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. It is growing faster than its markets due to innovative products that are driving changes in customer perceptions, creating new growth engines for the group and facilitating expansion internationally, notably in China and North America.
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Flash note
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Klaus Frers
CEO
Martin Esser
Head of finance, IT and HR
Forecast net debt (€m)
N/A
Forecast gearing ratio (%)
N/A
% | 1M | 3M | 12M |
---|---|---|---|
Actual | (23.1) | (21.2) | (1.5) |
Relative | (22.9) | (18.9) | (19.3) |
52 week high/low | €6.4/€3.7 |
The c €38.8m disposal of Semvox has completed and the CHF bond has been fully redeemed, further de-risking the paragon investment case. H123 continued the positive progress, with the ongoing activities increasing revenues by 7% to €86.6m and EBITDA strengthening to €8.09m, a margin of 9.3%; we are reviewing our estimates. Management’s unchanged FY23 guidance is for €170m in sales with an EBITDA of €20–25m. The company expects revenues of over €300m by 2027, with a progressive improvement in EBITDA margin. Debt reduction continues as paragon applies the Semvox proceeds, cash flows and new credit lines to initiate the early repayment by January 2024 of the outstanding €20.2m nominal of the Eurobond catalysed by the disposal.
Y/E Dec | Revenue (€m) | EBITDA (€m) | PBT (€m) | EPS (fd) (c) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2020A | 127.2 | 13.8 | (6.0) | 79.34 | 5.0 | 1.5 |
2021A | 146.9 | 20.0 | 1.2 | 27.26 | 14.5 | 0.9 |
2022E | 170.8 | 25.9 | 2.9 | 47.00 | 8.4 | 0.6 |
2023E | 188.1 | 31.0 | 7.4 | 119.00 | 3.3 | 0.6 |