paragon

DE: PGN

€47m market cap

€10.38 last close

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, the US and China. It retains 58% of Voltabox, which supplies battery power systems.

Investment summary

The market disruptions developed rapidly due to COVID-19 and management focused on mitigating its impact. paragon’s sale process for all or part of its 60% stake in Voltabox is expected to conclude soon. In H120 paragon Automotive sales fell 22% to €50.0m which was better than expected with the six-week shutdown. Monthly revenues have now recovered to the prior year level. The reported EBIT loss was €5.6m with a sequential decline in Q220 that was contained by management’s COVID-19 mitigation measures. Guidance for Automotive for FY20 has increased to sales of €110–120m with an EBITDA margin of 8–12%.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2018A 187.4 30.3 14.8 144.58 7.2 N/A
2019A 192.2 17.2 (8.5) (115.00) N/A N/A
2020E N/A N/A N/A N/A N/A N/A
2021E 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 and electromobility markets is understood by the capital markets. It is growing substantially 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 when the COVID-19 pandemic wanes.

Last updated on 21/10/2020
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Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (€m) 114.6
Forecast gearing ratio (%) 58
Price performance
%
1m
3m
12m
Actual 10.3 (2.1) (15.3)
Relative* 10.2 2.7 (14.1)
52-week high/low €25.1/€7.4
*% relative to local index
Key management
Klaus Frers CEO

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