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.
paragon has a clear strategic focus on solutions to address megatrends in global automotive markets. The company 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.
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Klaus Frers
CEO
Martin Esser
CFO
Forecast net debt (€m)
46.6
Forecast gearing ratio (%)
630
% | 1M | 3M | 12M |
---|---|---|---|
Actual | 54.2 | (0.3) | (22.6) |
Relative | 46.1 | (9.4) | (37.0) |
52 week high/low | €6.4/€2.1 |
Revenue for ongoing activities for the first nine months of FY23 was up 3% to €122m (constrained by extended plant shutdowns at customers) with continuing EBITDA of €11.3m (margin 9.2%). FY23 sales guidance is €160–170m, with implied ongoing EBITDA of c €14m. Net debt fell sharply to €49m, with part of the battery activity being sold and a buyback of the EUR bond was started. paragon expects a return to growth in H224, driven by new projects, resulting in revenue of €165m in FY24. The company remains positive about the long-term outlook given its five-year revenue target of at least €300m despite recent divestments. We do not expect any material impact from the recent bankruptcy of ElectricBrands. Our DCF indicates a value of €9.6 per share.
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 | 0.8 |
2022A | 160.3 | 11.6 | (7.9) | (115.05) | N/A | 0.8 |
2023E | 161.5 | 15.8 | (5.0) | (59.68) | N/A | 2.0 |
2024E | 172.1 | 20.2 | 5.8 | 83.65 | 4.0 | 0.8 |