paragon

DE: PGN

€82m market cap

€18.12 last close

paragon designs and manufactures automotive electronics and solutions, selling directly to OEMs. Products include sensors, acoustics, cockpits and body kinematics. Production facilities are in Germany, the US and China. paragon owns 60% of Voltabox.

Investment summary

paragon continues to make strong progress, with Q318 results showing further acceleration that supported group FY18 revenue guidance being maintained. Voltabox is making strategic investments to augment organic growth through the adjustment to the Triathlon supply contract and selected appropriate M&A. Integrating the acquisition of SemVox with the existing Cockpit and Acoustics creates a new Digital Assistance division, paragon semvox, offering OEMs complete solutions for speech assistance systems from a single source. Electronics should resume growth in FY19.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2016A 102.8 16.1 6.9 101.5 17.9 3.4
2017A 124.8 20.6 8.2 66.7 27.2 62.7
2018E 178.5 25.7 13.3 188.0 9.6 26.3
2019E 251.2 38.6 23.8 305.0 5.9 3.6
Last updated on 19/02/2019
Industry outlook

We believe the growth story of paragon is understood by the capital markets following the successful issue of €50m bonds in June 2017 and the spin-off of its subsidiary, Voltabox, in October 2017 to raise gross proceeds of €152m. In order to generate further appreciation of its share price, paragon needs not only to deliver on its €1.96bn lifetime order backlog, but also to create further growth engines.

Last updated on 19/02/2019
Sector
Industrials
Share price graph
Balance sheet
Forecast net cash (€m) 17.8
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (11.6) (22.2) (76.9)
Relative* (12.4) (22.7) (74.7)
52-week high/low €80.1/€15.1
*% relative to local index
Key management
Klaus Frers CEO