Alcadon: New ambitious financial targets - ABG

Sales growth of 20%, EBITA margin >10%

Will investigate the possibility to move to Main Market

Trading at 14.4x f12m EV/EBITA

New financial targets…
The Board of Directors of Alcadon has adopted new financial targets over a business cycle for the company and specified “Vision 2025”. The updated financial targets entail a continued focus on profitable growth both organically and through acquisitions with the objective to make Alcadon a well-renowned European premium partner active in carefully selected business areas related to the digitalization of society, according to the company. The new targets stipulate annual sales growth of 20% (org + M&A, without specifying the split), an EBITA margin >10% and ND/EBITDA of 2-3x. The previous targets were annual EPS growth of 10% and solidity of >25%. Additionally, Alcadon specified “Vision 2025” with absolute financial targets for ‘25 – sales of SEK 2,600m (indicating a ’21-’25 CAGR of 37%, or ’23-’25 CAGR of 24%) and EBITA of SEK 280m, corresponding to a margin of 10.8%. Furthermore, Alcadon during ‘23 intends to investigate the possibility of switching from Nasdaq First North to Nasdaq Main Market.

…provide upside to margin estimates
The new sales growth target was in line with our expectations and is reflected in consensus estimates (although cons ests. do not include unannounced M&A, which the new financial targets do). The ‘25 EBITA margin target of 10.8% is, however, 1.8pp above our expectations for ‘24e, so hopefully tomorrow’s CMD will bring clarity to how this will be reached.

CMD tomorrow at Epicenter Stockholm
Tomorrow’s CMD will be hosted both virtually and on-site at Epicenter Stockholm, Mäster Samuelsgatan 36. Register via the link: https://live.twebcast.com/participant/alcadoncmd.
Läs mer på ABG Sundal Collier

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/alcadon/Equity-research/2022/9/alcadon---new-ambitious-financial-targets/