contentSlug

type

ContentSlug_ContentQuery

slug

ContentPageContentQuery

content

trendingContent

query ContentSlug_ContentQuery(
  $contentSlug: String!
  $type: [ContentType!]
) {
  ...ContentPageContentQuery_13QmVO
}

fragment CompanyDetails_Content on Content {
  __isContent: __typename
  companies {
    name
    description
    pageUrl
    id
  }
}

fragment ContentBasicInfo on Content {
  __isContent: __typename
  id
  type
  title
  lang
  companies {
    viewerIsFollowing
    id
    name
    pageUrl
  }
  tags {
    viewerIsFollowing
    id
    name
    pageUrl
  }
  ...PublishingDetails
  ...Reactions
}

fragment ContentMetadata on Content {
  __isContent: __typename
  type
  title
  lang
  pageUrl
  alternatePageUrls: translations {
    __typename
    pageUrl
    lang
  }
  imgUrl
  description
  ... on Video {
    liveTime
    videoUrl
  }
  ... on Webcast {
    liveTime
    videoUrl
  }
}

fragment ContentPageContentQuery_13QmVO on Query {
  content(slug: $contentSlug, type: $type) {
    __typename
    id
    type
    title
    isPremium
    lang
    htmlBody
    summary
    companies {
      forum {
        latestPosts {
          ...ForumPosts
        }
      }
      name
      id
      viewerIsFollowing
      pageUrl
      defaultInstrument {
        isin
        id
        marketOpen
        marketClose
        marketplace {
          region
        }
        returns {
          total
        }
      }
    }
    tags {
      viewerIsFollowing
      id
      name
      pageUrl
    }
    createdAt
    ... on Video {
      liveTime
    }
    ... on Webcast {
      liveTime
    }
    slug
    ... on CompanyReport {
      reportUrl
    }
    ... on ThirdPartyCompanyReport {
      reportUrl
    }
    ... on StockExchangeRelease {
      reportUrl
    }
    ...ContentBasicInfo
    ...ContentMetadata
    ...PriceAndRecommendation_Content
    ...CompanyDetails_Content
    ...ReportLink_Content
    ...KeyFigures_Content
  }
  ...TrendingContent_1jQ2Cn
}

fragment ForumPosts on ForumPost {
  text
  likesCount
  url
  author
  postedAt
  authorImgUrl
}

fragment KeyFigures_Content on Content {
  __isContent: __typename
  companies {
    defaultInstrument {
      estimateData {
        modelType
        reportingCurrency
      }
      snapshot {
        transaction {
          date
          actualized {
            year
            quarter
            revenue
            revenueGrowth
            ebitAdjusted
            ebitReported
            ebitda
            enterpriseValue
            epsAdjusted
            dividend
            dividendYield
            sharePrice
          }
          estimates {
            year
            quarter
            revenue
            revenueGrowth
            ebitAdjusted
            ebitReported
            ebitda
            enterpriseValue
            epsAdjusted
            dividend
            dividendYield
            sharePrice
          }
        }
      }
      id
    }
    id
  }
}

fragment PriceAndRecommendation_Content on Content {
  __isContent: __typename
  createdAt
  companies {
    name
    pageUrl
    defaultInstrument {
      priceData {
        tradeCurrency
      }
      snapshot {
        priceData {
          date
          lastPrice
          tradeCurrency
        }
        transaction {
          date
          recommendation
          targetPrice
        }
        prevTransaction {
          recommendation
        }
      }
      id
    }
    id
  }
}

fragment PublishingDetails on Content {
  __isContent: __typename
  createdAt
  publishers {
    name
    imgUrl
  }
  authors {
    __typename
    id
    name
    slug
    imgUrl
    jobTitle
  }
  ... on Video {
    liveTime
  }
  ... on Webcast {
    liveTime
  }
}

fragment Reactions on Content {
  __isContent: __typename
  id
  reactionGroups {
    reactionType
    reactionsCount
    viewerReacted
  }
}

fragment ReportLink_Content on Content {
  __isContent: __typename
  type
  isPremium
  ... on CompanyReport {
    reportUrl
  }
  ... on ThirdPartyCompanyReport {
    reportUrl
  }
  ... on StockExchangeRelease {
    reportUrl
  }
}

fragment TrendingContent_1jQ2Cn on Query {
  trendingContent(type: ARTICLE) {
    __typename
    id
    title
    lang
    pageUrl
    createdAt
    type
    imgUrl
    companies {
      squareLogoUrl
      name
      id
    }
    authors {
      __typename
      imgUrl
      id
    }
    publishers {
      imgUrl
    }
  }
}


iar-systems-group-ab-dnb-markets-iar-systems-soft-start-to-2023

__typename

title

isPremium

lang

htmlBody

summary

companies

createdAt

publishers

authors

reactionGroups

pageUrl

translations

imgUrl

description

I.A.R. Systems Group

IAR Systems' Q1 results were soft and missed our adj. EBIT forecast by 38% as it ramped up its sales organisation. We reiterate our SEK140-250 fair value as we appreciate the combination of ...

<div class="abstract">IAR Systems' Q1 results were soft and missed our adj. EBIT forecast by 38% as it ramped up its sales organisation. We reiterate our SEK140-250 fair value as we appreciate the combination of being net cash positive, defensive elements from ~40% recurring revenues, and optionality from its embedded security offering. We note that insiders have accumulated shares at the current share-price levels in 2022-2023.</div>Weak Q1. IAR reported Q1 organic sales growth of 5% YOY (from 7% YOY in Q4 and 11% in Q3), which led to net sales 4% below our forecast in light of longer sales cycles. The positive surprise was 33% organic growth YOY in license-based sales and deferred income up 29% YOY. Adj. EBIT was 38% below our forecast (12.2% margin, down 4.6%-points YOY), suggesting a 20% decline YOY due to SEK4.2m less capitalised development costs, while hiring ~10 additional sales representatives QOQ to accelerate growth in the coming quarters. Cash flow from operations declined 9% YOY to set up an LTM cash conversion of 91% and net cash of SEK93m at end-Q1.2023-2024e net sales and adj. EBITDA lowered by 3% and 14-7%, respectively, of which ~50% stems from negative FX (IAR has a high sensitivity to SEK movement, given its 97%+ gross margin and fixed cost base) and the rest reflecting lower organic growth assumptions and new sales hires. IAR's cost review should yield ~SEK25m in net annual savings in 2023 YOY, but we expect opex to increase by SEK22m YOY in 2023, baking in conservatism, and now forecast 7% YOY organic sales growth for 2023 (while it will implement ~5% price hikes in H2, we believe).Fair value of SEK140-250 reiterated, corresponding to a 2023e EV/EBIT of 15-28x. IAR Systems is trading at a 15x 2023e EV/EBIT (or 13x EV/EBIT and 8.0% FCF yield, excluding Secure Thingz). We believe management's ambitious ramp-up of security sales for 2023e could be 2-3x higher than our forecasts, but should it not materialise, we believe IAR could make a strategic review to lessen the ~SEK60m/year drag on cash flows, with either outcome potentially acting as a catalyst for the business.Click here to view full report&nbsp;(<a href="https://www.dnb.no/seg-fundamental/fundamentalweb/GetReports.aspx?file=CMPSP_213132.pdf&amp;Sid=1-9HRQPCA">https://www.dnb.no/seg-fundamental/fundamentalweb/GetReports.aspx?file=CMPSP_213132.pdf&amp;Sid=1-9HRQPCA</a>) &nbsp;Best regardsJoachim Gunell | DNB Markets | Equity Research Sweden Email: joachim.gunell@dnb.se