Incap: Winning streak behind, pressure test ahead
Incap that has grown exponentially in recent years faces an acid test toward the end of the year, as the volume of the customer that dominates its revenue decreases. We consider the situation to be temporary and expect Incap's strengths, in particular high cost efficiency, to keep the company on a growth path in the longer term. Despite the share’s highish risk level, both in the short and long term, we find Incap's valuation to be low (2024e: P/E 13x, EV/EBIT 7x), so looking beyond the challenges of this year the share’s risk adjusted expected return is sufficient in our opinion.
Incap operates in the industrial sector. The company supplies equipment and services for industrial players, where the range includes PCB assembly, system integration, box building integration, design validation, and inspection methods. The largest operations are found in the Nordic, Baltic and Asian regions. The company was originally established in 1985 and is headquartered in Helsinki.
Read more on company pageKey Estimate Figures14.06.2023
| 2022 | 23e | 24e | |
|---|---|---|---|
| Revenue | 263.8 | 236.3 | 265.2 |
| growth-% | 55.4 % | -10.4 % | 12.2 % |
| EBIT (adj.) | 40.0 | 31.2 | 37.5 |
| EBIT-% (adj.) | 15.2 % | 13.2 % | 14.1 % |
| EPS (adj.) | 0.98 | 0.79 | 0.97 |
| Dividend | 0.00 | 0.15 | 0.20 |
| Dividend % | 1.4 % | 1.9 % | |
| P/E (adj.) | 17.5 | 13.2 | 10.8 |
| EV/EBITDA | 12.0 | 7.9 | 6.2 |
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