Humble Group - Q4: solid performance and cash flow - ABG

Q4 outcome
Q4 sales came in at SEK 1,606m (+88% y-o-y growth, driven largely by acquisitions) and adj. EBITA at SEK 155m (+9% y-o-y). Organic growth of 21% vs ABGSCe 15%. Operating cash flow per share better than we expected as NWC release was significant and net debt came down by 112m to SEK 2.9bn implying 5.3x EBITDA. OPCF per share of 0.82 implies ~100% growth y-o-y.

Q4 thoughts and takeaways
Outlook was positive as org. growth in jan'23 was 20% and freight costs are expected to come down (while not fully reflected in income statement yet). We deem the cash flow generation as well as the net debt reduction to be positive from both an operating and financial point of view.

Implied valuation
Humble Group’s share is up ~7% YTD and is trading at ‘23e EV/EBITA of 9.2x on our unrevised estimates.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/humble-group/Equity-research/2023/2/humble-group---q4-solid-performance-and-cash-flow/