKm
2016
2017
2018
2019
2020E
2021E
2022E
Total revenues
526.0
713.4
739.8
980.0
1,092.6
1,143.7
1,178.0
Ebitda (adj.)
31.21
37.01
48.80
76.38
83.67
93.88
99.05
Ebitda - margin
5.9%
5.2%
6.6%
7.8%
7.7%
8.2%
8.4%
EBIT (adj.)
24.4
29.8
41.0
61.2
69.5
79.0
83.7
EBIT (adj.) margin
4.6%
4.2%
5.5%
6.2%
6.4%
6.9%
7.1%
PTP (adj.)
22.8
26.4
37.0
54.5
62.7
72.4
77.1
Net profit from cont oper (adj)
18.51
23.03
30.03
43.90
47.63
55.03
58.63
Shareholders´ Equity
58.8
78.9
111.1
142.3
180.1
224.0
270.1
Net interest bearing debt
134.2
187.0
176.3
144.4
88.4
45.7
8.6
Net gearing
228.1%
237.0%
158.8%
101.5%
49.1%
20.4%
3.2%
Net debt/EBITDA
4.3
5.1
3.6
2.1
1.1
0.5
0.1
Free cash flow to equity
-35.9
12.1
-7.3
42.3
56.8
53.8
49.7
Diluted number of shares in issue, year-end (m)
1.2
3.9
4.8
4.9
5.0
5.0
5.0
Nordea Markets estimates published on Mar 4, 2020
Source: Company data, Nordea estimates
Per share data and multiples
Nordea
SEK and %
2016
2017
2018
2019
2020E
2021E
2022E
EPS (adj.)
15.34
5.78
6.09
8.90
9.38
10.83
11.54
EPS (adj.) growth
39.3%
-62.3%
5.5%
46.0%
5.4%
15.5%
6.5%
DPS
3.00
0.00
1.51
2.00
2.20
2.50
3.00
BVPS
49.0
20.2
22.9
29.1
35.7
44.4
53.6
P/E (adj.)
2.8
7.5
8.1
12.5
8.0
7.0
6.5
EV/Sales
0.35
0.50
0.56
0.70
0.43
0.37
0.33
EV/EBITDA (adj.)
5.93
9.65
8.50
9.00
5.60
4.54
3.93
EV/EBIT (adj.)
7.59
11.98
10.12
11.25
6.75
5.39
4.64
P/BV
0.86
2.16
2.15
3.82
2.11
1.70
1.41
Dividend yield
7.1%
0.0%
3.1%
1.8%
2.9%
3.3%
4.0%
FCF Yield bef A&D, lease adj
-40.9%
20.9%
-3.1%
17.4%
17.6%
14.2%
13.1%
RoE
25.1%
33.4%
31.6%
29.5%
29.6%
27.2%
23.7%
ROIC
11.5%
9.4%
10.7%
15.4%
18.0%
20.8%
21.7%
Nordea Markets estimates published on Mar 4, 2020
Source: Company data, Nordea estimates

Source: Thomson Reuters