paragon

DE: PGN

€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
Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (€m) 72.6
Forecast gearing ratio (%) 34
Price performance
%
1m
3m
12m
Actual (14.4) 43.8 (57.9)
Relative* (14.0) 35.4 (54.4)
52-week high/low €63.2/€15.1
*% relative to local index
Key management
Klaus Frers CEO

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