Addtech: Recovery continues

Addtech: Recovery continues - ABG

Q2’21/22 report due on 28 October
‘22/23e-‘23/24e sales and EBITA up 1% on M&A
28x NTM EV/EBITA, in line with core peers

For Q2’21/22e, we estimate sales of SEK 3,206m, up 18% y-o-y (10% organic, 8% M&A and 0% FX) alongside adj. EBITA of SEK 388m, corresponding to a margin of 12.1% (11.2%). We expect the strong demand in Q1’21/22 to have continued in Q2’21/22e. Together with easy comps (-11% organic sales growth in Q2’20/21), this should support organic growth this quarter. Segment-wise, we expect Industrial Process and Power Solutions to contribute to the group’s organic growth, mainly on easy comps. We also expect Addtech to continue to handle the component shortage and inflated input costs successfully, thereby protecting its high margins. To our understanding, Addtech is managing to thrive in this demanding environment for two key reasons. First, the fact that Addtech consists of some 150 companies means that it is not dependent on one or a few components, as some other companies are –it has solid diversification and a low dependency on specific components. Second, the decentralised business model enables subsidiaries to react autonomously and adapt more quickly to challenges than more centralised companies.

On our estimates, the share is trading at 28x NTM EV/EBITA, in line with core peers (Indutrade, Lagercrantz, Lifco and Sdiptech), whereas Addtech has historically (5Y average), traded 3% below these peers. However, Addtech is trading 88% above its 5Y average.

Addtech: Recovery continues - ABG

Agnes Michanek pekar ut vägen framåt

Börsläget den 10 december, 2024

Nytt nummer ute nu! Läs Magazine Börsvärlden HÄR

Publicera din analys på Börsvärlden

Aktuellt just nu!

Agnes Michanek pekar ut vägen framåt

Börsläget den 10 december, 2024

Nytt nummer ute nu! Läs Magazine Börsvärlden HÄR

Publicera din analys på Börsvärlden

Aktuellt just nu!

Addtech: Recovery continues - ABG

Agnes Michanek pekar ut vägen framåt

Börsläget den 10 december, 2024

Nytt nummer ute nu! Läs Magazine Börsvärlden HÄR

Publicera din analys på Börsvärlden

Aktuellt just nu!

Agnes Michanek pekar ut vägen framåt

Börsläget den 10 december, 2024

Nytt nummer ute nu! Läs Magazine Börsvärlden HÄR

Publicera din analys på Börsvärlden

Aktuellt just nu!

Antalet aktiva olje- och gasriggar i Kanada sjönk till 166 stycken (191)

Antalet aktiva olje- och gasriggar i USA var oförändrade (589)

Hovrätten upphäver konkursbeslut för Topright Nordics dotterbolag

Netflix säkrar sporträttigheter i USA

Schweiz och EU har kommit överens om avtal - BN

Samtycke till nyhetsbrev