paragon

paragon (PGN)

Currency in EUR

Last close As at 25/09/2023

EUR4.54

▲ 0.03 (0.67%)

Market capitalisation

EUR21m

Overview
Price performance
Financials
Research
Thematics

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.

Latest Insights

Industrials |
Update

31.08.23

paragon — Navigating the road to redemption

Industrials |
Update

21.06.23

paragon — Radically improving the investment case

Industrials |
Flash note

10.03.23

paragon — Further progression of debt reduction plans

Industrials |
Update

10.02.23

paragon — Risk reduction should relieve the equity rating

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Sector

Industrials

Equity Analyst

Andy Chambers

Director, Industrials

Key Management

Klaus Frers

CEO
Martin Esser

Head of finance, IT and HR

Balance Sheet

Forecast net debt (€m)

N/A

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
%	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

Financials

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.