paragon (FRA: PGN)

Last close As at 18/03/2024

EUR4.18

1.13 (37.05%)

Market capitalisation

EUR14m

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.

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 16.4 (17.1) (43.5)
Relative 9.4 (22.6) (53.0)
52 week high/low €6.4/€2.1

Financials

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 0.7
2022A 160.3 11.6 (7.9) (115.05) N/A 0.8
2023E 161.5 15.8 (5.0) (59.68) N/A 1.9
2024E 172.1 20.2 5.8 83.65 3.6 0.8

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

thematic

Industrials

Deutsches Eigenkapitalforum (EKF) 2023 industrials

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