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Ogunsen: An impressive Q3 on the books - ABG

OGUN BThird party research14.11.2022, 15.50

This is a third party research report and does not necessarily reflect our views or values

Download report (PDF)
EBIT beat of 32% vs ABGSCe
We are cautious to extrapolate, ’23e EBIT up 4%
’23e EV/EBIT of 7.5x, 8.2% expected dividend yield


Q3: 21% sales growth and an EBIT margin of 13.2% (11.6%)

Ogunsen reported a solid set of Q3 numbers, with sales of SEK 117m (+21% y-o-y) and EBIT of SEK 15.5m (SEK 11.3m). That was 5% and 32% above ABGSCe and this time the deviation was driven by strong development in staffing rather than the more volatile recruitment revenues: a sign of strength from the core business. The record-high EBIT margin of 13.2% (11.6%) was also impressive, and it took the R12 EBIT margin above 12% for the first time since we initiated coverage of the company, clearly above the financial target of 10%. Cash flow for the period was SEK 8.1m (SEK 4.9m), taking the cash position to SEK 62m with no long-term debt. Management also stated that the solid demand has continued at the beginning of Q4. The main worry for Ogunsen right now seems to be a weakening economy and how that will affect demand going into 2023.