paragon

DE: PGN

Market Cap€20m

Last Close €4.46

paragon designs and supplies automotive electronics and solutions, selling directly to OEMs, including sensors, interior, digital assistance and body kinematics. Production facilities are in Germany and China.

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Investment summary

Recovery continues following the COVID-19 disruptions and the resolution of the Euro bond extension, which secures long-term financing. Despite automotive industry constraints Q122 saw the refocused paragon increase revenues by 6.3% to €41.7m with a 13.6% EBITDA margin and a 17.3% rise in the order backlog to c €630m at the start of May. Orders on hand for delivery in the year and four-month sales of €54.3m provide 99% sales cover for the refined management sales guidance of €165m for FY22, which is at the upper end of the previous range with an EBITDA margin of over 15%. The company has financial targets for revenues of €250–300m by 2026 with a progressive improvement in EBITDA margin to 20%.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2020A 127.2 13.8 (17.1) (168.00) N/A 1.4
2021A 146.9 20.0 (5.3) (121.00) N/A 1.5
2022E N/A N/A N/A N/A N/A N/A
2023E N/A N/A N/A N/A N/A N/A
Industry outlook

We believe paragon’s identification of, and investment in, solutions to address megatrends in global automotive markets is understood by investors. It is growing faster than its markets due to innovative products that are driving changes in customer perceptions, creating new growth engines for the group. These should reassert themselves as the COVID-19 pandemic wanes.

Last updated on 01/07/2022
Content on paragon
paragon – Focused on growing automotive technology
Industrials | research QuickView | 3 November 2021
paragon – Refocusing on automotive innovation
Industrials | research QuickView | 9 November 2020
Executive interview – paragon at EKF 2019
Industrials | Edison TV | 9 December 2019
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Share price graph
Balance sheet
Forecast net debt (€m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (10.1) (17.1) (59.1)
Relative* 0.6 (6.5) (50.2)
52-week high/low €11.2/€3.8
*% relative to local index
Key management
Klaus Frers CEO
Martin Esser Head of finance, IT and HR