AlphaValue Corporate Services Fundamental Analysis FR
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AlphaValue Corporate Services
This research has been commissioned and paid for by the company and is deemed to constitute an acceptable minor non-monetary benefit as defined in MiFID II

Keyware

CR
Bloomberg   KEYW BB
Smart Cards-Security  /  Belgium  Web Site   |   Investors Relation
The soft bet is paying off
Target
Upside 89.9%
Price (€) 1.12
Market Cap (€M) 26.4
Debt

The financial debt position mainly reflects Keyware’s recent acquisitions (Magellan, EasyOrder). However, it does not represent a threat to the cash position, as a mixture of own resources and financing have been used. Most of this borrowing represents debt of less than a year.

To finance the Magellan acquisition (€10m), Keyware raised a bank loan (€7.5m), €2m of which will be reimbursed in June 2019, and €5.5m in monthly instalments ending on 30 September 2021. The remainder corresponds to Keyware’s own fund and treasury. EasyOrder (€700,000) was financed through the same process.

The FY18 cash flow from financing activities (€-1,204m) has been impacted by the refunding of loans and the reimbursement of lease debts.

Funding - Liquidity
  12/20A 12/21E 12/22E 12/23E
EBITDA €th 3,660 4,073 4,138 4,629
Funds from operations (FFO) €th 3,048 3,270 3,374 3,792
Ordinary shareholders' equity €th 27,239 30,271 32,647 35,320
Gross debt €th 2,366 1,620 1,396 1,038
   o/w Less than 1 year - Gross debt €th 1,865 1,119 895 537
   o/w 1 to 5 year - Gross debt €th 501 501 501 501
   of which Y+2 €th 501 501 501 501
   of which Y+3 €th 0.00 0.00 0.00 0.00
   of which Y+4 €th 0.00 0.00 0.00 0.00
   of which Y+5 €th 0.00 0.00 0.00 0.00
 + Gross Cash €th -1,184 -679 463 1,653
 = Net debt / (cash) €th 3,550 2,299 933 -615
Bank borrowings €th 2,366 1,620 1,396 1,038
Financial leases liabilities €th 0.00 0.00 0.00 0.00
Other financing €th 0.00 0.00 0.00 0.00
Gearing (at book value) % 13.4 9.66 4.95 0.45
Equity/Total asset (%) % 79.7 87.2 91.3 95.8
Adj. Net debt/EBITDA(R) x 0.97 0.56 0.23 -0.13
Adjusted Gross Debt/EBITDA(R) x 0.69 0.44 0.38 0.26
Adj. gross debt/(Adj. gross debt+Equity) % 8.43 5.55 4.55 3.30
Ebit cover x 18.2 21.5 26.3 29.4
FFO/Gross Debt % 122 184 217 315
FFO/Net debt % 85.9 142 362 -617
FCF/Adj. gross debt (%) % 112 70.1 87.3 128
(Gross cash+ "cash" FCF+undrawn)/ST debt x 0.88 0.51 2.04 5.95
"Cash" FCF/ST debt x 1.51 1.12 1.53 2.88
Credit Risk
Covenants
Changes to Story : 24/11/2021, Changes to Forecasts : 24/11/2021.