paragon

DE: PGN

Market Cap€17.5m

Last Close €3.86

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 while the sale process of its 51% stake in Voltabox has been completed, significantly enhancing liquidity. paragon Automotive nine months’ revenues of €109.7m are up 31% year-on-year, with Q321 revenues flat despite ongoing customer production stoppages. The 13.6% 9M21 EBITDA margin is at the top end of the guided FY21 range of 12–15% which is maintained alongside Automotive sales of €145m in FY21 although cash flow of c €12m may be compromised by buffer inventory levels being maintained through the year end. Management says it will announce its plan to repay the €50m German bond due in 2022 when legally allowed.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2019A 135.9 9.2 (22.1) (239.00) N/A N/A
2020A 127.2 13.8 (17.1) (165.00) N/A N/A
2021E N/A N/A N/A N/A N/A N/A
2022E 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 18/01/2022
Content on paragon
paragon – Focused on growing automotive technology
Industrials | QuickView | 3 November 2021
paragon – Refocusing on automotive innovation
Industrials | 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) 114.6
Forecast gearing ratio (%) 58
Price performance
%
1m
3m
12m
Actual (45.8) (51.9) (60.7)
Relative* (46.6) (52.8) (65.5)
52-week high/low €13.4/€3.8
*% relative to local index
Key management
Klaus Frers CEO
Martin Esser Head of finance, IT and HR