Bildkälla: Stockfoto

Avensia: Operating well in a hot market - ABG

Strong Q3 fuelled by a strong IT services market
We raise ’21e-‘23e adj. EBIT forecasts by 17-4%
14.5x ‘22e EV/EBIT, 2019-2023e EBIT CAGR of 18%

The strong Q2 with 27% sales growth y-o-y was proven not to be an outlier, given Avensia’s Q3 growth of 34% y-o-y. This gave sales of SEK 86m, +6% vs. ABGSCe of SEK 80m. Due to the rapid sales growth, adj. EBIT increased to SEK 6.7m (vs. SEK 0.2m in Q3’20), 80% (or SEK 3.7m) ahead of ABGSCe at SEK 3.0m. The drivers for this were: 1) a strong IT services market that continues to recover, and 2) Avensia’s decision to maintain a rapid net recruitment rate in 2020. Headcount grew by 17 people q-o-q (ABGSCe +7), despite our assessment that the industry is currently witnessing high personnel turnover. We argue that the main reason for why Avensia was able to maintain a high recruitment rate is its strong brand.

Avensia’s share is currently trading at a 2022e EV/EBIT of 14.5x, which is in line with peers at 14.7x.
Börsvärldens nyhetsbrev