DB:PGN

Stock Analysis Report

paragon GmbH KGaA

Executive Summary

paragon GmbH & Co. KGaA develops, manufactures, and sells electronic components and sensors for the automotive industry in Germany and internationally.

Snowflake

Fundamentals

Fair value with mediocre balance sheet.

Share Price & News

How has paragon GmbH KGaA's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

12.0%

PGN

2.6%

DE Auto Components

2.8%

DE Market


1 Year Return

-56.5%

PGN

-18.3%

DE Auto Components

2.9%

DE Market

Return vs Industry: PGN underperformed the German Auto Components industry which returned -18.3% over the past year.

Return vs Market: PGN underperformed the German Market which returned 2.9% over the past year.


Share holder returns

PGNIndustryMarket
7 Day12.0%2.6%2.8%
30 Day-4.5%-7.3%-0.2%
90 Day-28.6%-0.3%0.9%
1 Year-56.0%-56.5%-14.9%-18.3%6.2%2.9%
3 Year-62.1%-62.8%-26.4%-32.6%18.2%8.0%
5 Year9.1%4.6%-18.5%-26.9%43.1%23.6%

Price Volatility Vs. Market

How volatile is paragon GmbH KGaA's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is paragon GmbH KGaA undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: PGN (€13.28) is trading below our estimate of fair value (€39.99)

Significantly Undervalued: PGN is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: PGN is unprofitable, so we can't compare its PE Ratio to the Auto Components industry average.

PE vs Market: PGN is unprofitable, so we can't compare its PE Ratio to the German market.


Price Based on Expected Growth

Low PEG Ratio: Insufficient data to calculate PGN's PEG Ratio to determine if it is good value.


Price Based on Value of Assets

PB vs Industry: PGN is good value based on its PB Ratio (0.6x) compared to the DE Auto Components industry average (1.1x).


Next Steps

Future Growth

How is paragon GmbH KGaA expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

59.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: PGN is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: PGN is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: PGN is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: PGN's revenue (19.3% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: PGN's revenue (19.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: PGN's Return on Equity is forecast to be low in 3 years time (4.7%).


Next Steps

Past Performance

How has paragon GmbH KGaA performed over the past 5 years?

-30.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PGN is unprofitable, and losses have increased over the past 5 years at a rate of -30.7% per year.

Accelerating Growth: Unable to compare PGN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PGN is unprofitable, making it difficult to compare its past year earnings growth to the Auto Components industry (-6.3%).


Return on Equity

High ROE: PGN has a negative Return on Equity (-3.14%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: PGN is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: PGN is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is paragon GmbH KGaA's financial position?


Financial Position Analysis

Short Term Liabilities: PGN's short term assets (€184.6M) exceeds its short term liabilities (€76.4M)

Long Term Liabilities: PGN's short term assets (184.6M) exceeds its long term liabilities (136.0M)


Debt to Equity History and Analysis

Debt Level: PGN's debt to equity ratio (78.4%) is considered high

Reducing Debt: PGN's debt to equity ratio has reduced from 168% to 78.4% over the past 5 years.

Debt Coverage: PGN's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: PGN is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: PGN has a high level of physical assets or inventory.

Debt Coverage by Assets: PGN's debt is covered by short term assets (assets are 1.397030x debt).


Next Steps

Dividend

What is paragon GmbH KGaA's current dividend yield, its reliability and sustainability?

2.49%

Expected Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%1.5%markettop25%3.9%industryaverage2.5%forecastin3Years2.5%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: PGN's dividend (1.91%) is higher than the bottom 25% of dividend payers in the German market (1.46%).

High Dividend: PGN's dividend (1.91%) is low compared to the top 25% of dividend payers in the German market (3.86%).

Stable Dividend: Whilst dividend payments have been stable, PGN has been paying a dividend for less than 10 years.

Growing Dividend: PGN has only been paying a dividend for 7 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: PGN is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: PGN's dividends in 3 years are forecast to be thoroughly covered by earnings (10.3% payout ratio).


Next Steps

Management

What is the CEO of paragon GmbH KGaA's salary, the management and board of directors tenure and is there insider trading?

€1m

CEO Compensation


CEO

Klaus Frers (66yo)

5.5yrs

Tenure

€1,182,432

Compensation

Mr. Klaus Dieter Frers is the Founder and Chairman of the Management Board at paragon GmbH & Co. KGaA (Formerly known as Paragon AG) and has been its Chief Executive Officer since April 1, 2014 and also it ...


CEO Compensation Analysis

Compensation vs. Market: Klaus's total compensation ($USD1.31M) is about average for companies of similar size in the German market ($USD216.57K).

Compensation vs Earnings: Klaus's compensation has increased whilst the company is unprofitable.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Klaus Frers (66yo)

    Founder

    • Tenure: 5.5yrs
    • Compensation: €1.18m
  • Oliver Munz

    Manager of Finance

    • Tenure: 0yrs
  • Matthias Schöllmann

    MD & Member of Management Board

    • Tenure: 1.1yrs
    • Compensation: €605.51k

Board Members

  • Hermann-Josef Börnemeier (64yo)

    Deputy Chairman of Supervisory Board

    • Tenure: 0yrs
    • Compensation: €30.00k
  • Walter Schäfers

    Member of Supervisory Board

    • Tenure: 9.1yrs
    • Compensation: €30.00k
  • Lutz Eckstein

    Chairman of Supervisory Board

    • Tenure: 5.4yrs
    • Compensation: €60.00k

Company Information

paragon GmbH & Co. KGaA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: paragon GmbH & Co. KGaA
  • Ticker: PGN
  • Exchange: DB
  • Founded: 1988
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: €59.385m
  • Shares outstanding: 4.53m
  • Website: https://www.paragon.ag

Number of Employees


Location

  • paragon GmbH & Co. KGaA
  • Artegastrasse 1
  • Delbrück
  • North Rhine-Westphalia
  • 33129
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PGNDB (Deutsche Boerse AG)YesBearer SharesDEEURNov 2000
PGNXTRA (XETRA Trading Platform)YesBearer SharesDEEURNov 2000
0NFGLSE (London Stock Exchange)YesBearer SharesGBEURNov 2000
PGNdBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEURNov 2000

Biography

paragon GmbH & Co. KGaA develops, manufactures, and sells electronic components and sensors for the automotive industry in Germany and internationally. It operates through three segments: Electronics, Mech ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 20:40
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

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