Invisio: 115 percent EBIT growth in Q3

Research Update

2016-11-11

17:27

This is an English version of our Swedish Invisio update of November 9. Please note that the share price and the valuation multiples are from November 8. When taken together with revenue growth of 52 percent, Invisio’s EBIT for Q3 of SEK 27.7m means an EBIT margin of a record 32.4 percent, in line with expectations. The gross margin was a strong 53 percent and, aside from in Q4 2015, has now been above 50 percent for eight consecutive quarters. However, the volatile order intake, rolling 12 months, fell 24 percent from Q2 2016, to SEK 296m, but this is in the nature of the business. Our unchanged valuation implies a base case of SEK 72 per share and a fair value range of SEK 28-90. The stock markets are contemplating how to think about the uncertainty from Trump’s victory. However, Invisio could theoretically benefit from the US election outcome if the promise of increased military budget is realized.

VW

Viktor Westman

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