paragon (FRA: PGN)

Last close As at 21/02/2024

EUR2.53

−0.09 (−3.44%)

Market capitalisation

EUR12m

Based in Delbrück, Germany, paragon designs and supplies automotive electronics and solutions, selling directly to OEMs, including sensors, interior and body kinematics. It has production facilities in Germany, Croatia and China.

We believe paragon’s identification of, and investment in, solutions to address megatrends in global automotive markets is understood by investors. paragon is growing faster than its markets due to its innovative products, which are driving changes in customer perceptions, creating new growth engines and facilitating expansion internationally, notably in China and North America.

Latest Insights

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Industrials | Update

paragon — Navigating the road to growth

Industrials | Update

paragon — A dip in the road ahead

Industrials | Update

paragon — Navigating the road to redemption

Industrials | Update

paragon — Radically improving the investment case

Sector

Industrials

Equity Analyst

Key Management

  • Klaus Frers

    CEO

  • Martin Esser

    CFO

Balance Sheet

Forecast net debt (€m)

46.6

Forecast gearing ratio (%)

630

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (24.926) (37.065) (47.292)
Relative (27.395) (41.541) (52.589)
52 week high/low €6.4/€2.5

Financials

Q323 was constrained by extended plant shutdowns at customers, with nine-month revenues for the ongoing activities up 3% to €122m with continuing EBITDA (excluding the power assets sold) rising to €11.3m, a margin of just under 10%. Management’s FY23 sales guidance is €160–170m with implied ongoing EBITDA of c €14m. Net debt fell to €49m, with part of the battery activity also being sold, and paragon has initiated a buyback of the EUR bond. The company expects a return to growth in H224, driven by new projects. paragon expects revenues of €165m in FY24 and maintains its five-year revenue target of at least €300m despite two recent divestments.

Y/E Dec Revenue (€m) EBITDA (€m) PBT (€m) EPS (fd) (c) P/E (x) P/CF (x)
2021A 135.4 15.1 (3.5) (71.53) N/A 0.6
2022A 160.3 11.6 (7.9) (115.05) N/A 0.6
2023E 161.5 15.8 (5.0) (59.68) N/A 1.5
2024E 172.1 20.2 5.8 83.65 3.0 0.6

Research

Update

Industrials

paragon — Radically improving the investment case

Flash note

Industrials

paragon — Further progression of debt reduction plans

QuickView

Industrials

paragon — Agreement to sell paragon semvox

Update

Industrials

paragon — Building momentum in Q222

Outlook

Industrials

paragon — Refocused automotive growth strategy

QuickView

Industrials

paragon — Focused on growing automotive technology

QuickView

Industrials

paragon — Refocusing on automotive innovation

Further insights

insight

Industrials

paragon: EKF 2023 QuickView

Thematics

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Deutsches Eigenkapitalforum (EKF) 2023 industrials

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