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
From hardware provider to fintech specialist
Target
Upside 101%
Price (€) 1.00
Market Cap (€M) 22.4
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
  12/18A 12/19E 12/20E 12/21E
EBITDA €th 4,171 4,496 4,723 4,967
Funds from operations (FFO) €th 3,732 3,635 3,813 4,157
Ordinary shareholders' equity €th 27,592 28,625 31,069 33,539
Gross debt €th 7,657 5,137 4,400 3,900
   o/w Less than 1 year - Gross debt €th 4,320 1,423 1,200 900
   o/w 1 to 5 year - Gross debt €th 2,337 914 0.00 0.00
   of which Y+2 €th 1,423 914 0.00 0.00
   of which Y+3 €th 914 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
   o/w Beyond 5 years - Gross debt €th 1,000 2,800 3,200 3,000
 + Gross Cash €th 3,634 2,269 2,740 3,551
 = Net debt / (cash) €th 4,023 2,868 1,660 349
Bank borrowings €th 7,657 5,137 4,400 3,900
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) % 18.6 12.0 7.29 3.00
Adj. Net debt/EBITDA(R) x 0.96 0.64 0.35 0.07
Adjusted Gross Debt/EBITDA(R) x 1.87 1.18 0.96 0.82
Adj. gross debt/(Adj. gross debt+Equity) % 22.0 15.6 12.8 10.8
Ebit cover x 15.2 12.3 9.61 10.1
FFO/Gross Debt % 47.9 68.8 83.7 102
FFO/Net debt % 92.8 127 230 1,189
FCF/Adj. gross debt (%) % 46.6 41.8 49.6 58.2
(Gross cash+ "cash" FCF+undrawn)/ST debt x 1.68 3.15 4.17 6.57
"Cash" FCF/ST debt x 0.84 1.56 1.89 2.63
Credit Risk
Covenants
Changes to Story : 22/01/2020, Changes to Forecasts : 22/01/2020.