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 116%
Price (€) 1.02
Market Cap (€M) 24.0
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.

Funding - Liquidity
  12/21A 12/22E 12/23E 12/24E
EBITDA €th 4,610 4,400 5,407 5,769
Funds from operations (FFO) €th 3,971 3,294 4,178 4,674
Ordinary shareholders' equity €th 27,892 31,499 34,373 37,684
Gross debt €th 1,560 1,222 934 761
   o/w Less than 1 year - Gross debt €th 721 721 433 260
   o/w 1 to 5 year - Gross debt €th 839 501 501 501
   of which Y+2 €th 0.00 501 501 501
   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 -763 229 1,800 3,619
 = Net debt / (cash) €th 2,323 993 -867 -2,858
Bank borrowings €th 1,560 1,222 934 761
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) % 10.5 5.26 0.18 -4.94
Equity/Total asset (%) % 83.6 90.9 96.4 102
Adj. Net debt/EBITDA(R) x 0.50 0.23 -0.16 -0.50
Adjusted Gross Debt/EBITDA(R) x 0.41 0.31 0.20 0.16
Adj. gross debt/(Adj. gross debt+Equity) % 6.35 4.20 3.09 2.40
Ebit cover x 26.7 25.8 34.3 37.2
FFO/Gross Debt % 210 239 381 505
FFO/Net debt % 171 332 -482 -164
FCF/Adj. gross debt (%) % 66.5 96.0 169 214
(Gross cash+ "cash" FCF+undrawn)/ST debt x 0.69 2.15 8.45 21.6
"Cash" FCF/ST debt x 1.75 1.84 4.30 7.67
Credit Risk
Covenants
Changes to Story : 18/05/2022, Changes to Forecasts : 18/05/2022.