€44.2m market cap
€9.77 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. The sale process of its remaining stake in Voltabox now looks likely to be more protracted but it is to be accounted for as discontinued. In Q320 paragon’s continuing Automotive sales rose 9%, and ytd sales are €83.8m with an EBITDA margin of 9%. The reported 9M20 EBIT loss was €6.5m, a modest year-on-year improvement in Q320 benefiting from previous cost reduction measures, as well as management’s COVID-19 mitigation efforts. Management has indicated sales for Automotive for FY20 should be c €120m with potential for €125m and a 12% EBITDA margin.
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 | 6.8 | 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 04/03/2021
Sector |
|---|
| Industrials |
Share price graph
Balance sheet |
|
|---|---|
| Forecast net debt (€m) | 114.6 |
| Forecast gearing ratio (%) | 58 |
Price performance
% |
1m |
3m |
12m |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
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| *% relative to local index | |||||||||||||||
Key management |
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|---|---|
| Klaus Frers | CEO |
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