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 Analysis

Reasonable growth potential 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

Stable Share Price: PGN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

62.5%

PGN

18.5%

DE Auto Components

9.1%

DE Market


1 Year Return

-58.5%

PGN

-44.5%

DE Auto Components

-13.1%

DE Market

Return vs Industry: PGN underperformed the German Auto Components industry which returned -44.6% over the past year.

Return vs Market: PGN underperformed the German Market which returned -14.3% over the past year.


Shareholder returns

PGNIndustryMarket
7 Day62.5%18.5%9.1%
30 Day13.8%-5.7%-1.0%
90 Day-32.9%-36.1%-20.7%
1 Year-58.1%-58.5%-42.2%-44.5%-10.6%-13.1%
3 Year-72.9%-73.4%-55.8%-59.5%-10.7%-18.1%
5 Year-23.6%-26.8%-59.4%-63.7%-10.7%-22.8%

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 compared to its fair value and its price relative to the market?

0.57x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: PGN (€13) is trading above our estimate of fair value (€2.78)

Significantly Below Fair Value: PGN is trading above our estimate of fair value.


Price To Earnings Ratio

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 to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PGN is good value based on its PB Ratio (0.6x) compared to the DE Auto Components industry average (0.7x).


Next Steps

Future Growth

How is paragon GmbH KGaA forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

101.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PGN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: PGN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PGN's is expected to become profitable in the next 3 years.

Revenue vs Market: PGN's revenue (11.9% per year) is forecast to grow faster than the German market (3.9% per year).

High Growth Revenue: PGN's revenue (11.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PGN's Return on Equity is forecast to be low in 3 years time (5.5%).


Next Steps

Past Performance

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

-45.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PGN is currently unprofitable.

Growing Profit Margin: PGN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PGN is unprofitable, and losses have increased over the past 5 years at a rate of -45% 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 (-21.3%).


Return on Equity

High ROE: PGN has a negative Return on Equity (-9%), as it is currently unprofitable.


Next Steps

Financial Health

How is paragon GmbH KGaA's financial position?


Financial Position Analysis

Short Term Liabilities: PGN's short term assets (€174.9M) exceed its short term liabilities (€86.2M).

Long Term Liabilities: PGN's short term assets (€174.9M) exceed its long term liabilities (€134.0M).


Debt to Equity History and Analysis

Debt Level: PGN's debt to equity ratio (81.3%) is considered high.

Reducing Debt: PGN's debt to equity ratio has reduced from 177.6% to 81.3% over the past 5 years.

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

Interest Coverage: Insufficient data to determine if PGN's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

1.94%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PGN's dividend (1.94%) is higher than the bottom 25% of dividend payers in the German market (1.57%).

High Dividend: PGN's dividend (1.94%) is low compared to the top 25% of dividend payers in the German market (4.68%).


Stability and Growth of Payments

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 covered by earnings (60.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

€1m

CEO Compensation


CEO

Klaus Frers (66yo)

6s

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 ($USD1.29M) is above average for companies of similar size in the German market ($USD421.65K).

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


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: €58.298m
  • 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
PGNETLX (Eurotlx)YesBearer SharesITEURNov 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, Mechanics, and Electromobility. The Electronics segment develops and sells sensors, microphones, and instruments primarily for the automotive industry. The Electromobility segment manufactures and sells battery systems and battery management systems for various industries. The Mechanics segment develops and markets electromechanical components for the automotive and mechanical manufacturing industries. The company was founded in 1988 and is headquartered in Delbrück, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 20:59
End of Day Share Price2020/04/09 00:00
Earnings2019/09/30
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.