€114.5m market cap
€25.3 last close
paragon designs and manufactures automotive electronics and solutions, selling directly to OEMs. Products and systems include air quality management, interior comfort, speech assistants and body kinematics. Production facilities are in Germany, the US and China. paragon owns 60% of Voltabox.
Investment summary
Having delivered management expectations in FY18 and despite tempering our forecasts modestly for FY19, guidance is still indicating strong growth, especially at Voltabox. Q119 results do nothing to deflect the expectations and growth should accelerate as the year progresses, primarily as Voltabox increasingly delivers against its €1.1bn backlog. The continued investment in the auto operations should also start to be reflected in improved earnings this year. On our new lower estimates, the rating fails to reflect the growth potential.
Y/E Dec |
Revenue (€m) |
EBITDA (€m) |
PBT (€m) |
EPS (fd) (c) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2017A | 124.8 | 18.3 | 5.9 | (8.52) | N/A | 142.3 |
| 2018A | 187.4 | 30.3 | 14.8 | 144.58 | 17.5 | N/A |
| 2019E | 240.2 | 38.6 | 18.8 | 241.14 | 10.5 | 2.4 |
| 2020E | 295.3 | 47.0 | 24.3 | 299.33 | 8.5 | 3.3 |
| Last updated on 22/05/2019 | ||||||
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.
Last updated on 22/05/2019
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Share price graph
Balance sheet |
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| Forecast net debt (€m) | 72.6 |
| Forecast gearing ratio (%) | 34 |
Price performance
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Key management |
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| Klaus Frers | CEO |
